Greater Charlotte Biz 2010.10

legalbiz

|

webbiz

|

consultingbiz

|

accountingbiz

|

employersbiz

|

bizprophet

october 2010

Marcus G. Smith President and COO Speedway Motorsports, Inc. President and General Manager Charlotte Motor Speedway, LLC

!"#$%& Pole

!POSITION !"##$%&'()*!+,-.*/#&$)* 0,-.*1&2*13,#2$4'*566#3,27)

!!! Enventys !!! MidasNation !!! Harris Communications !!! Engineering Sales Associates CHANGE SERVICE REQUESTED 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, N.C. 28226-1310

PRSRT STD U.S. Postage PAID Permit No. 505 Charlotte, NC

in this issue

f

e

a

t

22

u

e

s

cover story

Charlotte Motor Speedway

“I really want to carry on the tradition that Charlotte Motor Speedway enjoys of being the Mecca of Motorsports,” Marcus Smith says. As chief executive, he executes his responsibilities with a genuine respect and strong affinity for the fans, and is in favor of anything that heightens the fans’ enjoyment of speedway events. Tracking alongside his father’s footsteps, he says he’s learned firsthand the “incredible power of being optimistic and positive and the importance of hard work.”

16

Enventys

“Everyone has great ideas, but you also need the time, money and patience to see the idea start at the drawing board and make it through the process to the end product. I want people to understand the product development process and to educate them on the responsible way of doing it,” says Louis Foreman, founder and CEO, and holder of 10 patents himself.

2

r

28

MidasNation

MidasNation partners high-producing business veterans with middle-market private companies to re-design the way they do business and quickly multiply the company’s value while decreasing demands on the owner’s time. Says Rob Slee, “We’re 10x’ers, meaning we intend to increase the value of a business by at least 10 times from where we find it.”

34

publisher’spost

4

legalbiz

5

Transforming the Business of Law to Meet the Needs of Business

webbiz

7

New Media Strategies, Secrets and Solutions

accountingbiz

9

Accounting, Tax and Consulting Solutions

consultingbiz

11

Managing and Delivering Change to Optimize Business Value

employersbiz

13

Legislative and Regulatory Highlights for Area Employers

bizprophet

14

Engaging and Inspiring Thought Leadership in the New Millennium

Harris Communications

If you’ve ever missed an important sales call because you stepped indoors, these the guys may be your heroes. They make cell phones work in buildings. An outdoor antenna collects signals and a system of cables carries the signals throughout the inside of the building. A correctly designed system results in cell phone coverage in even the tightest interior spaces.

october 2010

departments

!"

biznetwork on the cover: Marcus G. Smith President and COO Speedway Motorsports, Inc. President and General Manager Charlotte Motor Speedway, LLC

legalbiz

|

webbiz

|

consultingbiz

|

accountingbiz

|

employersbiz

|

bizprophet

october 2010

Marcus G. Smith President and COO Speedway Motorsports, Inc. President and General Manager Charlotte Motor Speedway, LLC

!"#$%& Pole

!POSITION !"##$%&'()*!+,-.*/#&$)* 0,-.*1&2*13,#2$4'*566#3,27)

Engineering Sales Associates Art Pue, his sons Arthur and Brandon, and their 18 employees bring a massive 340 years of combined experience to the assistance of their customers in this, their 50th year. “Our goal is to be a one-stop-shop for all compressed air and liquid filtration needs, including equipment, parts, service, rentals and expert consulting,” says the senior Pue.

44

!!! Enventys !!! MidasNation

Photography by Wayne Morris

!!! Harris Communications !!! Engineering Sales Associates

w w w. g re a t e rc h a r l o t t e b i z . c o m

[publisher’spost] YOU Can Make the Tough Choices!

No matter where you are on the political spectrum, you can expect the political atmosphere to get even murkier. There is little doubt that the November elections will deliver at least one legislative branch to a Republican majority. Even if they do not succeed, the politics of governing will get much tougher.

Democratic control will substantially diminish. That means that John Paul Galles any changes will require a more bi-partisan approach for anything to pass or succeed. In all likelihood, we will witness more political standoffs and little progress on the big issues facing our nation. That is a shame!

One thing is for sure. The outspoken cry to reduce the federal deficit will get even louder.

We grow increasingly uncomfortable about the fiscal condition of the United States. At the same time, we seem to be unable to make the tough choices necessary to bring government spending back into balance, especially in light of our high unemployment levels.

According to the Concord Coalition, our federal deficits will total $14.4 trillion over the next 10 years. In order to reduce those deficits, we will have to establish principles and priorities upon which to make the tough choices. Democrats and Republicans will each approach this task with different agendas. How or whether they will come together will depend upon public pressure and global pressures.

As the public, we can make better choices when we are better informed about the options available. To that end, the Concord Coalition has created a Federal Budget Challenge so that individuals can learn about the options and the choices to address the federal deficit. The Concord Coalition is a non-partisan, grassroots organization dedicated to educating the public about the causes and consequences of federal budget deficits.

It is important to know that our budget is in crisis not just because of the recent economic recession, but also because of our aging population and explosive health care costs.

Our deficit in 2009 of $1.4 trillion is a small fraction of the longer term gap between we what have promised to provide and what we have the ability to pay.

By 2019, the national debt will soar to be as large as the entire U.S. economy. The impact of that debt will slow our economy even further, lowering productivity and reducing living standards.

Please go to www.federalbudgetchallenge.org. Take the challenge. You will progress through 11 policy option screens where basic information is presented on the choices to be made within that policy arena. You can make your choices and see the impact of those decisions on the budget deficit.

It is an interesting exercise that shows you just how difficult the choices will be to make any progress on reducing our federal deficit. Once you have completed the challenge, you will know more about the complexity of these issues and appreciate the difficulty in achieving bipartisan support.

Fellow Charlottean Erskine Bowles is heading up a presidential bipartisan commission to make recommendations for deficit reduction. He and Alan Simpson have an extremely tough task. Our deficit cannot be fixed in one year or five years or even 10 years, but we can make progress every year. Erskine’s experience negotiating with Newt Gingrich in 1997 helped produce our first balanced budget in 30 years. That was undone by our political choices in the last 10 years. It will be interesting to learn the recommendations for our present situation.

It is easy to bark about deficits and government spending. It is much tougher to grapple with the real issues and make smart decisions in the best interests of our future collectively and independently. No one wants to pay more taxes. No one wants to cut social security. No one likes the tough choices. Yet, we must make changes. Our future depends upon it. We cannot afford to NOT make choices. biz

Let me know what you think - jgalles@greatercharlottebiz.com

4

october 2010

704-676-5850

October 2010 Volume 11 • Issue 10 Publisher John Paul Galles x102 jgalles@greatercharlottebiz.com

Associate Publisher/Editor Maryl A. Lane x104 mlane@greatercharlottebiz.com

Creative Director Trevor Adams x107 tadams@greatercharlottebiz.com

Advertising Sales 704-676-5850 x102 sales@greatercharlottebiz.com

partners !CC Communications, Inc. !Elliott Davis, PLLC !NouvEON Technology Partners, Inc. !The Employers Association !UNC Belk College !Wishart, Norris, Henninger & Pittman, P.A.

Contributing Writers Ellison Clary Zenda Douglas Carol Gifford Heather Head

Contributing Photographers Trevor Adams Wayne Morris Galles Communications Group, Inc. 7300 Carmel Executive Park Dr., Ste. 115 Charlotte, NC 28226-1310 704-676-5850 Phone • 704-676-5853 Fax www.greatercharlottebiz.com • Press releases and other news-related information: editor@greatercharlottebiz.com.

• Editorial: mlane@greatercharlottebiz.com.

• Advertising: jgalles@greatercharlottebiz.com.

• Subscription inquiries or change of address: subscriptions@greatercharlottebiz.com.

• Other inquiries: please call or fax at the numbers above or visit our website www.greatercharlottebiz.com. © Copyright 2010 by Galles Communications Group, Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable. However, Galles Communications Group, Inc. makes no warranty to the accuracy or reliability of this information. Products named in these pages are trade names or trademarks of their respective companies. Views expressed herein are not necessarily those of Greater Charlotte Biz or Galles Communications Group, Inc. No part of this publication may be reproduced or transmitted in any form or by any means without written permission from the publisher. For reprints call 704-676-5850 x102.

Greater Charlotte Biz (ISSN 1554-6551) is published monthly by Galles Communications Group, Inc., 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310.

Telephone: 704-676-5850. Fax: 704-676-5853. Subscription rate is $24 for one year. POSTMASTER: Send address changes to Greater Charlotte Biz, 7300 Carmel Executive Park Dr., Ste. 115, Charlotte, NC 28226-1310.

w w w. g re a t e rc h a r l o t t e b i z . c o m

Wishart, Norris, Henninger & Pittman, P.A.

[legalbiz]

Transforming the Business of Law to Meet the Needs of Business

The 1099 Debate

!The Family and Medical Leave Act - Individual Liability

You may already be aware of, and you may have already signed a letter to Congress opposing, the Form 1099 reporting rules that come into effect in 2012. In case you haven’t heard, the new health care law has changed reporting requirements to add “corporations” to the list of people you have to report. This means that, if you spend more than $600 with a corporation in any year beginning January 1, 2012, you must send that corporation a Form 1099. This includes any grocery store, office supply store or any other place you spend more than $600 per year for your business.

Please remember, you can almost always be liable for something you do.

This concept is no different under the Family and Medical Leave Act (FMLA).

If you act in the “interest of the employer” in any of the actions giving rise to a FMLA claim, you may find yourself defending a lawsuit individually.

For example, in one lawsuit, in addition to the employer, the president/CEO, a human resources manager, a director, and a plant manager were sued individually for FMLA claims. How do you avoid this potential liability? You must have training and policies in place to make certain that violations of the FMLA (and other regulations) do not happen. ~Eric Bass

!Personal Goodwill

Asset Protection

As you might expect, there have been a lot of letters going to Congress as a result of this change. Most businesses are protesting the additional record keeping that must be done to comply with the law. With more than a year before this new requirement goes into effect, there will be ample opportunities for Congress to change the law again. However, you must still work now to be certain you are ready on January 1, 2012, as Congress may not act before December 31, 2011, if it acts at all to change this requirement.

FOR

SALE

BY OWNER

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

When you think about “asset protection,” you may think about “hiding” assets. However, with true asset protection, “hiding” is definitely not an option. Also, “asset protection” is not a dirty word. Most of us engage in asset protection every day by having insurance (home, auto or life). Setting up a business entity to limit your personal liability for what your business does is another basic form of asset protection.

Further, North Carolina provides some specific asset protections including: 1. Cash value of life insurance; 2. Up to $25,000 in a “529 Plan” for education (subject to certain restrictions); 3. Qualified retirement accounts; and 4. Real property owned as “tenants by the entirety” (when only one spouse is liable on the debt).

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

Asset protection planning should be the first step in planning and operating your business. Many times, business owners find out that they have put all of their assets “at risk” in their business. This can happen by: a. Not having a business entity with limited liability for your business; b. Not having the right kind of or amount of insurance; c. Putting all of your assets in one entity (such as real estate used by your business in the same entity as your business operations); and d. Not clearly understanding how to limit risk.

What are you risking?

Content provided by Wishart, Norris, Henninger & Pittman, P.A., which partners with owners of closely-held businesses to provide comprehensive legal services in all areas of business, tax, estate planning, succession planning, purchases and sales of businesses, real estate, family law, and litigation. For more information, contact Robert Norris at 704-364-0010 or visit www.wnhplaw.com.

october 2010

5

0

UNIFY YOUR

No Matter Where You Are or What Device You Use, It's Just Like Being There!

COMMUNICATIONS

TO CONNECT SEAMLESSLY

Voice • Video • Data

Making IT Work!

962 5- D So u t h ern Pin e B lv d . • Cha rl ot te , NC 28 2 73 P h on e: 704. 831. 2 50 0 • To ll F r e e : 866. 70 8 .0 8 8 6

# $ % & ' ( )*) + , & - # )*) . / ( / ' $

w w w. a t - n e t . n e t

CC Communications

[webbiz]

New Media Strategies, Secrets and Solutions

QUESTION

&

ANSWER

WORK

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

7

US News & World Report has named Carolinas Medical Center one of America’s Best Hospitals in Orthopaedics.

Our patients couldn’t agree more. By bringing together world-class physicians, education, research and compassionate care, we have set the highest orthopaedic standards in our region. It’s another reason we are the region’s preferred healthcare provider. And Carolinas Medical Center is one of America’s Best Hospitals.

www.carolinasmedicalcenter.org

Elliott Davis

[accountingbiz]

Accounting, Tax and Consulting Solutions

Tax Savings in 2010: C*$&(3#+/4(*$&%<*+%J-&($#&&%K8$#+&

W

ith the continuing economic uncertainty, companies are staying vigilant when it comes to controlling costs.

While every business owner must pay taxes, you may be paying more than necessary. Are you taking advantage of all tax savings available to you? Do you have a tax planning strategy that takes into account deferrals and tax traps?

Here are some considerations for business owners anxious to save tax dollars in 2010. !Project Your Income: In order to time income and deductions to your advantage, you will need to project your business’s income for this year. In doing so, you may find it better to defer tax. If you expect to be in the same or a lower tax bracket next year, consider: Deferring income to next year—If your business uses the cash method of accounting, you can defer billing for your products or services. Or, if you use the accrual method, you can delay shipping products or delivering services.

Accelerating deductions into the current year—If you’re a cash-basis taxpayer, you may want to make an estimated state tax payment before December 31st, so you can deduct it this year rather than next year. However, consider the alternative minimum tax (AMT) consequences first.

Caution: If you are experiencing a low-income year, the negative impact on your cash flow may not be worth the potential tax benefit. Another consideration: if it’s likely you’ll be in a higher tax bracket next year, the opposite strategies (accelerating income and deferring deductions) may save you more tax. Keep in mind that some income tax rates may go up in 2011.

You should consult a professional tax advisor before determining the best strategy for your business.

$

!Savings for Depreciation: For assets with a useful life of more than one year, you generally must depreciate the cost throughout a period of years. You may want to choose the Modified Cost Recovery System (MACRS) instead of the straight-line method in order to obtain a larger deduction in the early years of an asset’s life. However, if you make more than 40% of the year’s asset purchases in the last quarter, you could be subject to the mid-quarter convention, which is typically less favorable. The following depreciation-related tax savings and strategies are available during 2010: Section 179 expensing election—The Small Business Jobs Act of 2010 (SBJA), which was recently signed by President Obama, allows business owners to elect to deduct up to $500,000 of new asset purchases during 2010. Examples of assets that qualify for the Section 179 election are new equipment, furniture, computers and off-the-shelf computer software.

SBJA also temporarily expands the definition of eligible property to include qualified leasehold-improvement, restaurant, and retailimprovement property. The maximum amount of such property that can be expensed is $250,000.

Keep in mind that you can claim the deduction only to offset net income, not to reduce it below zero. Also, when total asset purchases during 2010 exceed $2 million, the deduction begins to phase out dollar-for-dollar.

Bonus Depreciation—SBJA also extends, through December 31, 2010, 50% first year bonus depreciation, which had expired at the end of 2009.

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

The extension is retroactive to January 1, 2010. Property that qualifies for bonus depreciation includes tangible property with a recovery period of 20 years or less, computer software purchased by the business, water utility property, and qualified leasehold improvement property.

Cost segregation study—If you have recently bought or constructed a building or are remodeling existing space, consider a cost segregation study. It identifies property components and related costs that can be depreciated over 5-7 years using 200% the straight-line rate or over 15 years using 150% of the straight-line rate. Therefore, you can depreciate the property much faster and dramatically increase your current deductions. Examples of assets that qualify include decorative fixtures, security equipment, parking lots, landscaping, and architectural fees allocated to qualifying property.

Dan Warren, CPA, Managing Shareholder

!Your Automobile Usage: Your automobile may Leah Maybry, CPA, translate to tax savings. Just be sure to keep complete Senior Tax Manager records, specifically a current log of business vs. personal miles. Automobile expenses can be deducted using the mileage-rate method (50 cents per business mile driven in 2010) or the actual-cost method (total out-ofpocket expenses for fuel, insurance, and repairs, plus depreciation).

If you buy or lease hybrid or lean-burn-technology automobiles, you may be able to claim tax credits worth up to $3,400 for cars and light trucks. However, these credits phase out once a specified number of a particular vehicle has been sold.

In addition, under Section 179 expensing, you can deduct up to $25,000 of the purchase price of a new SUV or truck that weighs at least 6,000 pounds, but fewer than 14,000 pounds. The normal Section 179 expensing limits generally apply to vehicles weighing more than 14,000 pounds. !Your Employee Benefits: Did you know that including specific benefits in your compensation package can not only help you attract and maintain the best employees, but can also help you manage your tax liability?

Qualified deferred compensation plans—These include pension, profitsharing, SEP and 401(k) plans as well as SIMPLEs. You can benefit from a tax deduction for your contributions to employees’ accounts and your employees benefit from the tax-deferred savings that the plans offer. Small employers (generally those with 100 or fewer employees) that create a retirement plan may be eligible for a $500 credit per year for three years. The credit is limited to 50% of qualified start-up costs.

Fringe benefits—Some fringe benefits, such as group term-life insurance (up to $50,000), health insurance, parking (up to $230 per month), and employee discounts aren’t included in employee income. Yet, you as the employer still receive a deduction and typically also avoid payroll tax.

The above considerations are only a sample of the tax savings strategies available to business owners this year. Be sure to consult a professional tax advisor to ensure you are taking advantage of all potential savings for 2010.

Content contributed by the Charlotte office of Elliott Davis, PLLC, an accounting, tax and consulting ser vices firm providing clients the solutions needed to achieve their objectives in 10 offices throughout the Southeast. For more information, contact Dan Warren at 704-808-5210 or visit www.elliottdavis.com.

october 2010

9

NouvEON

[consultingbiz]

Managing and Delivering Change to Optimize Business Value

!Are You Ready for Business Process Improvement? !"#$%&'()*'+,-.'/0*"($1%"'21-'30"$%*""'4-15*""'678-19*7*%('6%$($,($9*" Faced with the realities of the “New Normal,” businesses are undertaking Business Process Improvement (BPI) initiatives to achieve higher efficiency ratios and gain competitive advantages through: " Reducing costs and increasing profit " Passing on cost savings to customers through changing marketplace dynamics " Demonstrating agility and scaling up or down as the changing economy demands Business process improvement initiatives can help an organization realize its objectives but how do you know if an organization is ready to begin a BPI initiative?

As BPI has taken hold, many business leaders are realizing technology improvements and innovation alone will not enable organizations to achieve their goals—a focus on people, current state processes, and culture is also required. A solid change management program is the foundation to reach the objectives of a process improvement initiative.

Before beginning a BPI project, organizational leaders should take careful preparation to lay a solid change management foundation. " Have you assessed your organizational readiness for significant business process changes? Organizations can easily become saturated with change and unable to focus with conflicting priorities on the agenda. " Do you have the measurements in place to identify where your organization’s current state, your goals for tomorrow and how progress looks along the way? "# Is leadership committed to making the changes? Are the organization’s leaders open-minded about changing the “way things are done”? "#Are cross-functional teams in place and empowered to own the end product? "#Does your organization have governance in place to support new processes and ensure new methods/policies are followed?

To achieve the value, companies must accept that change is a process—we are all naturally resistant to change. To enable change, people have to come before the technology!

Leaders are Key to Process Change Because Business Process Improvement is so personal—changing how we do things every day, internally and sometimes for our customers—a key factor is engaging the full commitment of the leadership team from the very beginning. Many BPI initiatives fail because an organization believes sufficient commitment is in place, without realizing the full scope of what is required on a leadership level to develop and sustain this Charles Pfeiler, level of change.

Senior Managing Consultant, Business Process Improvement For example, once identified, the leaders must

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

be willing to commit key resources to the project including the people everyone wants on their team. Once defined, leaders need to fully understand and be able to articulate the change. And finally, leaders need to be committed to govern and support the new processes.

Old habits and accepted ways of doing things are difficult to break. A fully engaged and supportive leadership team is a critical foundation for BPI. Getting the leadership of your company “on the same page” prior to starting out any initiative will pay great dividends in the long run. Once this is done you can lay the foundation.

The Right Team Just as leadership is critical to success, the right team is essential. The right team includes employees from cross-functional areas with business knowledge and people knowledge. In other words, your team needs the kinds of people who can navigate the organization to find answers and influence other people.

The right mix of roles and skill sets is also important for your BPI project.

Teams should include Subject Matter Experts (SMEs) with deep business and process knowledge. Teams should include a mixture of business and technology team members, as well as project management professionals who are able to monitor, track and guide project progress.

Depending upon the scope and breadth of the change, a typical BPI team should include: • Executive Leaders/Sponsors • PMO (Project Manager, Coordinators, Planners, Schedulers) • IT Program Manager • IT Manager • Project Leads • Architects • Programmers • Business Process Manager • Business Process Designers • Business Process Analysts • Business Process SMEs • Change Manager Business Process Improvement in Action Business Process Improvement can help you and your organization achieve great things. The key to success is as simple as considering the people, the business and the technology as the fundamental components of every BPI initiative.

Content contributed by NouvEON, a management consulting firm. For a copy of the Getting Started with Business Process Improvement Checklist or to learn more about Business Process Excellence, visit www.nouveon.com or e-mail marketing@ nouveon.com. To contact NouvEON’s Business Process Improvement expert, e-mail him at cpfeilert@nouveon.com.

october 2010

11

What is ?

It’s being able to see around corners.

It’s connecting, engaging, collaborating and debating.

It’s inspiring a new generation of business leaders. is a new speaker series from the Belk College of Business.

is Tomorrow’s ideas. Today.

The

event:

NOV. 04, 2010

JOIN US FOR AN EVENING WITH

VIP tickets include a private reception with the authors and an autographed copy of Freakonomics.

Register today at:

BELKCOLLEGE.UNCC.EDU/NEXT

THE EMPLOYERS ASSOCIATION

Legislative and Regulatory Highlights for Area Employers

Trusted HR Advice, Tools & Training

The

P%

[employersbiz]

Worst Interview Questions and What to Ask Instead

!

he interview remains a hiring manager’s most effective tool for evaluating job candidates. Unfortunately, managers too often rely on a list of standard interview questions for which most applicants have canned responses.

Ask generic questions and you’ll get generic answers.

Here are five common questions to avoid, according to an OfficeTeam report, as well as suggestions for more productive queries that will help you make the correct hiring choice:

L9%

Don’t ask: “Can you tell me about yourself?”

Simply encourages applicants to summarize their resumes, wasting precious time and preventing you from finding out any new information. !!Instead ask: “What professional accomplishments are you most proud of and why?”

Forces candidates to elaborate on the most pertinent aspects of their work history.

M9%

O9

Don’t ask: “What are your strengths?”

Candidates usually trot out a prepared, vanilla response that teaches you nothing. !!Instead ask: “What is your greatest professional strength, and how have you used it to overcome a challenge in your career?”

Compels candidates not only to describe a strength they possess but also to expand on how they’ve applied it in a real situation.

Especially revealing when interviewing candidates for technical positions because it allows you to gauge whether they can explain their successes in terms anyone can understand.

Don’t ask: “Why do you want to work here?”

Chances are you’ll merely receive praise about the organization that borders on insincerity. !!Instead ask: “What specifically attracted you to our organization?”

Forces applicants to articulate why they view your organization as “unique” and “a good place to work.” Allows assessment of not only their depth of knowledge about your organization, but also whether they truly want to work for the company.

N9

Don’t ask: “Do you prefer to work alone or with a team?”

Obsolete. Need to do both. !!Instead ask: “Can you describe an example of when you worked with a colleague or group to solve a problem.”

Ideal candidates will be able to demonstrate that they can work effectively with people from different departments and at various levels in the organization.

(The HR Specialist)

Don’t ask: “What are your weaknesses?”

Invites prepared weakness-turnedpositives—“I work too hard” or “I’m sometimes too detail-oriented”—that disclose nothing about true shortcomings. !!Instead ask: “Can you describe a time when you didn’t accomplish a goal and how you rectified the situation?”

Find out how the candidate has dealt with adversity in the past. Did they solicit help from co-workers? Did they act right away?

Did they take responsibility? Especially helpful when interviewing management-level candidates.

P9

!Being Read: !"#$%&'(()*+#,)&'-./#0 “I never got it!” exclaims Maureen. She claims she never received the e-mail from the HR Director, Raul, telling her that her proposed vacation timing was rejected.

Raul is positive that he informed her of the situation and the vacation reality. “I sure hope I still have that e-mail,” he thinks. “What do I have to do—follow up on every e-mail I send?”

E-mail has become the preferred form of communication in a large swath of America’s organizations. Users are drawn to the ease of sending communications to a large number of recipients, the economic efficiency of conversing electronically, the archival nature of e-mail, and the simple connection to mobile devices. The result of this love affair is a torrent of e-mails flooding mailboxes. Corporate e-mail is expected to increase 27 percent this year, according to a Radicati Group survey.

Employees are either consciously or unconsciously reacting to this flood of information with several survival techniques, which have lead many of them to ignore or simply breeze past important e-mails.

Electronic Rules and Fixes Many e-mail applications allow users to automatically have messages sent directly to particular folders when received, instead of ending up in their in box. That’s great for e-mail organization, but unless reviewed regularly, it can result in missed messages.

Programs can be set to filter out Generic terms like “response e-mails by sender, subject line required,” “policy enclosed,” text, or even size. Make sure that and “new procedure” can be employees use the programs regulated to certain communijudiciously or not at all. Many cations. Department-specific "#$%#$&'() employees simply forget a language can be adopted (*%+#,((-) filter is in place and should be for subject lines as well &$()-(./0.1) instructed to review such fold(“HR Alert,” “Safety Update,” 23)(4*&0+-) ers at least once a day. and “Benefits Deadline”). (&56)/&,7 Use technology tools and Employers can also adopt a rules to help ensure that your specific color for the background messages are read. Messages of important communications that can be sent with confirmation that the affect the terms and conditions of e-mail has been delivered and/or opened. A employment. “read receipt,” however, should not be interpreted as the E-mails and other electronic communications tools e-mail actually having been read. are here with us to stay. The Radicati Group survey found To ensure that employees have read and understand that corporate employees are sending 47 e-mails each the message, use the “voting buttons” or other e-mail day. E-mail’s influence on how we communicate with features that allow them to affirmatively respond that employees will likely continue to increase in the future. they have read and understand the message.

Utilize these tools and procedures in regulating employees’ in boxes for more effective e-mail. (HR Insight) Subject Lines and Backgrounds Content provided The Employers Association, providing Consider regulating the use of subject lines in an comprehensive human resources and training effort to improve worker review of important e-mails. services to a membership of over 865 companies in Instead of trying to regulate the subjective use of the the greater Charlotte region. For more information, “priority” (!) button in e-mail, more effectively regulate contact Laura Hampton at 704-522-8011 or visit the use of certain terms on the subject line. www.employersassoc.com.

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

13

[bizprophet]

The Performance Group Engaging and Inspiring Thought Leadership in the New Millennium

O

ur country sits on the tail of a dragon.

I recently spent time in China, immersing myself in the country’s business climate and seeking insights into its world view and long-term economic goals. Here’s my takeaway: The political leaders of China—who are also its economic architects—plan to be the world’s economic leader by 2020 by building on the power of enterprise and consumerism.

How’s that for irony?

The Chinese Communist party plans to overturn America’s position of world leadership by out-performing us at our own game of enterprise and innovation.

The Chinese have an edge that’s rooted in history and in pain; they are hungry to prove something to the world.

They have a leg up because they’ve seen our mistakes.

And they have the benefit of party unity—some might call it control—with which to avoid our mistakes of runaway debt, consumer addiction and entitlement at the expense of self-responsibility.

Imagine an economy that could avoid the twin monsters of debt and over-consumption. An economy where Sam Frowine the currency is tightly controlled. An economy in which the government owns a share in every enterprise, and a majority share in all foreign enterprises that roll up on its shores. Imagine a government that holds the debt of its arch economic competitor, America.

This is the strategic plan of China as I interpret it. Enterprise with controlled freedom (an interesting oxymoron). Purchasing power with controlled consumerism. News media slanted to breed collective confidence.

Will it work? I don’t know.

China is good at engineering society to achieve efficacy. Their greatest power lies in their ability to make unified decisions and move the ball forward.

The trade-off is freedom.

The U.S. is good at individual expression, which leads to creativity and innovation and wealth potential. The trade-offs are an undefined strategy for global competition and a fractured voice to the world.

And China knows all this.

How do we avoid being crushed by the tail of the dragon? I don’t know.

What I do know is that it does no good to look for enemies to blame for the condition we’re in before we first look at ourselves. We may, indeed, be in an economic war, but it’s a war we can’t win by confrontation and intimidation. We cannot win with war-like rattles. We must gain strength through collaboration, relationship and deep introspection, with our eyes wide open.

14

october 2010

Created in China

771541 114794

From “Made in China” to “Created in China” China’s master plan for becoming the number one power economically and politically looks something like this: " Own lower-skill manufacturing and production.

(You can put a check there.) " Become banker to the world’s debt. (Check.) " Control enterprise within its own boundaries.

(Check.) " Control the supply chain for unobstructed economic growth. (Check.) " Transform from a manufacturing hub to a leader in innovation by retooling its talent pool. " Move from manufacturing to creating, inventing, innovating products and services. " Establish worldwide recognition of the China brand. " Become the world leader, not a follower.

w w w. g re a t e rc h a r l o t t e b i z . c o m

What China Sees in Us China’s confidence in its ability to win the economic battleground of the 21st century comes from its knowledge that the U.S. is immobilized with political infighting, which neuters us to respond to their aggression in the market.

By the Numbers • China now has the largest foreign exchange reserve in the world—$2.45 trillion as of June, 2010.

• Today, 470-plus of America’s Fortune 500 companies operate on Chinese soil; the Chinese government owns a controlling share in those companies.

• A key speaker in world affairs stated to a group of 28 world-wide consultants at IBM headquarters in Shanghai that China is targeting growth in the middle class of 30% by 2020, which represents 450-500 million potential new consumers.

• China suffers from a major talent exchange deficit. Of its 1.62 million students who go abroad to study, mostly to the United States, only 30% return to China. Among highly qualified people—Ph.D. graduates in science and engineering, the rate of return is 8%. Part of China’s Human Talent strategy is to reverse this trend.

One Good Outcome A significant result of China’s economic strategy can be a better life for the tens of millions of Chinese people who live in poverty. As we rivet our eyes on the dragon, we may also focus on the greater good for these beautiful people.

Next Month Sam Frowine is off to New York for the 2010 World Business Forum (www.wbfny.com) and plans to share insights from national and international thought leaders in the November issue of Greater Charlotte Biz magazine.

Content provided by Samuel E. Frowine III, founder, owner and president of The Performance Group, Ltd., a business consulting firm aligning enterprises with the ambition of owners. For more on Sam’s experiences in China, check out his blog at www.

OwnershipSuccess.com; contact him at 704-5975156 or visit www.theperformancegroupusa.com.

"

"

To imagine where China might be in 2020, it is helpful to recall how far it has come over the last ten years. The last decade has seen China move from a relatively inward-looking nation, that had just taken over the reins of Hong Kong and was building its initial steps towards entering into the World Trade Organization (WTO), to a country holding a more central and active position in international affairs, global environmental issues and the direction of world finance and investment.

Since 2000, China has grown its economy from US $1.1 trillion to US $4.8 trillion, averaging 16% per year, and has built reserves of US $2.2 trillion from US $155 billion. This has been a truly amazing economic performance for a country of 1.4 billion people with a median age of 34.1 years, where 72% of the population is between 15-64 years of age and 46% is under 35 years of age.

The Hong Kong Stock Exchange market capitalization has risen from US $1.4 trillion to US $2.3 trillion, making it the fifth largest in the world, and has demonstrated resilience following both

the bursting of the dot-com bubble and the global financial crisis of 2008. The number of Hong Kong-listed companies has grown from 700 to 1,300, while the Hang Seng Index has risen from 16,962 to 21,873 since January 1, 2000, an increase of 29%.

If you combine the market caps of Hong Kong, China, and Taiwan, they comprise the second largest market in the world, half the size of the U.S. market and double that of Japan.

In China, the market capitalization of the Shanghai Stock Exchange and Shenzhen Stock Exchange combined has grown from US $1.8 trillion in 2000 to US $3.2 trillion on December 30, 2009.

If you combine the market caps of Hong Kong, China, and Taiwan, they comprise the second largest market in the world, half the size of the U.S. market and double that of Japan.

China’s 2020 Vision; Hugh Simon, Chief Executive, and Christopher Chu, Research Analyst; Hamon Investment Group; May 2010; www.dreyfus.com

!Their Moon Shot and Ours %C"($/%(&%3*($)%1**$%&"*4&9%Q#&0%4"/4D&%6'-+/'9%!"#$%G%&/.%71**$%&"*4&:%G%1#/$%,()0%1-'= 4(,(''(*$=3*''/+0%MP=.#/+="*+(R*$0%)/1#=5"/$)($)%($2#&41#$4&9%C"($/%"/&%/4%'#/&4%<*-+%)*($)% $*8S%*$#%(&%,-('3($)%/%$#48*+T%*<%-'4+/1*3#+$%/(+6*+4&U%/$*4"#+%(&%,-('3($)%/%8#,%*<%"()"= &6##3%4+/($&%5*$$#54($)%1/E*+%5(4(#&U%/%4"(+3%(&%($%,(*&5(#$5#0%8"#+#%4"#%J#(E($)%V#$*1(5&% G$&4(4-4#%4"(&%.#/+%*+3#+#3%LMW%BXY%&#Z-#$5#+&[<+*1%Y1#+(5/[)(2($)%C"($/%4"#%'/+)#&4% $-1,#+%($%4"#%8*+'3%($%*$#%($&4(4-4#%4*%'/-$5"%(4&%*8$%&4#1%5#''H)#$#4(5%#$)($##+($)%($3-&4+.U% /$30%I$/''.0%J#(E($)%E-&4%/$$*-$5#3%4"/4%(4%8/&%6+*2(3($)%\LP%,(''(*$%($%&##3%1*$#.%<*+%4"#% 5*-$4+.D&%'#/3($)%/-4*%/$3%,/44#+.%5*16/$(#&%4*%5+#/4#%/$%#'#54+(5%5/+%($3-&4+.0%&4/+4($)%($%M]% 6('*4%5(4(#&9%G$%#&&#$5#0%C"($/%G$59%E-&4%$/1#3%(4&%3+#/1%4#/1%*<%L^=&4/4#=*8$#3%#$4#+6+(&#&%4*% 1*2#%C"($/%*<<%*('%/$3%($4*%4"#%$#>4%($3-&4+(/'%)+*84"%#$)($#S%#'#54+(5%5/+&9 !"#$%&'()'*+,-.$%/0'!"-'1-2'3#+4'!,$-&0'5-67)'890'8:;:

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

15

Louis J. Foreman Founder and CEO Enventys, LLC

16

october 2010

w w w. g re a t e rc h a r l o t t e b i z . c o m

by carol gifford

[bizprofile]

Wanted: “Everyone has great ideas, but you also need the time, money and patience to see the idea start at the drawing board and make it through the process to the end product. ~Louis J. Foreman Founder and CEO

When their little one spilled Cheerios all over the back seat of the minivan for the umpteenth time, lightning struck and Melinda Shepard described her “spill-proof bowl” concept to her husband Brad, an engineer. With the assistance of Enventys, the bowl-in-bowl technology to prevent spills came to life as the Löopa Gyro Bowl complete with website, logo, and industrial design.

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

Innovative Ideas and New Challenges Enventys Means Hope for Everyday Inventors

_

ow many times have you seen a product, delighted in its straightforward utility, and thought, “I could have invented that!”?

So many products—charms for wine glasses, silly wrist bands shaped like animals and sports figures for kids to wear on their wrists, waste cans that open with a touch to a foot pedal, and other popular products—they seem so simple that it begs the question: Why did it take so long for this to hit the market?

Many reasons, says Louis Foreman, founder and CEO of Enventys, a Charlotte product innovation development company that helps people and companies introduce new products and redesign existing ones.

Foreman’s company transforms compelling ideas into new products, offering a suite of services.

Reaching Out to Inventors “Everyone has great ideas, but you also need the time, money and patience to see the idea start at the drawing board and make it through the process to the end product.

“I want people to understand the product development process and to educate them on the responsible way of doing it,” says Foreman, personal inventor and holder of 10 patents.

“Many inventors with new product ideas start on the process get disillusioned and can’t get to the final destination.”

The company grew out of his own personal frustration, says Foreman.

He founded the company in 2001 in Huntersville. The next year, he moved it to the 23,000-square-foot converted grist mill warehouse location in Charlotte. The company also has a Taiwan office. $

october 2010

17

Enventys works with companies ranging in size from start-ups to Fortune 500 to help them grow by diversifying and improving existing product lines. Companies turn to Enventys for product development and specialization assistance to create intellectual property.

The company worked with Britax to engineer and build a car seat and stroller combination, both designing and validating the concept. The redesign of the Boy Scouts of America handbook, used by millions of Americans each year, was a recent marketing project. Two popular infomercial products are Emery Cat, a cat scratching board, and Mr. Steamy, a steaming dryer ball that removes wrinkles in the dryer. Both products are sold in over 25,000 stores nationwide.

The company also reaches out to new inventors with two new ventures that target beginning or small inventors: Everyday Edisons and Edison Nation.

Everyday Edisons is an Emmy award-winning reality television series on American innovation that airs on PBS and just completed its third season.

Evidence of its growing fan base is the skyrocketing number of people who attended casting calls—a jump from 2,000 in season one to 15,000 nationwide in season three—hoping for the chance to have their ideas developed into new products.

The Everyday Edisons season three finale fea~Louis J. Foreman tured products that went to market including: a bed-surround clear plastic shoe storage skirt that Founder and CEO holds 12 to24 pairs of shoes; night beams, a new kind of projecting night lights, and total wrench, an adjustable tool that works with standard and metric connections.

Edison Nation is a social community website introduced in 2009 to encourage ingenuity where Enventys encourages “problem solvers” to share ideas.

“It’s like Facebook for inventors,” says Foreman. “We launched 53 searches for new products for companies last year. We ask real people to tell us their ideas and we send the best along to the companies; it’s a matchmaking process.”

The searches have resulted in products that include a stand to hold storage bags open, a burger baker pan and a burger stuffer utensil.

Another outreach vehicle for inventors is Inventors Digest, a monthly trade publication acquired by Enventys in 2007 and now produced in-house.

“People don’t understand how to determine if an idea is feasible,” explains Foreman, who developed several other start-ups and companies before moving to Charlotte to begin a NASCAR apparel company.

Before investing money in an idea, he tells inventors that they need to be able to answer several questions about their proposed new product or service including: What’s unique about it? Who is the customer? Is there a demand for it? How much money will it take to commercialize it?

“We are very selective about the ideas and products we choose to work with. Since we’re putting our skin in the game, it’s got to be a good fit.”

Choosing Inventor Partners Frank Ramsey is a Charlotte entrepreneur who came to Enventys after being scammed out of “a whole bunch of money from a company that said they would promote my product and did nothing.”

“I heard about the Charlotte casting call for the first season of Everyday Edison’s in 2005 and I was selected to participate,” says Ramsey. “They filmed the process from start to

18

october 2010

finish. I’d go in every month or so and they’d film a different stage of the product.

“They didn’t ask me for a dime, and they invested a lot of time and money in developing my product,” says Ramsey, who signed four utility patents for 20 years with Enventys for his Pressix application, a small device that is affixed inside stainless steel trash cans to hold the plastic liners in place.

Ramsey said it took two to three years to get his product to market. He receives royalties of 15 percent for each product sold. The trash cans sell in Wal-Mart, Bed, Bath and Beyond and the Container Stores at prices ranging from $50 to $130.

“Taking an invention from start to finish is not something the average person can do; it requires too many different skills and it’s a very complex process,” says Ramsey. “Enventys is a straight-up, straightforward company with a great pool of expertise. They tell you what they are going to do and they do it.”

Foreman has the experience to help guide

w w w. g re a t e rc h a r l o t t e b i z . c o m

bcbsnc.com

Health Care Reform. It’s here.

But what does it mean for you?

Find out what health care reform means for you — today — and in the years ahead. + For employers and employees + For health care providers + For all North Carolinians Visit nchealthreform.com

p uAn r sindependent u i n g a licensee b a l aofnthe c eBlueoCross f b uands iBlue n eShield s s aAssociation. n d l i feU7369, 9/10

october 2010

19

and educate new inventors. He serves on a public advisory committee for the U.S. Patent and Trademark Office, and is an elected board member of the United Inventors Association, a national trade group. He is a frequent lecturer on small business creation and innovation and his company is credited with filing more than 400 patents for clients.

Very involved in the Charlotte community, Foreman is a founding member of the Inventors Network of the Carolinas, a non-profit organization to empower inventors through education.

He is also the Entrepreneur in Residence at the McColl School of Business at Queens College, and an award-winning instructor at Central Piedmont Community College.

About 20 percent of the Enventys clients are from the Charlotte region.

“We are very selective about the ideas and products we choose to work with,” explains Foreman. “Since we’re putting our skin in the game, it’s got to be a good fit.”

One-Stop Shop Enventys is a one-stop shop that can turn a great idea into a product, says Foreman. It offers a spectrum of services from industrial design, engineering and prototyping, advertising and branding, interactive and Web, video production and public relations. Clients may choose individual or the full suite of services to help develop a product or service.

Cost is a factor in the decision to move forward. Product development isn’t cheap and inventors can spend a lot of money in the different phases. Enventys offers a fixed cost price for each project, thus allowing the client to determine whether the income potential justifies the cost to develop the product.

“Our value proposition is that we have all the integrated resources an inventor needs in one place,” says Foreman.

“We have really

20

october 2010

Welcome Mat for All Ages One local inventor family from Davidson had a patented idea and came to Enventys to develop and roll out its product.

Flipoutz is a “wearable coolness” fashion accessory for tweenagers conceived three years ago by the three Johnson children, Jake, Lachlin and Erin, then 8, 11, and 15, respectively, and developed in conjunction with their parents, Emily and Robin Johnson. It is a bracelet that holds collectable coins that can be traded and their journey followed online in a safe, interactive process.

“We were novices and someone recommended we see Enventys. The company was very helpful in taking a disciplined, methodical approach to develop the project,” says Robin Johnson.

Enventys did the product prototypes, branding and packaging, and the website development, making it compliant with federal requirements for children’s safety online and ensuring safety standards for parents, says Johnson.

Johnson says they went through the ideation phase, prototypes and focus groups, or the validation process, with kids. They targeted 8 to14-year-olds, and found that “kids loved this thing.”

“Your idea is not going to be an overnight sensation; it doesn’t work that way in the real world,” says Johnson. “But working with Enventys, we were able to get our idea underway in a month or two.”

With help from the company, the Johnson family took its product to the International Toy Fair in New York City last winter, where they began selling it to retailers. They are ramping up slowly, starting out by distributing the product to smaller outlets such as museums, theme parks and zoos, and then moving on to bigger toy retailers.

“Enventys was really good at laying out what you’re in for, what it will cost, and the timeline and framework of your new product. The company was very good in guiding us.” talented, passionate people who can provide the resources and tools clients need to understand the culture and market for product development.”

Developing an idea begins with the ideation process, explains Daniel Bizzell, a partner who heads Enventys’ industrial design.

“This is where you create intellectual property, validate it through consumer research and style the product from sketches to 3D virtual CAD modeling,” says Bizzell. “You need to exhaust the possibilities—we might conceptualize 100 different styles and take one to market.”

There is value in doing such comprehensive work, says Bizzell. It helps fuel and adds synergy to other products under design, and could be used in the future if a company comes back a few years later to rework an existing product line.

Enventys got its start designing

products for military and law enforcement personnel, says Bizzell, making ballistics and protective gear out of new fibers that were better, lighter and faster. Innovative ideas developed there were later transitioned into sports products such as running gear and medical products like knee braces.

Product styling and prototyping takes place in the engineering phase, a group headed by Ian Kovacevich, vice president and partner. Multishot injection molding, manufacturing specs and detail work are done in this phase.

Enventys also offers marketing strategy including: advertising and branding, Internet and Web marketing, led by vice president Matt Spangard, video production, led by managing director Larry DeLeon, and public relations.

Enventys gives everyday inventors the chance to compete with big companies and financiers to see their ideas become products. As they say: “Say hello to innovation. Get to know strategic branding. Shake hands with results.”

“At Enventys we breathe new life into existing products and brands, as well as create new ones using an efficient, collaborative approach.” biz

(l to r) Ian Kovacevich,Vice President, Engineering and Design; Daniel Bizzell, Vice President, Industrial Design; Louis J. Foreman, Founder and CEO; Matt Spangard,Vice President, Interactive, Web Group

w w w. g re a t e rc h a r l o t t e b i z . c o m

Working Out the Kinks Mompreneur Robyn Pellei, a Charlotte mother of nine children aged 1 thru 10, is a believer in Enventys.

Raising a “super family” is a challenge.

To make it easier, Pellei had some ideas she thought would be useful for herself and other busy parents.

“Before working with Enventys, I wasted a lot of money trying to do it all on my own,” explains Pellei. “I dealt with people who were not very reputable, who basically took our money and didn’t do anything.”

She met Foreman in his CPCC course on how to take your invention to market, and visited Enventys with three of her products. “I like that Louis and Enventys had my back and were there to help me finish my product design.

Each department helped me get my products to market,” says Pellei.

It took about one and a half years to get two of her products picked up by Babies R Us. Her new products www.vivevita.cominclude Bandettes, labels for kids’ cups, Bandles, labels for kids’ bottles, and Gripsterz, a child leash alternative. She has several other products in the pipeline including Kissaboo, reusable “boo-boo” covers, MySpotz, small yoga-type circles to give kids their own space, and Everyday Elegance washable chair covers to put on chairs used

“your business development advisors”

trust+strategy+integrity+planning+insight+experience

it all adds up!

Daniel, Ratliff & Company

301 S. McDowell St., Ste. 502, Charlotte, NC 28204 704.371.5000 • www.danielratliff.com

around the table.

Carol Gifford is a Charlotte-based freelance writer.

“WE MAKE CELL PHONES WORK IN BUILDINGS.”

Enventys, LLC 520 Elliot St., Ste. 200 Charlotte, N.C. 28202 Phone: 704-333-5335 Principals: Louis J. Foreman, Founder and CEO; Todd Stancombe, President; Daniel Bizzell,Vice President, Industrial Design; Ian Kovacevich,Vice President, Engineering; Matt Spangard,Vice President, Interactive, Web Group Employees: 25 Established: 2001 Business: Charlotte-based innovation development company that offers companies and inventors access to a collaborative team of in-house experts to help bring new products to market; services include industrial design, engineering and prototyping, advertising and branding, interactive and Web, video production and public relations. www.enventys.com www.EverydayEdisons.com www.EdisonNation.com

Cellular

REPEATER

DONOR ANTENNA

")=7>>)?@A97)B7C7:374)%A>631A92 "#?65>1D)%:E73;)%A>631A92 "#F147)B7C7:374G+#/)%;237<2 "#?A193H3AH?A193)%A>631A92 "#I1HF1)%A>631A92

IN-BUILDING CELLULAR & WIRELESS SOLUTIONS That’s a lot simpler than saying, “We integrate optical technology in distributed antenna systems providing efficient indoor coverage for licensed 800 and 1900 frequency bands, WLAN, WiFi and 700/800 MHz public safety bandwidths.” We install in-building networks using a single distribution backbone with a multi-band distributed antenna system that can accommodate CDMA, TDMA, GSM, iDEN, 1xEV-DO, Edge and WiFi 802.11x, all in an interference-free environment. Call us…we are a national provider of turn-key wireless solutions backed by professional installations and reliable products.

!harriscommunications.net

#$803-325-1717 p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

Amplifier/BDA/ Microcell

!"#$%&''()*+,(-) #,-)*.($#'(-

")#1234156378)/93799:)%;237<2)

Indoor Antennas

IN-BUILDING ANTENNA

!!!!!"#$$%& '())*+%,#-%(+& october 2010

21

[bizprofile]

by ellison clary

photo: Wayne Morris

“I really want to carry on the tradition that Charlotte Motor Speedway enjoys of being the Mecca of Motorsports.”

•

Marcus G. Smith President and COO Speedway Motorsports, Inc. President and General Manager Charlotte Motor Speedway, LLC

22

october 2010

w w w. g re a t e rc h a r l o t t e b i z . c o m

!"#$%& Pole

!POSITION

!"##$%&'()*!+,-.* /#&$)*0,-.*1&2* 13,#2$4'*566#3,27)

;

hough he grew up working part-time at Charlotte Motor Speedway, Marcus Smith remembers exactly when he became a true fan. It was 1992 and he was watching the NASCAR Sprint All-Star Race at the track owned by his father, Bruton Smith.

“It was a spectacular finish with Kyle Petty and Davey Allison crashing across the line,” he recalls. “Davey Allison won. Davey had just passed Kyle and Kyle nudged him and turned him up on his hood.

He crossed the finish line with sparks flying, upside down.”

Allison visited the infield care center but both drivers were okay. For Smith, who admittedly had taken racing for granted, it was a revelation.

“That’s really when I got the bug,” Smith says. “I love racing.”

These days Smith is president and chief operating officer of Speedway Motorsports Inc. (SMI), which operates multiple race tracks across the country, and is president and general manager of Charlotte Motor Speedway (CMS), a major property in that string of raceways. He took on the dual roles in 2008.

At CMS, where Smith maintains his office, he succeeded Humpy Wheeler, who created a legend during his 33 years of running the track with promotions that featured flamboyant pre-race shows that matched his outsized personality.

While Wheeler’s departure was definitely low key, Smith sings high praises for the former leader as he discusses taking over from him.

“It is first, a big honor,” Smith says. “And then, of course, it is a big responsibility. My role is not to replace Humpy, because he’s still Humpy and he has a fantastic place in the history of NASCAR and Charlotte Motor Speedway. You can’t erase history; it always will be.

“I really want to carry on the tradition that Charlotte Motor Speedway enjoys of being the Mecca of Motorsports,” he explains.

Then he intones his own version of “I Gotta Be Me.” “I’ll probably do things a little bit differently,” he says. “But that’s okay, because I am who I am.” $

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

23

Fueling Up With Fan-Friendly Offerings Smith executes his chief executive responsibilities with a genuine respect and strong affinity for the fans. Several of his favorite accomplishments have to do with heightening their enjoyment of whatever unfolds at the track.

He’s proud of the Victory Lane Club he and his staff created to recognize and reward fans who attend all three major CMS events—May’s CocaCola 600 and NASCAR Sprint All-Star Race and October’s Bank of America 500.

Those regulars get pit passes and extra tickets to other shows at the track, such as qualifying events and late summer’s huge AutoFair. The cherry on top is a special breakfast, which last year featured Darrell Waltrip, a five-time winner of the Coca-Cola 600 and a current commentator for televised NASCAR racing. The affair is held in a garage area on the morning of the Bank of America 500. About 1,000 attended last October.

Another of Smith’s innovations actually cut the capacity of CMS. Smith ordered the removal of 12,000 seats that were considered “not as inviting as most.” In their place is a high-end camping area called 600 Terrace that has space for about 25 recreational vehicles.

“It’s actually replaced the revenue that we would have had from seating, but we’ve provided those campers with added value in terms of a very exclusive position,” he says.

Smith has insisted on measuring and recording fan feedback. There’s a fan council now and Smith listens to suggestions from that group as well as individual spectators though e-mail and social media.

Many of the biggest CMS competitive events happen under lights, but enthusiasts relayed that they’d like a day race now and then. So this May, Smith instituted an afternoon start for a NASCAR Nationwide date.

For the Bank of America 500, he’s overseeing some infrastructure improvements in the track’s campgrounds. There will be additional dump stations and fresh water areas for the fans. Also, the camp sites that can accommodate up to 15,000 people will have added entertainment opportunities including potluck dinners, concerts, cornhole games and marshmallow roasts.

Smith is particularly proud of the recently announced partnership with Panasonic to build the world’s largest high-definition video board, further revolutionizing the fan experience.

At an incredible length of 200 feet wide, standing 80 feet tall and weighing 165,000 pounds, the video board will cover an expansive 16,000 square feet along the backstretch of the superspeedway when completed next spring in time for the NASCAR races.

In addition to the live race coverage, the video

24

october 2010

board will provide fans with interactive entertainment, continuous leaderboard updates, sponsor information and instant replays.

“It’s really going to bring a lot to the pre-race, to the race itself and after the race, with a focus on the Victory Lane celebration,” says Smith.

The Lore of a Legend Smith’s well on his way to carving his own name in the motorsports arena, but what’s it like working for his dad, a billionaire octogenarian who continues to chair both SMI and CMS? “It’s great,” Smith says. “My father is such an incredible visionary. He is inspirational to me and to many people. Everybody who gets to know my dad really appreciates his unexpected patience.

And then everybody appreciates his great vision for things that will happen, and for what can happen if we really put our minds to it.”

“Tremendous” is Smith’s one-word depiction of his father’s influence.

“He is the one person in a real ownership role that has been around NASCAR since before NASCAR was NASCAR,” the younger Smith says.

And he adds, “He’s forgotten more about racing than I’ll ever know.”

At 37, Smith easily clicks off major lessons from his father: “The incredible power of being optimistic and positive and the importance of hard work. He believes in hard work, in having

fun when you work, and in never saying no.”

When he joined his dad after studying journalism and advertising at the University of North Carolina at Chapel Hill, Smith made a name for himself as executive vice president of national sales and marketing. He promoted all eight tracks in the chain that includes Atlanta Motor Speedway, Bristol Motor Speedway, Infineon Raceway in Sonoma, Calif., Kentucky Speedway, Las Vegas Motor Speedway; New Hampshire Motor Speedway and Texas Motor Speedway in Forth Worth.

Both corporate and admission revenues for SMI are down so far in 2010, but Smith takes pride in investing in the fan experience.

“Our top line is what I would describe as healthy,” he says, “considering the economy that we’re in. We’re able to pay down debt in a bad economy and continue to invest in the business. We’ve continued to invest in fan amenities and haven’t had any layoffs during this difficult time.”

Smith acknowledges that he’s been influenced by his father as well as his brothers Scott and David who help his father run Sonic Automotive, Inc., one of the nation’s largest car dealership chains, and other executives in racing.

“I think everybody in your lifetime influences you,” he says. “You have to take those learnings and make your own way.”

w w w. g re a t e rc h a r l o t t e b i z . c o m

Coming Into His Own Smith’s efforts at being his own man have been noticed by various executives in Charlotte.

“Personally, I’ve seen him come out of any potential shell that was created by being Bruton Smith’s son,” observes Jeff Beaver, executive director of the Charlotte Regional Sports Commission.

“That has been shed entirely. He has taken over a really big empire and done it incredibly efficiently.

“I think he genuinely enjoys what he’s doing,” Beaver continues. “I see him smile a lot more. He’s well-respected and has done a great job.”

Max Muhleman, a Charlotte sports marketing guru with a long NASCAR association, also praises Smith.

“Succeeding Humpy Wheeler could be an intimidating thing,” says Muhleman, president of Private Sports Consulting. “But it doesn’t appear to me that it’s bothering him at all, and I mean that respectfully.”

7A1(4"%5*-'3%,#%/&% ($`-#$4(/'%/&%&4/+%3+(2#+&9% !(4"%$#8%,'**3%/$3%$#8% (3#/&%<+*1%&*1#,*3.%8"*% 8/&%+/(&#3%($%4"#%&6*+40% a/+5-&%"/&%/%5"/$5#%4*%,#% /%?#<<%V*+3*$%*+%/%?(11(#% ?*"$&*$%*<%4"#%,-&($#&&% &(3#9%_#D&%/%)-.%8"*%G%4"($T% "/&%2#+.%)**3%($&4($54&9:

O

Executive Looks. Exceptional Prices.

Space Planning Reupholstery

NEW

& PRE-OWNED

704-399-1948 | www.LarnersOffice.com 3111 Freedom Drive | Charlotte, NC 28208

WE PROMISE TO PROVIDE OUR CUSTOMERS WITH QUALITY NEW AND PRE-OWNED OFFICE FURNITURE AND ACCESSORIES AT AFFORDABLE PRICES. OUR CUSTOMERS SPEAK FOR THEMSELVES. From planning to installation, Larner’s partnered with us, helping us utilize our space increasing its functionality and our efficiency. They managed the transition and we could trust that it was being done right. They were budget conscious but quality driven; we highly recommend them to the business community. ~ JOHN D. BLAIR, PARTNER BLAIR, BOHLÉ & WHITSITT, PLLC

!"#"$%

!""#$%&'!()*#!+'

~Max Muhleman President of Private Sports Consulting

FFICE

Rental

Refinishing

Woodworking

Move Coordination

Office Furniture Brokering

-.%(/01.23+Largest+ 45#6(%07$8+ -.1(1+-(90$%+:$./$% !"#$%&'()

“Smith could be as influential as star drivers,” Muhleman points out. “With new blood and new ideas from somebody who was raised in the sport, Marcus has a chance to be a Jeff Gordon or a Jimmie Johnson of the business side,” he says.

“He’s a guy who I think has very good instincts.”

Smith displays that natural touch when he addresses NASCAR’s overall situation and answers critics’ complaints about attendance drops and sagging television ratings.

“Even with our attendance being down—only drawing 100,000 people at an average NASCAR weekend—makes us still a lot bigger than a National Football League crowd. Having television ratings that are in the fours still makes us the second largest television rating in sports. It far outshines baseball, basketball and golf as well as 90 percent of prime-time programming. We are an $ incredible media force.”

-.1(1+;<=<+-52#(,$%+ >$#$1#0(1+?%(@%.,2+.%$+1(!+ 01+$))$&#A -.//+#(8.B+#(+/$.%1+6(!+ B(5+&.1+%$85&$+&(2#2+!60/$+ &(1#01501@+#(+%$&$0C$+@$1501$+ -.1(1+2$%C0&$"

!!!"#$%$&'()*+&$"&(,

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

Tereck Charlotte 704-525-5390

Tereck Greensboro 336-225-3032

Canon’s newest product line brings revolutionary features at a competitive price - all from the world’s leading manufacturer.

Tereck Durham 919-484-9270

Tereck Fayetteville 910-425-6881

october 2010

25

For this region, Smith points out that CMS, the nearby zMAX Dragway and The Dirt Track at Charlotte generate a $400 million economic impact annually. “People come in, bring their money from other places, and leave it here,” he says simply.

The track recently ended a 10-year run as Lowe’s Motor Speedway that brought in $35 million. “It would be nice to sell that name again,” Smith says, “if we had the right partner.”

This region is lucky to be the home of stock car racing, he adds, as he defends Charlotte’s recently opened NASCAR Hall of Fame against those who fault it for not reaching attendance estimates. The down economy that’s hurting everyone is affecting the Hall, too, he feels.

“The facility itself is a tremendous jewel in the crown for Charlotte,” he states flatly.

To heighten interest, he believes NASCAR has taken some correct steps this season. Alterations in race car bodies make it easier to pass, facilitating lead changes. And NASCAR has loosened its leash on drivers, allowing them more leeway in disputes with each other. Emotion shown by drivers on the track or in the pits is part of fan excitement, he maintains.

NASCAR Revving Up Right now, NASCAR manufacturer

7d2#+.,*3.%8"*%)#4&% 4*%T$*8%1.%3/3%+#/''.% /66+#5(/4#&%"(&%-$#>6#54#3% 6/4(#$5#9%Y$3%4"#$%#2#+.,*3.% /66+#5(/4#&%"(&%)+#/4%2(&(*$% <*+%4"($)&%4"/4%8(''%"/66#$0% /$3%<*+%8"/4%<%/'"/66#$%(<% 8#%+#/''.%6-4%*-+%1($3&%4*%(49: ~Marcus G. Smith President and General Manager competition is confined to Chevrolet, Ford, Dodge and more recent Japanese entrant, Toyota.

“Toyota is not a problem,” he says. “I would welcome foreign makes coming in for competition. I’m a competitive guy.” The manufacturers compete every day on Main Street.

Many agree that the 2010 season has produced lively on-track rivalries.

“We have seen fantastic racing this year and that’s been exciting,” Smith says. “I think we’ll start to see the TV ratings and attendance come back slowly but surely.”

VoIP one company | one call

Unified Communications !Business Telephone Systems !Structured Cabling Systems !Office & Warehouse Paging !Data Networking Build & Design !Telecom Management & Consulting LWMO%G XB@A;bGYc %C dX;db %C GbCcd% C _YbcK;;d 0%XC%MWMLN e]O9PfW9Oe]]%% ! ! ! 9 ; d c!Y b d 9 C K a

26

october 2010

When Smith considers drivers, he professes that he pulls for underdogs. He smiles remembering a California race earlier this year when Marcus Ambrose, not a regular in the top 10, nearly won before succumbing to engine trouble.

For pure excitement, he recalls the 1993 CocaCola 600 when Dale Earnhardt came from several laps behind to beat Jeff Gordon. “It was almost like a surreal experience watching him pick off car after car,” Smith muses.

That’s what keeps NASCAR viable, he says, adding that watching it in person isn’t financially prohibitive. Rather, it’s a big value.

And he adds a message to businesses that racing is an economical way to entertain. “You can buy a package for as little as $40 a person and bring your customers, employees or their families out to the races,” he says.

His overall goal, Smith says, “Caring for the fans. Making sure we’re delivering and overdelivering on the things they expect and ought to receive when they come to the speedway— and providing great entertainment for them when they come.” biz Ellison Clary is a Charlotte-based freelance writer.

Photos provided by Charlotte Motor Speedway, LLC.

Charlotte Motor Speedway, LLC 5555 Concord Pkwy. South Concord, N.C. 28027 Phone: 704-455-3200; 800-455-FANS (3267) Parent: Owned and operated by Speedway Motorsports, Inc. (NYSE:TRK), a leading promoter, marketer and sponsor of motorsports activities throughout the U.S. Principals: O. Bruton Smith, Chairman and CEO; Marcus G. Smith, President and COO of Speedway Motorsports, Inc. and President and General Manager of Charlotte Motor Speedway, LLC Employees: 130 full-time Established: 1960 Facility: Nearly 2,000-acres; 1.5 mile auto racetrack; 135,000 permanent seats, capacity for 20,000 in infield; 52 privately owned condos; 113 VIP suites; offices in seven-story office tower that includes The Speedway Club Associated Venues: zMAX Dragway,The Dirt Track at Charlotte Business: Charlotte Motor Speedway and associated facilities host major-league NASCAR, NHRA and World of Outlaws events; gigantic AutoFairs; a 10-week Summer Shootout Series; and a Monster Truck Show. www.charlottemotorspeedway.com www.speedwaymotorsports.com

w w w. g re a t e rc h a r l o t t e b i z . c o m

Itâ&#x20AC;&#x2122;s tougher than ever to!"#$%&'()"'*)+*#( qualify for Surety Bonds...

(((()"(,#"-%.*(/"0#(1"20)%"&1333(

K Knauff can help.

WE ARE YOUR ADVOCATE. Your Trusted Advisors at Knauff are here to help you.

Group Medical Plans | Group Ancillary Plans Voluntary/Worksite Plans | Individual Medical Plans Long Term Care | Executive Benefits | FSA, HRA & COBRA Administration WORKERSâ&#x20AC;&#x2122; COMPENSATION | PROPERTY - LIABILITY | SURETY BONDS | EMPLOYEE BENEFITS | SAFETY | 401-K | HOMEOWNERS - AUTO !JJJKL52H5797M )32KDA<))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))!JJJK7<C>A;742:22ADKDA<

1001 Morehead Square Drive, Suite 400 Group Benefit Solutions Charlotte, NC 28203-0013 580 Davidson Gateway Drive | Davidson, NC 28036 800.849.8008 | knauffins.com 704.987.7979

Print

Mobile

Engage your market with automated texting.

The Employers Association 3020 W. Arrowood Road | Charlotte, NC 28273 704.522.8011

5DWS )*$,03: SN MNV SN RDD ENQ XNTQRDKE 4S@MC@QC Q@SDR @OOKX

Empowering Your Visual Marketing Print2Mobile is a service of The Hickory Printing Group, a leading privately held print marketing provider. www.hickoryprinting.com | 1-800-HICKORY 725 Reese Dr SW | Conover, NC 28613

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

27

[bizprofile]

by heather head

he

!"#$% MidasNation Maximizes Value

!

hat do managing a chain gang and running a multi-million-dollar private company have in common? Not much, it seems, except for the fact that Rob Slee has mastered both—in addition to authoring the six-pound seminal textbook Private Capital Markets and its companion semesterlong course, publishing two other books on the same topic, and writing hundreds of articles for legal and business journals.

Plus, running a website full of information for mid-level business owners, creating webinars and e-mail blasts on a monthly and weekly basis, and matching mid-sized business owners with mentors who partner to make their companies globally successful.

And, speaking on that topic approximately 60 times a year in nations on at least three continents, running a successful middle market private investment bank, founding Midas Institutes around the world, and raising twin daughters who now bunk together at Chapel Hill. Whew!

On the day that we met, Slee was running a little ragged.

But apparently, rough days are the exception for this man, who still found time to parry my Outlier references (“Oh yeah, that’s Malcolm Gladwell, I know him”), feed off Ayn Rand comments, and include a few basketball, movie, and ancient Greek allusions of his own.

This is a man who doesn’t rest until each of his (many) multi-million-dollar endeavors are practically running themselves. And he teaches other people how to do the same. MidasNation, whose tag line is “Building America One Business at a Time,” partners extremely high-producing business veterans with middle-market private companies to completely re-design the way they do business and quickly multiply the company’s value while decreasing demands on the owner’s time.

Specifically, Midas Mentors usually partner with companies valued between $2 and $3 million and expect to mentor them into the $10 to $100 million range in two to $ five years.

28

october 2010

w w w. g re a t e rc h a r l o t t e b i z . c o m

!"#$%&$'"()*+,-(%.+'$/+0").+"%+ 123"0#")/+45.6"7$+8).+23%").%%+$'+ $+9"5.*:+;$6').6%+.<'6.5.0=+-"/-> ;6(#37")/+?3%").%%+@.'.6$)%+,"'-+ 5"##0.>5$6A.'+;6"@$'.+7(5;$)".%+'(+ 7(5;0.'.0=+6.>#.%"/)+'-.+,$=+'-.=+ #(+?3%").%%+$)#+B3"7A0=+530'";0=+'-.+ 7(5;$)=C%+@$03.+,-"0.+#.76.$%")/+ #.5$)#%+()+'-.+(,).6C%+'"5.D+

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

29

Working With the Chain Gang Rob Slee’s father was a serial entrepreneur, so he comes by it honestly. Slee’s most vivid youthful memories involve the chain gangs that did the manual labor for his dad’s paving company. Slee says the state’s government had incentivized the hiring of recent releases from the penitentiaries, so all the company’s shovels were wielded by ex-convicts. The work was backbreaking, potentially dangerous, and relatively mindless, but the pay was good (roughly $15 an hour or more in the 1970s).

But managing the crews, Slee says, was the hardest thing he’s ever done. “They were unruly,” he recalls bluntly. “They understood the rules and protocols for behavior inside the prison better than they did outside.

They were modern-day Vikings, raping and pillaging every night and going back to the penitentiary as soon as the law could catch up with them.”

But manage them he did, mostly by “making it fun.” And although he claims that there’s little comparison between what he did then and what he does now, he does believe that whatever a person is doing, if it’s not fun, it’s not worth it.

Even paving roads.

Managing the modern-day Vikings paid Slee’s way through an undergraduate degree at Miami University. He then finished a master’s in economics at University of Chicago, followed by an MBA at Case Western. It was while working on his MBA that Slee met a man who would change his life and smooth his path through the corporate world.

The man was CEO of a Fortune 500 company, who every year interviewed hundreds of MBA students and hired the best one he could find. He would work the new hire to the bone for a year and then promote him into one of the company’s units. The training and the backing of the CEO freed the new hire from political pressures and allowed him to concentrate on performance. As a result, the MBAs hired in this manner nearly all ended up running the company.

(Top l to r) David Zerfoss, Mentor; Rob Slee, Partner; Garth Moulton, Mentor (Bottom l to r) Chris Bennett, Partner; John MacQuarrie, Mentor

Slee was no exception. By the late 1980s, he was running a division of the company with, among other things, a plant in Mooresville. On his frequent trips to the Carolinas, he fell in love with the state. Plus, he had begun to see that Detroit was no longer a land of opportunity.

So he transferred himself South to oversee the Mooresville plant and operate out of Charlotte.

The transition was a happy one for Slee, and he has never looked back.

In 1990, Slee made an even larger transition.

He heeded the call to entrepreneurship he’d grown up with, and left the large corporation that had sheltered him since graduate school.

The small investment company he bought into, Robertson & Foley, was one of the first private investment banks in the Charlotte area and still operates successfully.

In hindsight everything worked out, but at the time, says Slee, the transition “was horrible.”

“You starve,” he remembers with a shake of the head. “Because what happens is you start out every morning and have to figure out how to earn a living. There wasn’t much infrastructure to raise capital for private business, and business valuation for private business almost didn’t exist.”

What they had in place of infrastructure and capital, was “A smattering of opportunities, but not an obvious path through the woods.”

Luckily, making paths is something Slee has a knack for.

Creating Value and Wealth for Private Companies Hunger is a strong motivator. Every week, Slee and his partners would send out between 50 and 100 letters to business owners, saturating a city such as Salisbury, inviting them to sit down and talk about capital options for their companies. Usually eight or ten owners were interested in meeting. The partners would then do the same in neighboring areas, creating appointments in High Point, then maybe Greensboro.

“That’s how I got to know so many business owners in the area,” says Slee. “I did that for two or three years.” Most of the owners they met with would not have a need at that time, but enough did that gradually the book of business filled out, and slowly Slee stopped starving. But he never stopped hungering—for new learning and new opportunities.

His introduction to the world of private business was harsh, and Slee absorbed an important lesson: “What goes on on Wall Street and what goes on on Main Street are two totally different things.”

“About 10 years ago, I picked up on it and began seeing all these opportunities in front of mid-sized businesses, and they weren’t engaging in them even when the capital was available. Why not?”

~Rob Slee

Founder

30

october 2010

w w w. g re a t e rc h a r l o t t e b i z . c o m

That fact may seem obvious now, but at the time that Slee was getting his introduction, all of the current thought and leadership was treating Wall Street markets and valuation the same as private markets and valuation.

There was no body of thought, no body of knowledge, and no coursework to explain the behavior of private companies.

In short, there was no path through the woods for private companies who wanted to create value and wealth, and to move into global markets. So Slee set about creating one.

YOU'RE INVITED to Experience the Next Generation in Hearing Technology.

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

If you’ve been putting off addressing your hearing concerns, now is a great time to learn more.

Attend our FREE Lunch and Learn Event OCT 20, 2010 at 10am

Call 704 523-8027 x18 to make your reservation. There is no obligation.

Midas Mentors "#$%&'#()*+,&),Leverage

Midas vision

!""#$"%&'()*!"$

www.charlottespeechhearing.com 210 E. Woodlawn Rd. Suite #150 Charlotte, NC 28217

(704) 523-8027

" We are proud to offer up to date technology and top quality products. "#Our professional, caring staff is highly skilled and focused on YOUR needs. "#We have competitive and affordable rates and provide a total hearing health care plan.

).,+?6..#

10x results

MidasNation

COMPANY WEALTH MAP

He began by writing a series of articles on topics he knew nothing about. That was how he’d learn. “I’d draft an article on transferring a business to a charitable trust,” he explains, “and send it out to people I knew who did know about the topic. They’d clean it up and send it back. That way I’d limit looking like an idiot to a small group of people.”

He wrote regularly for Charlotte’s business journal for many years in addition to other publishing venues. Gradually, his topics began to develop into a cohesive body of knowledge and before long he realized he had created the material to write a textbook. So he did.

That textbook, Private Capital Markets, became the seminal work for understanding private business behavior, and is now undergoing revisions for a second edition.

One Nation—Midas Understanding private capital mar$ kets opened new fields of thought and

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

BSI - Your Business

Stimulus Institute!!!

/010)23)'"()4(#$)'&)%&&5)6&$+#$-)#,-)3'278%#'()4&8$)9832,(33)'&)#:"2(;(),(+)<&#%3=)) As entrepreneurs, we don’t wait for someone else to make things happen for us, we take the reins and make things happen for ourselves.

We stimulate our businesses every day! At BSI, we’re committed to provide the ideas and information you need to do just that!

2010 Meetings

>&2,)?3@

Join us at our next meeting: October 26 | Stimulate new ventures by letting go of the day-to-day

!"#$ %&$ '($ )*+'(%,'-%)($ ./&%+(/.$ 0)*$ 12&%(/&&$ )3(/*&4$5/61/*&$6//-$ 7$8/$ -%6/&$ /'9:$ ;/'*$ -)$ '..*/&&$ <*)1=/6&$ '(.$ )<<)*-2(%-%/&$ &</9%7$9$ -)$ 9=)&/=;>:/=.$ 12&%(/&&/&4$ ?:/;$ */9/%8/$ %(&%+:-@$ %(0)*6'-%)($'(.$/(9)2*'+/6/(-$'&$-:/;$'..*/&&$ -:/%*$9)6<'(%/&A$9:'==/(+/&44444444444

For times, locations and membership information visit www.business-success-institute.com or call Denise Altman at 704-315-9090.

october 2010

31

opportunity for Slee. He saw that 95 percent of private owners had never been trained in how to create true value in their businesses.

Most were still tradespeople, and most were still “one phone call away from oblivion.” It seemed amazing to him that people would be willing to take on all the risk of business ownership, without demanding a correspondingly high return.

“It violates a basic rule,” he says. “About 10 years ago, I picked up on it and began seeing all these opportunities in front of mid-sized businesses, and they weren’t engaging in them even when the capital was available. Why not?”

It turns out, he says, that the book on that topic had already been written (whew, one less thing for Slee to worry about). Michael Gerber, author of E-Myth Revisited and founder of E-Myth Business Coaching, described most business owners as “lifestyle owners.” They view growth as a risk to lifestyle, rather than an opportunity to increase business and wealth.

“What I’ve learned,” adds Slee, “is that there are about five percent of us that do want to compete globally and create dramatic value in their business. We’ve felt funny being around so many people who aren’t like that, and we’ve never had a place to go.”

But, as he points out, now they do. It’s a

“Everything changes. We’re in the business of behavior modification. You have to be willing to change the way you do everything, and that takes time.”

~Rob Slee Founder

global community, and they meet at a place called MidasNation which exists in part at www.MidasNation.com. He encourages around-the-world “Midas Parties,” where up to a hundred people at a time gather in locations in Europe, North America, and Asia to listen to monthly webinars and afterward to discuss designated questions.

According to Slee, they often gather for two hours or more, and he checks in frequently to answer questions and engage.

The MidasNation community helps business owners implement a Conceptual Business Model, which involves exploiting niches, leveraging intellectual capital, and outsourcing nearly everything else. The Midas Institutes, such as the Carolina’s Midas Institute, provide

V:<C3A9)&99)W)%61372 "#$%&'()*+(%+'&,--,./+'-(01

intensive, aggressive mentoring for a select few owners to generally raise their company’s value by a multiple of ten or more in just a few years.

Each mentoring relationship begins with a deliverable called the Company Wealth Map. The wealth map describes the subject’s current market value, the owner’s market value goals, and the strategies, tactics, and business model that will enable the owner to meet their goals quickly. It generally costs between $7,000 and $20,000.

If the company and the Midas Institute choose to move forward, the company receives aggressive mentoring by a Midas team in exchange for a warrant for between 15 to 20 percent of the value created over the life of the agreement (usually three to four years).

Then, the Midas mentors create a revolution inside the subject’s company. “Everything changes,” Slee says. “We’re in the business of behavior modification. You have to be willing to change the way you do everything, and that takes time.”

But Slee’s thought leadership and the mentoring relationships his company offers make the journey faster than has ever been conceivable before.

It may be easier than managing a group of ex-convicts, but decades later, Slee is still paving roads—and still having fun doing it. biz Heather Head is a Charlotte-based freelance writer.

%A63@?:4NO2)<A23)C47231L1A62)@A37>K)%644A69878)5;)473:1>) 2@ACC19LP) 81919LP) :98) 793743:19<793) Q79672K) F7:36472) RS!) 57:631E6>>;) 87DA4:378) L6723) 4AA<2) :98) 261372K) I7) AEE74) 2C7D1:>) +418:>P) %@ACC19LP) :98) =A6C>7O2) (1L@3) T63) ?:DN:L72K) %7>7D3) 4AA<2) E7:3647) 5:>DA9172P) C:31A2P) <191) 47E41L74:3A42P) <1D4AJ:Q72P) J@14CAA>2P) :98) L:4879) 5:3@3652K) UJA) 4AA<) 261372) E7:3647) E6>>) 47E41L74:3A42P) <1D4AJ:Q72P)2AE:P)47D>1974P)798)3:5>72P):98)27>7D3)261372) @:Q7):)J@14>CAA>)2C:):98)M)47C>:D7K

!704.319.5700 www.hamptonsouthpark.com

32

october 2010

MidasNation™ 6201 Fairview Rd., Ste. 200 Charlotte, N.C. 28210 Phone: 704-523-7888 Principal: Rob Slee, Founder In Business: Since 2008 Business: MidasNation is a community dedicated to helping business owners dramatically increase the value of their firms. www.midasnation.com

23+"#$%&'()*+4)(5,%,#6+ #7+89101--(601:

w w w. g re a t e rc h a r l o t t e b i z . c o m

Leadership Insights Networking 3:30-4:00 PM | Program Sessions 4:00-6:00 PM

2010 Fall Sessions | By Invitation Only

This is an exclusive series of roundtable discussions for CEOs, CFOs and business owners who are looking to bring creative solutions to business problems.

Come build relationships with each other.

October 12, 2010 Key Decisions for Successful Enterprise Leadership Sam Frowine | The Performance Group and the Institute for Business Owners Founder and Owner

November 17, 2010 22 Reasons Employees HATE Their Jobs…And What Companies Can Do About It Denise Altman | Altman Initiative Group, Inc. - President

Please contact Maria Stidham of Wishart Norris Henninger & Pittman, PA at 704.364.0010 or maria.stidham@wnhplaw.com for more information

!"#$"%&'()*+,&(-'.&*/$*0*12.34"%5(,$$***6

7898:;6;***66<66<=9*/>

You only have a moment … to capture your customer’s attention ad design packages from $250 | promotional brochures and mailers | press releases and corporate communications Featuring MessageEnvy™ The best way to get your message across media

The tree frog flashes its bulging red eyes to startle its predator, offering a precious instant to spring to safety.

!"#$%&!"#$ !"#$%&'(&) '(&)

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

8#),72*195:*!-;$,< XY"")=:4<7>)$Z7DK)?:4N)#4KP)%37K)RR[ =@:4>A337P)(=)S\SS]HRYR" X"!H]X]H[\[")ZR"[ JJJK8721L9E4AL23681AKDA<

october 2010

33

â&#x20AC;˘

(l to r) Peter Esposito Jim McEwen Managing Members Harris Communications

34

october 2010

w w w. g re a t e rc h a r l o t t e b i z . c o m

by heather head

Defeat ng r o pped

Calls

+,--$"':1770%$5,($1%"' ;**8"'()*'<$%*"'12' :1770%$5,($1%'=8*%

7!/'T($)%4"+*-)"%/%,-('3($)%/<4#+% 8#D2#%6-4%($%/%&.&4#1%(&%)+/4(<.($)9% !"#$%8#%/&T%6#*6'#%4*%5"#5T%4"#(+% 5#''%6"*$#&0%4"#.D+#%&*%)+/4#<-'%8"#$% 4"#.%&##%4"#(+%&()$/'%/$3%+#'(#2#3%4"/4% 4"#(+%5-&4*1#+&D%5/''&%/$3%#=1/('&%5/$% +#/5"%4"#1%/$.8"#+#%($%4"#%,-('3($)9% ;"/4%6*&(4(2(4.%5*1#&%,/5T%4*%-&9: ~Peter Esposito Managing Member

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

[bizprofile]

.

f you’ve ever missed an important sales call because you stepped indoors, then the guys at Harris Communications may very well be heroes to you.

Simply put, they make cell phones work in buildings.

The concept is straightforward. An outdoor antenna collects signals from any or all cellular carriers. A system of cables carries the signals throughout the inside of the building and distributes them to repeaters. A correctly designed system results in cell phone coverage in even the tightest interior spaces.

The same technologies can enhance public safety through code-specific repeater systems that ensure First Responders can communicate inside buildings. Eliminating the need for safety workers to access location-specific phones and radios, a well-designed system ensures constant connectivity during a crisis.

Of course, correct design can be as complex as the buildings they are intended for, and sorting through manufacturers to ensure quality and reliability is a job for experts. Many companies have been disappointed when an expensive cell phone enhancement project resulted in dead zones, weak signals, and down time.

That’s where Harris Communications comes in. With over 35 years’ combined experience in the industry and an unparalleled depth of industry expertise, they provide turnkey systems, non-invasive integration, FCC-approved equipment, annual testing, maintenance contracts, and only tested and proven equipment integrated into expertly designed systems. They never contract out their work, so customers always know who to contact with questions and concerns.

In short, Harris Communications customers can be confident that their cell phone enhancement project will do what they expect it to do without hassle.

•

Signals for Growth It all began, ironically, in the aftermath of a tragedy that might have been ameliorated by the very technologies Harris Communications now provides.

It was January 2002. The American economy was floundering after the terrorist attacks the previous September, and the company Pete Esposito was pulling phone cables for was one of many to go under.

As it happened, Esposito picked up some work installing voice and data network cabling for Pedulla Trucking, Excavating & Paving’s office. When the customer asked Esposito if he could also make his cell phone work inside, Esposito had no idea. But he did some research, found a solution, implemented it, and had a more than satisfied customer. It also proved to be a gold mine—an emerging technology that would soon be in heavy demand.

Although his company would grow to be one of the country’s top independent providers of commercial wireless booster systems, Esposito started small. He drove to construction sites and knocked on job site trailer doors.

“Do you want your cell phones to work inside the trailer?” he’d ask.

They were small jobs, but it started a chain reaction. Building owners and managers would attend construction meetings inside the trailers and when their phones would ring, they’d ask, “How come it works in here, but not inside my building?” The construction crew would tell them: Harris $ Communications.

october 2010

35

Growth in green building technologies increases the demand for repeater systems because the same materials that improve insulation and block UV rays, such as E-glass windows and aluminum foilcovered wall insulation, also block cell phone signals.

At the same time that building materials are doing a better job of blocking cell signals, cell signals are doing a worse job of penetrating.

In order to carry the larger bandwidths required by today’s exploding data transmission needs, cell phone carriers are increasingly using higher frequencies, commonly termed 3G and 4G. Although they can carry more information, the higher frequencies don’t travel as well. This is why an AM/FM radio which operates on the lower frequencies may pick up signals in the depths of an unimproved basement where a 4G cell phone is completely helpless.

It didn’t take long for the company to get its first high-profile opportunity. The postal facility in Trenton, N.J., was undergoing $130 million worth of decontamination and renovation after the 2001 anthrax attacks that infected at least 22 people and killed five. The renovation effort included a system to ensure workers could use their cell phones inside the building. Harris Communications provided that system.

That job led to more in the D.C. area, and soon Esposito had the means to stop pulling voice and data cables and focus exclusively on cell phone enhancement systems, and to develop Harris Communications as a leading brand.

Meanwhile, Jim McEwen was an equity partner in a company that provided cabling supplies for Harris Communications. McEwen was intrigued by Esposito’s business, and liked his vision and passion. Esposito liked McEwen’s customer service: “I was not a major customer, but Jim always treated me like I was. That was the customer service experience I wanted my customers to get, too.”

One day McEwen joked that he would

join Harris Communications when he retired.

Esposito retorted, “Why wait?”

Between mergers and acquisitions, McEwen’s corporate career had taken him as far as he cared to go in that direction, and he was ready for something new and exciting. He sat with Esposito and went over the books and their visions for the business, and saw that he could relieve Esposito of his inside responsibilties of book work, sales and marketing, so Esposito could focus on systems and installation.

Conducting Business In 2007, the two joined forces. The result was a business that exploded over the next year.

Harris Communications installed systems in the Charlotte IKEA, the Robert Johnson Wood Hospital in New Brunswick, the Stonewall Jackson Resort in West Virginia, the Renown Medical Center in Nevada, and many more around the country. Jobs ranged from massive (nearly two-million-square-foot buildings to a 12-story hotel in New York City) to minuscule (a church’s back office in Charlotte).

Esposito and McEwen operate on the

philosophy of treating each customer, regardless of size, with the same attention and care, and providing the highest quality products and service available. While much of their business arrives through contractors, they have developed their own reputation and brand. As a result, 15 to 20 percent of their business comes from referrals, and their customers are universally delighted.

“Walking through a building after we’ve put in a system is gratifying,” says Esposito. “When we ask people to check their cell phones, they’re so grateful when they see their signal and relieved that their customers’ calls and e-mails can reach them anywhere in the building. That positivity comes back to us.”

Despite the growing market and good business practices, Harris Communications was hit hard by the current recession. “We had a great year in 2007-08,” says McEwen. “Everything was starting to really gel. Then it was like somebody had flipped a switch—pop—and the big crash happened.”

In November 2008, the company had just closed a big deal with a GE headquarters.

!How It Works Cellular

REPEATER

DONOR ANTENNA

Indoor Antennas

IN-BUILDING ANTENNA

Amplifier/BDA/ Microcell

""" The concept is simple. An outdoor antenna collects signals from any or all cellular carriers.

A system of cables carries the signals throughout the inside of the building and distributes them to repeaters. A correctly designed system results in cell phone coverage in even the tightest interior spaces.

""" 36

october 2010

w w w. g re a t e rc h a r l o t t e b i z . c o m

Esposito was onsite with the client collecting the final paperwork and performing preliminary work. McEwen was waiting by the fax machine for the contract when the phone rang. On the other end, their customer contact was nearly in tears. “Jim,” he said, “our CFO said to stop. It’s not just you—we’re stopping everything.”

“The world was crashing,” remembers McEwen. “In the next 10 days, we lost four contracts just like that. Bam. It just stopped.” Sales dropped 65 percent the following year.

Esposito had started the company during rough economic times, and McEwen had weathered his fair share in other companies and recessions “We did all the things good business owners do,” says McEwen with a shrug. “We trimmed down, we tightened up, we took less salary, and we pulled it together.”

7!#%3(3%/''%4"#%4"($)&% )**3%,-&($#&&%*8$#+&% 3*9%!#%4+(11#3%3*8$0% 8#%4()"4#$#3%-60%8#%4**T% '#&&%&/'/+.0%/$3%8#%6-''#3%%% (4%4*)#4"#+9:

Use BusinessWise ===-<*,$#2-,6' *******6;-;3#*>4,#2-)=

Extensive local b2b data Drip marketing at its best!

!JJJK56219722J127KDA< Charlotte 6100 Fairview Rd. Suite 330 Charlotte, NC 28210 Phone: 704.554.4112

Atlanta 6190 Powers Ferry Rd. Suite 190 Atlanta, GA 30339 Phone: 770.956.1955

Dallas 15851 Dallas Pkwy Suite 600 Addison, TX 75001 Phone: 214.561.8692

BusinessWise Better Data...Better Decisions

~Jim McEwen Managing Member That’s not to say they didn’t have plenty of hard conversations and gut-wrenching decisions. They lost staff, and sometimes wondered whether they would pull through. But they hung on, and in 2009 someone switched the light back on.

“Almost to the day, certainly the week, the phone rang from that same division of GE,” remembers McEwen. “Three weeks later we did the job. That was the start, and ever since then, our business has been trending upward.”

SPECIALISTS IN VOICE NETWORKS FOR 31 YEARS.

A Boost for Business Harris Communications continues to lead in a field that just keeps growing. Esposito has continuously invested in understanding the manufacturers’ products and offering only the highest quality. He can customize any project to fit a budget while meeting the customer’s needs.

Their systems integrate seamlessly with existing infrastructure and installation times vary from a few days to a few weeks. They can be installed during construction or after. Their systems currently operate in corporate, manufacturing, healthcare, government, public safety, higher education, hospitality, retail, and $ utilities applications.

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

37

Although it represents a relatively small slice of the business, the company also installs residential systems for big names, such as the Hilton family residence in Bel Air, Calif., and the Virginia home of Steve Case, co-founder of AOL. They once made a middle Eastern prince’s cell phones work inside his 140,000-squarefoot California mansion.

If systems like Harris Communications works with now had been installed in the World Trade Center before the 9/11 attacks, it’s possible many lives might have been saved. Rescue workers could have communicated effectively during evacuation efforts, and could have made better informed on-thespot decisions.

Unfortunately, the technology barely existed at that time. But Esposito and McEwen expect the demand to grow as cell phone service inside buildings becomes a standard utility. Esposito says that many prospective tenants expect wireless connectivity as part of their leases now, and even prospective homeowners often won’t purchase if their cell phones don’t work inside.

Furthermore, growth in green building technologies increases the demand for repeater systems. Esposito explains that the same materials that improve insulation and block UV

G<%&.&4#1&%'(T#%_/++(&%C*11-$(5/4(*$&%8*+T&%8(4"%$*8% "/3%,##$%($&4/''#3%($%4"#%!*+'3%;+/3#%C#$4#+%,#<*+#% 4"#%fHLL%/44/5T&0%(4D&%6*&&(,'#%1/$.%'(2#&%1()"4%"/2#% ,##$%&/2#39%b#&5-#%8*+T#+&%5*-'3%"/2#%5*11-$(5/4#3% #<<#54(2#'.%3-+($)%#2/5-/4(*$%#<<*+4&0%/$3%5*-'3%"/2#% 1/3#%,#44#+%($<*+1#3%*$=4"#=&6*4%3#5(&(*$&9 rays, such as E-glass windows and aluminum foil-covered wall insulation, also block cell phone signals.

At the same time that building materials are doing a better job of blocking cell signals, cell signals are doing a worse job of penetrating. In order to carry the larger bandwidths required by today’s exploding data transmission needs, cell phone carriers are increasingly using higher frequencies, commonly termed 3G and 4G. Although they can carry more information, the higher frequencies don’t travel as well. This is why an AM/FM radio which operates on the lower frequencies may pick up signals in the depths of an unimproved basement where a 4G cell phone is completely helpless.

?

The convergence of increasing dependence on wireless communications, more use of green materials, and greater need for bandwidth results in a market that Esposito and McEwen are well poised to grab. While many companies are still taking a deep breath after the economic woes of 2008-09, Harris Communications expects to begin hiring soon.

In two months they’ made enough sales to carry them through several sales cycles, and the phones are still ringing.

While no one can be sure what turns technology will take in the next few years, Esposito and McEwen expect Harris Communications to grow fast with increasing demand. They see wireless communication inside buildings as becoming a basic utility, while first responder repeater systems become a fundamental requirement for public safety.

In the meantime, their favorite part of the work is when they get to be heroes for office personnel, sales and executives who no longer have to miss important phone calls, and for citizens and emergency responders whose safety and effectiveness is enhanced by the ability to communicate quickly and effectively no matter where they are located. biz Heather Head is a Charlotte-based freelance writer.

Cell Enhancement, LLC dba

704-540-2255

Harris Communications 301 West 10th St., Ste. 203 '''''+,--$" Charlotte, N.C. 28202 :1770%$5,($1%" Phone: 803-325-1717 Principals: Pete Esposito and Jim McEwen, Managing Members In Business: 7 years Business: Providing commercial wireless communications solutions that allow cell phones and code-specific radios to work inside buildings. www.harriscommunications.net

www.ballantynedentistry.com 38

october 2010

w w w. g re a t e rc h a r l o t t e b i z . c o m

704-394-5400

The Power of Print®

11 Facts About Magazines 1. Magazine readership has grown over the past five years. (MRI) 2. Average paid subscriptions reached nearly 300 million in 2009. (MPA) 3. 4 out of 5 adults read magazines. (MRI) 4. Magazines deliver more ad impressions than TV or Web in half-hour period.

(McPheters & Company)

!www.hilldrup.com

5. Magazine readership in the 18 to 34 segment is growing. (MRI) 6. Since Facebook was founded, magazines gained more than one million young adult readers. (MRI) 7. The average reader spends 43 minutes reading each issue. (MRI)

Full Line of Commercial Services Including: ")TEM)D7):98)I:47@A627)B7>AD:31A92 ")#7DA<<1221A919L ")/2273).:9:L7<793

!)Climate and humidity controlled vaulted storage ! Dedicated move counselor ! Certified in-house training center ! Local and nationwide moving

")=A<C6374)#12DA997D3GB7DA997D3 ").AQ7).:9:L7<793)%74Q1D72 Member of Commercial Relocation Network www.crn-us.com International Facilities Management Association

HILLDRUP COMPANIES M OV I N G & STO R AG E . D E L I V E R I N G EXC E L L E N C E .

8. Magazines are the No. 1 medium of engagement—across all dimensions measured. Simmons’ Multi-Media Engagement Study find magazines continue to score significantly higher than TV or the Internet in ad receptivity and all of the other engagement dimensions, including “trustworthy” and “inspirational.” (Simmons Multi-Media Engagement Study) 9. Magazines and magazine ads garner the most attention: studies show that when consumers read magazines they are much less likely to engage with other media or to take part in non-media activities compared to the users of TV, radio or the Internet. (BIGresearch Simultaneous Media Usage Study) 10. Magazines outperform other media in driving positive shifts in purchase consideration/intent. (Dynamic Logic) 11. Magazines rank No. 1 at influencing consumers to start a search online – higher than newer media options. (BIGresearch Simultaneous Media Usage Study) U@7)^.:L:_1972P)U@7)'#;1))AE)'),6%`)D:<C:1L9)J:2)D47:378)5;) aWB)(a)19)DA9b69D31A9)J13@)=A98c)(:23P)V7:423).:L:_1972P) .747813@)=A4CA4:31A9P)U1<7)&9DK):98)I79974).781:P)J13@)3@7) E6>>)26CCA43)AE)3@7).:L:_197)?65>12@742)AE)/<741D:)d.?/eK)

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

39

(l to r) Art Pue Owner and President Brandon Pue Liquid Filtration Sales Manager Arthur Pue Vice President of Operations Engineering Sales Associates of Southeast, Inc.

40

october 2010

w w w. g re a t e rc h a r l o t t e b i z . c o m

by zenda douglas

[bizprofile]

!""!#$%&'( elements of Industrial Production

Engineering Sales Associates Boasts 50 Years in Compressed Air and Liquid Filtration

!

hen the doors of Engineering Sales Associates of the Southeast, Inc. open each day, Art Pue, his sons Arthur and Brandon, and their 18 employees bring a massive 340 years of combined experience to the assistance of their customers.

“This is a 50-year business. Brandon and I have learned a lot, but we have a lot to learn,” says Arthur Pue, part of the new blood of the business and vice president of operations, speaking in modest deference to his father and older colleagues.

“It’s so great to be able to come here and work with family and people who have such a wealth of knowledge and experience, learning the business first-hand from some of the most respected people in the industry,” shares Brandon, who serves as the company’s liquid filtration sales manager.

Engineering Sales Associates (ESA) is a Charlotte-based industrial stocking distributor for compressed air and liquid filtration products. “Our goal is to be a one-stop-shop for all compressed air and liquid filtration needs, including equipment, parts, service, rentals and expert consulting,” says the senior Art Pue, owner and president of the company.

Their customers come from a diverse list of manufacturing and processing industries including textiles; food and beverage; energy, including nuclear; automotive; defense; chemical; mirror; tech/ communications (fiber-optics and cable) and process filtration.

“Our service team is 24/7. When air compressors break down, it means the engine to the plant is gone. A plant could lose hundreds of thousands of dollars for every hour of down time.” ~Arthur Pue Vice President of Operations

The Essential Elements “When you go down the road and see a big warehouse that has pipes and ducts coming out of it, it’s a manufacturing facility that utilizes compressed air and liquid filtration,” says Arthur. “We try to provide them with the best product and the best service at the best price we possibly can.”

Lance, Inc. is one of ESA’s biggest clients. “We take care of every facet of the extensive compressed air system in their plant,” states Art. Compressed air is a form of energy that every child becomes acquainted when moving a ball of paper forward by blowing into a straw. It is a conveyance of power capable of operating everything from conveyor belts to robots, engines and motors. Most industrial grade manufacturing tools are $ plugged into a compressor, not an electrical outlet in the wall.

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

41

“Compressed air is by far the most expensive utility that any plant uses,” says Art. It would be a challenge to find a manufacturing plant that does not use it. Art explains that electricity is simply too volatile and explosions could occur. “It creates heat and sparks. Compressed air does not.”

ESA carries a full line of air compressors as well as equipment and products for compressed air purification and drying. A long-time distributor of Gardner Denver, its territory consists of the entire state of North Carolina, alongside a few counties in eastern Tennessee and northern South Carolina.

The company also offers products manufactured by Deltech, Donaldson and Beko, to name a few.

“We have an excellent service department,” says Art. “Maintenance is important. A little pinhole leak can result in a huge expense. It’s also very dangerous.”

When things do go wrong or when there is increased need, ESA has the largest rental fleet of electric air compressors in the Southeast standing by.

“Our service team is 24/7. When air compressors break down, it means the engine to the plant is gone. A plant could lose hundreds of thousands of dollars for every hour of down time” explains Arthur.

While compressed air is more of a science, liquid filtration is more of an art, according to Brandon.

“You have to learn to balance each situation.”

Liquid filtration is a broad process which can involve very simple to very complex filtration. For many industries, incoming plant water must be purified for manufacturing processes, and wastewater contaminated by the plant processes must be purified before it is returned to the water supply.

A variety of specialized filter bags, cartridges, filter presses, liquid/solid separators and reverse osmosis are employed in liquid filtration.

“As a family run company, we operate as a family.We try to understand the demands and needs of every individual.” ~Arthur Pue Vice President of Operations “It’s all about removing impurities so it can reach a standard for another use” explains Brandon. Most filtration is a tiered process: coarse to fine to the smallest micron.

Measurement of results is just as varied. For a beer brewery, the test may be the right taste; for the nuclear industry, the test will be safety and impact on the environment.

Reverse osmosis is the most complex process for water purification, using exacting membranes to expel all impurities to provide pure H20. Beverage companies use pure water as do high tech manufacturers of microchips and mirror companies whose mirror plating must be washed with purified water before the silver is added.

ESA distributes liquid filtration products for Eaton, GE Osmonics, Lakos and others.

42

october 2010

Formulating a Future Engineering Sales Associates was hatched in 1961 by two, young technical specifications writers—Art Pue and Addison Bell—who were co-workers in the materials and process engineering group at Douglas Aircraft in the days of the Cold War. Douglas Aircraft was manufacturing Nike Hercules and Ajax antimissile missiles.

The two worked with various plastics and alloys; their job was to evaluate certain processes and materials for product or efficiency improvement and write up their findings for the Douglas Processing Standards Manual.

“It was a government job and we worked in a cubbyhole,” remembers Art. “We didn’t work real hard, but drank lots of coffee and did a lot of philosophizing about the future.” Art had come on board with a degree in economics from Presbyterian College in Clinton, S.C., followed by a stint in the United States Army Special Forces (Green Beret).

The way Art tells it, there were always sales reps around. “The reps always seemed so upbeat; they appeared to enjoy not only their business but their whole lives,” says Art. “Addison and I decided we were on the wrong side of the business.”

The two decided open a sales agency and set about determining what product lines they would represent.

“The only products we were familiar with were very exotic, space-age products used in missiles for defense projects,” says Art. The new entrepreneurs wrote letters and interviewed companies. “As we developed our product lines, we had some friends join us for interviews as part of our ‘massive sales force,’” confesses Art with a chuckle.

w w w. g re a t e rc h a r l o t t e b i z . c o m

Both Art and Addison quit their jobs at Douglas Aircraft and took sales jobs to get experience. After about two years, the company needed full-time focus. “I was single at the time. Addison had four children, so I was the guinea pig, stepping out fulltime into the company,” says Art.

“It’s so great to be able to come here and work with family and people who have such a wealth of knowledge and experience, learning the business first-hand from some of the most respected people in the industry.” !

• Corporate • Advertising • Industrial • Editorial

• Web Images • Architectural Interiors & Exteriors • Professional Portraits

wayne@wmphoto.biz www.wmphoto.biz

Professional Portrait Services Featured are Brian Moynihan, President and CEO of BofA and Danny Morrison, President of Carolina Panthers

704.545.7001

THE EMPLOYERS ASSOCIATION Trusted HR Advice, Tools & Training

~Brandon Pue Liquid Filtration Sales Manager “We found out pretty quickly that the textile, furniture and paper industries, dominant in the area at the time, did not want to spend 20 times the money on an exotic piece of plastic over what they were currently using,” laments Art. “The South had not evolved to the level of Douglas Aircraft and we realized that we were going to starve to death if we didn’t find products that would fit in with the practices of the manufacturing companies in the area.”

The partners determined that most of these industries used compressed air products and had some form of liquid filtration, so they set out to develop lines of process products.

“Our first supplier was Deltech Engineering Company,” says Art. “We sold their products designed to filter breathing air to NASA.” ESA is still a representative for Deltech today.

In 1964, Addison set off on his own and Art became the sole owner of ESA, continuing the company’s focus on compressed air and liquid filtration.

Over time the Carolinas’ industry base has changed and the company has continually adapted to the developing needs of new industry, says Art. Much of this has to do with educating their customers regarding new products, investing towards greater efficiency and going green. “We try to pro$ vide our customers with cost savings through

develop

stay

improve

key talent productivity competitive

Training Solutions • Management & Leadership • Human Resources/Compliance • Professional Development • Computer • Teambuilding

For more information on The Employers Association please visit us at www.employersassoc.com or call 704-522-8011.

Your Trusted HR Resource Since 1958 with 865 Local Member Companies

p u r s u i n g a b a l a n c e o f b u s i n e s s a n d l i fe

october 2010

43

energy reduction,” says Arthur. “They can save money and benefit the environment.”

Finding Fulfillment Art finally gave up bachelorhood at the age of forty when he married and started to raise a family, setting the stage for the future of the business. “We were born into this business. It’s always been part of us,” says Arthur. He recalls science projects that frequently involved liquid filtration.

“Everything I did was what my consultant here recommended,” he says, gesturing toward his father. Arthur and Brandon followed their father to work on the weekends. “It wasn’t long before the broom was handed out,” remembers Brandon.

The two worked summers in the warehouse before going their own ways for a while.

Arthur graduated from Hampden Sydney College in Virginia in 2000 before joining the military. Like his father, he was a member of the Green Berets. He served several years of active duty including a tour in Afghanistan. He followed active duty with service in the National Guard.

“The family business was always in the back of my mind,” says Arthur. “I knew this is where I would make my career and make my living.”

A 2004 graduate from the University of Georgia, Brandon holds a degree in journalism and new media. Prior to coming on board with ESA, he worked in sports marketing and media.

Arthur joined the business in 2004; Brandon in 2005. “They get things done,” says Art proudly.

“With their involvement, I haven’t come in over a weekend in a while.”

ESA is a very extended family with long-term, loyal employees, many of whom were brought in at an early age. “My very first employee was Woody Sansbury. Thirty-seven years later, he’s still with me,” says Art of Sansbury who is a vice president and serves as the air products manager.

Sansbury is given significant credit for moving the company into the air compressor business.

“As a family run company, we operate as a family,” says Arthur. “We try to understand the demands and needs of every individual.”

In this 50th anniversary year, the Pue team is excited about new product advancements.

Gardner Denver has recently developed a variable speed air compressor which will substantially reduce energy consumption. Also compressors that don’t use oil, lessening pollution, and products that remove oxygen from compressed air are coming on the market. The latter has the potential of saving millions of dollars lost to rust and other destruction from oxidation. Products that allow for safer and more economic production of nitrogen are also showing promise.

After weathering the downturn in the

44

october 2010

“Our goal is to be a one-stop-shop for all compressed air and liquid filtration needs, including equipment, parts, service, rentals and expert consulting.” ~Art Pue Owner and President economy, sales are picking up now. “Manufacturing is the part of the economy that is growing substantially compared to last year at this time,” says Arthur. “Manufacturing is a good indicator for our business.”

“We are fortunate to have a company like this. Very few people have this opportunity,” says Brandon.

Asked if he plans to retire, Art responds, “Yes, I do. My wife and I have a little place in Litchfield Beach and that’s our target.”

In the meantime, it’s family business as usual.

“Everyday he’s in here, we learn something more from him,” says Arthur of his father. “We need him still and he needs us, but when we all arrive at our comfort zone, Mom and Dad will spend a lot more time at the beach.” biz Zenda Douglas is a Charlotte-based freelance writer.

Engineering Sales Associates of the Southeast, Inc. 3324 Pelton Street Charlotte, N.C. 28217 Engineering Sales Associates Phone: 704-523-8585 Principals: Art Pue, Owner and President; Arthur Pue,Vice President of Operations; Woody Sansbury,Vice President and Air Products Manager; and Brandon Pue, Liquid Filtration Sales Manager Established: 1961 (50 years in business) Revenue: $5 million Employees: 18 Business: Industrial stocking distributor and one-stop-shop for all compressed air and liquid filtration needs including equipment, parts, service, rentals and expert consulting. www.engineeringsales.com

ESA

[biznetwork] Thank you to our advertisers who make this publication and its distribution to over 100,000 readers possible! Enjoy their products and services as Charlotte’s leading business-to-business suppliers.

37

ATCOM atcombts.com

06

At-Net at-net.net

38

Ballantyne Center for Dentistry ballantynedentistry.com

19

Blue Cross Blue Shield of North Carolina bcbsnc.com

31

Business Success Institute business-success-institute.com

37

Business Wise businesswise.com

08

Carolinas Medical Center carolinasmedicalcenter.org

39

CC Communications cccommunications.com

31

Charlotte Speech & Hearing Center charlottespeechhearing.com

21

Daniel, Ratliff & Company danielratliff.com

33

Design Frog Studio designfrogstudio.com

BC

Diamonds Direct SouthPark diamondsdirectsouthpark.com

27

Group Benefit Solutions gbs-benefits.com

32

Hampton Inn SouthPark hamptonsouthpark.com

21

Harris Communications harriscommunications.net

27

Hickory Printing hickoryprinting.com

39

Hilldrup Moving and Storage hilldrup.com

IBC

Hood Hargett Breakfast Club hoodhargettbreakfastclub.com

25

Larner’s Office Furniture Outlet larnersoffice.com

33

Leadership Insights leadershipinsights.biz

01

Lions Jewelers windsorfinejewelers.com

10

Moore Van Allen mvalaw.com

26

TelWare Corporation telware.com

25

Tereck Office Solutions tereckoffice.com

43

The Employers Association employersassoc.com

IFC

Time Warner Cable - Business Class carolinas.twcbc.com

12

UNC Charlotte Belk College belkcollege.uncc.edu

43

Wayne Morris Photography wmphoto.biz

03

Windstream Communications windstreambusiness.com/investment

of The Southeast, Inc.

w w w. g re a t e rc h a r l o t t e b i z . c o m

DEFE*!GHBIH9*/JKHLG >&2,)83)#')A&&-)A#$<('')B$(#56#3')!%89)6&$) !"#$%&''(C3).$(72($),('+&$52,<)(D.($2(,:( OCT

NEXT MEETING B'*6/=$B)2(-*;$B=21 1;$%(8%-'-%)($)(=;

The Hood Hargett Breakfast Club

is a ‘category exclusive’ business development organization that develops and hosts some 36 events throughout the year for its members and guests. The goal of these events: to provide success-minded business owners with first-class venues to entertain clients and prospects.

3R s

\

2010

?.,"*@#44

Founder of The Chip Bell Group, Customer Loyalty Expert and Best-Selling Author

Oct. 8, 2010

HHBC can provide your company with the 3Rs of business networking success:

B79AJ978

RENOWNED SPEAKERS We pride ourselves on bringing world-renowned speakers from all walks of life to these events on an on-going basis.

B7>7Q:93

RELEVANT SUBJECTS The highlight of the breakfast is an ‘educate and inform’ message from our keynote speakers addressing issues that members and guests can use to improve their companies’ performance. Our members invite clients, key employees and prospects to attend and participate with them.

B7<:4N:5>7

REMARKABLE MEMBERS The key to any organization’s success is the quality of its members. We’re proud to represent the best and brightest of the local business community: men and women who have built their own companies to become leaders within their respective industries.

!456784(94!

848:4;< Blue Cross Blue Shield Compass Group Kalu Asian Kitchen Killingsworth Environmental Morton’s The Steakhouse Optima Engineering Titan Outdoor Living Solutions

13&2A*BC&72&4# World’s Foremost Authority on Fraud and Identity Theft, Author of Best-Selling Book “Catch Me If You Can”

Nov. 12, 2010

“Every year since we’ve been a member of the Hood Hargett Breakfast Club, we’ve been able to recoup our investment—not only through new business that we’ve developed, but also existing business that continues to renew. What Hood Hargett Breakfast Club brings to the table are decision-makers, and those are the individuals that we are trying to get in touch with.” ~Lee Summey Business Wise, Inc.

“We’ve been a member of Hood Hargett Breakfast Club for nearly 10 years now and we especially appreciate the great speakers and the opportunity to entertain business decision-makers at quality events.” ~John P. Galles Greater Charlotte Biz

Accepting New Members Call Jenn Snyder at 704-602-9529 • jenn@hoodhargett.com !www.hoodhargettbreakfastclub.com