Business Trend February 2019

Business Trend Winter 2019

of Northeast Mississippi

SMALL BUSINESS EDITION

Lafayette County Spotlight • Entrepreneurship 101 • Personal Finance Business Trend 1

HUTTON INSURANCE SOLUTIONS

Going Above and Beyond to Provide Real, Affordable Healthcare Solutions Steve and Emily Hutton are quietly introducing a proven integrated healthcare management system that has saved employer groups in the mid-south hundreds of thousands of dollars while improving benefits for there employees at the same time.

They lead Hutton Insurance Solutions, a Tupelo-based insurance consulting firm that works with business owners to advise, manage healthcare costs and provide real solutions for employers.

What’s the issue?

• Over (72%) of employers are now offering (HDHP’s) high deductible health plans to their employees due to the rising cost of healthcare • Deductibles and out-of-pocket expenses have increased (67%) since the Affordable Care Act was implemented • The average annual out-of-pocket costs for workers has risen by almost (230%) • Deductibles have risen six times faster than workers earnings • (43%) of insureds have reported difficulty paying medical bills • American Hospital Association estimates uncompensated care, bad debt annually, at ($120) Billion dollars because of the shift to HDHP’s and the high out-of-pocket costs owed by insureds What’s the Debate?

• Are there any real solutions or answer’s • The central debate is, whether or not, these plans actually reduce cost in the long run because of the negative affect it is having on people’s health • Over 40% of insureds say they chose not to see a physician or get a medical test in 2017 • 80% of ER physicians said they are treating patients who have sacrificed or delayed medical care due to the unaffordable outof-pocket costs • Individuals who live in areas with high poverty rates and low education rates reduced their “high severity” ER visits (those with a high probability of needing care within 12 hrs) by 30% • Can hospitals and providers continue to write off billions of dollars in uncompensated care What’s the Answer?

The Hutton’s have a unique proprietary product called “MediHOP” that has proven to be the answer for thousands of employees and employers in the mid-south and across the country. Our medical management system allows us to totally dissect a healthcare plan and put it back together more efficiently than when we started.

What are the Advantages?

• Cost effective solutions • Greater flexibility of plan design • Minimizes insureds out-of-pocket expenses and in some cases eliminating it all together • Implements a long-range plan to control healthcare costs • A benefit plan that actually attracts and retains key employees • Customized solutions that fit each employer’s needs at an affordable price

In short the Huttons are providing real healthcare solutions to those being left behind by traditional healthcare plans We have hundreds of MediHOP clients all over the country that are more than willing to share their MediHOP story with you.

The Huttons command a dedicated client service staff that goes above and beyond to support our clients. They personally serve each corporate client, like the Bank of Okolona in Chickasaw County, Mississippi. “Hutton Insurance Solutions is a very professional group and a big breath of fresh air,” said Mary Baxter, Bank of Okolona administrative assistant and compliance officer. “All of their staff worked well with our employees and helped them with claims and insurance questions.”

Consumer Investigator Andy Wise endorses Hutton Insurance Solutions as his exclusive Wise Choice for group health benefits.

Find his review at https://www.andywisechoices.com/hutton-insurance-solutions-medical-insurance-brokerage/.

For more information, contact Steve & Emily Hutton or visit www.huttoninsurancesolutions.com

398 E Main St; Suite 209 | Renasant Center for Ideas | Downtown Tupelo | (662) 255-6929 www.huttoninsurancesolutions.com 2

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Table of Contents

5 Letter to the Editor 6 Small Business Economic Impact 11 Personal Finance Column 12 CDF Ribbons Cutting 15 Marketing Column 16 Public Universities Economic Impact 18 Real Estate Column 19 The Reading List

Editor Dennis Seid Writers Mike Lee Columnists Chris Cole Ty Robinson Clay Short David Henson John Oxford Photography Adam Robison Thomas Wells Joey Brent Design Ellie Turner Lauren Wood

20 County Spotlight: Lafayette 24 Entrepreneurship Column 28 Stats & Numbers 29 Banking Column

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Business Trend

This product is a quarterly product of Journal Inc. P.O. Box 909 Tupelo, MS 38802 bizbuzz.djournal.com djournal.com

From the Editor

Out with the old

By Dennis Seid It’s a little late, but Happy New Year, and welcome to the first issue of Business Trend.

For several years, we’ve had the monthly Northeast Mississippi Business Journal. But for 2019, we decided to go a different route with a quarterly publication.

Gone is the Northeast Mississippi Business Journal of old.

Business Trend will be more business-focused. We value all of our readers, but we want the new quarterly magazine to target the business community more than ever. We’ll still have some profiles and stories about entrepreneurs and business owners in Northeast Mississippi, but we also are bringing in more guest columnists with a variety of expertise and knowledge. We’ll also have more information via graphics and lists to provide another outlook on not just the economy of the region, but of the state and world.

Each issue, we’ll also profile a community in Northeast Mississippi.

Business Trend is a work in progress, and the first issue may not look like the second, nor will the second look like the next. You get the picture.

We welcome any input you have, whether it’s good, bad or ugly. This is new to a lot of us, and we’ll continue to work on and improve our product. Please tell us what you think. And give us advice on what you want to read about.

And as always, thank you for reading.

Monthly newsletter Our goal is to keep you in the loop on all things business year-round. With this in mind, in addition to the quarterly magazine, we will send a monthly newsletter with top business stories from around the region.

To subscribe, go to djournal.com/businesstrend.

Images by Freepik.com

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All in the family

Small business contributes highly to local economy

By Dennis Seid Mike Mason has opened, bought, closed and been a part of many business ventures through the years.

For nearly the past two decades, he's been owner and president of Weathers Auto Supply, which has two locations in Tupelo and another in Corinth. Working alongside is his wife, Melissa.

But wait, there's more: Their twins, Jake and Jordan, also have worked in the business, making Weathers a family affair.

Small businesses make up the bulk of the businesses and employment in the U.S, and most are family-owned.

A family-owned business is defined as any business in which two or more family members are involved and the majority of ownership or control lies within a family.

According to Inc., family-owned businesses "may be the oldest form of business organization. Farms were an early form of family business in which what we think of today as the private life and work life were intertwined. In urban settings it was once normal for a shopkeeper or doctor to live in the same building in which he or she worked and family members often helped with the business as needed."

According to the U.S. Bureau of the Census, about 90 percent of American businesses are family-owned or controlled. They range in size from two-person partnerships to Fortune 500 firms (like Walmart).

A 2018 survey conducted by SCORE (Service Corps of Retired Executives) showed that family-owned businesses employ 60 percent of the U.S. workforce and create 78 percent of all new jobs. Family businesses generate 64 percent of America’s Gross Domestic Product.

The Masons are among the 1.2 million family-owned small businesses run by a husband and wife. The dynamics of running a business with family members differ, but Mike said one important rule of thumb for him is to keep work separate from the home.

Working with Melissa is ideal because "it's more time we can spend together" he said. "And working together is like being married anyway. We spend as much time at work as we do at home. But I try not to bring work home. I think it works best that way. You want to keep the stresses that go on at work separate from what goes on at home. It just makes sense. It's easier and creates less drama."

Melissa said the nearly quarter-century she's worked with Mike has strengthened their relationship.

"It seems the more we work together, the more we get along," she said. "It's weird. Most people say they can't work with their significant other, but we've never had a problem with it. We've always done really well. We've managed to keep it not too serious ... I really enjoy it."

"I've worked with my wife since we got married in '94," he said.

"In every business we've had, we've worked together. So when we bought Weathers in 1999, she naturally came in. She's good at lots of things. She does bookkeeping, pays bills, works with insurance companies. My children have worked most of their lives during the summers. My son has worked in the back mostly working the warehouse and making deliveries, and my daughter has been helping my wife. They were here a lot growing up.

"Starting a business from scratch – which I haven't been too successful at – brings an entirely different set of problems that you run into," he said. "I've had much more success either buying an existing business or buying into a franchise concept.

"If I'm going into a business or buying into one, I like to have the phone ringing from day one. Making the phone ring is costly and can take a long time.

"We look for businesses in a compatible industry ... We won't be selling hair dryers or whatever. It'll be in the automotive sector because we've already got contacts in the industry and I know the business fairly well.

"I also look for potential. I don't mind buying a business that's somewhat distressed because the likelihood is that there are issues that can be fixed either with available capital or better management.

It's like the stock market - buy low and sell high. You don't want to buy a business that's peaked out and has no potential for growth.

Find something in your category or in a field you're comfortable with, compatible with what you do and if you can leverage your existing overhead to get it off the ground or make it work more efficiently and you have the ability to make it grow with added capital or people, then that's it.

“Small business is tough. Times change, and you have to learn to adapt.”

SUCCESSION PLANNING

Richard Eisenberg, the senior web editor of the Money & Security and Work & Purpose channels of Next Avenue and managing editor for the site, writes extensively about family-owned businesses.

Eisenberg cites a Family Business Survey by the National Bureau of Economic Research Family Business Alliance that found 43 percent of family-owned businesses don’t have a succession plan.

However, the survey found, about three-quarters of the enterprises plan to pass ownership to the next generation.

“Generally, most family business owners find themselves so involved in the day-to-day operations, they’re not thinking of what’s

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PROFILE OF AN ENTREPRENEUR A first and often overlooked step is to determine why you want to go into business.

From the list, check the reasons that apply to you.

Do you enjoy being your own boss?

Are you a good leader?

Are you a confident person?

Do you want to improve your standard of living?

Do you adapt well to changes?

Are you a good organizer?

Do you plan ahead?

Do you like to make your own decisions?

Do you have will power and self discipline?

Do you enjoy competition?

Are you a self starter?

Do you realize that many business owners work 60 to 80 hours a week?

Do you have work experience in the type of business you are considering?

The checklist cannot tell you whether or not you should be in business, but it will give some areas to consider. A "yes" answer should be considered a good indicator and a "no" answer indicates some potential problem areas. You should carefully consider the "no" answers and determine how you will deal with problems that may arise. After reviewing the results of this exercise ask yourself one final question: "Would you be better off working for some else?"

Source: Mississippi Small Business Administration

next for them personally or for their family and how that intersects with the business,” said David Neubert, managing director of SunTrust Business Transition Advisory Group.

The Masons don't necessarily fall in that group, though.

Even while their children have grown up in the business and know how it's run, there is no clear path for them to take over one day. Jake and Jordan are heading to Florida to finish their education in computer science and cosmetology, respectively, and their future is in their own hands. And Mike and Melissa are fine with that.

"We've kind of prepared them, and they kind of know what the business end is like," Melissa said. "I don't know if they'll ever want to come back to it, but at least they've had a taste for it."

But for family businesses that do hope to make it to the next generation, succession planning can be the key to sustaining the company. The problem is that few family business owners are doing a good job preparing to turn their enterprises over to the next generation.

“Succession planning is a difficult thing because it’s tied up with the hard-to-face fact that the owner is going to retire,” said Ritch Sorenson, Opus endowed chair in family business and academic director at University of St. Thomas in Minneapolis. “No matter how accomplished the children are, there may be questions about whether they can take over and run the business as well as the parents have done.”

Eisenberg notes that Joe Fahey, PNC director of business succession planning, says “the things that make these owners successful – vision, communication and execution – are things they need some coaching on to apply those skills for the family’s strategic plan and vision.”

Succession planning must start early, experts say.

“The rule of thumb we have found is that you need at least 10 years to plan for succession,” Sorenson said. “There are a lot of things you have to work through.” They include estate planning, taxes, liability, ownership stakes and voting rights.

Said Eisenberg, "Long-term succession planning can give your child or children time to learn the management tasks and for you to see how well they’re executed."

Determining which child or children will run the business and when that will happen is critical.

“It can be emotional,” Neubert said. “It has implications for the business itself, financially, and impacts the legacy of not only what you want the business to look like over the long term, but how it intersects with your family and the community.”

Eisenberg said some owners mistakenly assume a specific child can take over the business when the reality is the son or daughter lacks the appropriate experience and expertise, which can lead to disaster.

LOSING INTEREST

But one challenge family-owned businesses face is that younger generations are less interested in taking over.

Just half of the family firms PwC surveyed said that successors to key roles will be family members. According to PwC’s 2016 survey of family businesses, of those expecting to change ownership in the next five years, only 52 percent

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PITFALLS & OPPORTUNITIES

“I also look for potential. I don’t mind buying a business that’s somewhat distressed because the likelihood is that there are issues that can be fixed either with available capital or better management.”

of them plan to keep the ventures in the family, down from 74 percent in its 2014 survey and the lowest number since 2010. Of the family businesses expecting to change ownership more than five years in the future, just 69 percent plan to keep the companies in the family, compared with 79 percent in the previous survey.

The key is getting a family business adviser to help guide the business into the future – assuming one or more of the children are interested in taking up the mantle.

"The biggest mistake business owners make is trying to create a succession plan without the help of a professional adviser or team of advisers," he said.

"There are a whole host of factors at play, and one mistake can jeopardize your future and that of your business.

Fahey said regardless of whether a business owner decides to keep or sell, a financial snapshot is needed to compare cash flow, liquidity, diversification and risk profile. The adviser can objectively discuss with you the pros and cons of handing over the reins to one or more of your children versus bringing in an outsider to run the company — so-called “hired gun” management.

And according to PwC, a family business adviser can be especially helpful in working to draw up necessary succession documents. Just 23 percent of family firms have a “robust, documented plan."

By planning ahead, Fahey said, "you can redirect money that would otherwise go to the IRS to your family members and charitable organizations.

"A solid succession plan also can incorporate helping your employees or addressing your philanthropic aspirations, so non-family beneficiaries also can benefit from the transition of the business."

Photos of Weathers Auto Supply by Adam Robison

PITFALLS • In many ways you are still not your own boss. Instead of having one boss, you will have many – your customers or the government agency to whom you must report.

• There is a larger financial risk. The failure rate is high in new businesses, and you may lose not only your own money but also that of your friends and relatives who may have bankrolled you.

• The hours are long and hard. When you start your business, you will no longer be working 9 to 5. Count on working 10, 12, or even 15 hour days, often six or seven days a week.

• You will not have much spare time for family or social life. And you can forget about taking any long vacations for the first few years since the business is unlikely to run itself without your presence for any long length of time.

• Your income may not be steady like a salary. You may make more or less than you would working for someone else. But in either case, your income may fluctuate up and down from month to month.

• The buck stops with you. If a problem arises, there is no boss you can take it to and say “What do we do about this?” You are the boss and all the responsibility is yours.

• As a business grows, the amount of activity now associated with the primary business objective will increase. You will spend more time on personnel, administrative and legal matters and less doing what you may have wanted most to do in your business.

• Increasing legislation and litigation make owning a business risky. You can work a lifetime to build a business only to have it lost because of a lawsuit or a new law or regulation.

OPPORTUNITIES • Being your own boss and not having to report to a superior.

• Having the independence and authority to make your own business decisions.

• Direct contact with customers, employees, suppliers and others.

• The personal satisfaction and sense of achievement that comes with being a success, plus the recognition that goes with it.

• The opportunity to create substantial wealth and job security for yourself.

• The opportunity to be creative and to develop your own idea, product or service.

• The chance to make a living doing something you truly enjoy.

• Doing something that contributes to others, whether it be providing an excellent product or service, providing employment, paying dividends to stockholders, or doing something else that is useful or that creates value.

Source: Mississippi Small Business Administration

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personal finance

Market ups and downs and how to invest

By Chris Cole One of my favorite things to do when I’m not working is to read adventure novels. I got hooked on them when a teacher in the 5th grade gave me a copy of a book by Alistair MacLean, and ever since I find myself reading a new one I find when I have the time.

Several months back, I was reading one when a friend saw me doing such and remarked that he had read the book and proceeded to tell me the ending. After thanking him for spoiling the ending for me, I read it anyway and found that while the ending was as he said, the way the writer got to it was not how I expected.

Lately, I find myself wanting to be like my friend and tell investors that though things look ugly right now in the investment markets, I know how the story ends. We’ve been here before and we will be here again at some point in the future. Since 1950, we in the U.S. have had six market downturns of over 20 percent, or what is better known as a bear market. We have also had 36 market downturns of over 10 percent, better known as a market correction.

Each bear market or correction has it’s own unique characteristics as to what causes them, but not one of them has been something that has been permanent. They vary in duration also, with some lasting as short as three months, and others lasting as long as two years. Some are caused by events globally such as the Asian financial crisis of 1997.

Some are caused by events here in the U.S. such as the dotcom bubble in 2002. The one common thread in all of them is that at some point they ended. Sentiment changed from pessimism to rational.

Fundamentals such as whether companies were making a profit, and also growing their profitability began to take priority over fear and conjecture. That change of thinking lead

to the seven bull markets, or market gains over 20 percent, we have experienced since 1950. These market upturns are what have propelled the S&P 500 index from 17 on Jan. 1, 1950 to around 2,600 today.

As to this market downturn we are in right now: The causes are many, from concerns about global economic growth expectations to political upheaval here at home. In general, the word used more than any to describe where we are is uncertainty. While no one knows how this period will end, history suggests that eventually the questions on the table right now will be either answered or other issues will be pushed to the front.

So what does an individual investor do now? The most important thing to do is to remember why you are investing.

Retirement savings, college savings, healthcare expenses, etc. – all these needs are still there no matter what the market does. If you are a long-term investor, market downturns like the one we are in have historically been great times to put new dollars to work. Consider funding your retirement accounts and any college savings accounts early in 2019 if possible. Finally, take time to review your investments with your financial adviser to make sure you are following a balanced investment strategy suited for your individual needs.

In the end, remember that we have been here before.

Market downturns are a natural and necessary event in financial markets. Somewhere down the road, we will have another and another. I don’t know how the chapters in this book will read yet, but I know how the story ends.

Chris Cole is a Chartered Wealth Advisor and vice president of Hilliard Lyons in Tupelo.

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Ribbon Cuttings & Grand Openings

FIRST AMERICAN NATIONAL BANK

MAD SCIENTIST WEB DESIGN

TUPELO-LEE HUMANE SOCIETY

RIGHT TRACK MEDICAL GROUP

EDWARD JONES/TREY TRAPP AGENCY

R&B SPECIALITY

A groundbreaking ceremony was held for First American National Bank’s future branch location on North Gloster Street. Chartered in 1964, First American first opened its doors with the commitment “Promoting Community Growth”. By staying focused on the needs of each individual community and the financial services of its citizens, they provide their customers with stability and security without losing the personal touch. Visit their website www.fanb24-7.net

A ribbon cutting was held to celebrate the opening of the new Tupelo Lee Humane Society’s animal shelter. Now located at 2795 Cliff Gookin Boulevard, TLHS continues to address pet overpopulation issues in their new state-of-the-art facility.

Visit their new location, their website www.tupeloleehumane.org, or follow them on Facebook to learn more ways to help by adopting, fostering, volunteering or donating.

Celebrating their open house, a ribbon cutting was held at Edward Jones Trey Trapp Agency at 2885 McCullough Boulevard in Tupelo. The Trey Trapp Agency provides sound financial planning and management services to ensure their clients’ futures. Contact them at 842-2625 or visit the website at www.edwardjones. com.

Mad Scientist Web Design recently held their ribbon cutting in the Renasant Center for IDEAs. Offering businesses customized web design services to fit any budget, they also help with network and server security, social media management, graphic design service, search engine optimization and more. Visit their website at madscientistwebdesign.com; or call (888) 882-8843.

Right Track Medical celebrated the opening of their new clinic in Tupelo with a ribbon cutting. They offer a physician-led approach to treating anxiety, depression, and other common mental health disorders on an outpatient basis, and includes psychiatric evaluation, medication management, short-term individual and family therapy, and coping skills. Visit their new clinic at 4428 South Eason Boulevard, contact 234-7601, or visit their website www.righttrackmedical.com.

R&B Specialty celebrated their recent expansion with a ribbon cutting event.

Located in the Renasant Center for IDEAs at 398 East Main Street in Tupelo, R&B Specialty offers a wide array of customized promotional items, signage, screen printing and boutique-style apparel. Contact R&B Specialty at 260-2145 or follow them on social media.

Ribbon Cuttings & Grand Openings

THOMAS STREET MEDICAL CLINIC

ALLIED FUNERAL INSURANCE

HUTTON INSURANCE

TUPELO ACADEMY OF DANCE ARTS

Announcing their rebranding, a ribbon cutting was held for Thomas Street Medical Clinic, a full-service family healthcare practice located at 65 South Thomas Street in Tupelo. They also offer in-house labs, X-rays, and blood pressure and diabetes screenings. Call them at (662) 205-4475 today to schedule your appointment.

Walk-ins are welcome. Visit their website www.thomasstreetmedical.com

Hutton Insurance celebrated their grand opening with a ribbon cutting. Specializing in Term Life, Whole Life, and Health insurance coverage, Hutton Insurance works with many different insurance companies to offer customized plans for their clients’ insurance needs. Visit their website www.huttoninsurancesolutions. com, visit their office in the Renasant Center for IDEAs at 398 East Main Street, or follow them on social media.

A ribbon cutting was held for the new home office of Allied Funeral Insurance at 316 South Thomas Street in Tupelo. They meet the insurance needs of their policy owners, local funeral home professionals, and clients by offering competitive products and superior customer service. Visit www.alliedfuneralservices.com, or call 840-9911.

To celebrate their new state-of-the-art studio at 2224 West Jackson Street in Tupelo, a ribbon cutting was held at Tupelo Academy of Dance Arts. Established in 1976, it is the premier dance school in the region with instruction in ballet, pointe, creative movement, jazz, hip hop, contemporary, partnering, adult strength training, and musical theater. Visit their website www.tupeloballet.com or follow them on social media.

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marketing

Communication essential to family-run business

By Ty Robinson Family businesses are partnerships. They may be equal partnerships, or they may be divided into different shares.

These partnerships may be a married couple, a parent and adult child, a group of siblings, a group of cousins ... there can be many combinations to this. The dynamics that make up the business when relatives are involved can be interesting, which can be an understatement.

Like any other business – sole proprietor, partnership, corporation – the biggest key is communication. There must be a vision for the company. There must be a mission for the company. There must be an agreement on how to run the company. All of this should be established and in writing so that all parties know what the rules of engagement are.

It is important for a company to speak with “one voice.”

The officers and other employees of the company should know the direction of the company. It’s tempting to allow interpersonal issues to invade company space. However, with all the family companies that I have served, I’ve not seen this. I’ve seen that the family bond actually strengthens the organization rather than causing a rift. One thing these family-run companies agree upon is to have family discussions behind closed doors. Family issues are kept within the family only.

I am in a family business. My father and I have worked together since 1992. And, my family business has helped many other successful family businesses with their marketing. There is a bond when talking with someone who is a member of a family in business together. The issues we face are no different than any other business, but I’ll say it again,

when relatives are involved, things can get interesting.

It amazes some folks to find out that my father and I have not had an argument in business since working together.

This doesn’t mean we agree on everything. On the contrary, we often disagree. Our focus is what is best for the client, which is what we call our customer. We put all the data out on the table that we can to make the best decisions possible.

We’re not always in 100% agreement on that either, but we are unwaveringly united in what we present to the client.

This can also be seen in another company in an example where we recently worked on a project with a manufacturer that is run by family members. There is a husband, wife and several children in the business. We met with the husband and wife for a creative session, and it couldn’t have been more fun. They were honest and open, as were we. We laid all the objectives out and started discussing what would work.

Not everything was agreed upon, but there was never an argument. We structured a vision for the event and parameters for the mission that it was to accomplish. Then we prioritized the work. A consensus was reached quickly and easily.

Why? Communication!

I’ve often received the comment, “I don’t see how anyone could work with a parent.” I have a simple answer for this, I don’t. I work for my client. I work with my father, and he works with me. That has been the secret to our success in working together – and the keyword there is “together.”

Ty Robinson is president and COO of Robinson and Associates in Tupelo.

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Public universities impact economic development Successfully attracting business and industry to Mississippi requires the dedicated efforts of economic developers, community leaders and elected officials on both state and local levels. University officials also play a key role on the team by providing information on how Mississippi Public Universities can support workforce needs and fulfill research needs to help businesses grow and thrive.

• The Jackson State University Small Business Development Center is part of a network of Small Business Development Centers across the nation bringing expert business knowledge to small businesses at no cost. The SBDC provides high quality technical assistance to aspiring business owners with the goal of getting businesses open or expanded on a sound business and financial footing.

In Fiscal Year 2017, the Mississippi Small Business Development Centers helped start 217 businesses, create 998 jobs and retain 673 jobs. Their efforts paid off in $52.2 million in capital formation and $10.3 million in new sales growth.

Jackson State University is the nation’s first HBCU to enter into a mentor-protégé agreement under NASA’s Shared Services Center that will provide JSU with training and tools to become a major business contractor. The goal of the collaboration is to position JSU as a competitive prime contractor in the future.

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Business Trend

Mississippi Gov. Phil Bryant appointed Jackson State University associate provost Dr. Joseph A. Whittaker to serve on his Governor’s Military Defense Initiative Task Force that aims to encourage defense-related companies to locate in the state. The task force has a year to develop its master plan and present to the governor its strategies for bringing more military contractors into the state and attracting more employees.

• The Mississippi Development Authority regularly asks Mississippi State University to host companies that are considering locating in the state. These visits typically include meetings with the MSU Career Center to discuss recruiting their graduates, visits to various research centers, and meetings with deans from colleges such as Business or the Bagley College of Engineering. This approach has helped convince companies like PACCAR, Yokohama, Nissan, and General Electric to locate manufacturing facilities in Mississippi.

Mississippi State University’s National Strategic Planning and Analysis Research Center has worked with several state agencies, including the Mississippi Development Authority, the Department of Education, the Mississippi Community College Board, State Institutions of Higher Learning, and the Department of Employment Security to develop a database and a holistic approach to identify

Mississippi’s current workforce as well as our pipeline into the work- Research Institute, McLean Institute for Public Service and Commuforce. This approach, one of the most comprehensive in the nation, nity Engagement, The Center for Innovation and Entrepreneurship, serves to match employers and employees, and also provides current Mid-South Intellectual Property Institute and Oxford Lafayette labor market statistics to industries wanting to know more about County Economic Development Foundation.

Mississippi’s workforce.

The goal of the series is to provide entrepreneurs from the Mississippi State’s Center for Advanced Vehicular Systems Exuniversity and community with an overview of key resources that tension Center in Canton works with the Mississippi Development are available on campus. Each session is focused on a specific topic, Authority and local economic developers to provide services such such as critical issues to consider before forming an LLC and critical as professional development, site master planning, simulation and issues to consider before posting online content, that is important to decision modeling, and logistics support to assist industry. This is the entrepreneurs’ efforts and success. funded by both a state appropriation and several competitive grants Research also plays a crucial role in attracting and retaining busithat have been awarded to the center. nesses in Mississippi.

Based on information verified by the U.S. Department of Com• Steel Dynamics, a large rolled steel manufacturer in the state, merce, Mississippi State University’s work with Mississippi indusworks very closely with Mississippi State University’s Center for Adtries has resulted in an economic impact of $5.96 billion and over vanced Vehicular Systems to develop and test new alloys for the steel 4,600 jobs either created or retained. Companies that have been industry. Steel Dynamics funded the establishment of a “mini mill” assisted at this center include Nissan, Viking Range, Huntington at MSU that can be used to develop and pour new alloys for testing Ingalls Shipbuilding, Milwaukee Tools, Baxter Medical, and Caterprior to bringing them into the production environment. pillar.

• The University of Mississippi signed an agreement with Glo• The Haley Barbour Center for Manbalstar, a multi-billion dollar satellite ufacturing Excellence at the University communications company, to establish of Mississippi works with Toyota in a second-generation ground station on curriculum review and development, the Oxford campus – Ole Miss will Based on information verified professional development of students, have the only ground station communiby the U.S. Department of and career placement initiatives. Toyota’s cating with Big LEO (Low Earth Orbit) upper management serves on the CME satellites, providing Mobile Satellite Commerce, Mississippi State advisory board to ensure Toyota’s experServices over handheld devices. This tise and experience in the development partnership will provide research and University’s work with of people is reflected in how the CME educational opportunities and help us Mississippi industries has attracts, engages, and educates students. build an industry cluster in satellite Toyota personnel visit the CME every communications in our area. resulted in an economic imyear to engage faculty, staff and students.

• The University of Mississippi pact of $5.96 billion and over CME student teams have received and Jackson State University joined a academic credit by solving real-world consortium of academic institutions to 4,600 jobs either created or manufacturing problems and working create a technology transfer accelerator retained. alongside employees. The CME students hub for biomedical technologies in the learned from working in a factory enviSoutheastern United States. This new ronment and provided fresh perspective grant mechanism will be one of four to real manufacturing problems for sevNIGMS-funded hubs to help IDeA eral Mississippi businesses, including Parker Hannafin in Batesville; states accelerate early-stage biomedical technology from the laboraParker Racor in Holly Springs; Borg Warner in Water Valley; GE tory to market. The goal is to enhance the capacity to move scientific Aviation in Batesville; and ABB in Senatobia. results from academic institutions into commercialization and to • The University of Southern Mississippi has a longstanding relapromote a sustainable culture of biomedical entrepreneurship within tionship with Area Development Partnership, and like its partner, IDeA states. the University has been in the business of enriching the lives of • At the University of Mississippi Medical Center, a Translationthose it serves, not only for its students, but also for its faculty and al Research Center at UMMC was designed for collaborative work staff, Hattiesburg and coastal communities, the state of Mississippi, ranging from basic science to business partnerships. The TRC will and beyond. help researchers improve the health of individual Mississippians and USM’s Ocean Enterprise strongly supports Gov. Bryant’s “Blue will have tremendous long-term impact on our economy by growing Economy” initiatives – or economic activity in the maritime sector. our biomedical industry base.

Bryant signed an executive order creating an Ocean Task Force, • The University of Southern Mississippi has solidified its which is chaired by Dr. Monty Graham, Director of USM’s School position as the leader in marine education and research along the of Ocean Science and Engineering. The task force is charged with Gulf of Mexico through numerous projects and partnerships, which creating an environment for attracting the unmanned maritime include: systems industry to the state of Mississippi.

A partnership with the Port of Gulfport to house the new Ocean Engineering program in the new Marine Research Center; construction of the new Marine Education Center at its Gulf Coast Research SUPPORTING ENTREPRENEURS Laboratory in Ocean Springs; and producing the first class of gradEconomic development announcements often focus on the “big uates in the nation to earn a certification of Unmanned Maritime fish” that will bring hundreds of jobs to Mississippi, but entrepreSystems. neurs play a vital role in Mississippi’s economy. Mississippi Public As a technology incubator for Boeing, USM entered into a master Universities support entrepreneurs in a variety of ways. agreement with the aviation giant to accelerate research and develop• The University of Mississippi recently hosted the Spark Series, ment of next-generation materials, including polymers and polymer a collaborative effort of the University of Mississippi School of Law, Insight Park, School of Journalism and New Media, Mississippi Law matrix composites.

Article provided by the Mississippi Institutions of Higher Learning

Business Trend

17

real estate

NEMS Commercial Real Estate Outlook

By Clay Short In general, across all commercial real estate categories of improved products – which includes office, retail, warehouse and multifamily – demand has remained steady and new construction creating supply has not kept up with demand.

This has created low vacancy rates and increasing rental rates/ sale prices across the commercial sector. The following is a general update of basic product categories throughout Northeast Mississippi, with a focus on Tupelo as the epicenter based on its multi-tiered economy, basic manufacturing base and surprisingly expansive retail trade area, OFFICE Demand for higher quality office space, sometimes referred to as “Class A,” has created need for ground-up construction and high quality refurbishment in the past few years. Although leased at a premium rent rate, corporate tenants are not being deterred.

Fairpark Towers in Tupelo is a 40,000 SF mixed-use building, developed by Century Construction’s Colin Maloney, and is predominantly leased to office tenants such as BankPlus and Ross & Yerger Insurance.

In Oxford, both The Blackburn Group and Trezevant Realty Corp, have presented new, more flexible products to the market.

That allows them to capture the smallest of tenant demand for single offices, with shared amenities, up to tenants in the 5,000-square-foot range.

New projects in the pipeline include the expansion of these products in these markets plus a mixed-use product that, while certainly more complicated, will provide a “live-work” environment which is hot in larger metros. In Oxford, “The Lamar” is a 50-acre mixeduse project located just north of the historic square and is a great example of an exciting “what’s to come” in the future. In Starkville, developer Mark Castleberry has completely leased the Mill Project, which was an innovative refurbishment of an old, well-located mill, requiring a mixture of private investment, grants, tax credits and traditional financing.

RETAIL Demand is steady to high from the discounters, service-industry businesses and restaurants (especially quick-serve and quick-casual products), creating opportunities for retail strip centers in high visibility, high-access locations.

18

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Developers Blake Tartt and David Blackburn at the Oxford Commons project have successfully captured restaurant and service-industry demand with fresh tenants. Trezevant Corp. has expanded the Oxford Galleria project with the recent addition of HomeGoods.

Strip retail in the region – typically 7,500 to 10,000 square feet – such as Tupelo Crossroads, feature tenants like Starbucks, Aspen Dental, Pyro’s Pizza and Which Wich. Obviously rental rates, driven by new construction pricing, have increased to levels not reached in this area for comparable projects during my 20-year career.

INDUSTRIAL Vacancy for our reported 15 million-square-foot supply of quality warehouse space is below the national average of 4.5 percent.

Demand driven by eCommerce and third-party logistics markets, combined with our already strong manufacturing base, is creating a void for quality space.

Developers’ construction costs create a need for lease rates that would likely be double that of market lease rates of most existing facilities, and tenants still like cheap space. The market will most likely experience increasing existing rates to decrease the margin between them and new construction rates. When and if this happens, the regions will likely experience an increase in new construction, effectively providing space for tenants like Williams Sonoma, which just located to the area, but had a hard time finding a building that fit.

MULTI-FAMILY There is no hotter product on the national scene for investors than high-quality multi-family. Local municipalities watch these products closely to prevent oversupply resulting in low vacancy rates.

High occupancy combined with investor demand increases value and lowers investor yield. This is happening from your most dynamic metros to the remotest of markets. Investors from coast-to-coast are in touch with us on a daily basis to try and uncover the latest multifamily deals. New projects are very limited, but when delivered, are absorbed quickly.

Clay Short is the President of TRI Inc Realtors, a Northeast Mississippi Commercial Real Estate Brokerage and Property Management firm.

The Reading List “The Surprising Science of Meetings” by Steven G. Rogelberg You know what might be more useful than sitting through an hourlong department meeting? Taking that hour to read a book about why most workplaces are doing meetings all wrong.

“Be Fearless” by Jean Case Case’s book is a welcome kick in the pants for anyone who feels stuck in their career. Case, a former AOL executive who was the first woman to chair the National Geographic Society, breaks down success into five guiding principles: Make a big bet, take bold risks, capitalize on failure, look beyond your comfort zone, and prioritize urgency over fear.

“The Enlightened Capitalists” by James O’Toole O’Toole, the founding director of the University of Southern California’s Neely Center for Ethical Leadership and Decision-Making, chronicles the ways business leaders tried to align their profits with social good, sometimes with poor results.

“Loonshots” by Safi Bahcall Bahcall, a physicist and biotech entrepreneur, analyzes the ways groups will suddenly shift from embracing radical change to resisting it, whether that’s on a corporate project, in politics, or even in a traffic jam.

“The Age of Surveillance Capitalism” by Shoshana Zuboff The monoliths of today’s business world are the big tech companies, and unlike corporate giants of the past, they know a scary amount about each of us and hold tremendous sway over our lives. And much of the power they hold is in spaces unregulated by the government.

“The Making of a Manager” by Julie Zhuo Facebook’s vice president of product design wrote this book based on her experience becoming a first-time manager (and panicking) at age 25. And according to Ev Williams, the CEO of Medium CEO and a founder of Twitter, the book’s “practical wisdom” is as useful for brand-new managers as it is for old hands.

“The Prosperity Paradox” by Clayton Christensen, Efosa Ojomo, and Karen Dillon From one of the world’s foremost management thinkers comes a highly thought-provoking and heavily researched book about the keys to successful economic development. Christensen, a professor at Harvard Business School and the author of “The Innovator’s Dilemma,” explores how innovation can trigger social and economic change.

“Nine Lies About Work” by Marcus Buckingham and Ashley Goodall Buckingham and Ashley Goodall, the senior vice president of leadership and team development at Cisco, debunk the most dangerous myths about the workplace, like the idea that company culture trumps everything else. The authors also write about the “freethinking leader,” who’s able to move past these misconceptions and embrace what makes each person different.

“Digital Minimalism” by Cal Newport Whereas deep work is about focusing on a complex task without distraction, digital minimalism means decreasing the time you spend online, by choosing a few activities that are meaningful to you and leaving everything else behind. Both, in Newport’s view, are keys to success.

“Firefighting” by Ben Bernanke, Timothy Geithner, and Henry Paulson To mark the 10th anniversary of the financial crisis, the top three economic policy leaders who lived through it reflect on their experiences.

“Zucked” by Roger McNamee McNamee denounces Zuckerberg and Facebook’s chief operating officer, Sheryl Sandberg, for the way they’ve handled crises of the past couple of years, including Russian hackers’ attempts to influence elections and reports detailing a lack of transparency in personal-data sharing.

“Why Do So Many Incompetent Men Become Leaders?” by Tomas Chamorro-Premuzic.

This book grew out of one of the most popular Harvard Business Review articles, published in 2013 with the same title. Chamorro-Premuzic, a professor at University College London and Columbia University and the chief talent scientist at Manpower Group, draws on decades of research and real-life examples to illustrate how men who won’t necessarily be effective leaders wind up getting the job.

“Tim Cook” by Leander Kahney Kahney is a big fan of Cook and chronicles the way Cook exceeded consumers’ and shareholders’ expectations of Steve Jobs’ successor, turning Apple into the world’s first trillion-dollar company.

“Trillion Dollar Coach” by Eric Schmidt, Jonathan Rosenberg, and Alan Eagle In “Trillion Dollar Coach,” Schmidt, Rosenberg, and Eagle — the former Alphabet chairman, an adviser to Page, and Google’s director of executive communications — share lessons they gathered from 80 of Campbell’s students that you’ll want to incorporate into your own work life.

Source: Business Insider

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Photo by Joey Brent

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county spotlight

Oxford & Lafayette County

By Mike Lee Business and industrial growth are booming across the MidSouth. At the forefront of that trend in Mississippi is the city of Oxford, county seat of Lafayette County, located in the center of the northern one-fifth of the state. The community offers advantages unmatched and for various reasons.

For families, Oxford provides one of the best school systems in the state; venues for cultural involvement and participation; religious worship including Muslim, Jewish, Christian and Buddhist faiths (in near by Batesville); retail shopping; and all types of recreational opportunities.

Oxford also has numerous cultural offerings that include various music genres, theater and stage performances, and even a state-wide radio program – Thacker Mountain Radio – which is broadcast live each week from Off Square Books. William Faulkner's home, Rowan Oak, continues to be a must-see attraction for literary devotees along with the Faulkner family home – Memory House – which attracts tourists from all over the country.

The city also has a wide variety of retail stores, including major chain-stores, as well as independents, restaurants and night-life offerings, all of which provide ample parking. Most are conveniently within walking distance of Oxford's historic town square. Nelson's, on the square, is the oldest department store in the South. But there also are attractive boutiques, cafes and shops which are worth exploring. Additionally, major shopping centers east of town are conveniently reached by the network of highways that serve Oxford.

The city's population has a median household income of $227,400

compared to an average of $105,700 statewide. Housing costs in Oxford average $211,500, while the state average is $123,200. And with growth throughout Lafayette County, there are homes available for every budget.

For businesses already established in the area, or for those looking for a place to locate, relocate or expand, Oxford provides a portfolio of reasons to select the city as their first choice. Location for most companies is paramount, not only for their facility but also for their employees. Oxford offers various opportunities to meet the needs of families.

The city is touted as the “Cultural Mecca of the South,” a slogan fitting for several reasons. Wayne Andrews, executive director of the Yoknapatawpha Arts Council, manages a variety of seminars and programs designed to marry artisans' talents with the technical side of business needs. The goal is growth within industry, utilizing talented artists, through networking and building future customers for them and the business community. It's a successful approach to the combining of art and business to the advantage of both.

BUILDING RELATIONSHIPS

Along with Andrews' efforts, Jon Maynard – executive director of the Oxford-Lafayette County Economic Development Foundation – has been actively involved in coordinating and facilitating business and community relationships since 2012. Maynard saw the light, so to speak, and began to address the need to “reverse-pull” his efforts and to focus on reaching out from Oxford as a hub to businesses and

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WHO TO KNOW Oxford-Lafayette County Chamber of Commerce Jon C. Maynard, President and CEO 662-234-4651 Oxford-Lafayette County Economic Development Foundation Allen N. Kurr, Executive Vice President 662-234-4651 Mayor of Oxford Robyn Tannehill 662-232-2340 Lafayette County Board of Supervisors President Jeff Busby 662-816-7447 Lafayette County Government offices 662-236-2717 / 662-237-6006 County/City Tourism Council Visitor's Center 662-236-7368

QUICK FACTS County Population 54,374

Manufacturing Employment 1,980

Oxford Population 54,374

Total Employment 24,570

Jobs Created 1,590 - the largest annual job growth number on record

Average Annual Wage $39,950 - $2,443 above Mississippi average

Retail Sales Growth $1.2 Billion - highest ever in Lafayette County

County Total Assessed Value $614,289,962

Civilian Labor Force 27,000

Coming in the May issue: Union County

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Total Employment 24,570

Sourced from the 2017 Year in Review from the Oxford-Lafayette Chamber of Commerce and Economic Development Foundation.

industry leaders to “get involved with problem solving over the long range and not just the immediate, so that results happen and efforts expand towards a more productive future,” he said.

“I realized the need to address both Oxford's involvement and the state's involvement in nutrition for our people," he said "There are small-scale farm operations throughout Mississippi that need to know how to network with distributors in order to get their crops to a larger market than just their local communities. We, the Oxford Chamber along with our Economic Development Foundation, can, with guidance and teaching, help our entire state to first feed our own citizens, then also feed others in markets across the country. Our entire state can become the 'bread basket' – to use a well-worn term – of the entire U.S. "We have some of the richest land on the continent, the Mississippi River Delta, with more than enough acreage to grow food crops that can feed hungry and needy people from coast to coast. And our efforts at and through (the Oxford) Chamber, coupled with those of men like Allen Kurr, who is vice president of the Oxford-Lafayette County Economic Development Foundation, in partnership with companies in Mississippi and even outside our state, can develop us into the centerpiece of a solution that will affect millions of people in the decades ahead."

Maynard's and Kurr's vision is but one aspect of the total picture. Oxford is growing, and these two leaders, along with others of similar mind in both the city and Lafayette County, are working to set a course that will assure a productive and viable future for Oxford, Lafayette county and the state. And business and industry are responding with regular inquiries asking what Oxford has to offer.

Population continues to grow and Oxford is rated as the 8th “Best Place to Live” in Mississippi. Due to that growth, in 2017 only 39 of the 82 counties in the state had population growth from the previous year. Lafayette county was ranked No. 4 on that list showing total growth. Most counties lost population, so that, if a business owner, or a start-up was looking to grow his or her company in Mississippi, they had to consider a community that was growing. Continued increase is a hallmark of Lafayette County and Oxford, a trend that has not lessened.

For businesses that do relocate to Mississippi, Oxford's Lafayette County Max D. Hipp Industrial Park offers 200 available acres within its total 450 acres that are ready for occupancy.

The property is serviced by all utilities and presently accomodates eight companies, all with access to major highways, river, rail, and air transportation close by.

Oxford is also home to the University of Mississippi (aka Ole Miss), one of the finest schools of higher education in the nation, and also to some very famous people including William Faulkner, John Grisham, Curtis Wilkie, Naomi Sims, Eli and Archie Manning, among others. And the community is blessed with a labor force of some 26,600 people. The largest segment of workers being in government, 8,300, with manufacturing accounting for 1,900+ with manufacturing and retail trade combined accounting for 17 percent of the total labor force.

Statistics on every measurable chart show a vibrant city that has continually grown since the 1980s, with potential for incredible business and private-sector growth, spearheaded by the efforts being made by community leaders whose vision is for an Oxford that will be a leader on the national stage for both industry, commerce, businesses with company-fueled solutions to problems that affect people now and will continue to do so well into the 21st century.

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entrepreneurship

Entrepreneurs and the creative process: Is there a method to the madness?

By David Henson If I have been asked one time, I have been asked a thousand times: “How did you come up with that idea?”

I have come to believe there are several parts to the answer. The first lies in how my brain is wired – I have been told I think “graphically.” It is the second part of that answer I want to tell you about, however.

That answer came to me in the form of a research paper written by Dr. Saras Sarasvathy, professor of entrepreneurship at the Darden School of Business at the University of Virginia. The paper was titled “what makes entrepreneurs entrepreneurial.”

After reading the paper it was as though someone had connected two parts of a jigsaw puzzle that I had been moving around for years and all of a sudden the parts just fell into place.

The paper was as much a validation as it was an explanation of how I did what I did. The creative process is fickle, to say the least. For those non-creative types who witness the process, it is often viewed as a strange and convoluted mess. At best, it is a mystery; at worst, it is disruptive or even threatening.

For me, all I knew was that I could do it, but I could never describe the process. My capacity to create/develop was always viewed as one of my positive attributes, but it was something most teachers and others in authority seemed more interested in trying to harness or, at the very least, regulate.

After I read Sarasvathy’s paper, my first instinct was to say, “See; I am not the scatter brain it might appear.” Sarasvathy uses the term “effectual entrepreneur,” a term for the many dynamics that make the entrepreneur tick. Another phrase she uses is what she calls “non-predictive strategies for problem-solving.”

Let that sink in a minute. How could you possibly go

about solving a problem without predicting the outcome?

All I can tell you is her description is exactly how I and many other entrepreneurs go about fixing, problem-solving and creating. It is as though we instinctively let go of any outcome. It is as though we have to “feel” our way through the process. We can’t tell you what step two is until we see what happens upon completion of step one, especially since, more than likely, nobody has ever done step one before.

Sarasvathy also says, “Entrepreneurs seek to control the future without having to predict it.” Now for most people, that would be called an oxymoron – you can’t do one without doing the other, right? Wrong!

While I often had successful outcomes, to others such as employees, vendors or investors, this approach probably seemed confusing or even alarming. In the business world, responding to any question with “trust me” usually just won’t cut it, especially if the question involved a request for money. It was only when I got to the point in my career that I did not have to get permission that I found success.

So the next time the artist or entrepreneur in your life tells you about an idea they can’t quite explain and you are left confused, remember this: It might sound as though he/ she does not have a clue what they are talking about, but that may not be true. Be patient; the result could be 1,000 times greater than anyone expected.

David Henson is the owner of Sycamore Real Estate. He grew up in a family-owned furniture manufacturing business and has been successful in the industry for 40 years.

Henson teaches a leadership class at Itawamba Community College focusing on family business dynamics and entrepreneurial leadership.

Business Trend

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North Mississippi Business Trends

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Stats & Numbers

Business borrowing boom

The amount ofBORROWING corporate debt has exploded since the financial BUSINESS BOOM crisis, growing much faster than the the bond market.

The amount of corporate debt has exploded since the financial crisis, growing much faster than the bond market.

Percentage growth, market size 66.4%

70% 60 50

Corporate debt

Bonds breaking the banks

40

36.5%

Overall bond market

30

A sudden drop in bond yields over the past month has

tied to the yield on the 10-year note as well.

When yields fall, that means banks earn less from basically tracked the bond market for several weeks loans, which is good for borrowers but bad for banks. now.

Benchmark interest rates have only recently cracked 3 10 The yield on the benchmark 10-year Treasury note percent after a decade of lows beginning with the has fallen from 2.92 percent a month ago to 2.59 financial crisis.

0 percent this week. Meanwhile the KBW Bank Index, a Lower bond yields can also be a sign investors are 2008of the ’09 ’11 ’12 ’13 ’14 ’15about ’16 ’18economy. measurement stocks’10 of concerned the future’17 of the U.S. the 24 biggest banks, is down Because government bonds are roughly 12 percent in the considered the safest of all SOURCE: same period. Securities Industry and Financial Markets Association investments, they tend to get The 10-year yield is an purchased when there’s an important metric used to price economic slowdown. A slowing other forms of credit, most U.S. economy would likely result notably the interest rate on in more people having difficulty 30-year mortgages, as well as repaying their debts, which could home equity of credit. cause defaults to rise and The yield on lines the benchmark 10-year Treasury note has fallen from 2.92 percent a month agobank to 2.59 Business lines of credit are often losses to increase as well. percent this week. Meanwhile the KBW Bank Index, a measurement of the stocks of the 24 biggest weighed particularly heavy on bank stocks, which have 20

BONDS BREAKING THE BANKS banks, is down roughly 12 percent in the same period.

10-year Treasury note

3.5%

Bond yields vs. KBW Bank Index

20%

10-yr yield

0 3.0 -20

KBW Bank Index 2.5

’18 J

Source: FactSet

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A

S

O

N

D

J

-40

’18 J

A

S

O

N

D

J

Ken Sweet; Alex Nieves • AP

banking

Using technology to maximize time

By John Oxford Time – it’s your most valuable resource. The value comes from its rarity (How often do you find yourself with extra time on your hands?) and the fact it’s not a renewable resource (How often do you wish you had a do-over?)

And, if you’re a business owner, time is also your clients’ most valuable resource.

Since smarter folks than I have basically proven time equals money, the question for today is, “What are you doing to add time back to the lives of your clients and your own life?” To double down on this question, “What is your business doing through technology and digital services to give this precious resource back to your clients?”

For the business, government or services owners, does your bank offer the ability to pay others as well as deposit checks with your phone? Does your grocer offer the ability to not only bring groceries to your car but use your purchasing data to predetermine your order and remind you it’s time for certain items?

Does your bowling alley, golf course or movie theater allow you to pick your alley, tee time or viewing with the tap of a button?

Does your restaurant allow reservations or orders to be placed in an app? Does your drycleaner send you a push alert that your clothing is ready? Does your garage send an alert that your car needs an oil change? Can you complete most government services, i.e. driver’s license, pay taxes, apply for a permit, with your phone? Does your hospital allow you to check in from your phone or alert them that you are on the way? Hotels, airlines and the list goes on and on.

Point being, too many times we assume the way it has always been done will continue to work until a digital enhancer changes the way a service or good is delivered and nearly puts us out of business.

So while being super supportive of shopping local, all businesses must realize that nothing is more local than your front doorstep or mailbox.

Millennials have been accused of killing category after category (Blockbuster, the taxi industry, network television). The truth is that convenience (or better use of my time) killed these. In many (most) cases, technology drives that convenience. But the adoption of this technology is much more widespread than one single generation.

On the reverse of this, if you are the consumer, do you know how to use digital services to save yourself time which, at the same time, encourages businesses to invest in digital delivery? If the new illiteracy is being unable to use technology, we should be proud that school districts like Tupelo’s recognize the advantage they give their students by providing laptops. However, what about those of us on the backend of 40 that still remember how to write in cursive but have no idea how to code?

While being able to navigate Snapchat, make Magisto videos or build a WordPress site might be fun, getting old-school folks to embrace new technology can literally improve their lives. With that in mind, has your business considered offering internal classes or lessons on using technology? Do your employees use the technology you expect your clients to use? I know at our bank, we start with teaching our own people how to use Zelle, the person-to-person payment app, and mobile check deposit before we even think about asking clients to use it.

While examples abound and vary, the core thesis is this: How are you adapting technology to your specific business model? How do you provide value? Use the formula we started this discussion with: Time = money. Invest in giving your clients and employees back the rare, non-renewable and precious resource of a little more free time.

John Oxford is director of marketing at Renasant Bank.

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Stats & Numbers MONTHLY US-CHINA TRADE Monthly US-China trade $50 billion 40

$46.2 b. $10.7 b.

Chinese goods exported to U.S. U.S. goods exported to China

Fed less cheery

30 20

The Federal Reserve is a bit less optimistic go further in reducing its expectations for future about the economy’s prospects over the next two rate hikes given the belief, which private years. So it has trimmed its expectations for economists share, that the economy is going to future increases in interest rates. slow over the next two years. The most pessimis10 On Dec. 19, the Fed boosted its key policy rate tic forecasters even see a rising chance of a for a fourth time this year to recession starting sometime a range of 2.25 percent to over the next two years.

The Trump administration, 02.5 percent. It projected two more hikes in 2019, down however, says it is sticking to Oct. Nov. Jan. ofFeb. from a forecast three,March April May June July Aug. Sept. its outlook that gross and 1 more hike in 2020 domestic product growth, will SOURCE: of China before the General Fed hits theAdmin. of Customs of the People's Republic hit 3 percent next year. pause button.

Here are the latest Wall Street’s initial changes in the Fed’s reaction was negative. projections on growth, Investors were disappointed unemployment, inflation and that the central bank did not interest rate hikes.

LOOKING AHEAD

Indicators of future performance of the economy by the Fed are showing a slowdown of GDP and a Looking ahead: Indicators of future performance of the economy by the Fed are showing a slowdown rise in unemployment along with fewer rate hikes.

of GDP and a rise in unemployment along with fewer rate hikes.

September projection

GDP

4%

Unemployment

Inflation*

4%

4

3

3

3

3

2

2

2

2

1

1

1

1

0

’18

’19 ’20 ’21

Source: Federal Reserve

30

4%

December projection

Business Trend

0

’18

’19 ’20 ’21

* Personal consumption

0

’18

’19 ’20 ’21

0

Fed rate hikes

’18

’19 ’20 ’21

Martin Crutsinger; J. Paschke • AP

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Business Trend