BUSINESS MONTHLY GR E ATE R LANS ING
FEBRUARY 2014
All in the Family: The Duckett Brothers Talk Family Business In this issue • YMCA WELCOMES NEW CEO • H INC. ANNOUNCES PLANS FOR NEW RESIDENTIAL DEVELOPMENT • APPRENTICESHIP PROGRAMS TACKLE SKILLS GAP
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FEBRUARY 2014
A Supply Chain Is Only as Strong as Its Weakest Link
Be a Strong Link Make sure you have the resources available to run day-to-day operations smoothly. Contact MSUFCU to set up a line-of-credit to assist with cash flow management and ensure your company doesn’t run short on operating funds. MSUFCU’s Business Line-of-Credit* offers: • Credit limits up to $1 million • Interest-only payments • No application fee • No prepayment penalty • 24/7 access to funds Federally insured by the NCUA
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FEBRUARY 2014
G R E AT E R
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BUSINESS MONTHLY 18 News Crisis Communication can Clear Pathways for Weathering the Storm .........6 Survey Shows Family-Owned Businesses Give Back to Communities............8 H Inc. Announces Plans for new Residential Development ..............................12
BUSINESS MONTHLY G RE AT E R L A N S I N G
Tax Filing Advice for Your Business ...............................................................................14
FEBRUARY 2014
Features Two Businesses Reflect on the Dynamics of Family-Owned Business ........18 YMCA Welcomes New President and CEO .............................................................22
All in the Family: The Duckett Brothers Talk Family Business
Departments In this issue • YMCA WELCOMES NEW CEO • H INC. ANNOUNCES PLANS FOR NEW RESIDENTIAL DEVELOPMENT • APPRENTICESHIP PROGRAMS TACKLE SKILLS GAP
Commentary.................................................................................................................................4 Collectibles ................................................................................................................................24 Investments................................................................................................................................26
The Greater Lansing Business Monthly (Volume 27, Issue 2)
He Said, She Said......................................................................................................................28 Regional Rotation ...................................................................................................................30
The Greater Lansing Business Monthly is published monthly by M3 Group at 614 Seymour Street, Lansing, MI 48933. Periodicals postage paid at Lansing, Michigan USPO. USPS number 020-807.
The GLBM List .........................................................................................................................32
Subscriptions: One copy of The Greater Lansing Business Monthly is mailed free to all qualifying business addresses in the Lansing metropolitan area. Residential, out-of-area and additional subscriptions are available at $35 per year for postage and handling.
Workforce Issues ....................................................................................................................36
Postmaster: send address changes to The Greater Lansing Business Monthly, 614 Seymour Ave., Lansing, MI 48933. Send additional subscription requests and address changes to The Greater Lansing Business Monthly, Inc., 614 Seymour Street, Lansing, MI 48933. Copyright © 2014 The Greater Lansing Business Monthly, Inc. All rights reserved.
Notable News............................................................................................................................40
Accounting .................................................................................................................................34
Man on the Street...................................................................................................................37 Business Calendar...................................................................................................................38
Editorial Office: 614 Seymour Street, Lansing, MI 48933 www.lansingbusinessmonthly.com
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Protecting What’s Important At Auto-Owners Insurance, we’ve been protecting what matters most to you since 1916. For all of your life, home, car and business insurance needs, call or visit Shinberg Insurance today.
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C O M M E N TA R Y
G R E AT E R
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BUSINESS MONTHLY Publisher: Tiffany Dowling tiffany@m3group.biz Editor: Emily Caswell emily@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz Media Assistant: Jill Bailey Account Managers: Katie Brown Manny Garcia Production Director: Kelly Ritter Art Director: Lisa Twenter Graphic Artist: Jake Paquin Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty
GLBM Editorial Board: April Clobes - Executive Vice President, MSU Federal Credit Union Trish Foster - Senior Managing Director & COO, CBRE|Martin Lisa Parker - Director of Alumni Career and Business Services, Michigan State University Alumni Association Deb Muchmore - Vice President of Public Affairs, Marketing Resource Group Tom Ruis - Vice President, Independent Bank Doug Klein - Executive Director, Mason Area Chamber of Commerce Mark Hooper - Partner, Andrews Hopper Pavlik Diontrae Hayes - Legislative Director for State Senator Coleman Young, II
Family-Owned, Operated and Appreciated
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here are pros and cons to running or working in a family-owned business. I watched this firsthand as a young person. My grandparents owned a trucking company in Detroit.
My grandpa was the president and my grandma was the CFO of Whiteline Trucking. Watching my grandparents working together to achieve a common goal was inspiring. I know that they didn’t always agree on how to move everything forward but they were able to talk everything out (sometimes loudly) in order to find common ground and make sound decisions. In my grandparent’s house, the kitchen table served as a place for family meals, the conference room as well as the boardroom. Although working and living together can be tough, if a couple has respect for each other and duties are clearly defined, it can work amazingly well. Where it tends to get more complicated is when additional family members enter the payroll system. Over the years, my two uncles worked at Whiteline, my mom, my aunt and at least three cousins. The positives drawn from working with family members are that you know them and their history; there is trust and love and hopefully respect. The drawbacks include a sense of entitlement, difficult conversations that continue into family gatherings and the opportunity to take advantage on both sides. Understanding that the world of family-owned businesses is sometimes tough, it is interesting to note that 75 percent of job creation begins with a small business that is most likely family owned. When talking with Tico and Todd Duckett or the Granger family, it is easy to see that commitment is vital for maintaining professionalism, but most importantly the relationship among family members is top priority. What I’ve found in running a small business is that people are the most important aspect of any company. Understanding who you are and how well you can compartmentalize your relationships is vital for success. Undoubtedly there will be difficult conversations and issues if you’re working with family and knowing how it will overflow or not into the family dynamic is operationally imperative. Speaking of the hard work and dedication when owning a successful business, I want to personally invite all of you to this year’s Entrepreneurial Awards program on Thursday, March 6 at the University Club. We will celebrate the risk and reward of small business in the Lansing region. You’ll see information on tables and tickets inside the magazine this month or go to lansingbusinessnews. com for more information. Be dynamic in all you do,
Tiffany Dowling | Publisher
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Borrow local.
From left: Adam Goss, Vice President, Relationship Manager, Summit Community Bank; Curt Munson, Brian Jones, Tom Keenoy, John Benedict, Owners, Playmakers; Christopher Nugent, Senior Vice President and Chief Lending Officer, Summit Community Bank.
We did! When we decided to become owners in Playmakers, we all agreed we wanted to keep our business at a local bank. That is when we moved our business to Summit Community Bank. We entered into this relationship because it’s a great business partnership. We are not looking to shop around for the best rate or deal…we value our long-term relationships. —Brian Jones Playmakers, Okemos
Borrow local. Bank local. Be local.
mysummitbank.com
NEWS
Crisis Communication can Clear Pathways for Weathering the Storm BY A NN H. KAMMERER | PH OTO B Y MA R K WA R N ER
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he recent winter storms of ice, snowfall and arctic temperatures gave mid-Michigan businesses and organizations a literal crash course in the importance of crisis communication. And while conventional media helped get messages out, businesses quickly learned that social media and “boots-onthe-ground” techniques were often faster and more effective than any press release, prepared statement or sound bite. “Crisis communication is communicating in a way that ensures people get accurate, credible, regular and reliable communication in ways they are most likely to pay attention to,” said public relations expert Kelly RossmanMcKinney. “Crisis communication is for any business, and certainly necessary for those with customers who rely on them for services.” Rossman-McKinney knows from experience — both as a customer of an organization in crisis and as a skilled
crisis communication professional. As the CEO of Truscott Rossman, she has three steps she typically prescribes as a starting point for any crisis communication plan — steps she says can minimize the immediate and long-term effect on a company’s reputation. “The rules for crisis communications are elegantly simple,” Rossman-McKinney said. “They’re so simple that it defies belief that crisis communication can’t be more consistently and carefully adhered to.”
“While you’re always looking for best practices, PR professionals all say this was a great case study,” said Rossman-McKinney. With BWL top-of-mind, RossmanMcKinney reflected on how other organizations handled communications during trying times. Many, she said, have managed well by following three rules similar to those posted on her website: (www.truscottrossman.com) 1 . Acknowledge and own up to the
problem. PRESERVING THE TRUST
2 . Apologize for the situation.
As the Lansing Board of Water and Light worked to restore power to nearly 40 percent of distribution systems after the 2013 holiday ice storm, public relations experts across Michigan watched as the municipal utility scrambled to communicate the situation. RossmanMcKinney was both an observer and a customer rendered powerless for days.
3 . Actively fix the problems and explain
how action will be taken. “The biggest mistake an organization can make is the failure to communicate,” she said. “It’s possible to recover if you don’t, but the first thing you have to do is to get into a crisis communication mode and tell us you’re sorry. That goes a long way toward people forgiving you — and that’s what you want: forgiveness.” Rossman-McKinney acknowledged that while more organizations than ever are sensitive to crisis communication, many don’t have detailed plans.
Customer service centers were opened at Lansing Board of Water & Light following winter storm power outages. 6
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“Essentially, your plan should identify your internal go-to people, who communicates with the media and how often you should communicate,” said Rossman-McKinney, pointing out that guidelines and sample emergency plans are available through online sources and private PR firms. “You also need to know exactly who your target audience is, who’s responsible for reaching out to those people and the best way to do that.”
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Traditional media isn’t always the best way, but simply part of the mix. Social media is playing an increasingly larger role, and “boots-on-the-ground” approaches demonstrate an assertive yet empathic image.
letters, door-to-door inspections, information sharing at substations and personal presence on site. Within 24 hours, Consumers Energy took responsibility for the incident, communicating that an employee action had led to the explosion.
“Years ago, there was an explosion at the Ford River Rouge Plant where a couple employees were killed and dozens more were injured,” said Rossman-McKinney of the massive boiler explosion that destroyed the Dearborn power station in 1999. “Bill Ford went to the site immediately to reassure employees he was on top of the situation. He was very hands-on throughout. And that’s what a leader does — he not only makes sure everything operationally is being done to fix the situation, he’s doing everything possible to maintain the reputation of the company.”
“Kudos to our senior management who decided to come forth with info and didn’t hold on to it,” said Debra Dodd, Consumers Energy senior public information director in southeast Michigan. “We had a lot of good comments about being open, honest and accountable.”
A CASE IN POINT: CONSUMERS ENERGY
Dodd and Bishop agree that a business can’t communicate too much in a crisis, and that it’s good to be engaged and out in the open no matter the situation. That point-of-view is mirrored through a periodic evaluation of the company’s crisis communication plan, including practice exercises that replicate real-life events. Consumer’s Energy also employs an emergency operations professional
and staff who specialize in social media, further enabling the company to be nimble and communicate beyond the traditional news cycle. “A crisis communication plan only works if the entire organization is committed to it from the top down,” said Bishop. “Getting that commitment doesn’t take a lot of persuading when there’s recognition that transparent communication is in the best interest of the organization. And in the media world we live in, we’re all living in glass houses these days. There’s little that is not known or knowable.” Ann Kammerer is a freelance writer living in East Lansing. She has written extensively about business people, educators, artists and every day people doing good things in greater Lansing for a couple decades.
The Jackson-based Consumers Energy is among the companies RossmanMcKinney mentioned as having a solid grasp on crisis communication planning and implementation. “We have a crisis communication plan for all areas of our business,” said Dan Bishop, director of media relations for Consumers Energy. “We emphasize transparent communication with customers, employees and regulators, and have close working relationships with the communities we serve.” That foundation, Bishop said, worked well when a February 2013 gas explosion in Royal Oak destroyed one home, damaged others and resulted in the death of one individual. Consumers Energy was on the scene within the hour, while senior leadership began exchanging phone calls and emails within minutes. From the start, senior leadership reviewed the incident, provided direction in communicating and safety responses, and relayed information to the press. Communication involved social media,
With your help, Hager Fox and the Board of Water and Light reduced the community’s coal usage in 2013 by over 50 TONS! Thank you for insisting on purchasing high-efficiency equipment that reduces your energy burden, and uses less of our natural resources.
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Because you really DO deserve to be comfortable
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NEWS
Survey Shows Family-Owned Businesses Give Back to Communities BY A NN COOL
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mway, Bissell, Gordon Food Service, Meijer, Steelcase — these companies are household names. Even though they’re highly visible, they share a profile with many companies that are not. Like their lesser known peers, they are family-owned businesses that originated in West Michigan. As follow up to an initial questionnaire sent out by the Family Owned Business
Institute (FOBI) in the Seidman College of Business at Grand Valley State University in 2010, three groups in West Michigan — Grand Valley State University, the Family Business Alliance and Western Michigan University — developed a survey aimed to create an updated database of familyowned businesses in West Michigan counties. Along with the updated database, goals of the survey were to gauge the state of family-owned businesses in
that region and determine what programs and services they might need. “The response so far has met and even exceeded our expectations,” said Laurel Ofstein, Ph.D., Assistant Professor of Management at WMU’s Haworth College of Business. “We’ve very happy with that.” Although the study focused on counties on the west side of the state, the findings
Institute Seeks to Help Family-Owned Flourish for Future Generations From the northern tip of the state to the southern border, West Michigan has one of the largest concentrations of family-owned businesses in the state of Michigan. For a decade and a half, the Family Owned Business Institute — housed in the Seidman College of Business at Grand Valley State University’s downtown Grand Rapids campus — has been dedicated to supporting them. “The creation of the Family Owned Business Institute … is borne out of the collective belief that family businesses (large and small ) are the cornerstone of a community’s prosperity and a vital ingredient in its quality of life,” states its website. The Institute was founded by the Grand Rapids Area Chamber of Commerce and Grand Valley State’s Seidman College of Business. J. Kevin McCurren, executive director at Seidman’s Center for Entrepreneurship and Innovation, is its acting director. He came to Grand Valley State three years ago with more than 15 years experience in new business development and 10 years of entrepreneurial experience. McCurren believes family owned businesses are unique. “They live and work in the same community,” he said. “Not only do they represent their businesses, but also their families.” Because of this, they’re “slower to let go and quicker to come back. They’re in it for the long term.”
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Businesses
And the Institute is dedicated to serving them for the long term, too. It offers quality online academic research, curriculum and information pertinent to family businesses. These include videos on topics universal to running a business, like leadership development and strategic planning, to those specific to running a family business such as succession planning and continuity, family issues, family meetings, and many other videos. It sponsors seminars and workshops, and provides journals, books, magazines and research from notable world-wide experts. In 2010, the Institute took on the task to build a better database of family-owned businesses in West Michigan. They sent out a survey to businesses asking them to identify the nature of their business. Encouraged by the response to that survey and seeking to better study and assess the needs and impact of West Michigan’s family-owned businesses, in 2013, the Institute teamed up with Ellie Frey, director of the Family Owned Business Alliance — a division of the Grand Rapids Chamber of Commerce — and Laurel Ofstein, assistant professor of management at Western Michigan University’s Haworth College of Business to conduct a more robust Family Business Survey Contact Questionnaire. (See main story for more.) — ANN COOL
FEBRUARY 2014
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NEWS
show how valuable family firms are toward sustaining communities no matter where they do business.
response rate. Respondents answered questions about their corporate structure, their history and plans for the future.
Ellie Frey, director of the Family Owned Business Alliance — a division of the Grand Rapids Chamber of Commerce.
Approximately 700 respondents identified themselves as family-owned, and 150 have taken the full survey so far, giving the survey a 22 percent response rate in comparison to the typical 10 percent
“We are excited to have the results of the family business survey so we can better understand the family business community of West Michigan and start to paint a picture of resources needed,” said
The process for the current survey began last year as Ofstein helped identify approximately 12,000 companies from the 28 counties in West Michigan who were invited to register on the FOBI website and take the survey. A business is family owned, according to J. Kevin McCurren, acting director of FOBI, if it meets two basic requirements. “First, does it have family members active in management and, second, do the owners intend to pass it on to family members?” he explained.
large
At this point, the results of the survey are preliminary, and although a final report will not be completed until later this year, the researchers are able to form a few initial impressions. “They’re involved in the community and the environment because they live and work in the same place,” said McCurren. No matter their size, or the industry in which they operate — retail, agriculture, manufacturing, etc. — family-owned businesses tend to make a sizeable impact on the communities in which they operate. They have something else in common, all family-owned businesses have needs and challenges unique to them. As those involved in administering the survey suspected, because they provide jobs, family-owned businesses have a great impact on the local economy. Of those companies who responded, the smallest company had one full-time employee; the largest employed a total of 2,400 full-time workers. The smallest company employed no part-time workers; the largest 600 part-time employees.
BANNERS SIGNS GRAPHICS capital-imaging.com
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Not only do family-owned businesses positively impact the local economy with jobs, but also with charitable giving or philanthropy. The survey results so far show that most companies are strong community supporters, although many
NEWS
don’t have a formal annual giving program but instead “give when there’s a need,” said Ofstein. Not only are they philanthropic, according to Frey, they’re “slower to reduce their workforce in tough economic times” and because they have a personal stake in their community, “they are better environmental stewards.” The survey also showed that many familyowned businesses have deep roots. “There is a preponderance of businesses in their third and fourth generations,” Ofstein said. This result was surprising because national studies show that only 30 percent of US family-owned businesses survive beyond the second generation. “We were quite surprised to discover a number of businesses who are multigenerational, now into their third or fourth generations. It’s not something that happens by chance,” Ofstein said.
The results will be valuable to other family businesses to learn about the good practices they have in place to make this happen. Family-owned businesses have the dual role of protecting and preserving their heritage while looking ahead toward ways to remain innovative and continue to build their business. “We want to make sure that we offer help (such as in succession planning and strategic planning) so that other family businesses can survive into the next generation,” added Ofstein. “As a result of the survey, we’re excited to know what tools, resources and services we can offer to help them make good decisions.” Ofstein, for example, has already recommended adding an elective course on family-owned businesses to the Haworth College of Business curriculum. The information that the survey has gathered so far will be useful to all three groups going forward. Little data has
been available on the number, needs and impact of these businesses before these studies began. “As a membership organization, the Family Business Alliance will use the results to plan the appropriate programming. When presenting on family business, it will be wonderful to have current and local family business data to share,” said Frey. The groups hope to release a follow-up study later this year. Any family-owned business in a West Michigan county that would like to be added to the database can register at the following link – http://gvsu. edu/fobi/survey.
Ann Cool, MPS, is a freelance writer who lives in Mason with her husband Bob.
What’s so special about the number 108? There are 108 stitches in an official Major League Baseball
Stonehenge is 108 feet in diameter
There are 108 cards in an UNO deck
Sky Blue is Crayola Crayon’s 108th color
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H Inc. Announces Plans for new Residential Development BY E M ILY CAS WEL L
“T
hink about Henry Ford’s assembly line only with housing,” said Steve Purchase, H Urban Development Vice President. Built off site and indoor, new modular apartments, known as metropolitan flats, are soon to be available in downtown Lansing, thanks to Lansing area development veteran H Inc. “(We’re) creating a new kind of housing product,” said Purchase. Once built, the metropolitan flats will be placed near H Inc.’s Prudden Tech Center and Motor Wheel Loft development in downtown Lansing. The units will be elevated, leaving plenty of room for parking. Known for rehabbing existing buildings, H Inc. turned to the idea of new development because the existing building on the land — owned by H Inc. — was lost to fire in the late 1990s. Directly after the fire, H Inc. turned their focus elsewhere, working to develop and fill the space at the Prudden Tech Center and Motor Wheel Lofts. Earlier this year it was announced that the Michigan Public Service Commission (MPSC) will move their office space to the Prudden Tech Center, occupying 61,000 square feet. Adding to the fact that residential units at Motor Wheel Lofts are full, H Inc. founder and president Harry H. Hepler knew it was time to look to the next phase. “We are turning our attention to the next 10 years,” said Purchase. And while new construction is a new venture for H Inc., Purchase says these flats stick to the mission of the organization, adding 350 to 450 new living spaces to downtown.
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An artist rendering of the new H Inc. metropolitan flats.
“It’s still keeping with that (idea of) downtown development,” said Purchase. “Even though it’s a new structure, it’s still very much (in line with) the notion of reinvesting in our downtown.”
finished JI Case Lofts with Gen Y in mind, Hepler said the market price has now exceeded what Gen Y can or will pay for those units. The metropolitan flats aim to fill a current gap.
The units will range from about 250 to 450 square feet. Aimed to attract a younger crowd, they will be built from eco-friendly materials and offer high-tech amenities. To maximize the smaller space, the design includes unique features, like murphy beds, that allow residents to make the most of every square inch.
“(Gen Y) does not want to live for their house,” said Hepler.
“The Y generation really wants a multipurpose room,” said Hepler. The new units will also rent at a lower price point — estimates are currently at around $495 to $695 per month — than H Inc.’s current properties. Hepler said that was one of the biggest factors that led he and his team to land on this type of development. Originally developing residential units like the ones available at Motor Wheel and the newly-
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After seeing older generations work only to pay a mortgage, or worse, lose their home in economic downturns, Hepler said Gen Y is demanding a simpler option. “They are not interested in a great quantity of space,” he added. Modeled after shipping container apartments, which are raising in popularity around the world, once the design and construction of the new flats is perfected here in Lansing, Hepler said the sky is the limit when it comes to where else the flats can be shipped. In turn, the new developments have the potential to impact the local economy long after the Lansing units have been built, placed and filled, thanks to the fact that all construction,
and in turn job creation, stays here in the Capitol city. As far as the Purdden Tech area, Hepler and Purchase say that they are far from done. Along with more residential developments, they are hoping for traction to gain on their Oak Park Development Concept, which promises more urban living options, revitalized public parkland and the reunification of neighborhoods that were divided by development that favored cars. Construction on the new units is set to begin in the fall of 2014. Emily Caswell is the Publications Director at M3 Group where she serves as managing editor of Capital Area Women’s LifeStyle Magazine and editor of the Greater Lansing Business Monthly.
517-371-4000 WWW. TROPPO.US
For your business development and training needs. Lansing Community College Extended Learning & Professional Studies Business and Community Institute Bo Garcia, Executive Director Small Business and Technology Development Center Tom Donaldson, Director Continuing Education Cathy Wilhm, Director
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Tax Filing Advice for Your Business BY KRIS TINE RICHMON D | PH OTO B Y MA R K WA R N ER
W
ith the official tax season underway, GLBM asked a local expert to help business leaders get ready to file 2013 taxes. Here are some tips. Take advantage of the government programs available. Explore the programs and be persistent as you seek to navigate the tax laws. Peter J. Fortin, CPA and managing partner of Fortin & Associates, says the problem is being able to have access to those programs. “It’s difficult when so many experienced people leave the IRS because of retirement. That makes it impossible, almost, to be able to go through the process especially on your own.” Fortin encourages people to not give up, but to keep calling until you find the answers you’re looking for.
Keep good documentation. If you’re thinking you wished you would have kept better records, you’re in luck. Fortin says that it is pretty easy to go back and retrieve Peter J. Fortin your information. ”You can go online with most banks and find out every place you’ve ever spent money. Credit cards are the same way. As far as business travel or mileage, look at your phone if you have to add it up after the fact.” Do a budget for 2014. Having a budget in place can be very beneficial to your business. It helps with establishing revenue goals, controlling costs and provides a road
map to follow throughout the year. Fortin recommends that you compare your budget to last year and see where you can eliminate some unnecessary purchases. TAX CHANGES BUSINESSES SHOULD KNOW
3.8 percent Medicare surtax. “One of the biggest changes businesses need to know is the new 3.8 percent surcharge for Medicare,” said Fortin. This surtax begins this year as another aspect of the health care reform. It applies to unearned income of single filers who have modified adjusted gross income above $200,000 and married couples with modified AGI over $250,000. Increased top rate for capital gains and dividends. The top rate on capital gains and dividends is going up to 20
How to Select the Right Accountant for Your Business When is the right time to hire an accountant? “As early as possible,” says Nikali Luke, president and co-owner of Simplified Tax & Accounting Service, PC in Lansing, Mich. “Especially when you are ready to start your business.”
It’s good to have that advisor to turn to for help,” said Luke.
“We are more helpful on the front end than when you wait until you are in trouble,” said Luke. “An accountant can give you guidance on the pros and cons of choosing an entity for your business, what items to keep track of, what’s deductible and what records you should keep in case of an audit.”
2 . Call at least three accountants. Calling gives you a sense
Luke
According to Luke, accountants help existing businesses know about the tax changes and how they will affect them, and what deductibles they should take. “Even if you see an accountant one time, it’s helpful to know you’re doing things right.” “Most clients, once they sit with our CPAs, they realize it is worth it. When a business grows, you will get into situations.
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Here are a few tips to help select the right accountant: 1 . Talk to people who you already trust, especially those
in a similar situation, to get a referral. of whether you are going to enjoy talking to your CPA. 3 . Find out the fees. Depending on the CPA, fees vary
dramatically. Ask two questions: “How much is my tax return?” and “How much is the consulting?” The real value you get is from the consulting. 4 . Find out if the accountant has experience in your
specific industry. There are different tax rules based on your industry so you want that person to be able to give you good advice. — KRISTINE RICHMOND
FEBRUARY 2014
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percent for certain taxpayers in 2013, under the American Taxpayer Relief Act of 2012. Individuals with taxable income over $400,000 and married couples with taxable income over $450,000 are subject to the increased rates. “Expect to pay more taxes, unless you sit down with someone that is going to take a personal interest in your situation, no matter how simple or complicated your tax situation is. There are things you can write off,” said Fortin. Depreciation of assets. According to Fortin, take advantage of the “bonus” first year depreciation for assets purchased by your business. In 2013, businesses can claim a first year depreciation deduction equal to 50 percent of the cost of qualified new property placed in service before the end of the year. This tax break expired on Dec. 31, 2013. In addition, the Section 179 deduction of 100 percent of current year asset purchases has been extended through 2013; however it is expected to be greatly reduced in 2014.
Work Opportunity Credit. This is a refundable credit extended through 2013 for employers who hired certain individuals throughout the year.
Also, in this challenging economy, it is important to hear tough, honest advice. “The average person wants their CPA or professional to tell them what they want to hear, not what they should do. They need to hear what’s right for them, not necessarily what they want to hear,” said Fortin. A professional can offer the tough financial decisions so that businesses can “make good decisions in order to maintain profitability.”
STICK WITH THE PROFESSIONALS
Fortin recommends for businesses of all sizes to use a firm rather than doing their own taxes for the simple reason that a professional has access to more resources. “We know the people at the IRS and we know the people at the State of Michigan,” said Fortin. “We know the best insurance people and we can get them in here and we can have candid conversations and give them ‘what if’ scenarios.”
Kristine Richmond is the Public Relations Specialist at M3 Group. She specializes in helping clients tell their stories of changed lives, fiscal success, philanthropic support and more by creating engaging messages that grab customers’ attention and cause them to act.
Having started his practice in December of 1989, Fortin understands the challenges and concerns of today’s business owners. “We have a lot more transactional experience. We’ve seen it.”
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COVER
Keeping it in the Family
Two Businesses Reflect on the Dynamics of FamilyBY ANN KAMMERER
| PH OTOS B Y L I SA T WE N TER
M
om and pop aren’t necessarily the ones running the shop in today’s family owned-andoperated business.
63 percent of the workforce. These firms matter to the community, too, since 95 percent of family businesses engage in local, state or national philanthropy.
While among many, Duckett Brothers Distributing and Granger stand out as two lineage-founded firms in greater Lansing.
Family businesses vary from a husband and wife team to large corporations that employ hundreds or thousands of people. About 5.5 million businesses in the United States are family owned-andoperated, creating nearly 75 percent of all new jobs. Additional statistics compiled by Family Enterprise USA show that 60 percent of all publicly held US companies are family-operated, generate 57 percent of the nation’s GNP and employ about
“The impact on the community is tremendous both in terms of business and philanthropy,” says Ellie Frey, director of the Family Business Alliance in Grand Rapids, a Michigan-based organization that researches and provides information on family businesses (See more on page 20). “Family-owned businesses tend to want to be in a community for the long haul and to be good to their employees.”
DUCKETT BROTHERS DISTRIBUTING
One wears a business suit, the other fashionable camo and a knit winter hat. But when seated at the table, there’s a noticeable sibling chemistry that binds the two together. “We’re definitely brothers, but we’re two different people,” says Tico Duckett of his brother Todd “TJ” Duckett. “You’re definitely not getting a clone.” “That’s right,” says Todd. “We’re 11 years apart, and didn’t fight over cereal. That’s definitely preserved our relationship.” Tico and Todd co-own Duckett Brothers Distributing, a janitorial and industrial supply company on Lansing’s north end. Started by Tico in 1998, the minorityowned firm serves municipalities, large insurance companies, several manufacturers and a variety of automotive suppliers. Tico launched the business based on expertise he acquired while working as a senior buyer for a local manufacturer. That experience, combined with the interpersonal skills and work ethic
Tico Duckett 18
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-Owned Business
“WE KNOW HOW TO SET GOALS AND HOW TO HANDLE SUCCESS AND FAILURE. BASICALLY, IT EQUATES TO A GAME PLAN. YOU HAVE FOUR QUARTERS TO EXECUTE WHAT YOU WANT, AND THEN YOU START THE NEXT SEASON IN THE NEW YEAR.” - TICO DUCKETT CO-OWNER OF DUCKETT BROTHERS DISTRIBUTING
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followed in Tico’s footsteps, but I’m my own person. I realized that I could add a different spin to the business through things I do.” Lunch with a Purpose, the High Five Turkey Drive and the Battlefield Brawl are among the various volunteer and service activities that Todd oversees. And the Jacquelyn Barham Challenge — named for their late mother — encourages community members, school-age kids and celebrities to raise funds for cancer-related causes by growing out their hair or beards.
Picture from Tico Duckett’s playing days at Michigan State University with younger brother Todd Duckett by his side.
he picked up playing collegiate and professional football, propelled his business onto the Lansing area field. In 2009, Tico tapped the similar experience and expertise of his younger brother Todd and asked him to join the business. Also an alumnus of Michigan State University football and the NFL, Todd brought his love of community engagement to the company, executing philanthropic causes, volunteerism and global service through his New World Flood organization.
“When you have a brother or sister, you want them to do better than you,” says Tico. “Tony, my older brother, did the same for me. He was a great high school athlete, I was more into college and Todd excelled as a pro.” Today, Tico serves on the operations side of Duckett Brothers, while Todd builds business and community ties through sales, marketing and philanthropy. “I jumped right in when I got through playing for the NFL,” says Todd. “I
“That’s what this is all about right now,” says Todd as he strokes his longish beard and points to similar facial hair on Tico. “We see these kinds of activities as ways people of all ages can put themselves aside for a while and think of someone else.” GRANGER
Keith Granger has a picture in his office that shows what he wanted to be when he grew up. “It’s a bird’s eye view of a garbage truck,” he says as he points to the two squares he drew on construction paper as a Kindergartner. “My wife framed this for me for my 40th birthday.” PHOTO PROVID ED
“We were both trying to find our own identities after playing football,” says Tico. “I found it in business, TJ in philanthropy.” Both Ducketts agree that the experience of playing football at the highest level greatly contributed to their business savvy. “We know how to set goals and how to handle success and failure,” says Tico. “Basically, it equates to a game plan. You have four quarters to execute what you want, and then you start the next season in the New Year.” Tico says that bringing Todd on board was simply an extension of the advice and opportunities that big brothers provide for younger kin.
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Garrett Russ, Andrew Russ, Randy Russ, Jerry Granger, Ron Granger, Keith Granger, Todd Granger, Tom Hofman, Joel Zylstra
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Today, Keith has surpassed his dream by overseeing a family business responsible for a range of recycling, composting, landfill management, renewable energy, and trash hauling and disposal services. As the CEO, Keith is among the third generation family members working at Granger. In the 1960s, Keith says, Granger grew into a multi-faceted business from its start when brothers Alton, Ron and Jerry began hauling debris for their family’s construction company and others in the area. The company also committed to greater Lansing through a charitable foundation and corporate giving to various youth, environmental and community programs.
“It’s important to communicate expectations early on,” says Keith. “Some companies might want you to work for a few years someplace else or get an MBA. That way, too, non-family members feel secure in knowing that even family members have to earn their spot.”
Ann Kammerer is a freelance writer living in East Lansing. She has written extensively about business people, educators, artists and every day people doing good things in greater Lansing for a couple decades.
“My father, his brothers and my grandfather did what they needed to do every day,” says Keith. “And where they saw opportunity that matched their expertise, they would add another branch of business.” Granger employs about 260 people, with four generations of family members involved in the business. The company’s leadership team, Keith says, consists of an equal divide of family and non-family members, overseen by a board of family and non-family members. Growing up, Keith says he never remembers his father, Ron, talking business once he came home. For the longest time, Keith says he never knew what his dad did, except that he drove some pretty awesome trucks. Now a father and businessperson himself, Keith says he shares the same philosophy as his father and talks very little about what goes on at the office when at home. “My dad always told me that there will be times where you have disagreements, but that you don’t take it home,” says Keith. “You work it out here, and at the end of the day, we all get along.” Other advice Keith has for a family business entrepreneur is to think ahead and decide how to handle the next generations.
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F E AT U R E
YMCA Welcomes new President and CEO BY KRIS TINE RICHMON D
T
he YMCA of Metropolitan Lansing recently welcomed Jeff Scheibel as their new President and CEO.
Whether you are just now making, or breaking, your New Year’s resolutions, Scheibel says it’s never too late to consider joining the Y Now! to get fit and live healthy in 2014 and beyond. “I can’t think of a better time to join the Y,” said Scheibel. “We offer a wide range of activities, events and programs for families, youth and individuals of all ages. We’re accessible at five Lansing area
branches, and a premier resident camp at beautiful Mystic Lake near Clare.” Scheibel brings more than 26 years of Y experience to his new position in Lansing. Most recently, Scheibel served as the Vice President of Operations at the Dallas Metropolitan YMCA, where he was responsible for overall management of nearly $7 million as part of a 23-branch, $61.5 million operation. He has served as President of Kiwanis, President Elect of Rotary, active member of Downtown Dallas Inc., as well as the Association of YMCA Professionals. Scheibel is a
graduate of the University of Wisconsin, La Crosse, where he earned a bachelor of science degree in physical education. “Sue and I are excited to make Lansing our home,” said Scheibel. “I can’t wait to work with the volunteers and staff of the Lansing YMCA to build upon the foundation of excellence that the community has come to expect from the YMCA. I will look forward to partnering
Y NOW!
The following are reasons you should consider joining the Y Now!: • The Y is for everyone. The doors at the Y are open to everyone - children, adults and families alike - regardless of where people are with their health and fitness goals. Plus, the Y gives you and your family the opportunity to get fit together. • The Y is conveniently located. With five local facilities, most likely situated near your home or work, it’s more convenient so you can work the gym around your busy schedule.
Because it’s a new year. JOIN The Y NOW jointheYnow.com
• The Y is the leading voice on health and well-being. The Y’s highly trained staff are experts in health and fitness. At the Y, we know that achieving a healthy lifestyle means more than working out; it’s about nurturing the mind, body and spirit. You’ll receive educational information and support, no matter your fitness level or health goals. • The Y brings the summer indoors. With the blustery winter just beginning, the kids don’t have to wait until summer to swim — they can swim now. The Y has been America’s leading swim instructor for more than 100 years yet we also offer recreational, competitive and specialty swim programs for all ages and abilities. • The Y helps you cross off your bucket list. Whether you’re planning to run a marathon for the first time, training for a triathlon or if a 5K is more your speed, the Y can help you achieve your goal. The Y has the fitness facilities, equipment, programs and staff to support you. • The Y offers quality child care. The YMCA of Lansing is one of the largest child care providers in the area. We offer quality child care at convenient sites around the community.
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The YMCA of Metropolitan Lansing has six operating units including Mystic Lake Camp near Clare and branches Downtown, on Lansing’s Westside, in the Oak Park area to the South, in East Lansing and DeWitt. “We were delighted to have many very qualified candidates to choose from,” said YMCA Board Chairperson Catherine Jacobs. “The volunteers on the selection committee worked tirelessly to make the very best decision for the future of our YMCA. Jeff’s interest in our organization is a testament to Tony’s (Tony Fragale, former YMCA of Metropolitan Lansing President and CEO) great work and the potential impact of our YMCA for the future of the Greater Lansing community.”
Jeff Scheibel
with others in the community as we seek to focus on youth development, healthy living and social responsibility.”
The YMCA employs nearly 500 individuals and serves nearly 16,000 memberships throughout the community. A volunteer board of directors provides leadership to
the Association, a member of the national organization – the YMCA of the USA. “I came away inspired by the vision of the volunteers and staff, and their enthusiastic commitment to the YMCA,” said Scheibel. “There are countless opportunities to continue to grow and expand our mission-based programs that will impact the lives of the kids and families in our community.” To learn more, visit www.lansingymca.org.
Kristine Richmond is the Public Relations Specialist at M3 Group. She specializes in helping clients tell their stories of changed lives, fiscal success, philanthropic support and more by creating engaging messages that grab customers’ attention and cause them to act.
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COLLECTIBLES
Are Collectibles Hot? Not? Or? BY PATRICK A. HEL L E R
I
am regularly asked whether collectibles are in a strong market. Let me share with you some recent data that demonstrates how difficult it is to answer such a question. In 2013 major numismatic (rare coins and paper money) auction companies achieved a combined volume of almost $393 million! Twelve different coins auctioned or sold in private sales for more than $1 million each! One coin, a 1794 US Silver Dollar, set a record high price for a rare coin when it sold for more than $10 million in January.
Studies of Lucian Freud” sold for more than $142 million, setting a new record for the most expensive artwork sold in auction. At the same Christie’s auction, Jeff Koons’ 10-foot-tall stainless steel sculpture titled “Balloon Dog (Orange)” sold for more than $58 million. This set a record for the highest price paid for a work by a living artist.
As recently as 1987, when the rare coin collections of actor Buddy Ebsen and violinist Jascha Heifetz each realized $7 million in auction, those were really exciting news stories. In 2013, a $15 million auction only received limited industry coverage.
Just from these snippets, you might think that the collectibles market was generally healthy last year. Well, the “trophy” collectibles certainly did have a strong year. As the number of billionaires around the world soars, so does demand for the cream-of-the-crop collectibles.
In June, a Sotheby’s carpet auction saw a Southeast Persian rug sell for more than $33 million! Jan David Winitz, internationally recognized Oriental rug expert said, “I expected that the piece would draw strong bidding, but this price, which is more than three and one-half times higher than the highest previously paid for a rug, is truly phenomenal.”
But that isn’t the whole story. One observer of the art market recently told me that even though the top end of that market was strong in 2013, prices for “everyday” art generally fell 25-50 percent during the year. From my own trading experience, I saw that prices of diamonds offered to the mass market were relatively unchanged in 2013.
In July, a 1954 Mercedes-Benz race car sold for $30 million in auction, almost double the previous high auction price of $16.4 million set in 2011.
As for the general rare coin and paper money market, there were many areas of stronger prices, falling prices and stable prices. It doesn’t seem fair to categorize the overall numismatic market as stable. But, if everything was averaged out, I think that would be the result. Demand was strong for collector coins from China, India, Poland, Russia and several other nations while it declined in other countries.
In November, a flawless 60-carat pink diamond known as the “Pink Star” sold at auction for $83 million, a record high price for a diamond. The entire Sotheby’s sale at which it was sold realized $199.5 million, which itself set a record for the highest-selling jewelry auction. Also in November, a 1969 triptych painting by Francis Bacon titled “Three 24
In collectibles, there will always be niches that are strong at any particular time while others are falling out of favor. The philatelic (postage stamps and related
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items) market peaked in 1980 and has generally declined since then, but still has some areas of rising demand and prices. When trying to answer the question about whether the collectibles market is strong or not, there is no single answer that provides useful information. Instead, you need to dig down to a specific kind of collectible and probably to a specific niche within that market. Keeping up with particular markets is part of the challenge and enjoyment of collecting.
Patrick A. Heller is the 2012 American Numismatic Association National Coin Dealer of the Year. He owns Liberty Coin Service in Lansing, the largest coin dealership in Michigan. He writes a monthly newsletter, Liberty’s Outlook available at http://www. libertycoinservice.com, and commentaries on precious metals and collectibles on various websites. His award-winning radio show “Things You ‘Know’ That Just Aren’t So, And Important News You Need To Know” can be heard at 8:45 AM Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and is archived at http://www.1320wils.com). He is also the Executive Producer of the forthcoming movie “Alongside Night.” Heller was the unofficial “artist” of the 2004 Michigan Statehood Quarter.
ENTREPRENEURS UNITE
GREATER LANSING BUSINESS MONTHLY PRESENTS THE 2014 ENTREPRENEURIAL AWARDS
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Purchase a corporate table or be a sponsor at this year’s event. Good luck to all of the 2014 nominees! For more information please contact Virginia at 517-203-0123 or virginia@m3group.biz.
SOCIAL HOUR 6 to 7 p.m. AWARDS PROGRAM BEGINS 7:15 p.m. ADDRESS The University Club 3435 Forest Road, Lansing
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INVESTMENTS
Do you Know “Your Number?” BY SC OTT DANEK
T
he stock markets keep climbing the wall of worry. Your investment accounts may or may not be. Should you be worried? That depends. Do you NEED your accounts to be up as much as the market? Can you survive the next time the market, and possibly your accounts, suffer large losses? Do you have enough money to take a conservative approach? Basically, do you know how to discover “your number?” Most clients base “their number” on the projected amount of money they’ll need at retirement that will allow them to walk away from their job. Unfortunately, this is often where the planning stops, and they’re left with merely a snapshot at retirement that really only looks at the need during a single point in time. Many of the assumptions are based on the perspective of the client PRIOR to retirement, which in many ways differs once they are IN retirement, which can lead to unrealistic expectations. For example, assuming a given rate of return that one is comfortable with prior to retiring may not be realistic and comfortable during all of retirement; especially knowing that retirees commonly get increasingly conservative as they age. Another reason the static and common method of determining retirement readiness is flawed is the simple reality of retiree behavior. As much as one may want to bounce their last check on their last breath, i.e. have JUST enough money to retire and precisely hit their number, I’ve yet to see a retiree in my 20 plus years of doing retirement income planning who has had the resolve to invade principal to that degree. Also, it can take months, if not years in some cases, for clients to get comfortable in their retirement skin. Maybe every day being a Saturday becomes a bore and they decide to go back to work. Or, new 26
grandchildren bring about change in travel plans from seeing the world to seeing them as often as possible. You simply cannot say with 100 percent certainty that you know what you’ll do in retirement until you actually have been retired. Too much will change between when you retire and when your heirs inherit whatever is left. Deciding how best to coordinate pensions, social securities, qualified assets, and non-qualified assets, to name a few, adds another layer of complexity. Then add to that considerations related to taxes, estate planning and long-term care, not to mention market conditions and political and policy decisions, and the importance of conducting and updating the proper planning becomes even more critical. Accumulating money is one thing, while sound wealth management is quite another. Money management platforms, brokerage accounts and risk tolerance questionnaires are a dime a dozen. But the independence, experience and expertise required to conduct the proper planning is not as commonplace. Unfortunately, as much as someone may like to have just a couple meetings right before they retire, look at a 30 page color print-out and say, “we’re all set,” it doesn’t work that way.
back at your retirement planning and it hasn’t been updated recently, you may want to look at your accounts differently. Instead of focusing on the colorful pie charts, the quarterly returns and specific investment products, look more closely at the planning, the assumptions and the breadth and quality of the discussions that accompanied them. Can you confidently say you know “your number?” In actuality, “your number” is a journey, not a destination. “Your number” should be a process, not a static figure on a piece of paper and should be as unique as you are and adjusted over time. Your journey in life will change in many meaningful and rewarding ways, so perhaps your number should too. Equanimity …. find yours.
Done properly, “your number” is actually a moving target and a process, as opposed to a snapshot or specific lump sum of “x” amount of money. It needs to be adjusted as your needs and objectives change. Provided the most sophisticated resources are brought to bear, account values and subsequently your plan can be updated even on a nightly basis. The proper planning should be the basis upon which your investment decisions are made, not the other way around. If you still don’t know the answers to the initial set of questions, and you look
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Scott Danek, founder of Equanimity Wealth Management (www.EQWealth.com), has been serving clients for over 20 years. With an office located in East Lansing, Scott is a Certified Financial Planner practitioner and a weekly business panelist on the radio show Michigan Business Rap (www.mibizrap.com). He is an MSU alum and very active in local charities and community events.
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“
HE SAID, SHE SAID
“
He Said She Said
Each month The Greater Lansing Business Monthly invites authors from two views — one conservative, one liberal — to share their thoughts on a rotating topic. This month’s topic: Should there be an increase in minimum wage?
them for a job, let alone to be functional members of our society, we have a deeper and more profound problem. No matter how nice or benevolent we may want to be with others people’s money, be it some corporation or governmental program, we can’t force you to buy a product or service you don’t want or can’t afford. The only way a market system works is if both the seller and the buyer perceive a fair exchange for any service or product. MINIMUM WAGE A JOB KILLER By Saulius Anuzis
INSTEAD OF CHASING AWAY ENTRY LEVEL JOBS, PART-TIME
Minimum wage kills jobs! Plain and simple. Raising the minimal wage sounds good but is fundamentally flawed. It forces business to pay more for its worker than the value that is added to its product or service. Some have advocated raising the minimum wage to $9.25 hour. But what if someone’s service isn’t worth that much? What if certain workers need additional training and skills that would increase their value, but we take away those jobs in Michigan by pricing them out of the market? The challenge is when 47 percent of the adult population in Detroit is functionally illiterate and our educational system fails to prepare 28
JOBS FOR SECOND EARNERS AND JOBS THAT PROVIDE NEW SKILLS TO IMPROVE ONE’S MARKETABILITY, WE SHOULD
and experience they desperately need to move up the economic ladder. Statistics show that only 2 percent of married working families earn a minimum wage. While many of them are second earners in the family, others have limited skills. The best way to raise the minimal wage is by reforming our educational system and creating a friendly and profitable market for job providers. Instead of chasing away entry level jobs, part-time jobs for second earners and jobs that provide new skills to improve one’s marketability, we should focus public policy on creating jobs! Wages rise when you increase the capital applied to a job position. We can expand human capital by providing an excellent education and more job training. We can expand physical capital through advanced technology.
CREATING JOBS!
Those steps will increase wages. We need public policies that get to the heart of the matter and expand and incentivize capital formation. We do not need political feelgood proposals that are counter-productive.
The idea that government can arbitrarily set wages, prices and lifestyles to help the poor in effect hurts the very people it proposes to help. It prices their labor out of the market, denying them the training
The foundation upon which the American Dream is built is based on individual liberty and free market capitalism. We relish our freedom and have long advocated the principle of voluntary
FOCUS PUBLIC POLICY ON
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exchange. Government mandated minimum wages can never lead to sustainable wage increases. Higher levels of labor productivity can.
Saul Anuzis served as Chairman of the Michigan Republican Party from 20052009 and was a candidate for Chairman of the Republican National Committee in 2009 and 2011. His previous political and government service included working with Newt Gingrich at American Solutions, Jack Kemp’s 1988 Presidential campaign, serving as Chief of Staff to Senate Majority Leader Dick Posthumus, Chairman of the MI Senate Republican Campaign Committee and serving on the MI House Republican Campaign Committee.
Raising the minimum wage provides us with an important opportunity to offer hope to a very hard-hit group of residents here in our state. With a little more family income and spending power, more middle-class Michiganders would have the opportunity for some upward mobility; they’d be able to pay off debt, further their education, start families, retire — even engage a bit more in their communities (an activity nearly impossible for folks who have to work two and three jobs around the clock just to make ends meet). Few dispute the fact that those activities are immensely important to revitalizing our state. WITH A LITTLE MORE FAMILY INCOME AND SPENDING POWER, MORE MIDDLE-CLASS MICHIGANDERS WOULD HAVE THE OPPORTUNITY FOR SOME UPWARD MOBILITY; THEY ’D BE ABLE TO PAY OFF DEBT, FURTHER THEIR EDUCATION, START FAMILIES, RETIRE — EVEN ENGAGE A BIT MORE IN
Costco have grown consistently as the economy has bounced back from recession; profits have risen and stock prices have more than doubled. WalMart experienced a rise in sales, profit and stock prices during the same time period, but not as much as Costco. An MIT study suggests that when a company compensates its employees well, satisfied workers are more productive and more motivated, which translates into sales. It’s no coincidence that Costco’s workers didn’t step up to the picket lines during last fall’s country-wide strikes for higher wages. Not everyone can adopt the Costco model, but the company’s success suggests that businesses don’t have to choose between growing their companies and employing a well-compensated, satisfied workforce — a workforce that, unlike the company’s shareholders, is more likely to turn around and spend those dollars right in our communities. There are a variety of social and public policy questions we can afford to take our time considering before moving forward on, but raising the minimum wage (and thereby offering our middle class a crucial lifeline) simply isn’t one of them. Here’s hoping this fall’s elections ignite some meaningful, productive debate about our minimum wage levels that leads to some much-needed action on the issue.
THEIR COMMUNITIES. AN INCREASE IN MINIMUM WAGE HAS BENEFITS FOR ALL By Karissa Chabot-Purchase
Regardless of which side of the minimum wage debate you fall on (and there’s sound arguments on both sides), most research suggests that a bump in the minimum wage stands to benefit one group decidedly more than others: the middle class. Here in Michigan we know a thing or two about the challenges our middle-class citizens have faced over the past decade.
Many opponents of raising the minimum wage warn that boosting worker’s pay will cut into businesses’ profit margins, threatening their ability to survive (let alone thrive) in an already fragile economy. Compensating workers with fair wages, with health benefits, and with retirement options doesn’t have to spell the end of a business, though — in fact, in some cases, it can actually work to an employer’s benefit. Take Costco, for example. There, workers make an average of just over $20 an hour (compared to just under $13 at competitor Wal-Mart). Sales at
Karissa and her husband have made Lansing their home since graduating from Michigan State University, where Karissa earned a bachelor’s degree in political theory and constitutional democracy from MSU’s James Madison College and a master’s degree in critical studies in literacy and pedagogy from the College of Arts and Letters. She currently works in the Michigan House of Representatives as the Legislative Director for State Representative Andy Schor (D-Lansing) and stays active in the community through a number of volunteer endeavors.
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R E G I O N A L R O TAT I O N
East Lansing: A Thriving Community BY GE O RGE L AHANAS
E
conomic development is once again thriving in East Lansing, in contrast to the quiet period our community and many others faced following the economic downturn of 2008. I’m proud to report that in 2012 and 2013 the value of construction in East Lansing totaled almost $65 million — a 119 percent increase from the investment in 2010 and 2011 of more than $29 million. Downtown East Lansing is in the heart of it all, with significant infrastructure improvements, investment and new growth taking place over the past two years. Downtown’s transformation has included the opening of the Eli & Edythe Broad Art Museum, the opening of Jackson National’s The Zone, construction of two new mixed-use buildings along Albert Avenue, a new way-finding plan, reconstruction of Ann Street Plaza and reconstruction along Michigan, Grand River and Albert avenues. The downtown welcomed 26 new businesses over the past two years and between 2011 and 2012 there was a
(Top) HopCat in East Lansing; (Bottom) Avondale Square
426 percent increase in the value of construction. The two new mixed-use buildings added 73 new rental units and two exciting new restaurants, HopCat East Lansing and Peppino’s Pizzeria, to the downtown. The opening of JNL’s The Zone was noteworthy in that the company invested more than $10 million to
repurpose an important 33,000-squarefoot anchor location and added approximately 200 knowledge-based jobs. The Broad Museum has also had a considerable impact on the downtown, attracting more than 115,000 visitors from across the globe in its first year. In our Northern Tier, we recently participated in the ribbon cutting for The Willows — East Lansing’s newest senior living facility. This new 81,000-squarefoot facility features 127 beds, including assisted living, transitional care and a memory care component. The former Blue Cross, Blue Shield site was also recently redeveloped, now featuring a PNC bank, a Compass Cancer Center and a third business to be determined. To the south, two new four-story, mixed-use redevelopment projects are also almost complete at 514 Michigan Ave. and 504 Michigan Ave. In our neighborhoods, the Avondale Square project has made progress over the past two years, with 14 new homes built to date. The project has surpassed its halfway
Eli and Edythe Broad Art Museum
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G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
FEBRUARY 2014
FOSTERSWIFT.COM
Keep your organization running smoothly Legal counsel that moves with you A PRACTICAL APPROACH TO:
517.371.8100
» » » » » » » » »
Business/Corporate Creditors Rights Employee Benefits Intellectual Property International Labor & Employment Litigation/Trial Real Estate Succession Planning
Way finding sign in downtown East Lansing
point, which at completion will include 26 homes — 10 featuring income-qualified buyer incentives.
LANSING | FARMINGTON HILLS | GRAND RAPIDS | DETROIT | MARQUETTE | HOLLAND
Additional growth is also on the horizon in East Lansing, with construction slated to begin on the Facility for Rare Isotope Beams (FRIB) this year and continued design development for the proposed Park District project. The Park District will significantly enhance downtown East Lansing’s western end and, although the timeline is preliminary, the development agreement is expected to be finalized by the end of August 2014, with a tentative ground breaking in early 2015.
ARCHITECTURE • ENGINEERING • PLANNING
GLBM_JanuaryAd.pdf 1 12/12/2013 12:27:32 PM
C
M
Y
As the City looks to the future, engaging residents in planning processes will continue to be important. One way the community can guide future development is by participating in East Lansing’s ongoing, 18-month Comprehensive Plan update. Exciting things are happening in East Lansing and we invite you to come be a part of it!
CM
MY
CY
CMY
K
P 517.371.1200 info@c2ae.com C2AE.COM
George Lahanas is the East Lansing City Manager.
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THE GLBM LIST
Privately Held Companies 10 LARGEST PRIVATELY HELD MICHIGAN COMPANIES OUTSIDE OF METRO DETROIT BY REVENUE
COMPANY NAME
TOP EXECUTIVE(S)
TYPE OF BUSINESS
REVENUE ($000,000) 2012
MEIJER INC.
HANK MEIJER/MARK MURRAY
GROCERY STORE SUPERCENTERS
14,600.00
ALTICOR INC. (AMWAY)
STEVE VAN ANDEL/ DOUG DEVOS
CONSUMER PRODUCTS
11,300.00
GORDON FOOD SERVICE
DAN GORDON
FOOD SERVICE DISTRIBUTOR
9,200.00
DOW CORNING CORPORATION
ROBERT HANSEN
SILICON-BASED MATERIALS
6,120.00
AUTO-OWNERS INSURANCE CO. INC.
JEFF HARROLD
PROPERTY CASULTY & LIFE INSURANCE
5,247.80
JACKSON NATIONAL LIFE
MICHAEL WELLS
LIFE INSURANCE & RETIREMENT PLANNING
6,106.90
DART CONTAINER CORPORATION
KENNETH DART
FOAM CUPS & CONTAINERS
3,000.00
ALRO STEEL CORPORATION
ALVIN GLICK
METAL SERVICING
1,350.00
HAWORTH INC.
FRANCO BIANCHI
FURNITURE
1,310.00
DIPLOMAT PHARMACY INC.
PHIL HAGERMAN
SPECIALTY PHARMACY
1,126.90
10 LARGEST PRIVATELY HELD LANSING MICHIGAN COMPANIES BY REVENUE
COMPANY NAME
TOP EXECUTIVE(S)
TYPE OF BUSINESS
REVENUE ($000,000) 2012
AUTO-OWNERS INSURANCE CO. INC.
JEFF HARROLD
PROPERTY CASULTY & LIFE INSURANCE
5,247.80
JACKSON NATIONAL LIFE
MICHAEL WELLS
LIFE INSURANCE & RETIREMENT PLANNING
5,106.90
DART CONTAINER CORPORATION
KENNETH DART
FOAM CUPS & CONTAINERS
3,000.00
ACCIDENT FUND HOLDINGS INC
ELIZABETH HAAR
WORKERS COMPENSATION INSURER
755.4
TWO MEN AND A TRUCK INTERNATIONAL INC
BRIG SORBER/JON SORBER
HOME MOVING AND CORPORATE RELOCATION SERVICES
261.2
CLARK CONSTRUCTION CO.
CHARLES CLARK
COMMERCIAL CONSTRUCTION GENERAL CONTRACTOR
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GREENSTONE FARM CREDIT SERVICES
DAVID ARMSTRONG
FINANCIAL SERVICES
227
PECKHAM VOCATIONAL INDUSTRIES INC.
MITCHELL TOMLINSON
VOCATIONAL REHABILITATION ORGANIZATION
202.09
AMERICAN PHYSICIANS CAPITAL INC.
W. STANCIL STARNES, J.D.
INSURANCE
165.96
THE WIELAND-DAVCO CORP.
CRAIG WIELAND
CONSTRUCTION
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FEBRUARY 2014
THE GLBM LIST
Each month The Greater Lansing Business Monthly compiles a list relevant to the publication’s theme. The lists, unless otherwise noted, are in alphabetical order and are not comprehensive, but rather, a snapshot look at what is publicly available on various industries and organizations.
ADDRESS
CITY
ST
ZIP CODE
PHONE #
WEB ADDRESS
2929 WALKER AVE. NW
GRAND RAPIDS
MI
49544
616-453-6711
WWW.MEIJER.COM
7575 FULTON ST. E
ADA
MI
49355
616-787-1000
WWW.ALTICOR.COM
1300 GEZON PARKWAY SW
WYOMING
MI
49509
888-437-3663
WWW.GFS.COM
2200 W. SALZBURG RD.
MIDLAND
MI
48686
989-496-4000
WWW.DOWCORNING.COM
6101 ANACAPRI BLVD.
LANSING
MI
48917
217-323-1200
WWW.AUTO-OWNERS.COM
1 CORPORATE WAY
LANSING
MI
48951
517-381-5500
WWW.JACKSON.COM
500 HOGSBACK RD.
MASON
MI
48854
517-676-3800
WWW.DARTCONTAINER.COM
3100 E. HIGH ST.
JACKSON
MI
49204
517-787-5500
WWW.ALRO.COM
1 HAWORTH CENTER
HOLLAND
MI
49423
616-393-3000
WWW.HAWORTH.COM
4100 SAGINAW ST.
FLINT
MI
48507
888-720-4450
WWW.DIPLOMATPHARMACY.COM
ADDRESS
CITY
ST
ZIP CODE
PHONE #
WEB ADDRESS
6101 ANACAPRI BLVD.
LANSING
MI
48917
217-323-1200
WWW.AUTO-OWNERS.COM
1 CORPORATE WAY
LANSING
MI
48951
517-381-5500
WWW.JACKSON.COM
500 HOGSBACK RD.
MASON
MI
48854
517-676-3800
WWW.DARTCONTAINER.COM
200 N. GRAND RIVER
LANSING
MI
48901
517-342-4200
WWW.AFHI.COM
3400 BELLE CHASE WAY
LANSING
MI
48911
800-345-1070
WWW.TWOMENANDATRUCK.COM
3535 MOORES RIVER DRIVE
LANSING
MI
48911
517-372-0940
WWW.CLARKCC.COM
3515 W RD
EAST LANSING
MI
48823
517-318-2290
WWW.GREENSTONEFCS.COM
235 S GRAND AVE
LANSING
MI
48906
517-316-4000
WWW.PECKHAM.ORG
2600 PROFESSIONALS DRIVE
OKEMOS
MI
48864
517-249-6500
WWW.PROASSURANCE.COM
4162 ENGLISH OAK DRIVE
LANSING
MI
48911
517-372-8650
WWW.WIELAND-DAVCO.COM
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ACCOUNTING
Starting or Owning a Small Business BY HE ATHER CONWAY
O
wning your own business in today’s economic climate can be very challenging. There are some basic items that should be kept in mind if you are thinking of becoming an entrepreneur. Getting started with the proper support, business structure and implementing the record keeping systems are just a few of the pieces to starting or owning a business. GETTING STARTED
First, it is important to put together a Business Plan and join your local Chamber of Commerce. The Lansing Regional Chamber of Commerce provides resources to assist you with many aspects of your business. One of those resources is assistance in putting together a business plan with the guidance of the Service Corps of Retired Executives (SCORE), which is an association of experienced business
professionals who serve as volunteers/ members for new business startups or businesses in need of counseling. It is sponsored by the US Small Business Administration and the Lansing Regional Chamber of Commerce. BUSINESS STRUCTURE
There are many ways a business can be structured. It is important to consult with both an attorney and a Certified Public Accountant (CPA) to get a complete understanding of your options and objectives you would like to meet for legal and tax purposes. Many small businesses often start off as family businesses and are formed by a husband and wife. They may prepare the necessary paperwork to form the business in the state of Michigan by themselves. The internet gives all kinds of advice on “how to,” but not every business owner’s
situation is the same. When individuals prepare the documents with the state of Michigan and file for a Federal Tax Identification Number that doesn’t mean everything is complete to protect you in the event of any IRS or State tax audit. One structure is a partnership; if it is a qualified joint venture between a husband and wife and if they file a joint return, it is not treated as a partnership for Federal tax purposes. The husband and wife may legally have different ownership percentages, but for Federal tax purposes it is considered a single member entity. Under the partnership structure you may not take a salary because partnerships flow through to your individual income tax return and are subject to self-employment taxes. The most common structure is an S Corporation. Any income/losses under this type of entity also flows through to your individual income tax return so the owners are taxed at their individual tax rates. It allows a husband and wife to take a salary, which is an expense of the S Corporation. RECORD KEEPING
Having proper record keeping for all transactions involving income, expenses and payroll is very important. QuickBooks seems to be the most popular software used for small business owners. There are many different versions of QuickBooks and it is important to make sure that the software you choose is best suited for your business needs, is installed and set up properly. There are Certified QuickBooks ProAdivsors that can help you set up and train you on how to properly use the software. When it comes to payroll, a business’s payroll may be most beneficial by using 34
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FEBRUARY 2014
a third party processor. They can assist in preparing payroll checks and some may make tax payments on behalf of the business and make sure all the payroll compliance forms are completed on a monthly/quarterly and/or annual basis. Owning and operating a business is challenging. With the proper support, structure and record keeping, this adventure can also be very rewarding. Proper planning will help ensure that you are successful.
Heather L. Conway, CPA received her Bachelor of Business Administration with a major in Accounting from Davenport University in 1993. She established Conway CPA & Associates in 2006.
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WORKFORCE ISSUES
Apprenticeship Programs Tackle Skills Gap BY E DYTHE HATTER-W I L L I A MS
T
he traditional apprenticeship program is four years long, hence the term “the other four year degree.”
Upon graduation, successful candidates receive their certificate of completion of apprenticeship from the US Department of Labor with the earning power comparable or above most college graduates, but carrying no student loan debt. Many local employers offer apprenticeship programs to address the middle skills gap including Cameron Tool, Franchino Mold and Engineering, Demmer and Niowave, plus Roberts Sinto, which will be rolling out its first apprenticeship program this year.
“Apprenticeship programs are very costly, upwards of 100k per person,” says Michelle Cordano, executive director, Capital Area Manufacturing Council. “However, the benefits can outweigh the costs as companies that participate have realized increased loyalty, productivity and quality from their employees.” Cameron Tool has been growing their own for most of their 47-year history. Of their 66 full-time employees, 28 hold journeyman certificates, seven are active apprentices and six are potential pre-apprentices. “Finding skilled labor in the mid-Michigan area can be very challenging and when it’s required to have a specific skill set, the workforce is almost non-existent,” says Carey Combs-Oberlin, HR manager at Cameron Tool. “Our solution to growing and sustaining our workforce has been through apprenticeships.” Demmer’s apprenticeship program and other training programs have been offered to employees for more than 25 years due to a shortage of skilled trades and highly skilled mechanically inclined personnel, according to Lynnette Keller, HR manager at Demmer. Companies like Roberts Sinto Corporation are starting to understand the need and value of an apprenticeship program.
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G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
FEBRUARY 2014
Roberts Sinto is starting an apprenticeship program for service maintenance technicians in 2014. “Our apprentices will gain practical workshop experience and complete a series of job rotations across the company. The apprentice will also gain communication, planning, organizing, problem solving, teamwork and networking skills,” says Barb Stone, Manager of Human Relations for Roberts Sinto. The completion of an apprenticeship program results in a highly-trained professional who contributes to the success of a company. According to the US Department of Labor, there are 87 occupations in Ingham County with registered apprenticeship programs, from electrician to telecommunications technician to machinist. To learn more about manufacturing related apprenticeship programs and to learn about the Capital Area Manufacturing Council, an executive level manufacturing organization, visit camconline.org.
Edythe Hatter-Williams is the President and Chief Operating Officer at Capital Area Michigan Works!
MAN ON THE STREET
M AN on the STR E ET Should there be an increase in minimum wage? COMP ILED BY AL EX JO H N SO N A N D KA LYN N E MC I N TY R E
“They should raise it because everything is going up and it is hard for minimum wage workers. You have to pick one. It is either put food on the table or gas in the tank.”
Anne Marie Fisher
“I think they should raise minimum wage because it is hard to keep up with the general cost of living.”
Moranda Gowell
“It’s a great idea, raising the floor keeps the ceiling high too.”
Will Chaffee
“With the economy the way it is, there is not a lot of jobs right now. It would be a good idea to raise it to get people started in the job market.”
April Clark
“It’s a good political ploy to gain political support, but it is a poor business practice.”
Hartmann Aue
“It’s an inadequate policy to achieve social prosperity. The free market should determine the wage.”
Luke Bliss
“It should go up because people need to make a living, and it will also make people actually want to go to work.”
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BUSINESS CALENDAR
February 2014 BUSINESS EVENTS
2/12
UNDER THE DOME: EVENING WITH MICHIGAN’S FEMALE LEADERS, LANSING. Inforum and Dome
Magazine invite you to meet female leaders of Michigan’s 97th Legislature along with department heads and other dignitaries who are shaping Michigan’s future. Hear from state leaders at the Capitol and then get to know your state and local representatives in a casual and inviting setting at Troppo restaurant. Events at the Capitol run from 3:15 to 5:30 p.m. and at Troppo from 5:30 to 7:30 p.m. Tickets are $35/person for Inforum members and $50/ person for non-members. Visit www.inforummichigan.org .
2/18 - 19
MASTERING MICROSOFT EXCEL, LANSING. In just two days, you’ll
get up to speed on all of Excel’s exciting features and functions, including toolbars, menus, Wizards, calculating tools, database capabilities and much more. Data entry, keyboard shortcuts, printing tips, cell maneuvering, hyperlinks, embedding, macros – we’ll cover it all, utilizing the latest in adult learning techniques. This informative workshop is being held at the Best Western Plus Lansing Hotel, located at 6820 S. Cedar St. Registration begins at 8:30 a.m. and the program runs from 9 a.m. to 4 p.m. The cost for this course is $199. Visit www.pryor.com/excel.
2/20
MICHIGAN CREATIVE GRAND OPENING CELEBRATION, LANSING. Michigan creative
is enjoying the new space at the Center for New Enterprise Opportunity. To celebrate the new space, Michigan Creative will host a Grand Opening celebration from 5:30 to 7:30 p.m. at the NEO Center, located at 934 Clark St. It will be a night of networking, conversation, drinks and appetizers.
2/27 - 28
HOW TO COMMUNICATE WITH TACT AND PROFESSIONALISM, LANSING.
Do you dread most meetings with your boss or supervisor? Do you habitually complete other people’s sentences for them? Have you ever lost it at work? Do your well-thought-out messages seem to lose their “oomph” when you put them in writing? Are you thinking about what you’re going to say next when you should be listening instead? When you talk, are you often interrupted, cut off or ignored? Have you ever said the wrong thing at the wrong time – and had no idea how to recover? Do you coach, explain, instruct and people still don’t get it? If you answered yes to two or more of these, then this course is for you. The course is being held at the Radisson Hotel, located at 38
G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
111 N. Grand Ave. Registration begins at 8:30 a.m. with the program following at 9 a.m. and ending at 4 p.m. The cost for this course is $299/person. Visit http://events.careertrack.com/283838.
3/12
SPEED READING, LANSING. Do you want to double,
3/18
BASIC SUPERVISION, LANSING. Acquire the skills
even triple your reading rate? Even if you consider yourself a slow reader, the time-tested Evelyn Wood method will work for you. Discover separate, unique strategies; deepen your understanding of whatever you read; enhance your ability to listen, learn, study, research and write; learn how to take, rapid abbreviated notes; and best of all, spend less time reading and absorbing. This one-day program is being held at Best Western Plus Lansing Hotel, located at 6820 S. Cedar St. Registration is from 8:30 to 9 a.m., with the program running from 9 a.m. to 4 p.m. The cost for this program is $99/person. Visit www.pryor.com.
that every supervisor must have: delegating, motivating and praising, delivering criticism and discipline, working under pressure, meeting tight deadlines, training new employees, and organizing people, projects and schedules. If you are in a new supervisor role or if you just want to learn some new techniques, this seminar is for you. This one-day seminar is being held at Ramada Lansing Hotel and Conference Center, located at 7501 W. Saginaw Highway. Registration is from 8:30 to 9 a.m. and the seminar is from 9 a.m. to 4 p.m. The cost is $149/person. Visit http://events.pryor.com/285411.
3/25 - 26
FUNDAMENTALS OF PROJECT MANAGEMENT, LANSING. In this
two-day seminar, you will learn that there is more to being a project manager than meets the eye: Knowing the “hard” skills of project management (planning, scheduling, budgeting and all the rest) is only half of it. The other part of the job – and often the most challenging for newcomers – requires proficiency in such critical areas as communication, team building and leadership. This course will provide in-depth instruction to help you become a disciplined, well-organized and highly effective project manager. Gain some valuable skills at this seminar being held at Best Western Plus Hotel, located at 6820 S. Cedar St. Registration is from 8:30 to 9 a.m. with the program following from 9 a.m. to 4 p.m. on both days. The cost for this seminar is $299/person. Visit www.careertrack.com.
FEBRUARY 2014
group
D R I V E N B Y R E S U LTS : U LT I M AT E S PAR TAN C H AL L E N G E
M3 Group created and executed a social media campaign to assist a participant of the Ultimate Spartan Challenge. The goal for this campaign was to increase awareness of Michael Foster’s participation in the Ultimate Spartan Challenge utilizing social media to raise money for Ele’s Place. To do so, M3 Group managed Foster’s page by writing specific call to action posts and posting daily to the page. Along with writing posts, M3 Group also provided direction for all photos used during this campaign in order to better connect with Foster’s target market. By the end of the campaign Foster’s message had an average reach of 1.75 thousand people daily as well as an average click-through rate of 27 on each post. Together, Foster and M3 Group raised $17,910 with the help of 130 supporters and came in first place in the Ultimate Spartan Challenge, trumping the second place winner by more than $10,000.
“M3 Group’s customized social media campaign was instrumental in helping us exceed our fund raising goal. We started our Ultimate Spartan Challenge for Ele’s Place a week late but quickly bridged the gap with M3’s advice and customized plan. We grabbed the lead within five days and won the challenge by a very large margin. We believe in M3 Group. If you provide them with a goal they will devise and implement a plan to achieve that goal with you.”
Michael (Ultimate Spartan Challenge Winner 2013) and Trish Foster
M3 GR OUP B RAN D FORWARD 517.203.3333 | www.m3group.biz
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N O TA B L E N E W S
MICHAEL FLORY NAMED NEW 2014 BOARD PRESIDENT OF THE HOME BUILDERS ASSOCIATION OF GREATER LANSING The Home Builders Association of Greater Lansing is pleased to announce the selection of Michael Flory as the new President of the Board of Directors for 2014. Born and raised in Michigan, Flory, co-owner of Custom Built Basements and Decks in Okemos, Mich., is a selfproclaimed adventurer and risk taker with the endless energy of an entrepreneur. “We are excited to have Michael as our board President this year,” said Cindy Kosloski, Chief Executive Officer for the HBA of Greater Lansing. “Michael’s leadership and professionalism is unmatched. As a longtime board member, he has actively served on the Membership Committee since
THE GREATER LANSING ASSOCIATION OF REALTORS ELECTS BOARD MEMBERS FOR 2014 Terry Frewen, broker/owner of Coldwell Banker Frewen in Portland, will serve as president with Matt Robertson from Century 21 Looking Glass as president-elect. Beth Graham of Beth Graham Appraisals was elected as Vice President, Ron Wheeler of Wheeler Real Estate Services was elected as Treasurer and Roger Weymouth of Weymouth and Associates was elected as Secretary. Jeff Burke of Keller Williams and Mike Bowler Sr. of Coldwell Banker Hubbell Briarwood have been elected by the association membership to serve a three year term. Burke served as President in 2012 and 2014 will be Bowler’s first year on the board.
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2008. His honesty and high standards in the industry help us further our mission, one member at a time.” In addition to his five years of service on HBA of Greater Lansing’s Board of Directors, he has been the State Director for the HBA of Michigan since 2011. He is an active member of Lansing Trinity Church and has embarked on eight humanitarian and evangelical missions worldwide. Family, the great outdoors, hockey and soccer are among his many interests. BURCHAM HILLS NAMES NEW DEVELOPMENT DIRECTOR Erica Bills of Jackson has been named Burcham Hills Foundation’s director of development. Bills, former executive director of the Muscular Dystrophy Association’s (MDA)
Other directors include immediate past President Pete Holoway, Nathan Foote of Health Services Expeditors, Bill Sheridan of Sheridan Realty and Auction, Chris WretschkoDean of Gateway to Homes at Keller Williams and Dave Smeak of Smeak Real Estate.
South Central Michigan region, brings more than eight years of health care experience in a hospital setting and two years experience in local philanthropy. She began Bills as MDA’s fundraising coordinator before being promoted to executive director, overseeing fundraising activities in 28 counties. Prior to her work with MDA, she developed multiple quality incentive tools for Michigan health care systems. Bills earned a bachelor’s degree in premed from Kalamazoo College and a master of public administration from Arizona State University. Burcham Hills is a continuum of care retirement community providing quality retirement living in its Resident Center and short-term rehabilitation and skilled nursing care in its Center for Health & Rehabilitation. A not-for-profit community, Burcham Hills was founded in 1974 in East Lansing and offers the most flexible range of senior housing options on a 46 acre campus and the highest quality standards in retirement living. TIERNAN JOINS TRITERRA Triterra, a Lansingbased Environmental Consulting Firm, recently added an additional staff member.
Debbie Barnett, broker of Tomie Raines will also join the Board as the multiple listing service (MLS) and forms committee chair. The Greater Lansing Association of REALTORS is a member organization committed to serving its members and community by providing progressive leadership, education, and knowledge in the expanding real estate industry. The Association is the leading resource for accurate real estate information in Mid Michigan.
G R E AT E R L A N S I N G B U S I N E S S M O N T H LY
FEBRUARY 2014
Ashlee Tiernan is a recent graduate of Augustana College (Rock Island, Ill.) with a bachelor of arts degree in biology and environmental studies. She currently serves as an Environmental Scientist with Triterra. Her primary responsibilities include conducting Phase I/ II Environmental Site Assessments (ESAs), completing Baseline Environmental Assessments (BEAs), and preparing Due Care Plans associated with real estate transactions and Brownfield projects. Tiernan
N O TA B L E N E W S
TWO PROMOTED WITH OWNERSHIP INTEREST AT THE PLANT PROFESSIONALS, INC. Kathy Valentine, President and Owner of The Plant Professionals, Inc., is pleased to announce that two key employees will share an ownership interest in The Plant Professionals, Inc., effective immediately. Amelia Sayers has been with the company eight years and began with the company as a horticultural technician, quickly rising to a leadership role and bringing an associate’s degree in business management and management experience in both fast food and retail.
Due to the growing size and success of the company, a new senior consultant has also been introduced. Brian Lund, a resident of East Lansing, Mich. and native of midMichigan for more than 20 years, will join Fuller as a business strategist. He joins two additional SDS team members that have been added in the past year.
Lund and Fuller will continue to provide data modeling, assessment, strategic planning, vendor management, enterprise architecture, data warehouse and business intelligence to
Lund
© 2013 ManpowerGroup. All rights reserved.
Triterra is a professional environmental consulting firm specializing in brownfield development, environmental consulting, and natural resource management services. For more information call (517) 702-0470 or visit, www.triterra.us.
Al Marrero has been with the company more than three years, with a B.S. in forestry. Marrero has landscape construction and garden services experience in Cuba, Florida and Michigan. Expanding to a partnership allows the company to extend service offerings within horticulture, and continue the culture of personal and professional growth which has been vital to the organization throughout its 35 year history. The business continues to be 100 percent woman and minority-owned.
Look be yond T he T ec h n i c i a n .
SUPERIOR DATA STRATEGIES OPENS OFFICE IN SOUTH LANSING, INTRODUCES NEW SENIOR CONSULTANT As Lansing continues to grow its IT community, another small business is experiencing growth. Superior Data Strategies, an information technologies and services company, has opened a new office in South Lansing to accommodate its growing team.
See opportunity. Manpower delves deeply into each assignment, getting to know your company and its business objectives. Because, ultimately, your success is our success. See what’s humanly possible at manpower.com ®
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local and national clients from the company’s new South Lansing office. Superior Data Strategies provides data architecture, enterprise architecture, data warehouse, data analysis and IT management consulting services to small, medium and large businesses as well as government and non-profit organizations. BLOHM CREATIVE PARTNERS WELCOMES ACCOUNT SERVICES INTERN CAMBRIA SOBOLEWSKI Blohm Creative Partners (BCP) is pleased to announce its newest addition to the team, Cambria Sobolewski. Sobolewski is in her final year at Michigan State University and will serve BCP as an account services intern.
IDEAL MORTGAGE EARNS ANGIE’S LIST AWARD Ideal Mortgage Services, LLC has earned the service industry’s coveted Angie’s List Super Service Award, reflecting an exemplary year of service provided to members of the consumer review service in 2013. “Ideal Mortgage Services, LLC is extremely honored to receive this award for 2013,” says President Nathan Ide. “This award is based upon Angie’s List member reviews, ratings and overall company profile. We strive to exceed our client’s expectations and this award is recognition of that. It puts Ideal Mortgage Services, LLC in the top of all mortgage companies in the Greater Lansing area.” Learn more at www. idealmortgage.org or by calling (517) 339-5300.
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A senior at MSU, Cambria will be receiving a bachelor of arts in communication with a specialization in public relations in May and continues to expand her knowledge to other skills such as telecommunications and creative processes. Blohm Creative Partners is an advertising and marketing firm offering branding, web and multimedia, marketing research and strategy, print design and media planning and placement services. MICHAEL BROWN RETURNS TO PRIMA CIVITAS TO LEAD REGIONAL INITIATIVES After successfully leading Flint through historically tough times as the city’s Emergency Manager, Michael Brown is returning to his post at Prima Civitas, the Michigan economic development organization created by MSU and headquartered in East Lansing. Brown will once again serve as President of Prima Civitas, guiding regional initiatives with a special emphasis on Flint area revitalization projects. Prima Civitas is focused on returning Michigan to economic prosperity through talent, innovation, region building and international connectivity. The organization’s programs link Michigan employers with job-seekers and develop entrepreneurs; build problem-solving capacity within communities; and connect Michigan’s industries with international opportunities. Prima Civitas is on the web at www.primacivitas.org. POLICY EXPERT SEAN MANN JOINS MI LEGISLATIVE CONSULTANTS Michigan Legislative Consultants is pleased to announce Sean Mann, of Detroit, has joined its government affairs team. Most recently, Sean served as program manager for the Michigan Municipal League. During his tenure, he founded the “Let’s Save Michigan” campaign,
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a statewide initiative to promote the importance of core communities and quality of place. He also led several projects exploring innovation in the delivery of government services. A graduate of Kalamazoo College with a bachelor’s degree in history and physics, he earned his master of science degree in internal relations from the University of Bristol, United Kingdom. INGHAM COUNTY LAND BANK ADDS NEW STAFF FOR GARDEN PROGRAM Ingham County Land Bank recently welcomed John Krohn as garden program coordinator to its Garden Program team. In addition to Krohn, the Land Bank Krohn has also brought on board a full-time AmeriCorps liaison. The Land Bank is a county authority and strategic development tool that supports growth and investment in the community. With more than 60 community gardens, the Ingham County Land Bank Garden Program encourages and supports beautification and care of garden projects in Lansing and Ingham County. Krohn is a Michigan State University graduate with a degree in interdisciplinary social sciences with concentrations in environmental policy and political science. A former AmeriCorps volunteer, he has a background in urban agriculture and volunteer coordination. The program coordinator and AmeriCorps liaison will collaborate to ensure general care and the necessary resources for garden upkeep are provided to help maintain and grow community garden projects. For more information, inghamlandbank.org.
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MANER COSTERISAN ADDS NEW TEAM MEMBERS The certified public accounting firm of Maner Costerisan announced the addition of Kyle Denny, Jeffrey Dietz, Nicholas Kossaras and Jennifer Terbrack.
RONALD MCDONALD HOUSE OF MID-MICHIGAN PROMOTES HURST TO DIRECTOR OF DEVELOPMENT AND PUBLIC RELATIONS The Ronald McDonald House of MidMichigan recently promoted Carolyn
(Cieciwa) Hurst to serve as its new Director of Development and Public Relations. Hurst previously held the position of marketing and event coordinator and executive assistant
Hurst
Denny joins the team at Maner Costerisan as a staff accountant. He is responsible for providing accounting, tax and consulting services for the firm’s clients. Previously, Denny worked at RSI Logistics Inc. Denny graduated from Michigan State University with a bachelor of arts degree in accounting. He currently resides in Williamston with his wife, Chelsea. As a staff auditor, Dietz will be assisting with client audit engagements. He was on the Dean’s List when he graduated from Central Michigan University with a bachelor of science in business administration degree in accounting and finance. He is a member of the Michigan Association of Certified Public Accountants (MACPA). Dietz is a current resident of Canton, Mich. Kossaras joins the firm as a staff accountant in the audit department. He received both his master’s and bachelor’s degrees from Michigan State University. Kossaras currently resides in St. Johns.
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In her new role as staff accountant, Terbrack assists the firm’s clients with their tax and consulting needs. She previously worked for Maner Costerisan as an intern for the 2013 tax season. Terbrack graduated from Central Michigan University with a bachelor of science degree in business administration. She currently resides in Mount Pleasant, Mich. For more information, manercpa.com.
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to the executive director and has been with the House since 2012.
RENTENBACH ACQUIRED BY MICHIGAN FIRM
Hurst is a Michigan State University graduate with a degree in marketing and a second major in agribusiness management. She has experience in marketing and event planning, and has been involved in several fundraising and special events with the House since 2012.
A local construction firm that reshaped Knoxville’s skyline over the last 50 years has been sold.
In her new role at The Ronald McDonald House of Mid-Michigan, Hurst will use her experience to oversee events, campaigns and development. Hurst is also responsible for fund development, marketing, managing print and creative materials, website content updates, tracking donations and corresponding with vendors, committee members and sponsors. Hurst will serve as a member of the leadership team at the House. For more information, visit www.rmhmm.org.
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Rentenbach Engineering Co., the parent company of Rentenbach Constructors, has merged with The Christman Co., which is based in Lansing, Mich. Rentenbach will operate under its current name as a wholly owned subsidiary of Christman, with local management staying in place. “We’re very, very excited,” said Don Freeman, Rentenbach’s president and CEO. “We think it opened up some new opportunities.”
who came to East Tennessee during World War II and was the second uniformed officer assigned to the Manhattan Project activities. Rentenbach has operated in 25 states, but the bulk of its work is in the Southeast. Freeman said Christman was interested in expanding into the South. “It allows both of us to expand our operations jointly, and they have some capabilities that we have not delved significantly into, one being historic preservation,” he said. Christman’s historic preservation portfolio includes 61 properties on the National Register of Historic Places, and in the early 1990s, the company helped lead a significant renovation of the Michigan state Capitol.
Rentenbach was founded in 1946 by Hancock, Mich., native Tom Rentenbach,
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CREAT!NG business opportunity Michigan’s capital area is a vibrant and dynamic business community. A robust local creative community is helping power the knowledge economy in greater Lansing. CiesaDesign and Capital Area Michigan Works! are working together to grow the region’s talent base and help creative business thrive. Together, Capital Area Michigan Works! and CiesaDesign are committed to creating a world-class workforce.
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A YEAR OF PERFORMANCE thank you to our clients, family and friends EMPLOYEES SERVING THE MID-MICHIGAN MARKET
LICENSED COMMERCIAL REAL ESTATE PROFESSIONALS
COMMERCIAL REAL ESTATE DESIGNATIONS
NEW EMPLOYEES
TOTAL YEARS OF SERVICE
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OUTSTANDING YEAR *Period ending 12/01/2013
1111 Michigan Ave., Suite 201 | East Lansing, MI 48823 517.351.2200 | www.cbrelansing.com FEBRUARY 2014