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BuildingSolid FOUNDATIONS Charlotte 49ers strike character, community and sports balance
Northeastern University - Charlotte Garfinkel Immigration Law Firm ettain group Hood Hargett Breakfast Club StayConnect
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Judy Rose Director of Intercollegiate Athletics UNC Charlotte Athletic Department
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Protecting our community For almost 50 years, CPCC has been building leaders who pursue meaningful careers that significantly contribute to the community. One such alumnus is Jon Hannan, whose talents and professional skills are protecting our community - making it a better place to live and work. Says Jon, “CPCC’s curriculum taught me the fundamentals of building construction and fire behavior. This knowledge has helped me excel in my career, equipping me with the reasoning and critical thinking skills necessary to be better at my job and keep the community safe.” To learn more about CPCC and its programs and alumni or to support the College, visit cpcc.edu or cpccfoundation.com.
Jon Hannan CPCC Alumnus, Associate Degree in Fire Protection Technology Fire Chief and Homeland Security Director for the City of Charlotte
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UNC Charlotte Athletic Department
The Charlotte 49ers Athletics Department is building character, community, and stellar sports programs— brick by brick. Athletic Director Judy Rose describes her job as finding the right coaches, and then providing them and their players with the resources necessary to be competitive and to develop the character and achievement to be successful. All the coaches take the commitment to student development seriously. “The best thing we can give our students is an education,” says Rose.
10 Northeastern University Charlotte Charlotte is Northeastern University’s first regional expansion in the nation, bringing its new way of furthering graduate education through a hybrid delivery system which combines classroom and online instruction while extending experiential, or co-op, learning opportunities, says Regional Dean Cheryl Richards. Classes begin this month.
16 Garfinkel Immigration Law Firm
Steve Garfinkel knew the stakes were high when he struck out on his own. Believing that Charlotte was in a growth cycle, and having a philosophy of Do exceptional work and the clients will come, he has grown a handful of corporate clients into a vibrant and thriving practice he calls “a one-stop shop for all matters related to immigration.”
28 ettain group At a time when companies are closing offices and growth for many is stagnant, ettain group is expanding. Partners Jeff Harris, Brian Deblitz and Jon Olin seem to have found the Holy Grail of growth. With IT unemployment low and IT jobs growing at almost double the rate of others, their information technology staffing and business solutions company is booming.
34 Hood Hargett Breakfast Club Owner by Chuck Hood and Executive Director Jenn Snyder seek to provide a high class level of entertainment, education and hospitality at Breakfast Club events to attracts owners and executives—the upper level business decision makers—and give them the opportunity to share the experience with their prospects, clients and partners.
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departments publisher’spost
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legalbiz
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Transforming the Business of Law to Meet the Needs of Business
webbiz
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New Media Strategies, Secrets and Solutions
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Accounting, Tax and Consulting Solutions
biznetwork
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on the cover: Judy Rose Director of Intercollegiate Athletics UNC Charlotte Athletic Department
publisherspost
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legalbiz
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january 2012
BuildingSolid FOUNDATIONS Charlotte 49ers strike character, community and sports balance
Northeastern University - Charlotte Garfinkel Immigration Law Firm ettain group Hood Hargett Breakfast Club StayConnect
Photo by Wayne Morris
Scan to view greatercharlottebiz.com
Judy Rose Director of Intercollegiate Athletics UNC Charlotte Athletic Department
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StayConnect Inventor Mike Schutte’s maddening experiences with cord disconnects when using yard tools “sparked” him into finding a solution for the routine annoyance of exposed wires and bent and broken prongs. His StayConnect outlet cover thwarts disconnects in these and far more critical situations involving medical devices and sensitive computer equipment.
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[publisher’spost]
Make Congress Work At a time when our nation faces immense challenges, the American people have never had less faith in the ability of Congress to do anything about them. This problem couldn’t be more serious—because if Congress is broken, so is the United States of America. The biggest problem with Congress is not necessarily the people in it. It’s the outdated rules, procedures and traditions that govern John Paul Galles the institution and impede the process of getting things done. Congress has become a place where even good, talented people get dragged down by an archaic system. But a lot can be done about updating the rules of Congress, so that we can make our government work again. A grassroots movement known as NoLabels.org promotes 12-point action plan to Make Congress Work. This plan doesn’t require new laws or new spending, and the organization does not favor any party or particular cause. The plan contains simple, straightforward proposals to break gridlock, promote constructive discussion, and reduce polarization in Congress. It is food for thought when the next Congress convenes in January 2013. See if you don’t think they make a lot of common sense: 1. No Budget, No Pay. If Congress can’t make spending and budget decisions on time, they shouldn’t get paid on time either. 2. Up or Down Vote on Presidential Appointments. All appointees should receive an up or down vote within 90 days of their name being sent to the Senate. If deadline is not met, the nominee would be confirmed by default. 3. Filibuster Reform. The filibuster fix is based on a simple idea: If senators want to filibuster legislation, they should actually have to publicly explain why. Eliminating the filibuster for motions to proceed would allow more issues to be debated and voted on by the whole Senate. 4. Empower the Sensible Majority. House and Senate rules should be reformed to make it easier for a bipartisan majority to bring legislation to the House or Senate floor over the objection of party leaders. 5. Make Members Come to Work. Congress could get more done if they actually came to their offices in the capital. The House and Senate should be in Washington, D.C. for three weeks in any given month. The House and Senate should also have five-day work weeks and they should be in session at the same time. 6. Question Time for the President. America should take a cue from the British Parliament’s regular questioning of the prime minister to create question time for the president and Congress. 7. Fiscal Report to Congress. Hear it. Read it. Sign it. Every year, a nonpartisan leader, such as the comptroller general, should deliver a fiscal update that must be signed off on by our senior political leaders, just as CEOs are required to affirm the accuracy of their company’s financial reporting. 8. No Pledge but the Oath of Office. It’s time to cut the puppet strings that allow narrow interest groups to control members of Congress. Members should make no pledge but the pledge of allegiance and their formal oath of office. 9. Monthly Bipartisan Gatherings. To get members talking to one another, both the House and Senate should institute monthly bipartisan gatherings. 10. Bipartisan Seating. It’s time to curb the cliques in Congress. At all joint meetings or sessions of Congress, each member should be seated next to at least one member of the other party. 11. Bipartisan Leadership Committee. Congressional party leaders should form a bipartisan congressional leadership committee as a forum for discussing both legislative agendas and substantive solutions. 12. No Negative Campaigns Against Incumbents. Incumbents from one party should not conduct negative campaigns against incumbents from the opposing party. Members would, of course, be free to campaign or fundraise in support of candidates from their party. I encourage you to learn more at www.nolabels.org. I have joined and I invite you to join me! biz
Let me know what you think - jgalles@greatercharlottebiz.com
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704-676-5850
January 2012 Volume 13 • Issue 01 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
Sales Manager Talbert Gray x106
partners Central Piedmont Community College hiSoft Technology International Limited Knowmad Technologies Potter & Company, P.A. Wishart, Norris, Henninger & Pittman, P.A.
Contributing Writers Zenda Douglas Barbara Fagan Suzanne Fulton Heather Head Margaret Carr Hughes
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 2012 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.
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[legalbiz]
What happens if an employee gets sick while on leave pursuant to the Family and Medical Leave Act? Can the employee claim sick leave pursuant to the employer’s policies for the time he or she was sick? The answer depends on your employment policies. You can require that sick, vacation or other paid leave be taken concurrently with the FMLA leave so that employees do not have the ability to take 12 weeks of unpaid leave in addition to any other leave provided. However, if your policies do not resolve the issue, an employee whose illness does not qualify for the FMLA may be able to claim sick leave in addition to FMLA leave so that more than 12 weeks of leave are available. Practically, if your policies are not clear on the issue, it may be better for the business to allow the employee to use the leave instead of dealing with a potential claim and investigation for violating employment laws.
When the Employer’s Business is in the Employee’s House When an employee works from home or otherwise “telecommutes” to the office, you, as an employer, may not think much about how employment laws still impact the “workplace.” The employee’s rights and responsibilities still apply whether they are working in the office or somewhere else. For example, you need to make certain you track your employee’s hours of work for wage and hour issues, overtime issues and what time overall should be compensable when the employee is ready to work but is not able for some reason (such as a lack of Internet access). Also, you must consider whether telecommuting should be offered as a “reasonable accommodation” for a disability. As a part of providing workers’ compensation insurance, you may want to be able to inspect home offices for safety standards. While the Occupational Safety and Health Administration will not hold you responsible for the employee’s home office, your insurance will still be covering the employee. In addition,
the state may impose some additional requirements on the employer for the conditions of the employee’s workspace at home. You must have an agreement or specific policies in place to deal with telecommuting. Also, you should have specific protocols and policies to deal with the security of information the employee will have or have access to while telecommuting. These may include specific software, systems, equipment or other procedures to maintain confidentiality and privacy. The policies should also govern what rights you have to the employee’s computer, email and other electronic records. In general, most, if not all, of the employment laws apply equally at home or at the business’ location. In many ways, having employees work “on-site” is easier for employers to manage. However, even if people are working “on-site,” many jobs offer the ability to or even require working “after hours” at home. Make certain you address the “part-time” telecommuter as well.
Unemployment Tax Credit Restrictions Employers in states where the state has had an outstanding federal unemployment insurance loan for at least two years may not be able to claim the maximum amount of state unemployment tax credits on their 2011 federal unemployment tax return. Among those 23 states are North Carolina and South Carolina. However, South Carolina may not be on the final list of states where you cannot claim the full credit. For amounts paid to a state unemployment tax
fund, employers can normally claim a credit of up to 5.4 percent of the 6 percent paid in 2011 (or 6.2 percent for the first half of 2011). The credit employers can claim is reduced by .3 percent each year beginning after a state has had a loan from the federal government outstanding for two consecutive years. As with all legislation currently, be sure to check for updates if Congress decides to act to eliminate the reduction.
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Prohibited Employment Practices
As claims with the Equal Employment Opportunity Commission climb, it becomes even more important that every employer be aware of what they can and cannot do with regard to potential, current and former employees. Examples of prohibited practices from the EEOC include: You cannot advertise for jobs in any way that shows a preference or discrimination. This includes wording like “recent college graduates” or other terminology that would suggest preferences for people based on age, gender, disability, genetic information, race, religion or national origin. You cannot use recruitment practices that would tend to discriminate, like relying on wordof-mouth recruitment by your employees who are predominately male or of a certain age or national origin. You cannot take into account any discriminatory category in deciding about making job referrals or providing (or refusing to provide) references. You cannot make employment decisions based on stereotypes about employees. In making any decisions, you must be consistent in the way you treat all employees all the time. You cannot fire an employee for complaining, no matter how much they complain. You should avoid any questions or investigations about potential employees that would tend to reveal the employee’s race, religion, disability or other information that falls within a discriminatory category. This includes asking for a photo of the employee. Your dress code should be modified as needed to accommodate religious beliefs, ethnic clothing, disability and the like. You cannot make the work environment such that a person believes they have to quit.
Content contributed 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 Gary Smith at 704-364-0010, follow on Twitter @ glawnews, or visit www.wnhplaw.com.
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The dodo bird and big banks. By John S. Kreighbaum President and CEO, Carolina Premier Bank, Charlotte, North Carolina
Remember the cautionary tale of the dodo bird, which went extinct in the 17th century because it couldn’t adapt to changing conditions. The same thing is happening with the bricks-and-mortar branches that the big banks have erected by the thousands across the country. Customers, lured by the ease and efficiency of online banking and the proliferation of ATMs, are shunning branches; last year customer visits to banks and branches actually went down. What does this mean? For small and technologically sophisticated banks like ours, it is good news. We provide the same services as the big banks and those services can be accessed anywhere, anytime and in any state.
Technology has leveled the playing field and we are competing on equal footing with the big banks. The news is not so good for the big banks. Their large branch networks are a huge expense that threaten their profits. And though they are already closing branches and consolidating locations to preserve earnings, it will take years to scale down the sprawling networks. Meanwhile, they will be carrying the expense in a time of slim margins due to low interest rates and looking for alternative ways to make a buck. This is where their bad news becomes thier customers’ bad news: less services, and more and higher customer fees. If not a monthly fee for debit card use or something else (and there will always be a “something else”) the oft-quoted excuses are that the fees offset new regulations aimed at protecting consumers and that the bank has a right to make any level of profit they wish. Things customers used to get for free or minimal charge (checking accounts, safe deposit boxes, etc.) are ripe for exploitation as banks scramble to cover the costs of these branch networks.
Well, bank customers have rights, too. Such as the right to move their money. And that’s exactly what we are seeing. We are welcoming new customers daily who are benefitting from our more down-to-earth size and smart use of technology. Without a large network of branches to support our overall cost structure is lean and we pass the savings onto you. We even still offer some accounts that do not require service charges or fees. Better still, under our “Switch Your Big Bank” program, if you’re stuck with a bank that is charging a monthly fee, we’ll do all the work necessary to transfer ACH, on-line banking debits and everything else necessary without inconvenience to you! How’s that for a deal? Just call us for further details. Small and technologically-advanced is the customer-friendly evolution of banking and, though it won’t help the dodo bird, it certainly will pay off for you.
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Knowmad
[webbiz]
Advancing Business Online
• •• ••• •••• January is the perfect time to review your online marketing plan to ensure it still matches up with your company’s sales plan for the upcoming year. What has changed in your company’s planning or marketplace since you last reviewed your online marketing plan? Reviewing the performance of your website and the competitive landscape online will inform your planning.
Online Business Trends to Watch Growth of Mobile Advertising and Mobile Commerce
Diona Kidd Managing Partner
Do you know the top 3 metrics to measure?
As mobile devices continue to rise in adoption rates around the world, mobile advertising and commerce will continue to grow. eMarketer estimates mobile commerce sales will reach $6.7 billion this year (a 91.4 percent increase over 2010) and will rise another 73.1 percent, to $11.6 billion in 2012. (www.emarketer.com/Article. aspx?R=1008714)
For most companies, the website’s highest purpose is to bring sales leads. If it’s not performing on this task, take a look at the following top three metrics for success. ■ Total number of website visitors vs. visitors that become leads or buyers ■ Close rate of sales leads ■ Average order value The number of metrics available for a website is daunting and trying to track all those numbers will distract you from real success. Instead, narrow your focus to metrics that will drive the business forward.
Is your website bringing more customers to your door? By using the metrics mentioned, you can easily track the performance of your website and overall Web presence. If your metrics are trending downward, what is driving the change? If traffic is at expected norms but interactions are down, you may want to review and update the product descriptions or offers on your website. If traffic has decreased, where are your previous visitors going? You may find you have a new competitor, visitors are finding more relevant content somewhere else online or your online market space has changed.
Are You Falling Behind? When was the last time you reviewed your online competitors? The online marketplace changes quickly. It’s smart to complete this every 4 to 6 months or when your metrics significantly change. One way to do a competitive review is to search on your most valuable keywords and review both the search results and advertisements. You may discover new competitors or that existing competitors are gaining ground.
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Smarter Analytics and Continued Focus on ROI Our industry is seeing an increased focus on inbound marketing and demands for knowing more about prospects who visit online. Social media is also continuing to mature in regards to providing performance on key metrics and ROI to marketers.
Inbound Marketing and Lead Generation More businesses are becoming aware of the value of their Web presence as a tool for inbound marketing and lead generation for sales. “Closed loop reporting,” the capability to report which marketing activity resulted in sales, has become even more accessible to small businesses online.
Multi-channel Marketing Multi-channel marketing isn’t new, but the number of channels to market through are growing. Newer tools seen online include shoppable videos, Facebook product pages, QR codes and social media ads. Content contributed by Knowmad, a Web strategy, design and Internet marketing company located in Charlotte, N.C. Knowmad guides clients on the most effective ways to advance their business online. For more information, contact Diona Kidd at 704-343-9330 or visit www.knowmad.com.
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[bizprofile]
by zenda douglas
On the Global Stage Northeastern University launches regional campus
“It’s a wonderful and dynamic city to be in. One of the reasons Northeastern was so attracted to Charlotte is that it is a very forward-thinking city as evidenced by its economic development efforts and focus on global commerce.” ~Dr. Cheryl Richards Charlotte Dean and CEO
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he city that has nurtured pioneers in banking, energy and sports leadership now welcomes a fresh, new approach to higher education. Northeastern University, the prestigious institution established in Boston in 1898, has opened its first regional campus in Charlotte. With innovation at the core of its history and culture, Northeastern has brought a new way to think about graduate education to Charlotte as it implements plans to further graduate study through a hybrid delivery system which combines classroom and online instruction while extending experiential, or co-op, learning opportunities. It is the first such regional expansion in the nation, according to Cheryl Richards, Ph.D., Northeastern’s Charlotte executive officer and regional dean. Classes representing eight master’s degree programs begin this month. This first set of degree offerings include master’s in finance, business administration, taxation, leadership, health informatics, education, sports leadership and project management. Many of these programs represent the first of their kind for the region, either by discipline or through the online or hybrid delivery format. “It’s a wonderful and dynamic city to be in,” says Richards. “One of the reasons Northeastern was so attracted to Charlotte is that it is a very forward-thinking city as evidenced by its economic development efforts and focus on global commerce.” The regional campus will partner with companies on areas of research that they have unique strengths in, particularly in areas of health, security and sustainability. “Partnerships with the corporate community here will also serve to strengthen our experiential learning programs here and in Boston,” affirms Richards. Charlotte officials and leaders see an opportunity to further build and improve the work force through graduate degree attainment. “Most of the schools here have been primarily focused on an undergraduate market. There hasn’t been a large private, research-based university with a significant presence in Charlotte,” says Richards. The Charlotte Chamber of Commerce and Center City Partners were active in recruiting Northeastern. “Both groups were instrumental in helping the Northeastern team understand and navigate the city and connect with the right people,” says Richards. The Northeastern team consisted of five to six core individuals who came to Charlotte and met with about 100 leaders in the community representing health care, finance and banking, recruitment and placement firms, education, industry, motorsports, tourism, regional partnerships and more. “Our purpose in these meetings was to share perceptions from our market research and hear from businesses if that’s really what was needed,’” says Richards. “It was more than a paper study; it remains a dialogue with the community and ➤ investigation into ways Northeastern can add value.”
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With innovation at the core of its history and culture, Northeastern has brought a new way to think about graduate education to Charlotte as it implements plans to further graduate study through a hybrid delivery system which combines classroom and online instruction while extending experiential, or co-op, learning opportunities.
Dr. Cheryl Richards Charlotte Dean and CEO Northeastern University - Charlotte
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Rise to the top Northeastern’s grand opening in Charlotte was held on October 31, 2011, following a two-year investigation process. “The university looked at many metropolitan areas across the country,” shares Richards. University researchers investigated labor trends, market needs and new emerging economies in these regions resulting in a short list of 15 to study in more depth. Next they studied degree attainment, emergence of new industries and new populations that were changing the shape of the city itself. “Charlotte rose to the top,” exclaims Richards. The diversification of local industries was important as was the complete re-shifting in manufacturing that has occurred in the past 20 years. There is also a need factor. While Charlotte is on par with other places in undergraduate degree attainment, its work force has only about half the graduate level workers in other cities such as Boston and nearby Raleigh, which is two-thirds the size of Charlotte. “It makes more sense to be in Charlotte where there is a demand for higher level degrees,” says Richards. For instance, Charlotte is one of the regions with a robust health care sector in need of more highly educated professionals in healthcare IT. The Northeastern program in health informatics, which was one of the first in the country, could address that need. Similarly, the need for project managers crosses multiple industries from finance to manufacturing, health care to sports and non-profit organizations. Northeastern brings the only master’s degree in project management to the region helping fill needs in a variety of industries. Northeastern made a commitment to Charlotte in April of last year and its applications for licensure in North Carolina were approved in October. Additional licensure for a doctoral program in education is anticipated sometime this year and applications have already been submitted for additional master’s and doctoral programs for 2013. Sprawling into cyberspace Northeastern has turned the dominant corner
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“I want Northeastern to help the city grow to the next level. We’ve made great strides in Charlotte; now we’re on the cusp of the global stage. I’d like to be here five years from now with Northeastern having played a very active and civic role in realizing that dream for the city.” ~Dr. Cheryl Richards Charlotte Dean and CEO of Trade and Tryon Streets into an address for a sprawling university campus— not in acreage, but in state-of-the-art classroom facilities and cyberspace connections across the country and around the world. Occupying the 11th floor of the Independence Center Plaza, the campus has a sci-fi feel but its communications capacity is very real. “The university has made a significant commitment in technology so that the students are connected to Boston, but also around the world via video technology,” explains Richards. For example, guest speakers and renowned faculty can be brought in from around the world to interact with students and also the community. “We’re not just giving our students access, but also the executive across the street who wants to hear more about the latest trends in a given field,” says Richards. In November, the university launched its speaker series with a highly regarded faculty member expert in the area of airport technology scanners to help give the community a perspective that was broader than Charlotte. The university also hosted the recent Summit on Creative Industries, organized by the Chamber of Commerce. Computers are set up in the Technology Lounge and the Student Meeting and Resource Area. Laptops and iPads are available for students
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to check out. The entire campus is wireless. An uptown location is important to the regional campus and follows Northeastern’s main campus which is in the heart of Boston and engages with the community and employers around it. “We wanted to be at the heart of where commerce is done and you can’t get any more central than the corner of Trade and Tryon,” says Richards. “We wanted to have a convenient place for the conversations we will have with both student and employers here.” Significant stature Northeastern University is a well-respected and well-known institution which has witnessed remarkable growth in the past several years. Last year the university had the highest number of undergraduate applications of any other private institution in the United States, according to Richards. Over 43,000 applicants sought admission among its nine colleges; 2,800 enrolled with 10 percent of its enrollment represented by international students. There are over 203,000 alumni. Over the past five years, Northeastern has made the greatest leap in the U.S. News & World Report rankings of any university. Northeastern’s co-op or experiential education is highly regarded. “We now have students in 85 countries on all seven continents,” says Richards. “Most graduate students are already professionals and their employers can provide a working laboratory within their place of employment that makes them more valuable to that company,” says Richards. “It’s really about integration of best learning practices and real world experience.” Northeastern has invested approximately $60 million in its regional campus system at large. This includes both start-up costs and a significant investment in expanding the full-time, award-winning faculty. While Charlotte faculty will initially come from the Boston campus, the university has hired 261 tenured and tenuretrack faculty over the past five years, primarily to meet the upcoming needs of regional campuses, ➤ according to Richards.
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A familiar face Richards, over the past several years, has come to call Charlotte home. Moving from Denver in 2004, she landed in a business development role with Central Piedmont Community College. For the past three years she had served as the dean of the Cato Campus. She has been actively involved in the community and has served on numerous boards and committees. Richards officially joined Northeastern University last June. “I see this as a perfect blend of my previous experience working with adult professional populations, knowing the community and understanding what the needs are and being able to work with an institution that is doing what no other private university has done before,” says Richards.
Within Northeastern’s hybrid approach, a student can be in class one week and work online the next. “If I had the opportunity, this is exactly the kind of program I would have selected for myself,” says Richards. Joining Richards on the staff is Julia Walton, formerly with the Chamber and a native Charlottean. Walton will serve as the senior director of business and community relations. The regional campus is not replicating an admissions office, registrar, career services or student life centers but will leverage these, and other support services, from the main campus in Boston.
possibly expanding in the areas of nursing, physical therapy and pharmacy. All of the Charlotte operations are contained in the North Tryon Street address but that doesn’t mean the university’s reach is limited to uptown. “We were very deliberate in calling this a regional campus instead of a Charlotte campus,” says Richards. “In the next couple of years, we will likely expand our reach across the region through programs, research and the extension of corporate partnerships.” “I want Northeastern to help the city grow to the next level. We’ve made great strides in Charlotte; now we’re on the cusp of the global stage,” says Richards. “I’d like to be here five years from now with Northeastern having played a very active and civic role in realizing that dream for the city.” biz Zenda Douglas is a Charlotte-based freelance writer.
Raised in Denver, Richards completed her undergraduate degree in communications from Colorado State and continued there to earn her master’s degree in student affairs. After moving to Charlotte, she was married with children, had a full-time job and was heavily engaged in the community. Pursuit of a doctoral degree which required a seat-based classroom schedule was not realistic. Instead she enrolled in Capella University, an online university with accredited doctoral programs and completed her Ph.D. in higher education leadership. “I knew this was the trend of where higher education was going and I wanted the firsthand experience of knowing when you are in a quality online or hybrid program and how to translate that into an educational environment,” says Richards.
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Admission standards for graduate students vary by program and consider professional experience. “It’s an amazing opportunity to have access to a highcaliber faculty and education for people who didn’t think it was possible without giving up their career.” says Richards. “ Graduate studies are rarely easy on the wallet and Northeastern doesn’t pretend to be inexpensive. Northeastern is not a state-supported institution. It is predictably more expensive than UNC Charlotte, but on par and in some cases less than other private institutions. Down the road The next regional campus for the Northeastern will be in Seattle, Washington, and similar processes are underway there to achieve an opening in the next year. Several other cities are currently being researched and evaluated. “We think there are some great opportunities to partner with health systems,” says Richards who is looking forward to bringing Northeastern’s health informatics curriculum into the region and
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Northeastern University – Charlotte 101 N.Tryon Street Charlotte, N.C. 28246 Phone: 980-224-8466 Principals: Dr. Joseph E. Aoun, President; Dr. Cheryl L. Richards, Charlotte Regional Dean and CEO Employees: 1,000 faculty and 2,300 staff Established: 1898 (in Boston); fall 2011 in Charlotte Awards/Honors: Ranked top-tier university by U.S. News & World Report; largest undergraduate applicant pool of any U.S. university in 2011; faculty honors include 15 National Science Foundation CAREER Awards and two Presidential Early Career Awards Business: Global, experiential research university with more than 20,000 undergraduate and graduate students; Charlotte campus boasts a broad range of master’s degree programs—including those in business, engineering, health sciences, and computer science. www.northeastern.edu/charlotte
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Potter & Company, P.A.
[accountingbiz]
Accounting, Tax and Consulting Solutions
Is Everything In
Place For Your Business
If Something Happens To You?
s an entrepreneur and business owner there are several benefits that derive from operating your own business: the freedom and ability to set your own future, the ability to do what you enjoy, and the promise of a profitable company built from your own sweat equity. What most entrepreneurs don’t see is their business operating without them. This is where the practice of having a buy-sell agreement in place will prove an essential tool in your business playbook. Buy-sell agreements can be a way to protect the business and ensure that it continues to operate if one of the shareholders is unable to or chooses not to participate in its operations. This article will summarize some of the reasons why having a buy-sell agreement in place can be so important. A buy-sell agreement is an agreement among the owners of a business that fixes the owners’ rights with respect to each other and with respect to the business enterprise. A buy-sell agreement can be very important to the owners of a closely held business because it can serve several purposes among them: (1) providing a ready market for the stock; (2) restricting the transfer of stock to prevent ownership by undesirable parties; and (3) in the event that one of the owners passes away or becomes disabled, providing a way to transition their ownership interests. Thus, as a practical matter, the agreement can provide a framework for the owners to resolve a number of issues that might otherwise lead to conflict later.
Setting The Market Without a buy-sell agreement, the price and marketplace of your business can be a huge unknown. The value of a closely held business is not like a share of Microsoft or General Motors where the price to buy and sell is public knowledge and occurs in a public marketplace. A closely held business is an illiquid asset that has a limited market. A buy-sell agreement will set the price and how the price to be paid for the shares will be determined. This will become essential when dealing with a dissenting shareholder who wants to exit the business and when dealing with a deceased shareholder’s heirs in the determining the value of the deceased shareholder’s stock. Additionally, a buy-sell agreement can spell out the payment terms to the exiting shareholder.
Restricting The Transfer of Stock Another important provision typically found in a buy-sell agreement among shareholders is a provision restricting the ability of the shareholders to transfer stock to others against the wishes of the other shareholders.
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Not only can this prevent the transfer of stock to an undesirable new shareholder but this can also be important when the corporation is an S corporation. S corporations have restrictions on the number and type of shareholders. A buy-sell agreement can spell out that the stock cannot be transferred to an ineligible shareholder which would cause the corporation’s S election to be revoked.
Providing For Transition In the event of an untimely death or disability of a shareholder, a buysell agreement can provide a structure for cashing out the ownership interest of a shareholder. A buy-sell agreement can provide a vehicle for the corporation or the shareholders to purchase the stock of a deceased or disabled shareholder. This becomes paramount in a situation where the exiting shareholder’s spouse and children have no familiarity with, or expertise in, running the business yet depend on the income therefrom to pay living expenses and to fund anticipated future expenses such as college tuition. But it is important that such a provision be funded by either life or disability insurance. Few companies have the cash on hand to buy back a disabled or deceased shareholder’s stock and continue to operate at their normal level. Buy-sell agreements that are funded will ensure that the spouse and children of the deceased or disabled shareholder will receive adequate compensation for the stock and provide peace of mind to them in knowing that this situation has previously been addressed. As an example of the importance of having a buy-sell agreement in place, let’s imagine the owner of a newly created business—we will call him Joe—who is at a meeting at a customer’s office. The meeting goes well but as Joe is leaving, he collapses to the floor. The customer contacts emergency officials but to no avail. Joe has tragically passed away and leaves behind a wife, young children and employees. Joe was young, vibrant and seemingly bulletproof. He has no buy-sell agreement in place. Fortunately, his story has a happy ending as some colleagues stepped in and were able to shore up the business in the short term and find a buyer. But the question remains, is there something in place to protect your business and your heirs, if a fate similar to Joe’s were to happen to you? If you do have an existing buy-sell agreement, you may want to review it and see if it meets your current operating needs. As they say, “Life comes at you fast.” Using a buy-sell agreement in your business can help you to be prepared when it does. Content contributed by John W. Kapelar, CPA, CVA, Managing Director with Potter & Company, P.A., a locally based certified public accounting firm offering core services of audit, business consulting, tax, and financial analysis. For more information, contact him at 704-283-8189 or visit www.gotopotter.com.
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Steven H. Garfinkel, Esq. Managing Partner Garfinkel Immigration Law Firm
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by margaret carr hughes
the For Garfinkel Immigration, it was a bet worth taking
Dice
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teve Garfinkel knew the stakes were high when he started his own small business. It was September 1997. He had a secure job as the “partnerin-charge” of the immigration law practice group at a large, multidisciplinary law firm. He was planning on getting married soon and within a couple of years it would be time to start a family. But Garfinkel could tell that Charlotte was in a growth cycle. The city’s businesses were thriving, the airport was expanding, and Garfinkel knew that the economic developers were talking more and more to foreign companies. So, like most wide-eyed entrepreneurs, he decided to the roll the dice. No time would ever be a perfect time, but it was a good time to take a risk.
[bizprofile]
“Immigration is personal. It affects the family. It means that dad gets a paycheck, mom qualifies for a driver’s license and the children can enroll in school.” ~Steven H. Garfinkel, Esq. Managing Partner
The Work Will Come Garfinkel opened Garfinkel Immigration Law Firm in a small office in the SouthPark area. The firm initially employed two paralegals and an administrative assistant. A small reception area fit only a desk and a chair. Beyond the entrance, there were four offices and a cozy conference room. Another room doubled as a kitchen and a copy room. Office supplies and the server were stored in a small closet. There was no need for the receptionist to page anybody using the new phone system; the staff members were all within earshot. Tall, metal file cabinets lined the single hallway adjoining the offices—mostly waiting to be filled in anticipation of a growing city and new clients. Yet, in spite of the minimal surroundings, Garfinkel was busy from the get-go. Garfinkel started the firm with a handful of corporate clients. He knew these businesses would serve as a foundation for the firm but he also knew that he would need to “earn” more clients for sustainability. Garfinkel’s philosophy ➤ was simple: “Do exceptional work and the clients will come.”
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Garfinkel was absolutely correct. With long hours and a lot of patience, he trained his staff to prioritize caseloads, to meticulously monitor details, and to write clearly, concisely and persuasively. He also put technologies in place to increase efficiencies. He hired more staff as needed. And he hired, and he hired… Soon those tall, metal file cabinets began to fill. Garfinkel had to renovate and expand the office three times. Before long, the receptionist was even forced to page the staff using the phone system! As one longtime client and manager for the department of legal services in a global manufacturing company puts it, “Steve is, without doubt, an expert immigration attorney who provides excellent advice, alternative choices, and solutions to address immigration issues that arise in our global organization. Over the years that I have worked with Steve, he has implemented substantial growth and improvements within his firm to adapt to and address client needs, as well as streamline response and processing times, always remaining personally accessible.” In 2001, Garfinkel hired Jennifer Cory, an immigration attorney with over 10 years of experience. Garfinkel and Cory work well together. Garfinkel is more direct; Cory softens the delivery. In 2010, Cory became a partner in the firm, taking on the role of overseeing the majority of the firm’s work product, including supervising the associates and paralegals. Garfinkel strategizes, conducts most initial client consultations, manages the bulk of the administrative matters, and does all of the business development work.
“We received an increasing number of calls from employers who had received an audit of their I-9 forms from the U.S. government. We were also getting a lot of calls from our current clients who needed to send U.S. citizens abroad to work. Outbound visa immigration can be an even more complicated because you have to deal with the immigration law of numerous other countries.” ~Steven H. Garfinkel, Esq. Managing Partner
Immigration 101—It’s Complicated When Garfinkel meets someone who is not familiar with immigration law (which is quite common), he is often asked, “What does an immigration lawyer do?” He explains that there are several practice areas within
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the field: family-based, removal/deportation defense, and employment-based. Garfinkel has concentrated his practice on employment immigration (although the firm handles cases in all practice areas). An employment immigration attorney assists businesses with obtaining work authorization for foreign national employees. In fact, ALL foreign nationals who enter the U.S. legally with the intent to work must obtain the correct employment visa—whether they are a brilliant scientist who has earned the Nobel Peace Prize, a climber who has climbed Mount Everest, or a personal friend of the President. Identifying and obtaining the correct visa can be challenging. There are over 20 different types of employment visas. Each visa has its own set of requirements. The requirements may relate to the foreign national, the business, or both. Garfinkel says, “In many cases, it’s like trying to fit a square peg into a round hole.” Of the immigrant visas (commonly known as “green cards”) there are only five ways an individual may qualify. Like nonimmigrant visas, the requirements are specific but the process can take much longer, up to 10 or more years. As if the process were not complicated enough, all visa petitions are filed with the United States Citizenship and Immigration Service (USCIS), which is a massive bureaucracy housed within the Department of Homeland Security. Sounds a little complicated, doesn’t it? Simple Recipe for Success Like most businesses in Charlotte, Garfinkel Immigration Law Firm was impacted by the economic downturn. “Many of our corporate clients were forced to cut back or delay hiring decisions,” Garfinkel says. “This impacted our business, but we became leaner and meaner just like everybody
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else in Charlotte.” There are, however, a few policies that Garfinkel never overlooks in an effort to reduce cost because he believes these polices constitute a simple recipe for success. Point one: Make sure the client is happy. Garfinkel knows very well that timely communication is one service that clients expect and deserve. “Immigration is personal,” he explains. “It affects the family. It means that dad gets a paycheck, mom qualifies for a driver’s license and the children can enroll in school.” So Garfinkel harps on providing outstanding customer service. He makes it clear to his staff that all calls and emails are to be returned within 24 hours. A computer engineer with a financial services company substantiates Garfinkel’s commitment to service by stating, “This has been a long trip, a lot of paper work, follow-up, phone calls, inquires, forms and extreme attention to detail. Throughout this experience, you’re office has been extremely professional and supportive. Your team always responded quickly and accurately to all my questions and concerns. You provided services in a timely and professional manner. I could not have asked for a better team to be on my side throughout the process from the very beginning!”
Garfinkel invests in a stateof-the-art immigration database that tracks cases and sends clients email immediately upon updates to their cases. He reiterates, “Timely communication is critical. The client needs to know that they are important to us.” Point two: Make sure your employee is happy. There is very little turnover at Garfinkel Immigration. People are happy to work at the firm because there is a sense of community. The staff has organized movie nights, periodic “Thirsty Thursday” happy hours and a book club. The staff is organized into teams, so they are accustomed to relying on one another. They gather outside of the office to volunteer for numerous charities including, but not limited to, the Susan G. Komen Foundation and the Ronald McDonald House.
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For years, Garfinkel was the only male at the law firm so he enrolled the entire staff in a Panthers Football 101 session so there could be “Monday morning quarterbacking” at the firm. At the firm’s inception, Garfinkel implemented a free half-day Friday policy where a single staff member takes a Friday afternoon off. The benefit rotates through the staff throughout the year and is still in place today. The staff touts this benefit as most special. It also exemplifies Garfinkel’s innate generosity. Point three: Be able to change with the times. Remember those file cabinets? They became too cumbersome, too bulky. So in 2003, Garfinkel decided that the tall, metal file cabinets must go. Further, one of his employees requested that she be able to work from home during her pregnancy and thereafter. At the time, it seemed that only large medical practitioners knew about the benefits of high-speed scanners and imaging software. Although expensive, Garfinkel decided that imaging the firm’s large paper files was a good idea, and the savings in storage and convenience of access worth the expense. So he ➤ converted the office to paperless.
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Paperless law firm—is that an oxymoron? Maybe…but the technology has enabled the staff to expedite the processing of cases and allowed employees to work remotely without the need to transport bulky paper files. It has been a win-win in cost savings and convenience. One-Stop Shop Under U.S. immigration law, there is an employment visa known as the O-1 which has some of the highest standards for qualification. The person must be “extraordinary in his/her field in terms of knowledge, ability, expertise and accomplishments.” Were Garfinkel a foreign national, he would indeed qualify. He earned both his bachelor’s degree cum laude and his Juris Doctor from Wake Forest University. He has practiced U.S. immigration law since 1984. Garfinkel is often asked to speak at national conferences on immigration and visa law and offers free talks to area businesses and professional associations. He has authored numerous articles and each year he is rated by his peers with the highest possible (AV) Peer Review Rating. He is listed in the Best Lawyers in America and North Carolina Super Lawyers. He is certified as a Specialist in Immigration Law by the North
“Timely communication is critical. The client needs to know that they are important to us.” ~Steven H. Garfinkel, Esq. Managing Partner
Carolina State Bar and is a member of the prestigious Alliance of Business Immigration Attorneys. He has served on the board of several Charlotte-based organizations and contributes to multiple charities in region. In 2010, the firm added two new practice
E SCAPE THE ORDINARY
groups due to client demand. “We received an increasing number of calls from employers who had received an audit of their I-9 forms from the U.S. government,” Garfinkel says. “We were also getting a lot of calls from our current clients who needed to send U.S. citizens abroad to work. Outbound visa immigration can be an even more complicated because you have to deal with the immigration law of numerous other countries,” Garfinkel says. So Garfinkel harnessed his connections with lawyers in multiple foreign countries. He consults with these attorneys as outbound matters arise. Garfinkel has proven that he is ready to meet the demands of changing technologies and businesses. He says, “I want Garfinkel Immigration to be a one-stop shop for all matters related to immigration.” Garfinkel Immigration Law Firm currently employs 22 people (five attorneys and 17 paralegals, legal assistants and administrative staff). It hires summer associates and interns. The firm recently moved to new offices located at 6100 Fairview Road. Garfinkel says he is blessed with a great staff and loving family. He has a beautiful wife and two wonderful daughters. When not working, Garfinkel enjoys playing golf and exercising. Garfinkel reflects on his journey, and the wager he made 14 years ago; he is pleased with the outcome. The firm is now the largest immigration law firm in the Carolinas and it boasts a solid reputation of doing exceptional work. Eighty percent of new business comes from referrals. Clients are happy. Employees are happy. Garfinkel says, “I’m really glad I rolled the dice. It was a bet worth taking.” biz Margaret Carr Hughes is a Charlotte-based freelance writer.
Steven H. Garfinkel, P.A. d/b/a
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Garfinkel Immigration Law Firm 6100 Fairview Rd., Ste. 200 Charlotte, N.C. 28210 Phone: 704-442-8000 Principal: Steven H. Garfinkel, Managing Partner Employees: 22 In Business: 14 years Business: Immigration law firm that provides immigration counsel to individuals and businesses throughout the world. www.GarfinkelImmigration.com
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Photo: Wayne Morris
For men and women, athletes and scholars, the Charlotte 49ers Athletics Department is building character, community, and stellar sports programs—brick by brick.
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Judy Rose Director of Intercollegiate Athletics UNC Charlotte Athletic Department
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by heather head
[bizprofile]
d i l o S g n i d uil
B
Charlotte 49ers strike character, community and sports balance
T
he UNC Charlotte 49ers men’s soccer team constructed a near-perfect season this year, starting unseeded and climbing as high as 9th nationally. It beat the University of Alabama at Birmingham; then Akron, the defending national champions; then the University of Connecticut. It continued to the 2011 College Cup, taking on the Tar Heels of University of North Carolina at Chapel Hill. Despite the long drive, about 7,000 enthusiastic Charlotte 49ers fans, who call themselves Niner Nation, attended the NCAA College Cup in Hoover, Ala., near Birmingham. Although they lost the game narrowly, the 49er soccer players strode off the field to resounding cheers from the fans. That exemplifies the character and class the Charlotte 49ers Athletic Department is building. All in a Name The Charlotte 49ers name stands for each of the sports teams of the University of North Carolina at Charlotte—16 in all—both men’s and women’s. Charlotte 49ers play basketball, soccer, golf, volleyball, baseball, softball, track and field, tennis—and soon, football. The sports programs took the name Charlotte 49ers instead of UNC Charlotte or UNCC to distinguish them from other state universities in North Carolina. The Charlotte 49ers Athletic Department aims to create programs with integrity and honor as a basis, beginning with coaching leadership. According to Athletic Director Judy Rose, the department doesn’t wait for coaches to apply—it goes after the best coaches proactively. A primary focus is for attributes beyond just solid sports training. “When you go through the hiring process, you look at the success of that person in that particular sport, as well as their ethics and their moral leadership. You want to know whether they graduate their kids,” says Rose. Rose describes her job as finding the right coaches, and then providing them and their players with the resources necessary to be competitive and to develop the character and achievement to be successful. In addition to hiring and managing coaches, she develops and manages scholarships, facilities and upgrades, and conference memberships, as well as the funding for all activities. ➤ Rose is reveling in the excitement of developing a new football program.
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“I am thrilled with the coach [Brad Lambert] and staff we’ve hired—we’ve gotten it right. He is a perfect fit for the start-up program. He wants good kids in this program, not just athletes, and he promotes that to families. I’m thrilled with that leadership.” ~Judy Rose Director of Intercollegiate Athletics
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“It is a great challenge for me at this point in my career,” Rose says. “When you start a program from scratch, it is so different from adding one where you already have facilities. We had nothing in place to start football. That’s good and bad. It requires a lot more work, but in the same regard, it gives you the opportunity to build something from the ground up.” Brad Lambert is the choice to lead the University’s new Charlotte football team. “I am thrilled with the coach and staff we’ve hired— we’ve gotten it right,” says Rose. “Coach Lambert got this job for all of the right reasons. His letter that reached my desk was not a cookie-cutter letter; it got my attention. It talked about his work ethic—how he was raised on a farm in Kansas and how he focused on work ethic in his kids. “He is a perfect fit for the startup program,” Rose adds. “He wants good kids in this program, not just athletes, and he promotes that to families. I’m thrilled with that leadership.” The Charlotte 49ers will play on McCollRichardson Field in honor of the generous donations of Hugh McColl and Jerry Richardson. The field is scheduled for completion in August 2012. The game schedule begins in August of 2013. All Around Successes The 49ers men’s basketball team recently beat Davidson in the annual Hornet’s Nest Trophy rivalry. The 84-61 victory included four threepoint shots within five minutes by Charlotte senior Javarris Barnett. Charlotte remains undefeated against Davidson on its home court, Halton Arena. Basketball is Charlotte’s primary sport, thanks to its ability to raise substantial funds. Rose says
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that Coach Allen Major is bringing in the right kind of kids, focused on both academics and athletics. “You make choices in how you want to recruit and spend your time. We want kids that are disciplined enough to know when to go to class and focus on their work,” Rose says. The program competes in the Atlantic 10 Conference. Rose says it’s a fitting affiliation. Since joining in 2005, the 49ers have earned three bids to the NCAA men’s basketball tournament, and aspire to be selected regularly. The track program has been dominant in the A10. All-America sprinter Darius Law won the Arthur Ashe National Scholar-Athlete of the Year award. He was runner-up for a $20,000 postgraduate scholarship. The 49ers women’s basketball team last year won 27 games and the baseball team went to the NCAA tournament. Women’s soccer suffered a little this year with 10 newcomers on the squad, but Rose expects it to improve with seasoning. The Charlotte golf program has also been nationally ranked and has been in the NCAA tournament for the last 6 years. The Charlotte 49ers Athletic Department is building a new tennis facility, with dedication scheduled for April. The Charlotte 49ers athletic program strives for academic development and athletic performance, focusing on both grades and academic progress rate. Coaches like Allen Major believe that it is equally important for students become good fathers and husbands, to respect women, and be respectful to other people, Rose maintains. All the coaches take the commitment to student development seriously. “The best thing we can give our students is an education,” says Rose.
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Getting a Shot “I’m a basketball person,” Rose says. “I played and coached college basketball. That’s the sport that really is my favorite.” The Blacksburg, S.C., native attended Winthrop University and coached women’s basketball while in graduate school at the University of Tennessee. “It was an absolutely phenomenal experience for me,” she says.
basketball programs and they needed somebody who had a master’s degree because you also had to teach. “Pat Summitt, Sylvia Hatchell, we were all in graduate school together at Tennessee. Every female in our graduating class was getting job offers,” remembers Rose. “We were all hired as basketball coaches and had other duties as well, teaching. I was offered three jobs that year and I took the women’s basketball coaching job right here. But we would not have been hired directly out of graduate school to college jobs had it not been for Title IX. “I want people to be educated about Title IX
not just because of what it did for women’s athletics, but if people read it and study it, they will see we have more female doctors and lawyers because of it. At that time they weren’t admitting too many females to law school and med school, either. It opened up doors that really gave an opportunity to break that glass ceiling for a lot of women across the country today.” Eventually, Rose worked her way up to associate athletic director at UNC Charlotte. Jeff Mullins was both basketball coach and athletic director at the time, and when he was told he would have to choose one or the other, he recommended that Rose ➤ be promoted to take his place as athletic director.
All the coaches take the commitment to student development seriously. “The best thing we can give our students is an education.” ~Judy Rose Director of Intercollegiate Athletics
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Although she clearly demonstrated early success in sports, she credits good timing for her quick ascendancy to athletic director. Title IX, part of a federal law which requires all state-funded college athletics departments to provide equal access to sports for men and women, passed in 1972. But by the time Rose graduated in 1975, only two colleges had actually implemented it. “A lot of attention was focused on Title IX because people were not complying,” explains Rose. “Some forceful mandates came down that scared the folks on college campuses about losing federal funding. They were all starting women’s
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“Title IX got me here to begin with, and gave me the opportunity to coach women’s basketball. But it was the University’s progressive outlook that led to the opportunity to be the athletic director here in 1990.”
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~Judy Rose Director of Intercollegiate Athletics
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Says Rose, “There were no female mentors for me when I was named. I was only the third woman ever to head a collegiate athletics department—to be an AD at a divisional school. That almost scares me looking back.” Asked about her passion for the position, she says, “There are no highs in administration like when that kid makes the free throw and your team wins it,” she says. “The highs for me are when we have $5 million to build this building— knowing how it is going to change the direction of our basketball program and change our look nationally is thrilling.”
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Rose is grateful for former Chancellor Jim Woodward’s mentorship. “Title IX got me here to begin with, and gave me the opportunity to coach women’s basketball. But it was the University’s progressive outlook that led to the opportunity to be the athletic director here in 1990.” Rose tries to be at as many of the sports contests as she can. She wants the student athletes and the coaches to know that what they are doing is important enough for her to be there. She is also involved in numerous organizations, including NCAA committees. She is a former member of the NCAA Division I Men’s Basketball Committee and currently chairs the Division I Championships and Sport Management Cabinet. Finding Its Place UNC Charlotte has worked hard to find its place in the collegiate conferences, lobbying hard to become a member of Atlantic 10 in all sports except football. For football, says Rose, “We are an independent right now. We are hopeful that down the road we will have a conference affiliation. But for the first two years we do have our schedule in place.” Rose acknowledges it will be expensive to get into a major football conference. The 49ers are starting in the Football Championship Division (FCS), which allows 63 player scholarships. But the 49ers aspire to compete in the Football Bowl Subdivision (FBS) where 85 scholarships is the
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norm. When the 49ers move up, they will have to fund that scholarship differential. Further, the coaches’ salaries and the travel are at a higher rate. All that will take more resources. The stadium under construction on campus will seat approximately 15,300, and the minimum for the Football Bowl Division is 15,000. The FBS is where the 49ers ultimately want to be. Charlotte has a lucrative television market and is a major city with easy access by air travel. “We have a lot going for us in that regard. This is a good sports city, professionally,” Rose says. “We are thrilled with the naming of the football field, with Mr. McColl and Mr. Richardson’s names associated with our programs.” Student fees help with funding as well, plus Rose says there are still opportunities for people to contribute funds to make the right conference possible. The athletics department continues to sell 49er seat licenses and naming rights remain available for both the stadium and the field house. The 49ers also hold an annual luncheon fundraiser every year for young women in athletics called “Let Me Play.” It raised $100,000 this year. Executive women and women in the community attend to support women’s sports. “They want their daughters and granddaughters to be able to play,” says Rose. “It’s a pretty phenomenal thing.” For men and women, athletes and scholars, the Charlotte 49ers Athletics Department is building character, community, and stellar sports programs—brick by brick. biz
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UNC Charlotte Athletic Department 9201 University City Boulevard Charlotte, N.C. 28223 Phone: 704-687-4950 Principal: Judith Wilkins Rose, Athletic Director Employees: 108 In Business: 66 years Awards: 2001 NACDA Southeast Region Athletic Director of the Year, 1999 Pegasus Award, 1996 Bob Quincy Award, 1996 Charlotte Regional Sports Commission “Sixth-Man” Award, 1996 Charlotte Woman of the Year, Business Journal’s Top Businesswomen, 2010 Charlotte Woman Extraordinaire, 2011 Women’s History Hall of Fame Business: Promoting and developing student-athletes to the highest ideals of sportsmanship at The University of North Carolina at Charlotte. www.Charlotte49ers.com
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accountability
respect
teamwork
performance attitude
“We went through a white boarding process of all the words that described the company we are and what we want to be. From that we came up with the behavioral platform of APART— attitude, performance, accountability, respect and teamwork.”
~Jeff Harris CEO
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by barbara fagan
[bizprofile]
H and-selected
for you
t a time when companies are closing offices and growth for many is stagnant, companies with plans for expansion are big news. “We just opened in Dallas this past October,” says ettain group CEO Jeff Harris, “and we plan to expand into other regions. We’re looking at Philadelphia, Boston and Chicago as future key markets. We expect we’ll open a Manhattan office in the next 18 months.” ettain group, inc., headquartered in Charlotte’s SouthEnd, seems to have found the Holy Grail of growth in an information technology staffing and business solution company. ettain group has had an average annual growth rate over the past three years of 65 percent and expects to exceed $100 million in revenue in 2012. Both IT and staffing industries have shown resilience through the latest economic downturn; the combination has proven highly successful for ettain group. “Right now, unemployment in IT is around five percent, lower than four percent with certain IT skill sets,” says ettain group partner Jon Olin, “and IT jobs are expected to grow at almost double the rate of other jobs. “Staffing flexibility is also important to companies in today’s economy. The growth rate of IT jobs plus the flexibility of temporary staffing makes our services particularly valuable to companies.” While recruiting and staffing through contract, contract-to-permanent and permanent placement are a major segment of ettain group’s business, the company also offers technology and business consulting, including process, program and project management. They offer experienced project managers, business analysts and software developers and testers to assist clients in developing, managing and executing projects. “We’ve provided support to startups,” Olin says, “and can assist businesses of various sizes. Right now the majority of our clients are Fortune 500 companies, but we also focus and service small and medium businesses as well. “What makes this business so exciting is that it’s always changing, there’s always something new out there. The latest trend might be mobile applications or cloud computing, but there will be even newer technologies soon and we can help our clients with them.”
ettain group sets itself APART
“IT jobs are expected to grow at double the rate of other jobs. Staffing flexibility is also important to companies in today’s economy. The growth rate of IT jobs plus the flexibility of temporary staffing makes our service particularly valuable to companies.” ~Jon Olin V.P. Enterprise Delivery
ettain Attains Harris and CFO Brian Deblitz, who attended Wake Forest University together, began ettain group as TechSolutions in 1996 from the living room of a house they rented in Myers Park. Olin was brought on as a partner shortly after, and Rob Eubank became the fourth partner in 1998. [Eubank, who served as president, passed away in February of 2011 at the young age of 41 after a courageous battle with colon cancer.] During the dot-com craze, the four started another company they named ettain. Its aim was website and custom application development. The two companies merged in 2002 to ➤ become ettain group.
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“Many organizations have a customer service department. For us that department is company wide. No matter who you are or what you do for our organization, customer service is part of your job responsibility.”
(l to r) Jon Olin V.P. Enterprise Delivery Jeff Harris CEO Brian D. Deblitz CFO ettain group, inc.
~Brian D. Deblitz CFO
ettain group now has offices in Charlotte, Atlanta, Dallas, Jacksonville, Nashville, Raleigh, Washington, D.C. and Winston Salem and has experienced consultants in 19 states. “We’ve grown every year we’ve been in business,” says Olin. “We started by focusing on a couple of verticals—health care and financial services. Healthcare IT is a hot button right now because of the government’s electronic medical records requirements, and financial services IT is very big in several of our markets.” “We’ll remain focused on health care and the financial sector,” adds Harris. “There’s still tremendous growth in both but we will continue to grow other industry verticals as well. Exciting things are happening in energy and consumer retail. Our goal is to open one or two new offices each year.” In choosing where to open offices, ettain group uses both standard and unconventional reasoning. “Of course we will open an office for a large client who needs support,” Olin explains, “but we’ve also opened offices because a valued employee desires to move to another city. The current head of our Nashville office was working in our Atlanta office. His wife is a country music writer, so they decided that they needed to move to Nashville for her career. We opened up in Nashville and now the office is our most successful next to Charlotte. We opened our Winston-Salem office under the same premise.”
Charlotte-based and had a boutique-type feel that was unique. The pairing has been extremely successful. We started with less than 10 resources and now use 104 ettain contractors. “We found ettain had a consultative approach. They concentrate on making the right connections. The contractors they hire are customer-focused and receptive to feedback. ettain even restructured their account team to better support client needs. We’ve successfully used ettain in Dallas, Jacksonville and New York as well.” “A lot of staffing companies talk about the quality of their contractors but the difference is we can prove it. We have an actual process,” explains Harris. “Our product is not just our people. Our product is our process.” The process, the RAPID Pipeline Matching (RPM) program, involves technical
It’s a Process “We had worked with several national recruitment firms when we decided to give ettain group a try,” says a management resource who supports recruiting for financial services companies. “It was
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screening, personal interviews and reference checks. Candidates who successfully complete the process are then eligible to be matched to the individual needs of ettain group’s clients. “RAPID makes us unique to other staffing companies,” Harris says. “It’s a highly disciplined process that identifies great people.” The RAPID Program’s objectives are threefold: to provide clients with high quality resources with the right skills, knowledge and fit for their needs; to improve contractor retention; and to improve cost effectiveness for the client. “There’s a lot of competition at the level of clients we service,” notes Deblitz. “What stands out is the quality of our service. Our corporate culture is built around quality.” Ensuring quality is the aim of eQM (ettain Quality Management). eQM is a contractor performance management tool that works in tandem with the RAPID program and systematically evaluates contractor performance in four key areas: skills and knowledge, productivity, professionalism and cultural fit. “We measure our success by customer feedback,” Deblitz says. Quality Input/Output “One of our largest clients in Nashville is a large healthcare organization,” Harris says. “We’ve worked with them for 18 months and have 85 contractors there now. In 2010, the company recognized us as their No. 1 supplier in terms of the quality of people we provide, the quality of our back office, and the way we take care of our contractors.” One manager of human capital at a large healthcare client, responsible for a work force of 1,500, says, “Ettain makes us a priority. We own and operate approximately 130
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hospitals, clinics and doctors’ practices. We use ettain group contractors not only to assist us in complying with ‘Meaningful Use’ (the federal electronic medical record mandate) but also to integrate IT systems when we purchase a new company. ettain group will deploy contractors to wherever we need them. I consider ettain group an extension of our team.” “We were chosen as their No. 1 vendor because not only did we provide good talent,” Deblitz comments, “but also good retention. We came in and did every little piece, top to bottom, A to Z, better than everyone else because that’s what we focus on as an organization.” ettain group was also recently distinguished nationally when it was named to Inavero’s 2011 Best of Staffing Talent List. Less than one percent of North American staffing firms have been named to the list, which recognizes staffing and recruiting companies who provide exceptional service to their staffing talent. “We were very happy about the award,” says Harris. “Contractor satisfaction is something we strive for and the great feedback shows that we’re achieving that goal. What surprised and pleased us the most, though, was the level of response we ➤ received. Typically, 20 to 30 percent is a good
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response level but over 90 percent of our employees completed the survey. We were excited that our people wanted to talk about us.” Justin Hrazco agrees. “It’s a great company.” Hrazco currently works as a network administrator for ettain group but started as a contractor for them. “I had a very different idea of what it would be like to be a contractor before I started with ettain,” he says. “I thought that contractors were just dollar signs for staffing companies but that just isn’t the case with ettain. The screening was extensive but it’s a great work environment. The human resource people are especially helpful.” Platform for Development ettain group speaks often of their corporate culture and how it’s reflected in every aspect of what they do. Choosing the elements that make up this culture was a deliberate effort. “About two to three years into the business,” Harris recalls, “we sat down with our management team and decided that in order to scale this business, we had to have a platform of expectations and a behavior culture that everyone understands. “We went through a white boarding process of all the words that described the company we are and what we want to be. From that we came
“A lot of staffing companies talk about the quality of their contractors but the difference is we can prove it. We have an actual process. Our product is not just our people. Our product is our process.” ~Jeff Harris CEO
up with the behavioral platform of APART— attitude, performance, accountability, respect and teamwork.” Olin adds, “In our corporate culture we value our employees and promote from within. Most everyone starts as recruiters and we have an extensive eight-week training program, starting out in Charlotte headquarters for the first week and then continuing in their individual offices. New employees are required to pass a certification each week of their training. All of
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this helps ensure we have the best employees. “We’ve developed a career path for recruiters and, if someone wants to work in sales, we’ve developed a career path for them too.” “We have a commitment to developing people, building career paths and setting expectations,” says Harris. “Our employees get to be leaders at every level. If we decided tomorrow that we were going to sell peanuts, we could use the same staff and they’d be a success in selling peanuts.” Deblitz has a simple way of defining core company ideals. “Our philosophy is that we have three customers: our clients, our contractors and our staff. If you’re not doing something to service one of those three customers at any given time, then you’re not doing your job. “Many organizations have a customer service department. For us that department is company wide. No matter who you are or what you do for our organization, customer service is part of your job responsibility.” “Our challenge in the next few years,” Harris says, “will be maintaining that corporate culture while we grow into a much larger organization. Our focus will remain on hiring great internal talent and providing the highest quality service possible for our growing client base. “This will create a lot of internal opportunities for our employees. We’ll need to promote and create regional manager and senior leadership positions in sales and recruiting. Our middle management level is fairly flat. That will have to expand. Leadership development will be a priority in the next three to five years.” “But at the end of the day,” adds Deblitz, “our focus will still be delivering top talent, no matter the service offering, the company size or the market. Our goal is providing our clients with top IT talent.” biz Barbara Fagan is a Charlotte-based freelance writer.
Unified Communications ›Business Telephone Systems ›Structured Cabling Systems ›Office & Warehouse Paging ›Data Networking Build & Design ›Telecom Management & Consulting 1824 I NDUSTRIAL C ENTER C IRCLE C HARLOTTE , NC 28213 704.598.4700 W W W . T E LWA R E . C O M
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ettain group, inc. 127 W. Worthington Ave., Ste. 100 Charlotte, N.C. 28203 Phone: 704-525-5499 Principals: Jeff Harris, CEO; Brian D. Deblitz, CFO; Jon Olin,V.P. Enterprise Delivery Founded: 1996 Employees: 65 internal staff in Charlotte; 770 employees nationally (120 internal employees, 650 contractors) Business: IT staffing, consulting and business solutions. www.ettaingroup.com
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Leadership Insights 2012 Winter Session | By Invitation Only
Networking 3:30-4:00 PM | Program 4:00-6:00 PM February 15, 2012
Health Care Reform: An Update from “The Hill� These times are especially challenging for business leaders like you, trying to deliver revenue growth in a down economy—a tough situation requiring the full engagement of your knowledge and skills.
Michael Foresman Vice President of Sales Cigna HealthCare of the Carolinas
Joe Toole New Business Manager Cigna HealthCare of the Carolinas
N. Keith Sharpe Vice President Employee BeneďŹ ts Division Knauff Insurance Agency, lnc.
• 112th Congress Legislative Update (Near-Term Agenda and Longer-Term Agenda) • Court Rulings and Possible Schedule
Join us for the winter series of Leadership Insights to learn how to better deliver your results. This executive roundtable will provide a forum for CEOs, CFOs and business owners to seek advice and share experiences, just as you would with a corporate board of directors. Come build relationships with each other that will help you grow.
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Please contact Joan Haber of Knauff Insurance at (704) 405-0076 or jhaber@knaufďŹ ns.com for more information.
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[bizprofile]
by heather head
t s a f k a e r Power B st Club a f k a e r B t t e g r Hood Ha
elationships R s s e in s u B e l Drives Valuab
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hat do Hugh McColl, Frank Abagnale (Catch Me If You Can inspiration and international authority on fraud and identity theft), and Merril Hoge (ESPN NFL analyst) have in common? They’ve all been keynote speakers for the Hood Hargett Breakfast Club, along with best-selling authors, syndicated columnists, and other well-known and engaging speakers. Owned by Chuck Hood and run by Jenn Snyder, the Hood Hargett Breakfast Club (HHBC) provides high class events and quality networking for its members, seasoned in the sauce of community. The Club seeks to attract owners and executives—true business decision makers. “There are enough networking types of events in Charlotte to fill every day on the calendar if you choose,” says Snyder, “and you’ll come away from each one with a stack of business cards. But most of the time, those leads are to entry-level sales or support staff.” “Hood Hargett, on the other hand, provides a level of entertainment, education and hospitality that attracts owners and executives—the upper level business decision makers—and gives them the opportunity to share the experience with their prospects, clients and partners. Just as importantly, it promotes strong supportive ties among members and with the larger community,” she continues. Eight times a year, the organization presents top tier speakers like Jerry Richardson and Ari Fleischer at a sumptuously catered and presented breakfast event. The two-hour events also include a showcase with display booths for featured members. Every member receives five seats to each breakfast event. Owners themselves are invited to a sponsor’s reception the night prior where they meet one-on-one with the next day’s keynote speaker. In addition to the featured events, HHBC also hosts monthly luncheons for business executives and elected officials from across the state, allowing members to address business and government issues affecting them. Informal roundtables throughout the year offer member companies the opportunity to provide a focused educational message about their specific business, directly to other members who may be potential clients or referral sources. Ken Gill, owner of CPI Security Systems, credits these events with “continually providing my executive team with provoking insight and sound discussion on today’s business topics.” Combined with a strong focus on community and Snyder’s knack for knowing just who needs to meet whom, the effect is a powerful recipe for driving valuable business relationships. ➤
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Jenn Snyder Executive Director Hood Hargett Breakfast Club
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Thursday Night Networking Event
Speaker Presentation
Lunch Event at NASCAR Hall of Fame
“Hood Hargett, on the other hand, provides a level of entertainment, education and hospitality that attracts owners and executives— the upper level business decision makers—and gives them the opportunity to share the experience with their prospects, clients and partners. Just as importantly, it promotes strong supportive ties among members and with the larger community.” ~Jenn Snyder Executive Director
Social Networking-(Chuck Hood Center)
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Sporting Events It’s no accident that many of the events feature sports-related speakers. In its infancy, HHBC focused exclusively on bringing in star athletes and sports personalities. At first, the approach attracted a lot of participation, but Snyder says that there was little attention to whether the personalities were actually good speakers, and the events often provided less value than she wanted for them. Snyder envisioned an organization that would draw decision makers from all types of businesses and create a sense of community that would deliver significant ROI to members. In 2005, she brought her vision to the organization’s title sponsor, Chuck Hood. The result was a relationship that would grow over the years as the Club blossomed. “He believed in me,” Snyder says. “He believed in what we could do.” At her urging, he purchased the club outright and let her revamp the organization. They closed the doors for four months and relaunched in November 2005. By 2006, they knew that they had done it. “I looked around the room at one of our events,” she recounts, “and I knew that we were on the right track. We were attracting the right audience; people were excited about the direction we were going.” Hood tells the story a little differently. He says he looked at the idea and thought it would be a good, inexpensive way to continue to increase brand recognition for his insurance company, Hood Hargett & Associates. Remembering that now, he grimaces: He was right about it increasing brand recognition, but wrong about it being inexpensive. “Jenn’s commitment to quality exceeded the Club’s ability to pay for it,” he says. “When we started, we didn’t have the strong membership foundation that we have now, and Jenn insisted that we bring in a higher quality of speaker than we ever had before, and the speakers all needed to be paid in advance.” He bit the bullet and footed the bill, and he admits that the approach
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Carmel Country Club Breakfast
paid off. Hood Hargett’s programs attract the cream of the crop in Charlotte business: The Carolina Panthers, AAA, Carolinas Medical Center, HM Properties, Killingsworth Environmental, Merrill Lynch, Greater Charlotte Biz, Keffer Hyundai. The list of companies gladly ponying up the not insignificant membership fee year after year reads like a Who’s Who in Charlotte. Not that there haven’t been challenges. The economic downturn in 2009 hit Hood Hargett members just as it did everyone else. Snyder says that was the first and only year that member retention dropped below 95 percent. “Everyone was re-evaluating where they were spending their money, where they were going to be involved,” says Snyder. “In retrospect, I think they found their investment in the Club significantly worth the investment. Since then, we’ve been more than pleased with our membership levels.” Although the Club now focuses on top-tier speakers and valuable relationships, it has maintained ties to its sporting roots. Members include the Carolina Panthers, Charlotte Bobcats, Charlotte Knights, and Charlotte Checkers, and twice a year the keynote speakers include prominent sports figures with the rest being motivation and business speakers. Plus, the organization has become increasingly involved in the larger community. Giving Back As the founder and author of Don’t Change the Channel, Snyder speaks all over the country about the power of staying in tune with the needs of the community, refusing to look away from suffering, and making the commitment to make a difference. In 2007, Snyder saw a story on CNN about a little boy whose mother and unborn sister had been murdered. She says, “In that moment, I knew I had to do something for this little boy. I heard the call and there was no turning away. I couldn’t just change the channel.” Out of that moment, she organized a movement that raised money for the little boy’s college education and got a home donated for his family. She now runs a website at www.dontchangethechannel.
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com dedicated to giving individuals the motivation, inspiration and tools to find a way to make a difference in someone’s life. Likewise, Hood Hargett Breakfast Club members don’t just sit around talking about the importance of community and patting each other on the back. As an organization, they are involved in multiple community service efforts, the most prominent of which is the Liz Murray Scholarship Fund which has raised over $250,000 in scholarships to date. The scholarship recognizes exceptional high school student athletes for their academic, athletic and community achievements.
Liz Murray Scholarship Fund Recipient
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Adam Smith & Father Greg of Make-A-Wish
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Army Veteran of Wounded Warrior Project
Snyder says individual members likewise demonstrate commitment to giving back in a variety of practical ways. For example, when the owner of HHBC member Nexcom, Chris Allison, drove by the Ronald McDonald House as it was being built, he decided then and there that he wanted his organization to be involved with it. When Snyder learned of his interest, she made a point to introduce him to Mona Gibson, executive director of the Ronald McDonald House, who was slated to speak at the Breakfast Club later that year. During that event, Snyder had the idea to make a change inside the Breakfast Club that would enable members to connect more readily with the nonprofits they want to support. Because the Hood Hargett Breakfast Club is category-exclusive, at that time only one nonprofit organization was permitted membership, the Make-a-Wish ➤
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Foundation. Snyder decided that in order to enable more members to connect with the charities they believe in, it was time to open the category up to more members. She approached the Make-a-Wish Foundation with her idea first, and says they were as excited as she was. In addition to Make-a-Wish, Hood Hargett now boasts six non-profit members: The American Red Cross, Ronald McDonald House, Classroom Central, First Tee, and the Humane Society. The Club has several projects planned in concert with each non-profit, plus in June and December they’ll host Hood Hargett Breakfast Club Charity Days featuring substantial projects with opportunities for all members to be involved. A Natural Fit Snyder says the Hood Hargett Breakfast Club was a natural fit given her close tie to sports. She grew up in northeast Ohio, just minutes from the Pro Football Hall of Fame. She describes herself as a “huge sports junky” who had season tickets to the Cleveland Browns “for as long as I can remember.” An athlete herself, when she heard about a job that would combine her sports addiction with her love of sales and events, she jumped at the opportunity. Likewise, although she’s not a native to the South, she says the city was love at first sight: “I
“This is a city full of people wanting to do the right thing; full of entrepreneurs striving to make this place better. It’s a business community that really has each other’s back. I’m honored to be a tiny little part of that.” ~Jenn Snyder Executive Director
immediately fell in love with Charlotte. When I moved here, I knew exactly one person—no family, nothing. And within four years I had this huge list of contacts, and had become the leader of this networking group, in charge of connecting people.” In fact, she loves the city so much that she cheers on the Panthers even more enthusiastically than she does her former hometown Browns. “This is a city full of people wanting to do the right thing; full of entrepreneurs striving to make this place better,” she says. “It’s a business community that really has each other’s back. I’m honored to be a tiny little part of that.”
SPECIALISTS IN VOICE NETWORKS FOR 33 YEARS.
Snyder emphasizes that HHBC members value community and connection, but that it’s also important they receive a return for their investment in the organization. “It’s so personal to me when someone puts their faith and trust in me,” she explains. “Whether they’re a big corporation or a small business, our membership fee is a lot of money.” Snyder strives to ensure that every business owner comes away from each event feeling like they’ve learned something new to take back to their staff, or gained something that improves their business. She says membership also helps organizations cement client relationships and build stronger sales. She remembers when HHBC member Daryl Larner of Larner’s Office Furniture wanted to do business with US Airways but was having a difficult time breaking through to their top decision makers. Eventually he was able to get them to attend a Breakfast Club event, and shortly after the deal was made. In fact, nearly every company in the Club does business with at least one other member. The membership retention rate of 95 to 100 percent plus a growth rate of about 20 percent speaks for itself, but members love to add their accolades. “They’re always so positive when they talk to us,” says Snyder: “‘Your organization is amazing.’ ‘The event was incredible.’” Gary LaBrosse, of the Merrill Lynch LaBrosse/ Byerley Group, says “Hood Hargett Breakfast Club has been the best networking organization I have ever been involved with. There is great loyalty in using the goods and services of the members. The speaker lineup is outstanding, and my clients have thoroughly enjoyed the opportunities to attend.” Clearly, the Hood Hargett Club has a recipe that really works. And what could be better than starting the day with a power breakfast? biz Heather Head is a Charlotte-based freelance writer.
Hood Hargett Breakfast Club, LLC P.O. Box 30127 Charlotte, N.C. 28230 Phone: 704-602-9529 Principals: David “Chuck” Hood, Owner; Jenn Snyder, Executive Director In Business: 9 years Business: A category-exclusive business development organization that develops and hosts 36 events throughout the year with the goal of providing success-minded business owners with first-class venues to entertain their clients and prospects. www.hoodhargettbreakfastclub.com
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[bizprofile]
by suzanne fulton
t
t i n o e n v I e n r v P e n n t o i i on t ar Who
Frus
hasn’t cursed the experience of pulling the vacuum cleaner, rug shampooer, hedge trimmer or other electric gizmo just far enough to accidentally disconnect from the wall outlet? Who hasn’t had to unbend the plug prongs or wondered how long a plug could survive repeated yanks out of the wall? How many trudges back to the scene of “the accident” does it take before taking a preventive measure? What would be a good preventive measure, anyway? Although Mike Schutte has a degree in aeronautical engineering from Purdue University, he didn’t need rocket science credentials to invent a reliable device to stay connected electrically, but rather an affinity for tinkering. You might say repeated frustration “sparked” him to invent an outlet cover that thwarts disconnects from completing leaf blowing and other tasks around the house. Schutte’s maddening experiences with accidental disconnects when using yard tools—exacerbated by the whipping action he employed to free the cords trapped in hedges and around rocks—drove him to find a solution for the routine annoyance and bent and broken prongs. The more Schutte thought about it, he began considering even more important reasons to ensure secure, reliable connections. Far more critical situations—like people who depend on their medical devices to stay alive, business owners with sensitive computer equipment running their business, and workplace safety and accident prevention—demanded an electrical connection solution. He knew from observation that cords can partially separate from their plugs over time due to weight, revealing exposed wires. Such a situation can lead to fire or shock—even electrocution! In addition, other types of problems can result from the stress on a hanging cord—the ground wire prong may detach from its mounting and/or the electrical prongs could bend and twist. Particularly with heavy equipment, it could be a hidden problem or hard to access to repair or replace a wire or plug.
StayConnect Provides Innovative Electrical Solutions
Evolution of the Enterprise Schutte’s investigation into electrical connection solutions available on the market yielded little satisfaction, so he decided to devise one. Early in 2008, he developed a prototype outlet cover that featured a protruding hook around which a cord can be wound or looped to prevent accidental disconnection. After sitting on his idea for quite some time, he fielded his prototype and enterprise idea to friends and relatives. They all responded to the product with enthusiasm. You could say they even got a ➤ charge out of it!
“Time and time again the story of American growth is written by the daring drive of entrepreneurs who are willing to roll the dice on a great idea.” ~ David Kappos, under secretary of commerce and director of the U.S. Patent and Trademark Office
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Michael Schutte President StayConnect, LLC
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“In order to provide a finished look to my outlets, I’d been using those push-in child proof tabs! The StayConnect outlet cover provides the look that I’ve been looking for and I no longer have to use a screw driver to pull those old tabs out! Way to go!” ~Sandy Thomas Customer
Emboldened by this reaction and confident that his product worked and was unique, Schutte patented it with help from an attorney. He brainstormed with his wife on a company name, and came up with StayConnect, LLC. The matching Web domain name was available, so he snagged it. A friend steered him to Richard Turner of Mooresville, owner of AxiomID, an engineering and design company. Turner completed the design for the special outlet cover and ensured that it could hold a cord against 50 lbs. of pull. Turner, already connected with several manufacturing companies, introduced Schutte to a manufacturer in China that could handle the mass production and was capable of ramping up production as warranted. One bonus: Schutte and Turner have become fast friends as well as business colleagues. Turner is now StayConnect’s vice president of design and manufacturing and an investor in the company as well. Other investors are family members and another friend, David Skinner, of Huntersville, N.C. Of course, a big chunk of investment has come out of Schutte’s own savings. (And he was fortunate to have had a speed boat whose sale proceeds added to the pot.) A second product line was developed—an interior outlet plate minus the hook. Schutte’s vision for that is to address aesthetics—to shroud the outlet holes and relate to the décor, and, although not childproof, inhibit socket-poking by toddlers. Schutte and Turner have visited China together to meet the potential manufacturers, and now that the deal is done, they keep in touch frequently via Skype. Along his entrepreneurial path, Schutte has worked long hours and weekends learning the elements of business ownership as well as manufacturing and distribution, marketing, sales and all the exacting back office essentials, like invoicing and U.S. Customs record keeping. Developing the Marketplace On the market development front, Schutte’s deep experience in sales with successfully garnering national accounts on behalf of an employer has served him well. He presently serves as regional sales representative with C&G Products headquartered in Greensboro, providing rental video game and vending machines.
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He launched his new business at ease with approaching large companies. He has steadily realized enthusiasm for his inventions from an impressive number of target purchasers by courageously approaching national hardware retail chains and owners of franchisees. His strategy has been to approach such companies directly as well as at industry trade shows. He hosted an initial launch party as one of many other measures taken to reach audiences and uses other strategies like purchasing ads in industry and other magazines and employing online social media marketing tactics. He and his wife, along with Turner, traveled to the National Hardware Show in Las Vegas. There and elsewhere, Schutte has met with representatives of Sears Holdings, Ace Hardware, Lowes Home Improvements, Home Depot, QVC, Wallace Hardware, Orgill and Sporty’s Tool Shop Magazine and more. He maintains that all along his entrepreneurial trip, things have fallen into place well and he has received an outpouring
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of favorable reactions and helpful advice from professionals in the hardware field. One example: the corporate folks at True Value committed to displaying the StayConnect planogram (the outline of how a line of products will be positioned on display on a store shelf) at headquarters. Typically, franchise or co-op owners—especially new ones—stock up by copying a planogram rather than making selections one-by-one of items to sell in their own retail stores. The True Value commitment is of immense importance because it facilitates ordering and is bound to translate to higher sales volume for StayConnect.
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The Ace Hardware store in Cornelius was the first to purchase StayConnect outlet covers, followed by other Ace franchises, like Black Hawk Hardware in Charlotte, and in other states. You can order online from StayConnect.com, Ace.com, amazon.com, sears. com and more. The newest big retail coup is True Value and the product lines can be found in True Value co-ops nationwide. Another StayConnect success is the Honorable Mention the company received in 2011 from North American Hardware Retail Association for a handsome point of sale display stand as well as for product innovation. The display picture appears on the company’s trifold brochure—clever leveraging! Every endeavor has its setbacks, and for Schutte, it was a surprising one-year long wait for completion of product testing and UL certification. Such certification, considered essential by retail store buyers, happened one year ago in December 2010. Once certification was achieved, sales growth exploded “about 25,000 percent,” reports Schutte. Now, StayConnect’s patented outlet covers for indoors and out are available to consumers for purchase at a growing number of sources. The Ace Hardware store in Cornelius was the first to purchase StayConnect outlet covers, followed by other Ace franchises, like Black Hawk Hardware in Charlotte, and in other states. You can order online from StayConnect. ➤ com, Ace.com, amazon.com, sears.com
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and more. The newest big retail coup is True Value and the product lines can be found in True Value co-ops nationwide. “Plugs coming loose from outlets are so common,” maintains Pat Lynch, manager of the Cornelius Ace Hardware store. He is confident that the novel outlet covers featuring the hook will sell. Doug Kropelnicki, owner of A-1 Vacuum Solutions located in Huntersville, agrees with Lynch that such disconnecting is very common and expressed interest in seeing the outlet covers. The fact that it is offered by a family business like Schutte’s also appeals to him. Consumers who care about the appearance of their interior walls may want their outlets less noticeable. StayConnect interior outlet covers and plates shroud the socket holes with a little hinged door. Presently available in white or beige, Schutte plans to offer an additional choice that features a paintable surface. The resulting appearance of an entire wall will look more uniform than when using builder’s grade plates. StayConnect’s exterior outlet covers, intended for power tools, lawn care machines, etc., are not made to be pretty but rather built to be high-quality—metal exterior vs. plastic, lined with rubber, rather than foam, seal. Rave Reviews Schutte says the reactions of customers have been “Great.” David Hudson remarks, “I’ve been working construction for all my life and have always had trouble keeping my extension cords plugged in. I roll out those 50 or 100 foot cords and the weight of the cord will even pull the plug from the wall. Now no more fines from onsite inspectors for broken ground wire prongs on my cords! My electrical cords stay preserved— no more premature wear and tear, bent and twisted electrical prongs and broken ground wire prong! Not only does the StayConnect outlet cover save the frustration of being disconnected, it saves my pocket book too!” Sandy Thomas raved, “In order to provide a finished look to my outlets, I’d been using those push-in child proof tabs! The StayConnect outlet cover provides the look that I’ve been looking for and I no longer have to use a screw driver to pull those old tabs out! Way to go!” Schutte wants his business to grow and become “a force in the retail industry” known
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for its electrical solutions. As labor intensive as it has been to dive into launching a business while still employed with another firm, Schutte claims to be enjoying the adventure, but does miss sharing activities with his friends. His enterprise continues to target big box chain stores. A flight to the Chicago headquarters of Sears is on Schutte’s schedule, in fact. To meet today’s requests by retail stores for additional types of useful devices, Schutte plans to expand his line to address various child safety needs, including a childproof outlet cover, which he hopes to release this spring. He and Turner have additional ideas brewing. They have begun talks with other manufacturers with the intent of co-marketing products that are associated with each other, like outdoor extension cords. As order volume takes off and product lines expand, there will be a point at which Schutte will quit his day job to plunge into running and expanding his new venture full time… and some day buy a new, bigger speed boat. Frustration promises to be fruitful for this enterprise. Schutte believes it probably won’t be long before StayConnect is a household name widely available across the nation to meet the electrical needs of hobbyists, homeowners and business owners alike. Originally from Indiana, Schutte and wife Tracey, who is StayConnect’s operations director, and their daughter reside in Cornelius. StayConnected—more updates to come! biz Suzanne Fulton is a Charlotte-based freelance writer.
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StayConnect, LLC 19706 One Norman Blvd., Ste. B-166 Cornelius, N.C. 28031 Phone: 704-200-8127 Principal: Michael Schutte, President; Richard Turner,Vice President of Design and Manufacturing; Tracey Schutte, Director of Operations In Business: 3 years Awards: Honorable mention 2011, N. American Hardware Retailing Association Business: Development of electrical products including patented outlet covers. www.stayconnect.com
Hood Hargett Breakfast Club hoodhargettbreakfastclub.com
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Call For More Information Call Jenn Snyder at 704-602-9529 • jenn@hoodhargett.com www.hoodhargettbreakfastclub.com
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