Advantage Magazine (vol. 4, iss. 1) by Jen Hankey Maki

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Contents

In Every Issue 4 15 30 32 33

PROFILE

Say ‘Hello’ to your SBLY 2012

Why Chad Perce was chosen as your 2012 Small Business Leader of the Year (SBLY)

DOWN TO BUSINESS

Reservation of rights

Remote possibilities

The truth about backing up

Your terms and your price

p. 1

Vol 4, Issue 1

From the Publisher New Businesses Jax Business Briefs Small Biz News On the Street

How to deal with your insurance company when making a claim Why now is the time for your business to embrace remote working How your business may still be in the dark ages The right way to transition from your business

Industry Insider Advantage Sound body, sound mind

Best foot forward

Cash vs. Taxes

Measuring your lean journey?

p. 2

Ways to optimize your health to achieve professional aspirations Five ‘musts’ for creating a great first impression for your employee

Think differently to save cash instead of saving taxes this year Why you need to think outside the GAAP

AFTER HOURS 34

Keith Johnson: Kickin’ it for fun

In Our Next Issue Managing the 3 p’s of business Technology to improve productivity and profits How to use mass media for your business

Can’t wait for the next issue? Get a sneak preview. Subscribe to RSS feeds on our website, www.advantagebizmag.com, and visit us on Facebook, Twitter, and LinkedIn. Volume 4, Issue 1

from the publisher

Ambassadors of prosperity Admittedly, I don’t have much involvement with the travel and tourism business in North Florida; however, when I had some friends and relatives visit for the holiday, I had this unexplained drive to make sure they had a good time and will come back soon. In my own way, I was a tour guide, historian, and cheerleader for the area that I live and operate a business in—and it made me wonder how many other residents were also entertaining their family and friends. Were they impressed? Will they be back? We sure hope so. Jacksonville has always had what some describe as an “inferiority complex.” While that probably means different things to different people, I do know that we collectively have not done a great job of telling “our” story. We have natural resources in a river, a bustling downtown, a major port and multiple major interstates running right through the “Bold new city of the South” or is it “Where Florida begins” or perhaps it’s the “First Coast” or “River City”—See what I mean? Regardless of the catchy slogan, the issue runs much deeper— and for no good reason. Our cost of living is low by comparison, the sun shines most days and some wonderful things are happening in our community. But it has to start with all of us; the Mayor and Chamber of Commerce cannot do it alone. Regardless of your occupation, we all live here—and as they say, “With a rising tide, all boats rise.” Love your city, people! We had the honor of partnering with the Jacksonville Regional Chamber of Commerce this month to announce the overall winner of the Small Business Leader of the Year. While only one can win, all of the nominees are well deserving of the title. • Tara Yvette Forrest, Florida Imageworks and Promotions • Dr. Joanna Frantz, In Motion Physical Therapy • Ann Freeman, River City Security Services, Inc.

• Sandy Knowles, Coordinated Benefits Group • Jennifer Marko, Bottle Snugglers • Diana Otwell, Spectrum Signs and Graphics • Chad Perce, iMethods, LLC • Sandy Polletta, Edgewood Bakery • Ann Sabbag, Health Designs • Kirsten Schneider, Dinners Direct • Jepp Walter, Marlin Technology Space prohibits me for telling you more about them here, but you can learn more at: advantagebizmag.com/archives/10285 With this great recognition also comes great responsibility. I know all of these people will certainly be ambassadors for North Florida led by the overall winner, Chad Perce. These people are among the best and brightest our area has and we are lucky to have them. I know they are already talking up Jacksonville. Are you? The movement has already begun. Be sure to check out #ilovejax on twitter to see what I mean. Until next time.

Brian Barquilla, founder and publisher brian@advantagebizmag.com 904-222-8140

www.AdvantageBizMag.com

FROM OUR READERS

What our readers tell us SMALL BUSINESS

Publisher Brian Barquilla

brian@advantagebizmag.com Business Development George Biastre Jr.

george@advantagebizmag.com Marketing Assistant Dixie Baker dixie@advantagebizmag.com Editor Wendy Bautista wendy@advantagebizmag.com Art Director Jen Hankey jen@jenhankey.com

ADVANTAGE readers occasionally write to us or make comments online about our website, print magazine, Knowledge is Power workshops, and e-edition. Here are the latest things they have to say: “Loved your article titled ‘Young Guns’ (Vol. 3, Issue 8). It’s nice to know that good old hard work and determination still exists in a world that revolves around ever-changing technology.” “ Thank you for being such a great resource for small businesses in Jacksonville!”

Editorial

Advisory

Board

Sandy Bartow Jacksonville Regional Chamber of Commerce

Tim Blin Premier Garage

Nelson Bradshaw BBVA Compass

Kimberly Deppe, APR Community First Credit Union

Janice Donaldson Small Business Development Center at the University of North Florida

Clint Drawdy Hire Methods Inc. Wilfredo J. Gonzalez U.S. Small Business Administration

From our workshop survey “With time away from my business a consideration, I am always thankful your speakers begin and end on time, and cover timely, well-researched information.” “I think your workshops are among the best. They always have content that is pertinent to the topic, are delivered in a timely manner, and have knowledgeable speakers.”

Aaron Marston HIT Center Jackie Perry Beaver Street Enterprise Center Myron Pincomb MWP Investments, LLC

“Your workshops seem to add a little something extra to the networking experience—I am never disappointed!”

What do you do after work? cover photography Renee Parenteau

www.reneeparenteauphoto.com

Jacksonville Advantage: The Resource for Small Business is published 12 times per year. Reprints are available. Content of contributing advertisers does not reflect the opinions of the publisher. Advertisers have proofed respective articles, and content is assumed true and correct. Jacksonville Advantage is not responsible for the business dealings of its advertisers. Jacksonville Advantage is for information purposes only. ©2012 Jacksonville Advantage. All rights reserved. The contents of this publication, including articles, may not be reproduced in any form without written permission from the publisher. Address changes should be submitted via e-mail to subscriptions@advantagebizmag.com. Send story ideas and requests for article reprints to brian@advantagebizmag.com or call 904-704-5058.

Volume 4, Issue 1

Do you volunteer, help your community, or do something fun and exciting on your off hours? Then we want to hear from you! Our After Hours section is always looking to feature small business owners and what they do for fun! Let us know!

Comments or concerns? Do you have comments about articles you’ve read or want to read? Good or bad, we’d like to hear from you. You can comment on articles online, or send your thoughts to the editor at Wendy@advantagebizmag.com.

down to Business

insurance

Reservation of rights How to deal with your insurance company when making a claim By Mark Bajalia, Esq.

s a business owner, you will very likely need to make a claim under one of your insurance policies at some point. If you do, you may receive a “reservation of rights” letter from your insurer. A reservation of rights letter often leaves insured parties confused and unsure about how to respond; however, you will find information about what a reservation of rights letter is and the various options and opportunities it presents for an insured party below.

What it is A reservation of rights letter does not necessarily mean the claim is not covered under the insurance policy. It does mean that the insurer thinks it may have grounds to deny coverage for some part of the claim or the entire claim. For example: Most policies have what is called an “intentional acts” exclusion. If it appears that the damages or injuries were the result of an intentional act on the part of the insured party, then the insurer may send a reservation of rights letter indicating that, under the terms of the policy, it may have grounds to deny coverage. In some cases there may be claims that are covered and claims that are not and the insurer may send a reservation of rights letter indicating that it is providing coverage for only a portion of the claim.

Why they are sent Insurers send reservations of rights letters to keep their options open. If the insurer does not reserve its rights and provides a defense 6

to the claim, but later discovers that circumstances exist that trigger an exclusion or otherwise call into question coverage under the policy, then the insurer will be stopped from raising a coverage defense. Under those circumstances, courts could, and have, said that the acts of the insurer in providing a defense without reserving its rights constitutes a waiver of its right to deny coverage. Thus, rather than deny coverage outright, the insurer will send a reservation of rights letter and keep its options open. Essentially, the insurer is letting the insured party know there is going to be an investigation but is preserving its right to deny coverage if the investigation shows that it is not a covered loss.

What are your options? You have several options when you receive a reservation of rights letter: • Ignore it: The insurer may be correct in reserving its rights as to part of the claim. • Dispute the reservation: As the insured party, if you disagree with the reservation of rights and your insurer’s interpretation of the policy language, you should go“on record” that you dispute the reservation and set forth the reasons that you dispute it. You should also send it to the claims representative by certified mail and request a response. This will cause the insurer to reassess its position and even if the insurer’s position www.AdvantageBizMag.com

does not change, you have created a paper trail, which may be useful if the coverage dispute ends up in court. • Ask for more information: Some insurers will intentionally keep the reservation of rights letter vague to keep their options open. An insured party should counter by asking for specifics as to the purported basis for the coverage issue and the rationale for it. • Start the clock: Once an insurer reserves its rights, it must eventually declare whether or not it is going to provide coverage for the loss. If the insurer continues to investigate the claim but never conclusively disclaims or accepts coverage within a reasonable time frame, then the insurer may be stopped from doing so. Keep following up with the insurer and periodically ask the insurer to state its position. • Explore new opportunities: If an insurer reserves its rights, you may have the right to hire your own lawyer to defend the claim, not one picked by the insurer. The insurer will nevertheless be required to pay for your lawyer of choice. Courts have said that when an insurer hires a lawyer for the insured party, it creates an inherent conflict of interest, which may allow the insured to retain its own counsel. Thus, when confronted with a reservation of rights, it may create an opportunity for the insured party that didn’t previously exist. • Seek a declaratory judgment: Despite the reservation of rights, if you or your attorney feels that coverage for the loss does exist, then you can seek to have a court review the policy language and the facts as presented and make a determination as to whether coverage exists. In essence, you are asking the court to “declare” what the policy language means and whether coverage exists. This forces the insurer to address the coverage issues before proceeding on the merits of the underlying lawsuit or claim. The prospect of spending more on legal fees to defend itself in a declaratory judgment action may also encourage the insurer to go ahead and provide coverage and defend the claim. If you feel strongly that the insurer is reserving its rights on false grounds, you may want to sue the insurer for breach of contract and bad faith claims handling as well. Ultimately you need to understand your rights and protect your rights when you receive a reservation of rights. When in doubt, consult an attorney with experience dealing with insurance matters. n

Building Brands since 1998.

Mark Bajalia is a partner and a managing member in Brennan, Manna & Diamond’s Jacksonville office. He is an experienced commercial, business and insurance litigator, having prosecuted and defended numerous cases in state and federal courts and in arbitration. He is rated AV Preeminent by Martindale Hubble, has been recognized as one of Florida’s Legal Elite by “Florida Trend” Magazine and has been selected as a Florida Super Lawyer in the field of business and insurance litigation.

Volume 4, Issue 1

down to Business

technology

Remote possibilities Why now is the time for your business to embrace remote working

By Cindy Bates

hen was the last time you fielded a work call from the sidelines of your child’s sporting event or while in line at the grocery store? Chances are it wasn’t too long ago, considering the fact that an increasingly mobile marketplace is slowly but surely unraveling the sense of “office hours” and making it possible to conduct business in far more places than ever. Not only has it become possible for you to work anytime, anywhere, but the ability to work remotely has actually become a business imperative, even for small and medium-sized businesses (SMBs). A recent survey conducted by Microsoft and Ipsos Public Affairs gauged the opinions and attitudes of 1,285 information workers in 15 U.S. markets toward telework at their businesses. The results indicate that telework is becoming more than just a corporate perk for SMBs. More than half of SMB information workers (59%) say their companies provide access to tech support for working remotely. Additionally, 39% of respondents report that their company has a formal telework policy, and 72% of those surveyed indicate a positive preference for remote working.

A crucial ingredient for success The statistics point to a growing acceptance among SMB decision makers that their success depends in part upon their ability to mobilize employees. Indeed, failing to embrace remote working and the technologies that support it could result in lost business opportunities, not to mention dissatisfied employees, clients and customers. Millennials in particular have come to expect flexible work environments, and this means SMBs will face increasing expectations 8

of telework options from their employees, while external audiences will demand more real-time responsiveness and access to information. Yet, SMBs do have some catching up to do when it comes to capitalizing on flexible work arrangements and making the most of technologies that support remote working. On average, SMB information workers work remotely 3.2 days per month, even though they would prefer to do so eight days per month.

A win-win situation When SMBs embrace remote working, it’s rare that one side gains more than the other, since telework provides a host of benefits to employees and employers alike. The primary reason to telework, as cited by the survey respondents, is to counteract transportation challenges, such as escalating fuel prices and long commutes. Additional reasons for and benefits of remote working included striking a better balance between work and home priorities, increasing productivity and needing to complete unfinished work. Employers who support remote-working scenarios also stand to gain, since they acquire access to a larger talent pool that stretches beyond their immediate geographies and reap the benefits of more productive employees. Employers also might find that remote-working policies enable them to reduce overhead costs, since having fewer employees in-house can significantly reduce office space requirements and energy expenses. Furthermore, giving employees the ability to conduct business outside the office often means getting more face time with customers and partners, a bonus that can sharpen an SMB’s competitive advantage. www.AdvantageBizMag.com

Developing your telework plan Each business’s remote working policies and arrangements will vary, depending on the nature of an organization’s services and products. For example, a coffee shop will always need employees present during business hours, as the functions of food service demand the physical presence of employees. But, with the right technologies in place, coffee shop employees also could easily conduct behind-the-scenes tasks, such as accounting and marketing, from remote locations. Therefore, as you begin or refine the process of developing your business’s remote-working strategy, consider the following, while also keeping in mind that every business is unique and there is no one-size-fits-all remote working scenario: Does your company have a formal or consistent policy around telework? If not, make steps to form one. Establishing telework policies will help employees better understand their privileges and limitations and will also set a foundation for technology implementation. What are your business’s internal and remote technology capabilities? For instance, how easily can your employees communicate and collaborate with one another inside the office, and do they experience the same capabilities outside the office environment? Incorporating internal collaboration tools and leveraging cloud-based software that’s accessible anywhere that employees have Internet connectivity will enable them to conduct business with greater efficiency and speed both in and out of the office. How secure are your internal and remote systems? In an effort to increase accessibility and enable instant collaboration, many business decision-makers err by relying on public networking or social media platforms, even though these solutions are not appropriate venues for the exchange of sensitive ideas and information. Therefore, invest in communications technologies with heightened security protocols, always prioritizing the integrity of your business’s information rather than getting sidelined by free solutions that can’t guarantee the protection your business needs to succeed. For today’s SMBs, the good news is that technologies that support telework are rapidly advancing and are also becoming increasingly affordable. There’s never been a better or more pivotal time for SMBs to capitalize on the new world of mobile work. n Cindy Bates is vice president of Microsoft’s U.S. SMB organization where she is responsible for the company’s end-to-end SMB sales and marketing efforts, including SMB strategy; business development; regional field sales; and national distribution sales, channel marketing, and customer marketing. Bates is an 11-year Microsoft veteran and blogs regularly at www.microsoftbusinesshub.com, where you’ll find technology tips and resources related to remote working.

Volume 4, Issue 1

BU I L D I N G B E T T E R E M P L OY E E S

MORE WAYS TO SEARCH. MORE WAYS TO FIND. The Real Yellow Pages, YP.com and YP.com on your mobile. Only from AT&T. © 2011 AT&T Intellectual Property. All rights reserved. AT&T, AT&T logo and all AT&T related marks are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners. 11-19387 PNT_10/28/2011

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down to Business

technology

The truth about backing up How your business may still be in the dark ages By Pete Lamson

he digital age is in full force and ledger sheets, receipt books and cash registers are a distant memory. Today, small businesses have shifted to accounting software, customer relationship management applications and point-of-sale devices to accelerate operations, improve accuracy, and ultimately to ensure their business runs as smoothly as possible— generating tons of valuable data about their businesses. Unfortunately, this shift means all this important data is vulnerable to viruses, malicious hackers, physical damage or simply leaving your laptop behind at the coffee house. The risk of losing your company’s most valuable asset—your business data— is real. And running your business is competitive enough without the hassle of lost files. Losing your data means potentially losing your business. Yet surprisingly, 86% of small businesses are relying on antiquated backup methods (Carbonite Inc., December 2010 SMB Data Backup Study).

Data is vulnerable A 2011 study conducted by Carbonite Inc. uncovered that 48% of small businesses have lost digital documents or other records—up from 42% since 2010. These businesses noted that the major ways they lost information were hardware or software failure (54%), accidental file deletion 10

(54%), computer virus damage (33%), and theft of computers or stored data (10%). Data catastrophe also can occur from fire, hurricane, flood, tornado or earthquake. While buildings are replaceable, lost information about your finances, your inventory, your customers, and even your email often is not.

Protecting business data Your business’s data is its lifeline and this vital information must be backed up. Though many of you are backing up in some manner today, the reality is that copying your files onto physical devices like external hard drives or USBs is not a complete solution and does not ensure you can retrieve your files if and when needed. When using devices like external hard drives, CDs, DVDs or USB/flash memory sticks, the backup is actually only the first step. All these drives or disks must also be removed from the business premises every night and returned every morning. If not, anything that should happen onsite—from fire to theft— could wipe out both your original files and the backup. Even if these steps keep your backups current and separate from the originals, those hard drives and memory sticks are still vulnerable to theft, tampering or loss. www.AdvantageBizMag.com

Backup with the cloud Fortunately, technology has developed a solution, and it resides in the “cloud.” For a small fee, commercial services enable you to store copies of your files online—on tightly secured servers operated by companies dedicated to backing up business files. These services offer more than just storage; they make backing up convenient and time-efficient. Easy-to-use, cloud-based methods aren’t vulnerable to the problems associated with those antiquated backup methods. Once you realize you need to better protect your data and ultimately your business, you need to choose the right online backup solution.

Choosing the cloud solution for your business Here are six key capabilities to look for when trusting your files to online services for backup and restoration in case your computers crash, burn or just die: 1. Affordability. The best services may cost only $229 a year to back up an unlimited number of computers in your company. This is a predictable, sustainable cost you can plan for. It’s really the lowest insurance premium you’ll keep on your books, and it protects the most valuable asset in your business—your data. 2. Automatic backup. The files on your business computers should be copied and stored on a cloud-based server without you needing to do anything but register with the service. As you create new files or edit existing documents, the files should back up automatically. 3. Easy restoration. With online backup, you no longer need to worry about transporting your backup files daily. The cloud-based servers are far removed from your location, so if something unfortunate did happen onsite, you could retrieve the data you created on your computers. The service you choose should enable you to simply boot up a new computer, connect to the Internet, visit where your files are stored, and download your files. The best cloud-based backup services will even place your restored files in the same folders in the same locations as they were on your original computer. Volume 4, Issue 1

When it comes to marketing mix, we bring a lot to the table. The net result — we help companies catch more customers. Since 1989, Mary Fisher Design has been delivering an array of comprehensive marketing solutions, including strategic planning, corporate branding and logo design, print, radio, television and Internet advertisements, brochures, websites, press releases, community outreach, media placement, and more. Call to schedule a no-cost consultation and let us help you improve the net result of your marketing efforts.

MaryFisherDesign.com 1731 Emerson Street • Jacksonville, FL 32207 904-398-3699 x 1 GRAPHIC DESIGN • WEB • PUBLIC RELATIONS • ADVERTISING • MARKETING

down to Business

technology

4. Anywhere, anytime access. You don’t need to suffer a disaster to be saved by online backup. The best backup services allow you to retrieve whatever files you need by accessing it from your laptop computer or smartphone. Now, when you are with a customer offsite and realize you urgently need a particular file to document an action you have taken or an invoice you sent, you can have it on hand. 5. No extra equipment. You should only need to register and download a small piece of software that lets you retrieve or restore your files. Everything else should happen automatically. 6. Security. Most cloud-based backup companies encrypt every byte of data throughout the complete process—uploading, storing and downloading a file from the cloud. It’s the same secure technology that banks use for their online operations. Once you have an online backup service in place, you will have safe, certain, anytime-anywhere access to your files. If your business expands, you can extend your backup service to more computers or locations. Knowing that your company’s data is backed up properly can provide you with the peace of mind you need to focus on running your business. You have a responsibility to your business, your employees, your customers and yourself to consider the impact of data loss and to take action to implement a backup procedure that fits your company’s needs. You can get started in minutes and be protected from whatever lies ahead. n Pete Lamson is senior vice president and general manager of the small business group at Carbonite, a leading provider of online backup solutions for consumers and small- to medium-sized businesses. More than 1.1 million subscribers in over 100 countries rely on Carbonite to provide easy-to-use, affordable, unlimited and secure online backup solutions with anytime, anywhere data access. For information on Carbonite, visit www.carbonite.com.

www.AdvantageBizMag.com

down to Business

management

Your terms and your price The right way to transition from your business

By Lewis Hunter

s a business owner, you are accustomed to, and perhaps even thrive upon, solving today’s pressing problems and pushing on to tomorrow. But have you looked beyond this week, this month, or even this year? The average owner spends 80,000 hours building their company but only six hours planning its transfer. As a result, 80% of business owners fail to get top dollar when they sell. That is like winning a free lottery ticket on a drawing for a $1 million jackpot—you may have won, but you missed out on a much bigger prize. Just as winning the lottery is not a viable strategy for achieving your dreams, nor is hoping that you will sell your business for enough money to support your future lifestyle. Use a business transition plan to control your exit and maximize your payout. Plan now when you will exit, how and for how much, rather than leaving it to chance.

Business owners typically start planning transitions for one of three reasons: • A personal health scare, or death or illness of someone close to them, has reminded the owner of their own mortality. They contemplate what would happen to their business and their loved ones if they suddenly stopped working. • The owner has tired of their work and wants to do something different, such as go into public service or spend more time with friends and family. • They desire to leave a legacy, ensuring the company survives them and that their work continues to benefit others. Don’t wait for one of these to occur. Identify your long-term financial and lifestyle needs, the needs of family and stakeholders, and your desired business legacy.

Analyze your current situation

Whether you will transfer your business, continue working or retire, there are many ways to accomplish your objectives. Some options to consider and factors to review: • Internal transfer—Consider whether the next owner(s) would be capable of running the business. Be impartial, even if they are one or more of your children or a long-time employee. Also, ensure you achieve your personal financial goals without irreparably impairing the company. Use trusts, buy/sell agreements, employee stock ownership plans or management buyouts, for example. • External transfer—Your influence over your company’s future may wane with an outside buyer. Their plan should align with your vision for the business and the needs of your stakeholders, including employees and customers. Would the buyer be making a strategic acquisition with the intent of operating, and perhaps growing, the business over time? Or would they be a

As with any journey, you must know where you are before you can determine where you are going. Transition planning involves reviewing your business and personal life. Review your personal finances; focusing on the wealth gap you must close to support your goals for life after your business. If you want to retire, how much money will you need and what price would you have to sell your business for to net that amount? For your business, document your vision and strategy for the company. Identify critical success factors and measure performance against them through operational metrics. Undertake legal and taxation reviews to ensure compliance with regulations and to protect against risks.

Identify your objectives Set clear, measurable, attainable objectives for your life after your business, and your business’s life after you. Volume 4, Issue 1

Select your options

down to Business

management financial purchaser, hoping to squeeze cash and profit from a future sale? Will you solicit bids for the company or negotiate with a single prospective buyer? Identify the options available to you and evaluate each one based on your objectives. Choose one and put a contingency plan in place so the business can operate and your personal goals can be achieved if you cannot complete the transition as hoped, perhaps due to health or performance issues. Use insurance and legal protections.

Create your plan

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When will you transition and for how much? What will Get Ready the acquirer look like? How will ✓ Set up a team of advisors. your family’s and stakeholder’s ✓ Draft a letter to your spouse needs be met? Compile the or loved one, stating whom to contact and what to do if answers in your plan and state you die or are incapacitated how you will attain your before you transition. objectives. Be specific. ✓ Perform a business valuation. The wealth gap between ✓ Measure the wealth gap what your business is worth between your company’s and what you need to sell it current value and what you for can provide your timeline. need to sell it for to achieve If it is worth $1 million today your personal financial goals. and you need to sell it for $2 ✓ Create your transition plan. million, will it take three years ✓ Optimize your business. to close the gap? Five? ✓ Build business value by Decrease the company’s eliminating the company’s dependence upon you. Allow dependency on you as much as possible. time to build business value by grooming leaders, implementing systems, improving processes and increasing revenues and profits. Your transition should occur when you want and in your accordance with your wishes for the future ownership of the business and at a value that fulfills your wealth objectives. Spell out roles and responsibilities for key individuals, draft the management structure, and detail how you will be paid. When your transition plan is complete, break it down further into tasks with due dates and responsibilities assigned. Create your plan, build your business’s value and transition when you are ready—then you won’t need to win the lottery to achieve your dreams. n Lewis Hunter is a Jacksonville-based business transition specialist with ROCG Americas, LLC, an international consulting firm that helps owners of small- and medium-sized companies start, build and exit. He can be reached at 904-400-6610, lewis.hunter@rocg.com, or through business-transition.com.

www.AdvantageBizMag.com

new businesses

Welcome new businesses! Advantage Magazine would like to extend a warm welcome to the following new small businesses opening in and around the Jacksonville area: A Tow And Stow

Dorika Ingellis - Licensed Cosmetologist

Kevin Conner I Satellite TV

3261 Philips Hwy., Jacksonville 32207 Owner: Stare Decisis FL LLC

376 New Berlin Rd. #8, Jacksonville 32218 Owner: Dorika Ingellis

11006 Beckley Pl., Jacksonville 32246 Owner: Kevin R. Conner

Absolute Remodeling and Plumbing Inc.

Dragonfly Pet Spa

Massage By Springfield Rose

179 College Dr. #10, Orange Park 32065 Owner: Simon Dale Vanwagenen

1555 Atlantic Blvd., Neptune Beach 32266 Owner: Tracey Tamara Perry

1820 N. Market St., Jacksonville 32206 Owner: Rosanne H. Snyder

Academy Mortgage Corporation

Evors Forever Free

Mattress Smart

10175 Fortune Pkwy. #104 Jacksonville 32256 Owner: David William Davis

1731 Emerson St., Jacksonville 32207 Owner: Tiffany R. Evors

5555 W. University Blvd., Jacksonville 32216 Owner: Marvin I. Sherman

American Global Solutions LLC

Flying Pig Clutter Control Service

Mr. Bee Good and Company

6500 Youngerman Cir. #1, Jacksonville 32244 Owner: Warren L. Lee

5304 Attleboro St., Jacksonville 32205 Owner: Carolyn J. Steinberg

4483 E Loveland Pass Dr., Jacksonville 32210 Owner: Debra S. Cox

Anointed Renovations LLC

Freedom Expressions Inc.

My Mochi Riverside

9173 Hawkeye Dr., Jacksonville 32221 Owner: Joseph Alston

237 E. 21st St., Jacksonville 32206 Owner: Venus Patrice Darling-Hubbard

1661 Riverside Ave. #128, Jacksonville 32204 Owner: Shivani Enterprises LLC

Beenen Counseling LLC

G’ Spa Skin Nail Massage

Peace Dogs

4300 Marsh Landing Blvd. #204, Jacksonville Beach 32250 Owner: Selena W. Beenen

3505 Southside Blvd. #2, Jacksonville 32216 Owner: Gina G. Mirabueno

196 Southern Grove Dr., St Johns 32259 Owner: Carlos Wayne Coffey

Greek Islands Cafe LLC

Petra Marble Design Inc.

Big Daddy’s Barbecue

7860 Gate Parkway #116, Jacksonville 32256 Owners: Bavuso, Damian Joseph

5521 Chronicle Ct. #A, Jacksonville 32256 Owner: Alisha Z Yousif

Green Productivity Solutions

Sophisticated Ladyz II

3948 S. 3rd St. #175, Jacksonville Beach 32250 Owner: Sheila D. Green

3450 Dunn Ave. #106, Jacksonville 32218 Owner: Annette Lay

High Quality Cleaning & Remodeling Services LLC

Straughn Enterprises LLC

Castro Cleaning Services 1199 Romney St., Jacksonville 32211 Owner: Anarda L Meza Castro

5317 Archery Ave., Jacksonville 32208 Owner: Juan Q. Sanders

Choice Matters Inc.

Home Source America Inc.

10151 Deerwood Park Blvd. #250, Jacksonville 32256 Owner: Claudia Charles

2615 Crystal Cove Ct., Jacksonville 32224 Owner: Jason M. Buehler

Color Tec Creations

1770 Indian Trail Rd. #300, Norcross, Ga. 30093 Owner: Russell Todd Holliday

945 N. Edgewood Ave., Jacksonville 32254 Owner: Eric Eugene White

Canine Security Inc. 11071 E River Creek Dr., Jacksonville 32223 Owner: Dennis J. Dixon

4734 Kingsbury St., Jacksonville 32205 Owner: Richard Lee Paquette

CPR-Cell Phone Repair & Gadget Tech 3267 Hodges Blvd. # 5, Jacksonville 32224 Owner: Miraculous Solutions LLC

Design Appointment Hair & Nail Studio 101 W. 48th St. #5-6, Jacksonville 32208 Owner: Design Appointment Hair & Nail Studio LLC

Doctor PC, Inc. 5585 W. University Blvd., Jacksonville 32216 Owner: Karl E. Decious

Volume 4, Issue 1

IBT Enterprises LLC

Installers Finder Inc.

6966 Wadsworth Ave., Jacksonville 32254 Owner: George D. Straughn

The Hub 10066 W. 103rd St., Jacksonville 32244 Owner: David L. Sylvester

The Outpost General Store LLC 14500 Beach Blvd., Jacksonville 32250 Owner: Ramona J. O’Connor

Urbanlife Entertainment

3653 Regent Blvd. # 203, Jacksonville 32256 Owner: Celia R. Alcantara

11001 Old St Augustine Rd. #1105, Jacksonville 32257 Owner: Takiya S. Lizzmore

Janan Simpson

Vincent M. Anderson

8001 Baymeadows Way, Jacksonville 32257 Owner: State Farm Insurance Co.

2812 Lippia Rd., Jacksonville 32209 Owner: Vincent M. Anderson

JLA Drywall Corp.

Your Wedding Weekender

5440 Glorianne Dr., Jacksonville 32207 Owner: Jose F. Aguilar

1160 Molokai Rd., Jacksonville 32216 Owner: Adair L. Anderson

profile

Say ‘Hello’ to your

SBLY 2012 Why Chad Perce was chosen as your 2012 Small Business Leader of the Year (SBLY) By Wendy Bautista

had Perce, CEO and co-founder of iMethods (www. imethodsinc.com) and your Small Business Leader of the Year for 2012, began his business education before he could drive when he launched his first startup—a neighborhood lawn care empire in his hometown of Lake Mary. Even then, at the age of 15, he learned about the importance of delivering for the customer. “It was quickly apparent to me that the best way to earn and keep clients was to work hard and pay attention to the details,” says Perce. Those early insights have served him well. Since founding iMethods’ original iteration, Medical Methods, in 2004, Perce and his business partner Clint Drawdy have grown the company from a clinical staffing firm with two full-time employees to an award-winning Information Technology (IT) recruiting and consulting corporation with a sizable staff and projected revenues of more than $10 million for 2012.

www.AdvantageBizMag.com

Business planning “For many years, we have followed Verne Harnish’s process for developing an annual One Page Plan for our business. As part of the Gazelles organization, Verne mentored us through a three-year entrepreneurial Master’s program hosted by MIT in Boston. “While the plan is only one page, creating it is a complex exercise that helps solidify the company’s core values, purpose, and actions. The plan defines a one-year goal, a three-year target, key performance indicators (KPIs), and other valuable guideposts that keep us on track. “Complementing the One Page Plan is our standard meeting rhythm, which follows the metrics outlined in the plan. Our teams have daily, weekly, monthly, quarterly and annual meetings that focus on communication and progress toward our stated goals,” says Perce. “While this may sound like over communication, quick and effective meetings with well-defined agendas have been critical to iMethods’ success and momentum.”

A push start “I would love to say that iMethods was born out of a long and highly scientific market study, but it really grew out of a confluence of skills, experience and opportunity, given an extra push by a dare,” says Perce. “Clint and I had strong combined backgrounds in IT and recruiting and we’d dreamed of starting our own company since the late 1990s.” Perce says iMethods might still be a dream if their wives didn’t challenge them to “put up or shut up” at a family barbecue, which was also about the time an existing client helped him identify a need for clinical staffing in the medical field. Energized by the opportunity and the challenge, Drawdy and Perce started Medical Methods in January 2004, recruiting physical, occupational and speech therapists for national and local clients. Based on their existing relationships with Baptist Health and Brooks Rehabilitation Hospital, Medical Methods was ahead of the demand for contract therapy services, which put them on the leading edge of the market and well in front of their larger competition. “Our good timing, positioning and newfound expertise in the medical therapy market allowed us to launch nationally with clients such as RehabCare, Heartland and Tenet,” says Perce. “We achieved annual revenues of $415,000 our first year with just two employees— myself and Clint—doing all the selling as well as operating and delivering for our clients. Three years later, that business reached its peak at $3.6 million in annual revenues.” Volume 4, Issue 1

Business vitals Owners: Chad Perce and Clint Drawdy In business since: 2004 Projected growth: “My role has been to set strategy and direction for both divisions in anticipation of—and response to— market trends; then successfully execute that strategy. I believe our growth has stemmed from strategic thinking and strong adherence to our core values, with a healthy dose of great advice and fortunate timing thrown in. “By utilizing the expertise of a volunteer advisory board, playing to our strengths and planning at least two steps ahead for the future, iMethods has been on the leading edge of contract medical services and electronic medical records while meeting the ongoing need for high-quality IT recruiting. “In the process, the company has grown from a clinical staffing firm with two full-time employees and first-year revenues of $415,000 to an award-winning IT recruiting and consulting corporation with a sizable staff and projected revenues of more than $10 million for 2012. “Our Big Hairy Audacious Goal (BHAG) for the next three years is to exceed $20 million in revenues,” says Perce.

Giving back Because of iMethods’ focus on service, it’s not surprising that it has been active not just on behalf of its clients and employees, but to the larger community as well. Upon founding the business, Perce started an internal Mercy Ministry to support the employees and the community in times of need. To date, that ministry has conducted numerous food and clothing drives and provided monetary support for individuals and families in crisis. The company has also supported numerous local charities, including the Boselli Foundation, The Sulzbacher Center, Make a wish Foundation, Heart for the Heartless and the MS Society. Its major community focus, however, has been its association with Baptist Health Foundation, primarily through activities to benefit Wolfson Children’s Hospital. “I am the founding and current chair of the One to Grow On Ultra Marathon, which raised more than $1.1 million to date, I served on the 2011 committee for The King of the Court Tennis Challenge, and we all participate annually in Wolfson’s Red Wagon Parade,” states Perce. Along with the rest of the committee that conceived and implemented the Ultra Marathon, Perce made a three-year commitment (through 2013) to the race, with a goal of raising $1.5 million toward the purchase of a 3 Tesla MRI, a piece of equipment that will reduce the need for invasive exploratory procedures on children. This equipment will be installed in the new tower currently under construction at the hospital’s downtown campus. “Learning the stories of children who have received care at Wolfson’s has been incredibly touching, and I am honored and proud to be associated with this incredible organization,” says Perce. Another event connected with One to Grow On is Run 5 to Keep Kids Alive, a five-mile race that takes place during the overall event. iMethods is the title sponsor for the 2012 run and was the Internet Sponsor for the overall Ultra Marathon in 2011. In the local business community, iMethods is a member of the Chamber’s Jacksonville IT Council (JITC) and is also active in multiple technology groups such as the Jacksonville Developers User Group (JAXDUG). Many of the JITC members are active in JAXDUG, which provides opportunities for developers to learn from each other through speakers, forums and mentoring, culminating in an annual educational intensive called “Code Camp.” “We have supported this event in numerous ways over the years and enjoy the opportunity to share knowledge with our colleagues in the region,” says Perce. 18

profile Making changes As the market matured and competition pushed margin and supply down for contract therapy services, they diversified their footprint and transitioned away from the now-sluggish clinical skill sets business model to a faster, more agile model in technology. “It was a wonderful chance to reconnect with old friends in the IT world and continue building our business,” says Perce. “We launched our new IT recruiting business, iMethods, in 2007, well aware that the shift in focus would slow our near-term growth, but believing it would be of great benefit down the road.” Like many businesses, the recession was a big problem. Perce states that the recession may have affected them earlier than some because demand for recruiting services is an early indicator of economic health. “The cherry on top of our recession sundae was the fact that we’d made a strategic decision to shift away from clinical staffing to IT services in response to competition and a changing marketplace,” says Perce. “We were in new territory, the economy was crashing around our ears, and the going got pretty tough for a while.” But iMethods’ growth was noteworthy: revenues for the newer company grew from $1.5 million (2008) to $2.1 million (2009) to $2.8 million (2010). In the fall of 2010, they sold Medical Methods in order to focus exclusively on iMethods and develop the structure of the present corporation and map out the road ahead.

The right decision For Perce and Drawdy, the decision to refocus on technical staffing was the right one. iMethods has been ranked in the “Inc. 500” (399)/”Inc. 5000” (3,790), placed sixth in the Jacksonville Business Journal’s “Fast 50” in 2008, and was designated twice as one of the community’s “Companies that Care” by Jacksonville Magazine. Of the various recognitions, the value-driven Perce particularly cherishes the five “Best Places to Work” awards from Florida Trend and the Jacksonville Business Journal. “I am passionate about the culture of our company,” he says. “If our internal relationships are strong and we stick to our values, our external performance is better and our work is more fulfilling. “We have diligently worked to create a culture that supports individual growth, healthy relationships and the highest good for all concerned, but we’re well aware that sometimes even the best intentions can erode in the face of the daily struggle to succeed. “The fact that we’ve been able to preserve a sound culture while garnering positive results for our clients, employees and job candidates is a source of daily satisfaction.” And with that, iMethods is now an award-winning, values-driven IT staffing and consulting company. Its premier healthcare IT www.AdvantageBizMag.com

How you can do it

consulting division pairs world-class experts with leading healthcare providers to provide customized consulting options. Its local IT recruiting division identifies and employs top technical professionals in specialties ranging from desktop and network engineering to .NET and application development. Today, iMethods’ two divisions are expected to exceed $6 million for 2011.

Looking forward iMethods has been blessed with tremendous growth, which Perce believes has stemmed from strategic thinking, visionary planning, innovative management, and unwavering adherence to their core values—with a healthy dose of outside wisdom and serendipitous timing thrown in. “I have set and implemented While our path hasn’t strategies for its growth ever since its inception, successfully anticipating and always been easy, our responding to market trends in a way constant commitment that has made iMethods nimble and to lifting up our profitable—even in the worst economic employees, recruits recession of our lifetime,” says Perce. and the community “While our path hasn’t always has resulted in been easy, our constant commitment to success beyond our lifting up our employees, recruits and fondest dreams. the community has resulted in success beyond our fondest dreams. It has also allowed us to make a positive difference in the lives of individuals and our community. We are truly on a mission!” Perce continues. “This business was founded on faith, and Clint and I have adhered to our mission and values since day one. By matching skilled professionals with the needs of business, we create value for our clients, ourselves and our candidates, and we are proud and honored to have the opportunity of providing meaningful work for individuals and helping to grow the economy of this community we love. “Although in different roles, Clint and I have worked together from the beginning,” says Perce, “and any recognition of my leadership is also recognition of his contributions. Our business partnership is a primary ingredient to our success.” n Wendy Bautista is the editor of Advantage Small Business Magazine. She can be reached at wendy@advantagebizmag.com or 904-222-8140.

Volume 4, Issue 1

“My partner Clint Drawdy and I are quick to admit we don’t know everything about running a business. Fortunately, we know a number of people who collectively know everything we don’t—and five of them have generously agreed to serve on our volunteer advisory board,” says Perce. The volunteer advisory board, which has met frequently since just before Perce and Drawdy formed the original company, provides wise counsel, holds them accountable for results, and is generally a blessing to them throughout the life of the business. With intellect, experience and expertise, they provide a sounding board for strategy; answer questions about banking, legal matters and operations; and perform a host of other valuable functions. “They are anxious to help and have greatly shaped and influenced our business for the better,” states Perce. “Creating the board may have been the single best step we took in planning our business development! “When we first formed Medical Methods, Clint and I were experts at sales and delivery, but encyclopedically ignorant on just about every other aspect of running a business,” says Perce. “The advisory board’s expertise and wise counsel has been critical to iMethods’ ability to transcend challenges.” A book titled, “Now, Discover your Strengths” by Marcus Buckingham and Donald O. Clifton ended up being another critical success element. Perce recalls how the message of the book—working to address your weaknesses wastes valuable time and energy and how you should play to your strengths instead—profoundly affected the way they viewed themselves and their workforce. “When we altered some employees’ roles in accordance with this idea, they blossomed,” says Perce. “They gained greater satisfaction from their work and became more productive as well. We continue to apply the ‘strengths’ principle on many levels with excellent results. In fact, we apply it to our interview process, requiring promising candidates to complete a ‘strengths profile’ to confirm they’re the right match for a specific position.” Perce and Drawdy also account iMethods’ survival, growth and subsequent success with their commitment to trying at least one or two new ideas each year. “Our wheels are always turning, especially when it comes to creating close or synergistic lines of service that could increase our footprint in the marketplace,” says Perce. “We operate on the theory that baiting multiple hooks increases your chance for a good catch, even in the rough economic waters we’ve all had to navigate over the past several years.” 19

Industry Insider Advantage

well-being

Sound body, sound mind Ways to optimize your health to achieve professional aspirations

he dream of business success captures the imagination of aspiring and existing business owners everywhere. A vision of flowing profits, industry respect, thrilled customers, and a balanced life permeates your consciousness and keeps you motivated. As an entrepreneur, time is your most valuable asset—yet it’s the only part of your existence you can’t leverage. You only have so much of it in your day and you can’t add more to those 24 hours, no matter what you do or what you pay. You may think you’re doing your business a favor by sacrificing sleep, diet, and an exercise program, but the truth is you’re not. While it may seem counterintuitive, spending a little less time at the office and redirecting it toward optimizing your health may be just the ticket to achieving your professional aspirations.

Steps to optimal health Three areas in which you can take some simple and time-conscious steps to optimize your health include: • Sleep. When you’re tired, your ability to work productively and think clearly may suffer, which could lead to dangerous or costly mistakes and take a toll on your professional reputation. Poor sleep can make it difficult to multi-task, make you slower to get your work done, and some people report it affects creative thinking and memory. Some ways to reduce insomnia include: Taking melatonin. Melatonin is a hormone that helps regulate sleep, and as you age, your body produces less and less. It doesn’t cause dependence or addiction and as a side benefit, it naturally increases your body’s growth hormone production. Sleeping no more than seven hours. Most people need no more than seven and a half hours, but if you cut back to seven, you’ll have sounder sleep with fewer awakenings. 20

By Dr. Earl Eye

Getting up at the same time every morning. Your body rhythms are tied to the time you awaken, so it’s important to keep it constant. That means not oversleeping on weekends. Getting into bed only when you’re sleepy. Spending time awake in bed can make you anxious and can lead you to associate your bed with anxiety. If you can’t drop off to sleep after 15 minutes, try slow deep breaths. If you reach 200 breaths go to another room and do something relaxing such as reading a book until you are sleepy. • Nutrition. Nutrition isn’t about a single “perfect” diet. For thousands of years, human diets were simple: We ate what grew from the ground, fell from the trees, ran across our path or swam the waters. The diet most synergistic with our Paleolithic-era ancestors: high in nutrient-dense foods (fruits, vegetables, lean meats and essential fats) and low in refined, overly processed foods, fats and simple carbohydrates. To improve upon your eating habits, try: Choosing natural foods. If it grows from the ground, falls from the trees, runs, flies, swims, it is an optimal choice. Best of all, natural foods such as fruits and veggies are most nutritional in the raw, making them quick and easy to prepare. If you must eat packaged foods, choose those that are minimally processed. Eating once every three to four hours. Your metabolism is like an engine—the more often you give it fuel, the better it works. When you deprive your body of food, it shuts down to preserve energy. Good examples of some snacks to eat in between meals are nuts, cottage cheese, or jerky. Taking supplements. Supplements are a quick and easy way to ensure your body is getting all of the necessary nutrients it needs to be healthy. Research is constantly demonstrating that truly therapeutic doses of vitamins and minerals and anti-oxidants—the amounts www.AdvantageBizMag.com

needed to reduce the risk for various diseases—are substantially higher than the RDAs. • Exercise. All you need is 30 minutes a day to optimize your health. If you don’t know the first thing about exercising, hire a trainer once or twice to teach you the basics. Set aside time each day for an activity that you enjoy, such as practicing yoga or lifting some weights. Better yet, discover activities where you can get exercise and spend quality time with your partner, family or friends—such as tennis, hiking, or dancing. Weight training is the best way to burn fat; it’s more effective for losing weight than aerobic activity because it burns calories while you’re exercising and at rest. Here’s the math: The body requires approximately 30-50 calories daily, per pound of muscle. When you add five pounds of lean muscle, you’ll burn an additional 150-250 calories every day, even on days you don’t exercise. This adds up to 15 to 26 pounds of fat loss every year. Do some high intensity endurance exercises, which is at least 12-15 minutes of pushing your body to the limit of its capabilities. Interval training is the best way to get a rigorous workout quickly. Using a treadmill or elliptical, start at a low to moderate pace for one minute, then up your speed to an all-out sprint for 30 seconds, then back down to the moderate pace for one minute, and then back up to a sprint for another 30 seconds. Do this five times. An alternate would be using telephone poles. Sprint in between two, then walk between the next two, and repeat. The most serious thing that could happen is the loss of your productivity—which ultimately not only affects you, but also your business, employees, family and loved ones. It’s much better to work for seven hours a day at peak performance than for 10 hours a day at half-consciousness. Get on a good diet, a good workout plan, and get plenty of sleep. It’s fine to be off balance sometimes, but never forget the adage, “Sound body; sound mind.” n

FEBRUARY 11TH, 2012 7–11PM The Cummer Museum 829 Riverside Avenue

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Dr. Earl Eye is an AMA certified age-management specialist at Cenegenics Jacksonville, a practice committed to helping patients maintain health and live well longer. He is an institute physician at Cenegenics’ corporate headquarters and is the CEO and CMO of Cenegenics Jacksonville. Dr. Eye is also board certified in critical care medicine, infectious diseases medicine, pulmonary medicine, and internal medicine. He can be reached at 904-674-0404, contact@ cenegenicsjax.com, or through www.cenegenicsjax.com.

Volume 4, Issue 1

Industry Insider Advantage

management

Best foot forward Five ‘musts’ for creating a great first impression for your employee By Polly White

o paraphrase an old saying, employees are not your greatest asset—great employees are your greatest asset. Whether your organization is large or small, make sure you set the stage for their success by creating a positive first impression by implementing these five “musts”: 1. Have a plan. The difference between a worker who becomes productive quickly and one who languishes is often how well they are oriented to their new company. The first hours and days of an employee’s new career are the time when they become acquainted to the requirements and expectations of their job, the culture of the organization and where and how they fit into the company. You can greatly increase the speed at which your employees become fully productive by having a personalized orientation plan in place for their onboarding. The plan should balance time spent learning about the organization and their coworkers’ responsibilities with his or her specific job duties. It is not necessary that their first hours be spent filling out the myriad of employment-related forms. This may be convenient for HR, payroll or accounting, but does not create the best first impression. While the employee will eventually need to fill out certain forms, most federal and state requirements allow the new employee and your company several days to complete the task. Spending your first hours creating a friendly, comfortable and productive experience for the employee is a better use of time.

2. Have a place for your new employee to call their own. Whether the employee will have a desk, a locker, a workstation, or a peg on the wall, you should have it labeled, clean and stocked with all of the equipment the employee will need to do his or her job. Nothing says, “We really want you to be happy and productive” like a well-appointed workstation. When desks and workstations are left empty for any length of time, two things happen. First, any useful equipment, office supplies or gadgets seem to walk away. Second, the empty desk becomes a dumping ground for stacks of papers, files and other debris. The day before the new employee is to arrive, take a few minutes to restock the workstation and clean off unnecessary clutter. 3. Introduce them to their co-workers. Most businesses provide new employees with the standard tour and introduction. While this is a step in the right direction, there are ways to increase the benefit to the organization. Spend at least part of the first day celebrating the arrival of the new employee. Have coffee with everyone on the team, allowing time for socializing and rapport building. If possible, add a donut or other snack into the mix. There is nothing like food to help with bonding and creating great memories. 4. Choose carefully when involving others in the onboarding process. Watch out for the “curmudgeon buzzard”— the longer-term employee who feels obligated to swoop in on your new employee and explain to them in great detail why coming www.AdvantageBizMag.com

to work in your organization may be the biggest mistake of their career. They peck away of the employee’s confidence regaling their new colleague with stories of times when management was unfair or unkind to the rank-and-file. The curmudgeon buzzard carries a great deal of baggage with them that must be unloaded on the unsuspecting newbie. They are only effective, however, if they can poison the new employee before he or she has fully formed his or her opinion of the company. Keeping the buzzards away from your new hires during the first few hours or days of their employment will allow the new employee to form a favorable impression of your company—one that will be hard to change. Coach the new employees yourself or assign them to employees who will represent your company in its best light. The rewards will be long lasting. 5. Outline what the new employee needs to accomplish to succeed—then set them up for success. Finally, explain to your employee what you want them to accomplish in his or her first days on the job. Understanding exactly what you want them to do and how you will measure their success will increase the new employee’s confidence and the likelihood that you will get great performance. Make sure the tasks you select are ones that 1) will be part of the employee’s routine assignments, and 2) are very doable. Remember, you want the employee to succeed in the early days so that they will be eager to take on the more difficult work that lies ahead. n

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Volume 4, Issue 1

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Industry Insider Advantage

taxes

Cash vs. Taxes Think differently to save cash instead of saving taxes this year By Greg Crabtree, CPA

very business owner knows the drill; you made a profit this year so you need to spend your cash to save on taxes. Try to think differently this upcoming year to “save cash” not “save taxes.” The inherent flaw in spending your cash is that you have to spend a dollar to save 40 cents in tax, which just seems like a bad idea. You come up with excuses to spend money you think you would have spent anyway—you buy new computers, some extra supplies, a new vehicle because you heard you can “write it off.” The point is that if you did without those costs up to December, maybe you did not need to spend it after all! Most successful entrepreneurs spend a dollar at the last possible moment it is needed.

Build wealth or save taxes? You can only build wealth from “after tax” income, so every attempt to lower your taxes lowers your ability to create wealth. The number one key performance indicator of wealth creation is “how big of a check did your write to the IRS.” If you did not write a big check, you either cheated or you did not make any money—both are bad. Do not pay more taxes than you should, but you should be focused on building wealth above savings taxes. 24

What if I am cash basis? For those who are a cash-basis businesses, you can easily fall into the trap of draining your cash paying off vendors at year end. While this seems enticing, you eventually take it to the illogical extreme and have such a huge amount pushed forward it causes you to make sloppy decisions at year end. Here are just a few of the issues that you could encounter: • Bank financing. Your year-end financials are more important than ever these days. By focusing on taxes instead of good business fundamentals, you distort your balance sheet at year end and spend the next year explaining why your balance sheet looks bad at December so you can get your line of credit or bonding renewed. • Missed opportunities. Because you dumped all of your cash in December, it takes longer than you think to build it back in January and February. By not having cash available to start new projects, you delay or miss out on new opportunities. To delay acting on an opportunity wastes a day of potential productivity that can never be recovered. • “Deferring Taxes” versus “Saving Taxes.” Did you really save taxes or did you just defer them? Be honest with your language when you spend your year-end cash. www.AdvantageBizMag.com

It is not saving taxes unless you are saving at a high rate this year and you pay a lower rate in the future. Not likely to happen. Most entrepreneurs defer taxes at year end and push their rates down into the lower brackets to end up paying at a much higher rate in the future when they have kicked the can as far down the road as they can. • Borrowing money to finance that year-end equipment purchase. This is the ultimate tax trap. You borrow $100,000 to buy that new piece of equipment (that could have been delayed) and you end up taking the expensing election on the equipment. Inevitably, this purchase pushes you down into the 20% or lower bracket. The only way to repay debt is to make after-tax profit. To make enough profit to repay the loan, it pushes you into the higher brackets and you end up paying close to 40% tax to generate enough cash flow to get out of debt (if you are lucky).

A better way to think You need to approach taxes as the logical outcome of a profitable business that is your primary wealth-building engine. These are the keys to make this happen: • Owners wages. Set your wages out of the business at a market rate for the job you have in the business. Then live off of that wage. Do not fall into the trap of consuming the profits of the business. • Get profitable with the business you have. Once you properly set your wage as an owner, your net income gives you a true picture of the profitability of your business. If you are not profitable, the key is to make all labor productive and eliminate any labor that does not add value. You have to get your current business model profitable before you grow. • Grow your own capital. Once you are profitable, retain after tax business profits until the business is fully capitalized. One definition of being fully capitalized is having two months of operating expenses in cash with nothing drawn on a line of credit. A business that has two months of cash can act on opportunities as they come up and you do not need to “get permission” from your banker. • Get shareholders healthy. Once the business is fully capitalized, you can then take distributions to get your personal finances healthy. Get out of debt first (yes, that means all debt… including your home!), and then build up your emergency fund. • Strategically redeploy profits. Once your business and personal finances are stable, then you can make strategic decisions about the after-tax profits of the business and decide Volume 4, Issue 1

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Industry Insider Advantage

Times are tough and money is tight, isn’t it time your bank put its interest in you?

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if you want to grow the business larger or just continue to harvest the profitability of the business. • Beware of “consumption cancer.” Everything you buy owns a piece of you and creates a financial drag. If you learn to live off your wages and leave the profits of the business for wealth creation, you have mental clarity of what produces wealth, what is investing and what is consumption. If you set a lifestyle target before you have the income to act on it, you will stand a better chance to control consumption. It is time for entrepreneurs to get back to fundamentals and build profitable businesses that do useful things and grow your own capital. Stable businesses are the ones that create jobs that last and build a strong economy that can weather the storms of the market. n Greg Crabtree has worked in the financial industry for more than 30 years and founded Crabtree, Rowe & Berger, PC, a CPA firm dedicated to helping entrepreneurs build the economic engine of their business. In addition to serving as the firm’s CEO, Crabtree leads the business consulting team—helping clients align their financial goals with their profit model and their core business values. He is the author of Simple Numbers, Straight Talk, Big Profits! He can be contacted through www.seeingbeyondnumbers.com.

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Industry Insider Advantage

leadership

Measuring your lean journey? Why you need to think outside the GAAP

re you struggling to see the benefits of your lean initiatives? If so, you’re not alone. You started your lean journey with the expectation that the benefits would flow to the bottom line. Unfortunately, the early financial numbers may not be what you expected. Many companies abruptly take an exit from their lean journey when early indications don’t show expected benefits. Implementing the principles of lean is a long-term initiative, however, and will ultimately provide a significant competitive advantage—but it will test your vision and leadership mettle.

Lean principles The goal of implementing lean principles is to find and eliminate waste along the value stream. Most companies appoint a lean champion. Employees are trained and lean teams are formed to map key production processes. This process is called value stream mapping. The objective is to identify steps and resources that add no value to the consumer of your product. Once non-value added steps are identified, the value stream map is redesigned and waste in the process is eliminated. Production planning changes dramatically. Manufacture-for-stock is reduced or eliminated in favor of manufacture-to actual-demand. When a lean team has redesigned the process, an implementation event, or kiazen event, is planned to execute the changes. Kiazen events usually take one to several days of intense work. When the event is complete, production resumes using the new lean production flow. It is common for lean teams to shorten manufacturing times, free floor-space, reduce in-process part movement and shrink (or eliminate) inventories. Compelling evidence shows that firms, large and small, benefit from implementing lean principles. Volume 4, Issue 1

By Chris Bryan

Nothing rivals the excitement and energy generated during the early stages of a lean journey. You will feel great about gathering your employees for training, forming lean teams and redesigning your value stream maps, and everyone will be eager to participate in the initial kiazen events. The optimism is intoxicating. Soon, however, you will face the task of measuring the progress of your lean initiatives.

Challenges measuring lean initiatives Looking to your standard financial statements in the first few months of a lean journey is likely to give you a confusing picture. Unfortunately, standard accounting methods don’t reflect the progress made by lean teams in the early stages. Costs associated with training employees, reconfiguring production space, relocating inventory, and conducting kiazen events all hit the profit and loss statement immediately. Liquidating excess inventory, an important initiative in lean, may hit profit margins and increase trade accounts receivable in the short-term. Worthwhile lean projects that may not result in significant costs, such as clearing production floor-space and establishing point-of-use inventory locations, may not result in immediate cost decreases (rent or depreciation). If that isn’t enough, standard production cost accounting methods actually reward operations managers for over-producing. Often, manufacturing overhead allocations are based on direct labor hours and other activity-based metrics. When lean teams work to reduce excess inventory, production quantities may decline, direct labor hours and other metrics may decline and create unfavorable absorption variances. When new, lean production processes are implemented and production is limited to actual customer demand, unfavorable variances may persist. 27

Industry Insider Advantage

leadership The good news is that variable manufacturing costs can be reduced immediately; however, it takes time for you to reduce semi-variable and fixed costs that make up the manufacturing overhead pool. When your generally accepted accounting principles (GAAP) financial statements and traditional product cost reports don’t represent the early progress being made, it’s easy to be distracted from the ultimate goal. To keep your direction and focus, develop a system of specific measures that will ultimately drive broader measures of performance.

Use specific measures to motivate It is necessary, especially at the beginning of a lean journey, that you implement a system of measurements that can be communicated back to your lean teams. Specific measures and short-term incentives based on achievement are key tools to motivate your lean teams to exert extra effort, develop creative ideas, and to challenge inefficient but deeply entrenched processes. These measurements will encourage you and your staff to keep driving the right events even when your financial statements do not yet show the fruits of your labor. The benefits of implementing lean principles will, in time, improve your financial statements and become a testament of your leadership skills.

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Considerations in measuring lean Shareholders, owners, partners and other financial stakeholders all rely on your financial statements to measure the performance of your operation. It’s a great advantage when you can link the benefits of your lean activities directly to improving numbers and trends from your audited or reviewed statements. This is especially true if your business needs to acquire new, more efficient equipment through financing. Consider preparing a three-tiered reporting pack that links production-floor activities to broader performance measures that drive financial metrics.

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Investment and Insurance NOT FDIC InsuredAgency u NO Bank u MAY Lose Value Insurance are offered throughuWachovia Insurance (WIA) andGuarantee are underwritten ©2010 Wells Fargo Advisors, LLC. All rights reserved. 0910-3529 [74034-v2]A1293 by unaffiliated companies. Fargo Advisors and WIA are non-bank Advisors, insurance LLC, Member SIPC, isWells a registered broker-dealer andseparate a separate non-bank affiliate of Wells capacity to capture new customers and make solid gains in market share. Wells Fargo of Wells Fargo & Company. Fargo &affiliates Company. This reporting pack proposal will help you concentrate on the ©2010 Wells Fargo Advisors, LLC. All rights reserved. 0910-3529 [74034-v2]A1293 proper metrics early in your lean journey. If you maintain focus, your Jamie Seim business will gain a substantial advantage against your competition Financial Advisor Jamie Seim 1000 Sawgrass through operational excellence and market leadership. n Financial Advisor Village Drive Suite 103

Chris Bryan is a CPA and CFE with Christopher S. Bryan CPA, Inc. offering CFO services and fraud prevention services to local and national clients. He is a six-year veteran of measuring and reporting the lean journey. He can be contacted at 904-437-7022, cbryan@ christophersbryancpa.com or through www.christophersbryancpa.com.

Volume 4, Issue 1

PonteSawgrass Vedra Beach, 32082 1000 VillageFLDrive Suite 103 904-273-7917 Ponte Vedra Beach, FL 32082 jamie.seim@wellsfargoadvisors.com 904-273-7917 jamie.seim@wellsfargoadvisors.com

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jacksonville B usiness

B riefs

Jacksonville businesses in the news Southside Business Men’s Club elects Schott Galina Schott has been elected as Southside Business Men’s Club’s second woman president since its inception in 1932. She began her term Jan. 4, 2012, the organization’s 80th anniversary. The induction of the 2012 officers was held Jan. 4 at noon at the San Jose Country Club. For more information, visit www.southsidebusinessmensclub.com.

Hudgins named No. 1 sales associate in Florida Prudential Network Realty’s Elizabeth Hudgins of the Ponte Vedra Beach office was recently recognized as the No. 1 sales associate in the Prudential Real Estate Network in Florida, which encompasses more than 10,000 agents. In year-to-date statistics ending Nov. 30, 2011, Hudgins sold nearly $37 million in Northeast Florida real estate. Hudgins’ success has made her Prudential Network Realty’s top sales professional for more than 17 years with sales totaling more than $482 million. More information is available at www.beacheshomes.com.

Prudential Network Realty launches mentoring program The real estate professionals at Prudential Network Realty are helping students learn about career opportunities through their support of a new real estate mentoring program for youth attending the MaliVai Washington Youth Center. Students and real estate professionals meet weekly for the mentoring program. A 30

special curriculum, developed in partnership with Dr. Ronald Boatright of the Florida Real Estate Institute, enables youth attending the foundation’s mentoring program to learn about all aspects of real estate and the profession’s careers. Prudential Network Realty Broker Manager Andy Fletcher, who is a former member of the MaliVai Washington Kids Foundation (MWKF) board of directors and a tennis enthusiast, launched the program by organizing and raising money through Real Estate Round Robin competitions. For more information, call 904-260-4300.

Davidson Realty welcomes Gallagher Davidson Realty Inc. has added new realtor Andrea Gallagher to its team of real estate brokers. Gallagher brings extensive financial services experience to her new role in real estate. Gallagher relocated to Florida in 2005 from the Boston area. Prior to joining the Davidson Realty team, she served as Director of Credit and Sales Support for a New England-based firm specializing in small business lending. For more information, call 904-940-5000 or visit www.DavidsonRealtyinc.com.

Mayor Brown names appointees to JIBC Mayor Alvin Brown announced his three appointments to the Jacksonville International Business Coalition ( JIBC), a collaborative international business development effort between the City of Jacksonville, the Jacksonville Port Authority, the Jacksonville Airport Authority, the Jax Chamber of Commerce and other organizations. Dennis Kelly, Regional Vice President and General Manager for Trapac Inc.; Derrick

Smith, Vice President of Emerging Markets for CSX Corporation, Inc. and Ambassador Nancy Soderberg, President and CEO of Soderberg Global Solutions have all been appointed by Mayor Brown. The purpose of the advisory group is to develop and recommend a common economic strategy or policy in the Jacksonville region as it relates to international tactics, and then to offer counsel to the various international entities engaged in the execution of strategy.

The Blood Alliance wins Newcomer Award The Blood Alliance (TBA) was named “Best First Year Member” by the Jacksonville Lean Consortium at its Dec. 14, 2011, Annual Members Meeting. The award is an acknowledgement of TBA beginning its Lean journey in partnership with Jacksonville Lean Consortium. The Blood Alliance joined Lean in May of 2011 and immediately began creating a foundation of training for a core group of leaders, as part of its long term strategic business plan. For more information, visit www. igiveblood.com or call 888-99-TBA-HERO.

First Coast Signs awarded ‘preferred vendor’ status Ken Kindt, president and founder of Signworld, congratulated Rebecca and Carlton Walden of First Coast Signs, a Signworld operation in Jacksonville, for being promoted as the preferred provider of vehicle wraps for Cruise One and Cruises Inc., a cruise vacation agency with representatives throughout the country. First Coast Signs had the design concept “blessed” by Corporate Headquarters with the first vehicle, the Ford Escape. The same www.AdvantageBizMag.com

concept theme is used as other agents come on board and First Coast Signs “retro fits” it to accommodate their vehicles. The agents may select from various approved images provided by the Cruise Lines to feature what matches the agents’ most popular ships and destinations. For more information, visit www.signworld.org.

Petticoat-Schmitt Civil Contractors selected for streetscape improvement Petticoat-Schmitt Civil Contractors Inc. has been selected as the company responsible for the construction work for the Downtown Jacksonville Beach streetscape improvements. Construction for the six-phase project began Nov. 30 and will continue through Fall 2012. This project focuses on reshaping of the avenues and streets in the Central Business District, the area bounded by A1A, Beach Blvd., 4th Avenue North and First Street. Improvements also include the installation of landscape, hardscape, irrigation and street lights. An emphasis on open spaces, ocean views and beach access as well as the development of entertainment venues, gathering places and other mixed-use spaces are also key components of the overall revitalization of the area. For more information, visit www.jacksonvillebeach.org or call Petticoat-Schmitt at 904-751-0888.

Community partners to drive #ilovejax campaign Community partners will drive #ilovejax in 2012, a campaign that started in October as the Innovate Northeast Florida project preliminary findings identified the region’s image of itself as a key area for improvement. The media attention surrounding the JAX region’s need to regain its “swagger” helped launch #ilovejax naturally and contributed to its momentum and interest on Facebook and Twitter. The hashtag in the name, #ilovejax, will encourage others to use it on social media and provide the ability to track the online conversation. Regardless of the medium where the name is used, it represents the ongoing Volume 4, Issue 1

conversation about what makes the JAX region dynamic. The campaign will highlight different themes each month to ensure the messaging is new and exciting. All messaging and communication tactics will revolve around the themes and use the name #ilovejax. For more information, contact Michelle Danisovszky at 904-366-6641 or michelle. danisovszky@myjaxchamber.com.

Peirce joins TD Bank TD Bank has named Mark A. Peirce as assistant vice president, merchant sales representative in Jacksonville. He is responsible for promoting TD Bank’s Merchant Services to local businesses throughout Northeast and North Central Florida. Peirce has 12 years of experience in corporate sales. Prior to joining TD Bank, he served as the export manager at Formax in Dover, N.H., and also worked for the Fort Myers Miracle/Minnesota Twins as a corporate sales executive. To learn more, visit www.tdbank.com.

Cultural Council seeks nominations for arts awards The Cultural Council of Greater Jacksonville is seeking nominations for the 36th Annual Arts Awards. Awards will be made in the categories of business, individual, educator and small business. The deadline for submissions is Feb. 9, 2012, and winners will be announced in May 2012. The committee will review nominations based on criteria including: community outreach, service to the underserved, and the development of unique programs and collaborations. Small business nominations will be accepted from companies with gross revenues of less than $5 million and fewer than 100 employees. For more information, visit www.culturalcouncil.org.

JAXPORT welcomes $10 million grant for port

Mayor Alvin Brown applauded the federal government’s decision to provide a $10 million grant to JAXPORT. The Transportation Investment Generating Economic Recovery (TIGER) grant will supply $10 million to help build an intermodal container transfer facility. This enables freight-loading directly between rail and ships, a development that will help curb truck traffic on Heckscher Drive while increasing efficiency at Jacksonville’s waterfront.

Peak 10 infrastructure secures critical data of The Blood Alliance Peak 10 Inc., a managed services and cloud provider with world-class data centers, announced it is providing disaster recovery and data center services to The Blood Alliance. Peak 10 is supplying hosting, power and network connectivity from its Jacksonville campus, which provides a secure and hardened infrastructure for The Blood Alliance’s mission-critical data and business continuity needs. For more information, visit www.peak10.com.

Prudential Real Estate merges with Brookfield Residential Property Services Brookfield Residential Property Services, an affiliate of Brookfield Asset Management, has purchased Prudential Real Estate and Relocation Services. The union creates North America’s third-largest residential real estate brokerage business and the world’s second-largest relocation-services provider. Prudential Network Realty will remain an independently owned and operated local Northeast Florida real estate company under the leadership of President and Chief Executive Officer Linda Sherrer, Executive Vice President of Residential Real Estate Christy Budnick, and partners Thomas Petway, W.A. McGriff, E. Bruce Bower, and J. Michael Hughes. More information is available at www. PrudentialNetworkRealty.com.

Less than a week after he met with U.S. Transportation Secretary Ray LaHood to advocate for the project, 31

Small Biz news Florida’s minimum wage increases Florida’s minimum wage rate increased to $7.67 per hour, effective Jan. 1, 2012. Because this is higher than the current federal minimum wage rate of $7.25 per hour, covered employers will be required to comply with the higher state minimum wage. Employers of “tipped employees” who meet eligibility requirements for the tip credit under the Fair Labor Standards Act (FLSA) may count tips actually received as wages under the Florida minimum wage law. However, the employer must pay tipped employees a direct wage. The direct wage is calculated as equal to the minimum wage ($7.67) minus the 2003 tip credit ($3.02), or a direct hourly wage of $4.65 as of Jan. 1, 2012.

SBA accepting nominations for SBIR/STTR awards The U.S. Small Business Administration (SBA) is seeking nominations for awards honoring the critical economic role small businesses play in federally funded research and development through SBA’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Three awards will be given, one for companies that have participated in the SBIR/STTR programs, one for individuals who advocate on behalf of the programs, and a third “Hall of Fame” award recognizing companies that have an extended period of extraordinary success of research, innovation, and product commercialization within the SBIR or STTR program. Nominations will close 5 p.m. EST on Jan. 31, 2012.

2012 salary guides available It is now easier than ever to obtain the latest salary data from Robert Half. Just choose the industry you are interested in and download. Each salary guide contains regional and national hiring trends, hiring and retention advice, what’s hot: positions in the highest demand, hiring trends in your region, and trends shaping the industry. Robert Half offers salary guides for the following industries: accounting and finance, administrative, creative and marketing, legal, and technology. For more information, visit roberthalf.com or call 866-833-5699.

Payroll Tax Cut temporarily extended into 2012

of their Social Security tax withholding rate from 6.2% to 4.2% of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits. Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.

SBA-backed competition yields 7 new apps As a result of SBA’s “Apps for Entrepreneurs Challenge,” a competition for tech-savvy developers to build new and useful Web tools for small businesses, entrepreneurs can reach for their smart phone or tablet and search federal, state and local databases for vital information by using one of seven award-winning apps. All seven apps can be downloaded from SBA’s web site.

SalesNexus releases list of 200+ spam words Business-to-business email marketing can be a tremendous boost to sales, but only if your emails are read by customers, which is why SalesNexus just published “Spam Words - 200+ Words Guaranteed to Get You Thrown in the Junk Folder.” For more information, visit www.salesnexus.com.

Florida ranks in top 10 of Small Business Survival Index The Small Business & Entrepreneurship Council (SBE Council) released its 16th annual ranking of the states according to their public policy climates for small business and entrepreneurship in the “Small Business Survival Index 2011: Ranking the Policy Environment for Entrepreneurship Across the Nation” with Florida ranking No. 8. The 2011 Index has been expanded to cover 44 major governmentimposed or government-related costs affecting small businesses and entrepreneurs. The measures are added together for an overall rating. The top 10 states are: 1) South Dakota, 2) Nevada, 3) Texas, 4) Wyoming, 5) South Carolina, 6) Alabama, 7) Ohio, 8) Florida, 9) Colorado, and 10) Virginia. To see the full rankings, visit www.sbecouncil.org.

Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction 32

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ON THE STREET

Which new policies or procedures is your small business implementing for 2012? With the new year upon us, we wanted to know if you are making any changes in 2012. “I have a number of new implementations, but since I am fairly fresh out of the gate owning my own business (no solicitors please), there are plenty of implementations I need to continue working on.” Tommy Hobin digital marketing consultant at Mind Jar Media

“After 5+ years, I’m opening an office; adding specialized marketing, branding and consulting services, and more interns; and partnering with trusted colleagues on items I am not always able to work on, but some clients may ask for. So excited and ready for great things in 2012!” Camille Clement Gregg CEO, chief excitement officer at Outside The Box Consulting, LLC “2012 policies and procedures are all around digital media and online communications. We will be helping more small and medium-sized businesses (SMBs) implement social media guidelines and online monitoring programs, as well as building out social media campaigns this year. I see SMBs doing a lot more in this space in 2012, but they first have to be informed about the possibilities of engaging with buyers online. What’s held them back to date is a sense of overload, in particular fear of the resources required to meet the expectations of social media users.” Ilona Olayan marketer, researcher, strategist, and social media zealot “For 2012, I will be focusing on client communication— especially making sure clients get called back, which is always a challenge for me. My New Year’s resolutions are to simplify and recover.” Keith Johnson principal, Keith E. Johnson CPA PA “We will be implementing social media for 2012.” John Gray human resources director at England-Thims & Miller, Inc. Volume 3, Issue 8

“I will ensure that all calls to clients will be returned within a 24-hour period.” Pat Council host of “Designing Your Life, Today” radio show at True Thoroughbred Enterprises

POLL: Will you be implementing any new policies or procedures in your small business in 2012?

22%

still considering

78% yes

View answers to previous On The Street questions. advantagebizmag.com/archives/category/on-the-street

after hours

Keith Johnson: Kickin’ it for fun

While it may be something we all played in our childhood, kickball is more than that for Keith Johnson, CPA, owner of Keith E. Johnson CPA PA. “I think the last time I played kickball before I started playing in this league Jimmy Carter was president,” jokes Johnson. “But I find it a great way to stay fit and the people are great. I may be the slowest person on the team, so it’s not a pretty sight when I am up at bat, but I have a great time playing.” Johnson got involved with adult kickball about four years ago through a website called MeetUp.com, which is where people can “meet up” with other people with a common interest, such as wine tasting, flag football, happy hour groups, small business networking groups, book clubs, etc. “I started back in 2007 with one group and through that I got an email about a kickball group. I emailed back for details and decided to go,” says Johnson.

Let’s kick it! That meeting ended up segueing into the World Adult Kickball Association or WAKA (www.kickball.com). “Basically, it was a practice—but I had such a blast that when they asked if I wanted to join the league, I couldn’t say, “No!” 34

The leagues are made up of four to 16 teams of co-ed adults (ages 21 and over) of all skill levels and the game is played just like the elementary school game—with the big red playground ball. Each team has somewhere around 20 people and the rules state that you have to have at least four guys and four girls to play and you can play up to 11 on a team. “One other fun aspect are the team names,” says Johnson. “They are usually clever and a little risqué, but still off a kickball theme. My first team was called ‘New Kicks on the Block,’ while one of my more recent team names was ‘Pitches Be Crazy!’”

Time out Johnson especially likes that kickball doesn’t really take a lot of his time. A WAKA kickball season generally consists of eight regular season games and a league championship tournament with qualifying teams from each league being eligible to compete in the annual Founders Cup World Kickball Championship held in Las Vegas. “There are three leagues a year—summer, fall and spring— but I don’t/can’t do the spring season because of tax season,” says Johnson. “There is usually only one practice a week, but basically you show up on Thursday night ready to play.” Johnson’s team meets at Carver Park, where the game is designed to be played for six innings or within one hour. “You remember playing it as a kid and it being competitive and good natured, and here you are playing it again with adults, a referee, scoreboards, schedules, league standings, and playoffs,” says Johnson. “But at the same time, we all know there is a lot more to life than kickball.” www.AdvantageBizMag.com

after hours

Competitive edge This past season, WAKA split the league into a competitive side (a little tougher and a sidearm ball pitch) and a fun side (slower ball pitch), of which Johnson chose the competitive side. “I want to be competitive; I don’t want to be a wimp. I’m out to win!” jokes Johnson. “The thing about the leagues is, yes, everyone wants to win and, yes, you want to be competitive, but it’s really about the social aspect that is more important. “I started doing this in ’07 and I’ve noticed that it is tougher to play now than it was when I started,” says Johnson.

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Small businesses and those who support them are the real engine of the Jacksonville economy. This is a determined group that sticks together and makes a habit of exceeding expectations. The people below are committed to the success of your small business.

Finding Opportunities in Challenging Times Tax, Accounting and Start-Up Support Virtual CFO and Controller Support Fraud Prevention and Detection • Financial Analyses Proﬁt Improvement • Business Plan Development Richard T. Balog, CIA, CPA, President & CEO (904) 268-1148 • Cell (904) 945-1220 • Rick@ARCConsultingGroup.com ARCConsultingGroup.com • 4221 Clearwater Lane, Jacksonville, FL 32223

“Physically I can tell I am older now than I was just a few years ago, but I intend to keep playing as long as my body holds out.” n Keith E. Johnson CPA, is owner of Keith E. Johnson CPA PA in Jacksonville, Fla., a full-service CPA firm providing accounting, auditing, consulting, and tax services to individuals, businesses, and non-profits. He can be contacted at 904-727-0077 or kejcpa@comcast.net. See more after hour activities from other small business owners. advantagebizmag.com/archives/category/after-hours

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