MBJ_Apr04_2014

INSIDE — Dialing up growth: Juvo Technologies enjoying best of times

35

LOOKING FOR JUST THE RIGHT OPERATOR

YEARS

1979

www.msbusiness.com

April 4, 2014 • Vol. 36, No. 14 • $1 • 24 pages

SHIP ISLAND EXCURSIONS

The owners of the fabled White Pillars restaurant, under restoration on Biloxi’s beachfront, are as picky about who they lease or sell it to as they were when they operated the fine-dining showplace.

More, P 2

2014

LEGISLATORS PASS BILL ON METHODS OF TAXING OUT-OF-STATE COMPANIES

A captain’s job is constant

» DOR: State’s general fund stands to lose more than $100 million annually through the new tax apportionment rules

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com A bill to limit how and when the Mississippi Department of Revenue can use a market-based taxing method in calculating the tax bills of multistate businesses in the state passed the Legislature Tuesday morning.

Legislators also put limits on the DOR’s authority to demand multistate companies provide combined tax returns. The DOR has insisted on authority to seek combined returns based on its belief that many of the multistate companies in the state divert

Unemployment {P 13} » February figures Legislature {P 10} » State to end sales tax on interest paid on storefinanced merchandise

» Page 11

See BILL, Page 10

ECONOMIC DEVELOPMENT

Entrepreneur Center: Helping you find your corner of commerce

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

MBJ Focus {P 14}

» Banking & Finance List {P 16} » Oldest Banks

AA Calibration Services founder Larry White says it took less than a minute back in 2004 to realize the layoff notice he had just received represented the opportunity of a lifetime.

To be more exact, White said, it took about “30 seconds to recognize this opportunity.”

White, a retired Navy aviation electronic technician, reacted to the pink slip by offering to buy the equipment L-3 Communication, a subsidiary of L-3 Vertex Aerospace, would be mothballing with the shutdown of its Madison operation.

White’s offer included a condition: L-3 Communication would send its calibration work to White’s new company, Calibration Services.

Today, the Yazoo City company he runs with wife Dorothy has moved once into quarters that doubled its space and is now adding on to that facility at 111 Roosevelt Hudson Drive. In the meantime, it is getting calibration work from Air National Guard operations around the country as well as defense contractors See

ENTREPRENEUR, Page 8

http://msbusiness.com/events/leadership-law-nomination-form/

2 I Mississippi Business Journal I April 4 2014 FOOD

White Pillars looking for just the right operator

By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com

The owners of the fabled White Pillars restaurant, under restoration on Biloxi’s beachfront, are as picky about who they lease or sell it to as they were when they operated the fine-dining showplace. They trucked in top quality beef, flew in premium duck and went through 1,000 pounds of veal bones every week for stock.

The result: exceptional food and top prices.

After spending two years and $2 million renovating and restoring the historic building, the John Mladinich family members are looking for a chef/owner with high standards to match theirs when White Pillars was in full bloom in the 70s and 80s and pilgrims made their way to dine on its signature Eggplant Josephine. It closed in 1989.

Here is how they outlined their goal on Facebook: A suitable tenant/operator is expected to have documentable experience in “white tablecloth dining” and be well qualified. A suitable tenant/operator is someone whose philosophies of quality and excellence mirror those of the Mladinich family. A suitable tenant/operator is committed to long term success in a location that is a once in a lifetime opportunity. A suitable tenant/operator will be worth the wait.

In other words, Brooks Holstein said, there’s no particular hurry.

Holstein is the son-in-law of the restaurant founders, and his commercial real estate development company, COMVEST Properties, is developing and marketing the White Pillars. His wife, Deborah, is an interior designer and owner of Design Associates who researched and chose the historically accurate fixtures during the

Courtesy of White Pillars

EXTERIOR — After spending millions of dollars on renovations and restoration, the owners of White Pillars are looking for a suitable chef/owner.

restaurants across the country and the world.

Holstein admits it’s “a small fraternity.”

They got a test run recently with a chef Holstein wouldn’t identify except to say he was “an internationally known chef,” one of only 78 such culinary masters in the world. “We had a fascinating first walk through,” Holstein said. “He drove by at night and the visual impact of building caught his eye immediately. what was fascinating to hear and very complimentary to Debbie, Architect Steve Zito and contractors was how impressed he was with quality and ambience of the building even though it’s empty.”

One of the first questions the chef asked was the average check amount. Holstein said that 25 years ago, it was a hefty $35.

Holstein said the chef was the type they’re interested in courting but “we have the economic flexibility to wait for the

“...we have the economic flexibility to wait for the right opportunity.” renovation. She also created a design “package” for the tenant operator to consider that’s complete with historically accurate wall coverings, fabric and furnishings. The new operator also will be able to tailor the 2,700-square-foot kitchen, which has been left as a shell.

“The thing we’re focused on now is getting the historical registrations for the building through the Mississippi Department of Archives and History,” Brooks Holstein said. About a third of that process

Courtesy of White Pillars

THE RESTORED BAR — Originally a fixture in Chicago’s Blackstone Hotel, the bar was salvaged from Pete Martin’s Magic Door Lounge in downtown Biloxi and installed in the White Pillars in the late 1960s. During the 2013 restoration the original varnish finish was removed to reveal the beautiful walnut with poplar trim.

is complete.

In addition to that effort, there were problems with the construction that need to be corrected, he said. Water leaked into the main dining room and destroyed the hardwood oak floor and the whole masonry building has to be repainted because it wasn’t done correctly the first time.

Meanwhile the search to find an operator with the proper “passion, experience and expertise” is getting underway with the creation of a database of award-winning

right opportunity.”

Wendy Peavy, White Pillars publicist, is coordinating the search for a buyer, scouring trade publications and newspapers for prospects. She said the rights to both the White Pillars name and the Mladinich family’s award-winning recipes are available for negotiation.

“We’ll start closer to home and work our way out,” Holstein said.

Courtesy of White Pillars

THE TERRACE ROOM — A courtyard area between the White Pillars Kitchen and Lounge was enclosed to create additional dining and event space. Details in the columns and trim replicate the woodwork original to the 1920s construction.

April 4, 2014

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Mississippi Business Journal

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MISSISSIPPI

FAST FOOD

Houston businessman buys Pine Belt Captain D’s Houston businessman Michael Knobelock is purchasing Captain D’s corporate restaurants in Hattiesburg and Laurel as part of a deal that will include the multi-franchise owner building four new restaurants in Houston.

Knobelock owns 47 Church’s Chickens, 21 Little Caesars units, three Sears Appliance and Hardware stores and a couple of independent restaurant concepts.

The move by Captain D’s is part of its strategy to attract more high-profile franchisees.

This agreement builds on the momentum of last month’s development agreement between D’s and Zaheara Momin and Asif Jariwalla. Momim and Jariwalla, experienced Dairy Queen franchisees, plan to grow the brand in the Atlanta DMA. “We could not be happier with how 2014 has started for Captain D’s,” Phil Greifeld, CEO and president of Captain D’s said in a news release. “We are excited to bring top-quality franchise operators to the brand that will continue to develop quality growth in targeted markets.”

Headquartered in Nashville, Captain D’s owns, operates and franchises 520 restaurants in 25 states, plus military bases around the world.

PACKAGING

Hood packaging wraps up deal with Wisconsin group A Mississippi-based company is the new proud owner of a packaging operation.

Bemis Company Inc. of Neenah, Wis., has completed the sale of its Paper Packaging Division.

As previously announced, Bemis reached an agreement to sell its Paper Packaging Division to Hood Packaging Corporation, a privately-held company headquartered in Madison and Burlington, Ontario.

Terms of the agreement were not disclosed.

NETWORKING

Business and Industry golf tournament set for May 16 The Itawamba County Development Council’s 13th Annual Business and Industry Networking Golf Tournament will be held at the Fulton Country Club on May 16. The event kicks off with a complimentary networking lunch from 11:00-12:30. The tournament format is a 1:00 pm shotgun start, with the awards presented immediately following play. Entry fee is $400 a foursome or $100 for individuals. Call (662) 862-4571 or email kgraham@itawamba.com to sign up today.

— from staff and MBJ wire reports

States reach settlement with Phusion over ‘Four Loko’ of 25, to promote alcohol products; » Hire models or actors for its promotional materials that are under the age of 25 or that appear to be under the age of 21; » Promote flavored malt beverages on school or college property, except at retail establishments licensed to sell alcoholic products; » Use names, initials, logos, or mascots of any school, college, university, student organization, sorority, or fraternity in Phusion’s promotional materials for its alcohol products; or » Distribute, sell, provide or promote merchandise bearing the brand name or logo of flavored malt beverages to underage persons.

Additionally, Phusion has also agreed to: » Prevent the posting of, and promptly remove, from its websites and social media any postings that depict or describe the consumption of its caffeinated alcohol beverages, the mixing of its flavored malt beverages with products containing caffeine, or the misuse of alcohol.

JACKSON — Attorney General Jim Hood reports he and 19 other attorneys general and the city attorney of San Francisco have reached a settlement with Phusion Projects, LLC regarding Four Loko.

As part of the settlement, Phusion has agreed to pay the plantiffs $400,000. Mississippi’s portion of this settlement is $14,047.62.

The settlement resolves allegations that Phusion marketed and sold flavored malt beverages, namely “Four Loko,” in violation of consumer protection and trade practice statutes by promoting Four Loko to underage persons, promoting dangerous and excessive consumption of Four Loko, promoting the misuse of alcohol, and failing to disclose to consumers the effects and consequences of drinking alcoholic beverages combined with caffeine. Additionally, the settlement addresses Phusion’s practice of manufacturing, marketing, and selling unsafe and adulterated caffeinated alcoholic beverages prior to the FDA’s November 2010 letter warning Phusion that caffeinated Four Loko is an unsafe product.

“Instead of kids passing out when they drank too much, we found that the caffeine mixed with alcohol made them stay awake and drink even more,” said Hood. “It was creating turbo charged drunks. The company was using flavors to market the beverage to underage kids.”

As part of the settlement, Phusion agreed to not manufacture caffeinated alcoholic beverages and reform how it markets and promotes its noncaffeinated flavored malt beverages, including Four Loko. Under the Assurance of Voluntary Compliance and Voluntary Discontinuance, Phusion shall not: » Promote binge drinking, drinking while driving, consuming an alcoholic beverage by means of a rapid ingestion technique or device, or underage drinking; » Promote to consumers, wholesalers, distributers, or marketers mixing its flavored malt beverages with products containing caffeine; » Sell, offer for sale, distribute or promote alcoholic products to underage persons; » Hire underage persons, or actors under the age

AG AND RETAIL

TECHNOLOGY

Cold winter delays farmer’s market crops

C Spire named one of nation’s top business technology innovators for third time

An exceptionally cold winter has not only hurt winter crops but it’s also delaying spring and summer crops by up to a month.

That’s according to Terri Doyle of Coastal Ridge Farm in north Hancock County. Terri and husband, David, grow cut flowers and vegetables to sell at farmers markets along the Coast.

Five to seven killing freezes set back their crops a few weeks, Terri said. “We haven’t had hardly any winter crops. It’s been cold too many times.”

At the beginning of the year, Terri Doyle wrote on the Coastal Ridge Farm Facebook page: “Right now (January) everything is frozen to death. This is the worst winter in decades. Dave will not be at Long Beach for awhile, but I hope to continue at Ocean Springs with free-range eggs and some winter squash. We're eagerly waiting for spring!”

Recently, Doyle said, spring and summer crops would have already been planted now and coming in much sooner. The freezes not only hurt the winter crops but also spring and summer crops will be much further behind.”

BIG BUSINESS

Ergon buys N.C. terminal for undisclosed sum A Jackson-based company has made an acquisition in North Carolina that it says will play a big part in its future growth.

Ergon Asphalt & Emulsions Inc. (EA&E) of Jackson has purchased all assets of the Wilson, N.C., asphalt terminal from Black Creek Terminal, LLC. EA&E acquired full ownership of the facility on April 1. Financial terms were not disclosed.

The Wilson, N.C., terminal was built in 2011 by Black Creek Terminal and has since been leased by

» Company ranked 35th on new InformationWeek Elite 100 list for its work to develop and implement PULSE, its proprietary customer-inspired business analytics platform For the third consecutive year, C Spire has been named one of the top business technology innovators in the U.S. by InformationWeek.

C Spire executives learned about the ranking during an awards program Tuesday night at the 26th annual InformationWeek Conference in Las Vegas. The company’s Information Technology and Analytics teams were recognized for implementing PULSE, a proprietary in-house business analytics platform. Last year, C Spire’s PERCS customer loyalty rewards program was honored and in 2012 the company’s customer relationship management system and middleware was featured in the rankings.

C Spire placed 35th overall on the annual list, which was narrowed this year from 500 to a more elite 100 companies and organizations nationwide. The Ridgeland-based telecommunications and technology services company was the top-ranked telecommunications provider in the U.S. on the list, ahead of Comcast and Verizon, and the only Mississippi firm to receive honors. Last year, C Spire placed 160th on the annual list and in 2012 the company placed 49th overall and ranked the best among all U.S. wireless communications providers.

InformationWeek Elite 100, the most prestigious business technology ranking, identifies and honors the nation’s most innovative users of information technology with its annual ranking. Each year, 100 companies and projects across the U.S. are selected for the honor. Unique among corporate rankings, the listing spotlights the power of business technology innovation.

PULSE has helped C Spire achieve significant improvements in customer acquisition and retention. Since implementing the system in 2013, the company has increased the rate that current customers activate new lines of service by 70 percent and used predictive retention models to maintain one of the industry’s lowest customer churn rates.

— from staff and MBJ wire services Valero Energy Corporation. Its geographic market stretches from the Raleigh/Durham area to the eastern coast of North Carolina. The facility provides EA&E with over 132,000 barrels of neat asphalt product storage and will be a foundation for the company’s future growth in the state. EA&E expects to hire the majority of the terminal’s existing staff during its transition to ownership.

J. Baxter Burns II, president of Ergon Asphalt &

Emulsions, Inc., said, “We appreciate the opportunity for growth that Black Creek has afforded us with this facility. The addition of the Wilson terminal expands Ergon Asphalt & Emulsions’ strategic supply initiative literally from coast to coast. We’re also excited to see Valero continue to market asphalt from this facility as we advance our strategic partnership.”

— from staff and MBJ wire services

4 I Mississippi Business Journal I April 4 2014 TELECOMMUNICATIONS

Dialing up growth

Special to the MBJ

» Juvo Technologies enjoying best of times

The leaders of Juvo Technologies decided to relocate their corporate headquarters to an historic building in downtown Hattiesburg because they wanted to be a part of the area’s recent resurgence and give their employees and prospective employees a better, roomier workplace.

BY WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com

While many companies are still trying to recover from the Great Recession, Juvo Technologies of Hattiesburg is enjoying its best year in its history. In addition to a name change, the telecommunications company has just opened its first office outside of Mississippi and has relocated to a larger corporate headquarters in a historic building in downtown Hattiesburg.

According to John Schroder, Juvo’s president and CEO and brother of company founder Bryan Schroder, all of the recent growth has been client-led.

“It’s just been paying attention to what our customers are asking us to do,” John Schroder said. “We have just leveraged relations we have built and fostered over the years.

The roots of the company begin with Bryan. Like his brother, Bryan grew up in Hattiesburg and was an awardwinning financial planner before coming to TalkSouth Inc., which offered carrier sales and services.

In response to customer needs, TalkSouth evolved over time into a telecommunications management firm, developing a proprietary software system and offering consolidated billing, inventory management, custom reporting and online support.

“We had customers coming to us asking, ‘Can you help us with this bill,’” said John, who is a former Marine Corps infantry officer and held a variety of positions with various industries before joining his brother at Juvo about five years ago. “Many of our customers have multiple locations, and they wanted to find help to manage their telecommunication needs without having to look up a 1-800 number.”

After a former partner left TalkSouth, the name was changed to Cynergy Services, LLC, and the firm continued to grow steadily from its office on U.S. Highway 98 in Hattiesburg. (Late last year, company leaders struck on the name Juvo, a Latin word meaning “help” or “support.”)

The company’s services line-up includes wireline and wireless management, IT consulting, site surveys and structured cabling as well as rural health care broadband programs.

Most of Juvo’s recent growth has come via its rural health care broadband program. Available through the FCC’s Universal Service Fund, Juvo utilizes tier 1 providers from AT&T and Verizon to Cybera and RealLinx, Juvo helps clients optimize Universal Service Administrative Company funding.

With all of that growth came new employees, and Juvo

came to realize last year that they had to find more room for its approximately 30 employees.

“Some of our folks were practically sharing a desk,” John said with a laugh.

The company looked at various locales, including a site in mid-city Hattiesburg, but decided on downtown. John said the company wanted to be a part of the recent resurgence of downtown Hattiesburg, and that the new site, in addition to providing nearly double the space of its former headquarters, offered a facility that would aid in recruiting young talent and give current workers a better working environment.

Juvo’s COO Chris Morse said the new building has generated some genuine buzz amongst current employees.

“We have a young workforce, many just a few years out of college, and the idea of living, working, and playing downtown is pretty attractive to them.”

The company’s emphasis on its people paid off during the move. The “new” facility at 518 Main Street is a little over 100 years old and required extensive adaptation — mainly in the form of cabling, which was executed by Juvo workers. Working at a fevered pace, the Juvo team managed to shut down the servers at the old locale on Highway 98 on a Friday evening and have everything up and running the following Monday.

While Juvo was working on the move downtown, it also opened a satellite office in Covington, La. Though Juvo has agents and consultants working remotely across the country, the Covington location represented its first physical site outside of Mississippi.

Both the main and satellite offices stay busy. Today, Juvo counts customers that have operations in all 50 states as well as Mexico, Canada and Europe.

While all of this growth has been impressive, Juvo leaders are not resting on laurels, nor are they satisfied.

“We’re just getting started,” John said.

For more on Juvo Technologies, visit www.juvotec.com.

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A member of the Mississippi Press Association www.mspress.org

200 North Congress, Suite 400 Jackson, MS 39201-1902 Main: (601) 364-1000 Faxes: Advertising (601) 364-1007; Circulation (601) 364-1035 E-mails: mbj@msbusiness.com, ads@msbusiness.com, photos@msbusiness.com, research@msbusiness.com, events@msbusiness.com

Website: www.msbusiness.com April 4, 2014 Volume 36, Number 14

ALAN TURNER Publisher alan.turner@msbusiness.com • 364-1021 ROSS REILY Editor ross.reily@msbusiness.com • 364-1018 WALLY NORTHWAY Senior Writer wally.northway@msbusiness.com • 364-1016 FRANK BROWN Staff Writer/Special Projects frank.brown@msbusiness.com • 364-1022 TED CARTER Staff Writer ted.carter@msbusiness.com • 364-1017 LISA MONTI Contributing Writer mbj@msbusiness.com • 364-1018

MBJPERSPECTIVE April 4, 2014 • www.msbusiness.com • Page 6

OUR VIEW

Pay raises improve status of teachers in Mississippi

T

he Legislature, following the urging of Lt. Gov. Tate Reeves and Speaker Philip Gunn, passed a guaranteed $2,500 teacher pay raise on Tuesday with the possibility of future special bonuses linked to the state’s first merit pay program based on schoolwide performance.

The conference report preceding Tuesday’s action was announced late Monday night.

The House had considered a $4,250 multi-year across-the-board raise, contingent on revenue growth in the latter stages.

Mississippi’s 30,000 teachers will receive the first installment — $1,500 — of the two-year raise beginning July 1, the start of the 2015 fiscal year. A second raise — $1,000 — will follow on July 1, 2015, the start of the 2016 budget year.

But its position was replaced by a plan initiated by Reeves and Senate Education Chairman Gray Tollison, R-Oxford, and supported, in the end, by Gunn, who had first publicly broached the idea of a teacher pay raise late last year.

Mississippi’s 30,000 teachers will receive the first installment — $1,500 — of the two-

year raise beginning July 1, the start of the 2015 fiscal year. A second raise —$1,000 — will follow on July 1, 2015, the start of the 2016 budget year.

The plan also would raise starting pay to $34,390 by July 2015, placing Mississippi See VIEW, Page 7

BOBBY HARRISON Contributing Writer mbj@msbusiness.com • 364-1018 TAMI JONES Advertising Director tami.jones@msbusiness.com • 364-1011

» THE OUTSIDE WORLD

» PERCOLATING WITH BILL

Crowers cower from tax reform plan

MELISSA KILLINGSWORTH Sr. Account Executive

melissa.harrison@msbusiness.com • 364-1030 VIRGINIA HODGES Account Executive virginia.hodges@msbusiness.com • 364-1012

‘W

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» CORRECTIONS The Mississippi Business Journal takes seriously its responsibility to provide accurate information, and will correct or clarify articles produced by the editorial department if we have made an error or published misleading information. The correction will be placed in the perspective section.

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hat is needed is a thorough restructuring of the tax laws — one that is broad and yet achievable,” crowed House Budget Chairman Paul Ryan in his “Roadmap for America’s Future” released in 2010.

“I believe we must make the tax code simpler and fairer,” crowed Republican presidential candidate Mitt Romney in 2012. “We must reduce tax rates for job creators to promote economic growth.”

“Comprehensive tax reform is long overdue,” Speaker of the House John Boehner crowed in 2013. “At four million words and growing, our federal tax code is too complex and too inefficient.”

Republicans have crowed about tax reform for years. Indeed, since they took over the House in 2011, House Republicans have promBill Crawford ised comprehensive tax reform in their annual budget proposals.

Rep. Dave Camp of Michigan, chairman of the House Ways and Means Committee, was directed by Speaker Boehner to develop a tax reform plan.

Ta da!

Rep. Camp released the plan last month, one that is very fair to middle income earners, reduces rates on high earners and eliminates much of the complex tax code.

Camp said his pro-growth proposal would create up to 1.8 million new jobs. It would cut the top tax rate to 25 percent. It would increase the standard deduction to $22,000 and, thereby, simplify individual tax returns for up to 95 percent of filers by eliminating the need to itemize deductions (also eliminating the need for mortgage interest and state See CRAWFORD, Page 7

PERSPECTIVE

April 4, 2014 I Mississippi Business Journal

» RICKY NOBILE

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Continued from Page 6

third in the South in that category, a substantial improvement over last.

A School Recognition Program component of the legislation will begin on July 1, 2016. Under that program, teachers and staff can receive a onetime bonus each year based on high or improving school performance.

The program would give $100 per student to schools rating “A” on the state’s A-to-F grading system, or to schools moving up a grade. Schools rated “B” would get $75 per student. Money would go to merit payments split among all teachers and employees.

The third-year merit raises, as Reeves first proposed, retain an element that bases distribution of any merit pay stipend on local-school-based committees, not decisions made solely by a principal, superintendent or other individual.

Laura Hipp, a spokeswoman for Republican Reeves, said the merit program would be about $24 million were it in place now.

The $60 million pay raise package was deemed affordable by the vast majority in the two chambers.

We regret legislative failure to substantially increase commitment to the Mississippi Adequate Education Program funding. A $10 million increase has been approved, but at least $250 million more is needed to reach full funding based on the MAEP formula.

— Northeast Miss. Daily Journal

»YOUR TAXES AND YOU

Tax code, meet today’s reality

A

s springtime blooms and a seemingly never-ending winter fades, a noteworthy but broadly overlooked set of tax proposals was released by the House Ways and Means Committee in Washington. These serve as an opening bid on how Republicans view the future of the Internal Revenue Code.

They are interesting as much for what they say implicitly as they are for their actual content.

Now, first a caveat. These proposals, just like some issued earlier by Senate Democrats, are not close to becoming law and certainly will not be enacted during 2014. Neither party’s leadership has shown the political will or ability to compromise on much of anything. In fact, many pundits believe that any sort of major tax bill would be stalled until there is a new president in office in 2017 anyway.

Regardless, the Republican proposals are telling.

The starting points are promising. There are only two listed tax brackets — 10 percent and 25 percent (the current highest marginal bracket is 39.6 percent). This is consistent with Republican views that 25 percent is a good maximum rate for individuals and businesses.

However, the first big surprise in the proposal is a 10 percent surtax on those couples with “modified” adjusted gross income over $450,000 and singles over $400,000. The “modifications” are even more interesting. Included are such traditionally tax-excludible items as tax-exempt interest, employer provided medical coverage, various retirement plan deferrals and others.

Next, turn to itemized deductions. Wholesale changes are proposed to scale back or eliminate these. State and local income taxes would no longer be deductible. The deduction for home mortgage interest would face new and significant limitations. Even charitable contributions would not be fully de-

ductible and there would be no deduction for such items as medical expenses, personal casualty losses and employee busiJohn Scott ness expenses.

On the business side, the top rate would be reduced from 35 percent to 25 percent over a five-year period, but many popular deductions would be eliminated or significantly slowed, such as depreciation. Many standard and accepted accounting methods would be removed from the tax code, such as LIFO inventory and like-kind exchanges. Most tax credits would be gone. Many more shareholders of S corporations and members of LLCs would be subject to self-employment taxes on their earnings. Myriad other revenue raising provisions are also included.

So, what does this really say? Remember, this is the Republicans’ plan ….

Well, first of all, it says that there is no way to have a 25 percent maximum tax rate in this country without eliminating a whole host of items that have strong popular support. Even then, you end up with the aforementioned surtax. Second, the very idea of tax simplification is completely at odds with this offering. Finally, fiscal constraints related to current and future spending commitments for entitlements, interest on the national debt, defense, homeland security, etc., etc., limit any possible latitude.

OK, so what’s the good news?

Hey, it’s springtime! Go out looking for that four leaf clover.

It will certainly be easier to find than that 25 percent maximum tax rate. » John Scott, CPA, is a tax partner at HORNE LLP and has more than 25 years of public accounting

CRAWFORD

Continued from Page 6

and local tax deductions).

But there was no crowing by Republican leaders.

Rather, they dodged questions about when, or if, the Camp plan would be considered.

“Dave Camp should be congratulated for having the courage to put something like this on the table to get this conversation going,” said Ryan.

“You're getting a little bit ahead of yourself,” Speaker Boehner said when asked if House Republicans would stand behind the Camp plan.

“I think we will not be able to finish the job, regretfully,” said Senate Minority Leaders Mitch McConnell.”

What caused the crowers to suddenly cower? Turns out there are many powerful lobbyists who do not favor a simpler, fairer tax code.

Among the contentious issues are: elimination of the "carried interest" loophole that private-equity managers use to shield earnings; reducing from $1 million to $500,000 the amount of a home mortgage on which interest is deductible; elimination of a loophole that entrepreneurs, consultants, lawyers, doctors and other professionals use to avoid paying Social Security and Medicare payroll taxes by taking their earnings as business income instead of wages; and elimination of deductions for state and local taxes.

Check out Camp’s plan yourself at the web site: tax.house.gov.

Then, next time your Congressman crows about the need for tax reform, ask him to talk turkey about Camp’s plan.

Bill Crawford (crawfolk@gmail.com) is a syndicated columnist from Meridian.

8 I Mississippi Business Journal I April 4 2014

ENTREPRENEUR CENTER IN NEW FIRST FLOOR SPACE IN WOFFOLK

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

Special to the MBJ

Larry and Dorothy White have calibrated their way to success with AA Calibration Services in Yazoo City.

ENTREPRENEUR

Continued from Page 1

around the world, and in Mississippi from his former employer well as M-7 Aerospace, the Mississippi Forestry Commission, Hinds Community College, Entergy, Electro National and Davis Aviation.

White’s biggest worry is not the volume of business but rather the manpower to handle the growing volume. He’s even begun teaching a class on aircraft calibration and recently added seven or so of the class’s top students to his company’s 20person workforce.

Projections are that by 2020 aircraft calibration companies around the country will

“Now the banks are knocking on my door.”

Larry White AA Calibration Services

have only 66 percent of the trained workers they’ll need, according to White. “I’m avoiding that national shortage of technicians.”

Another measure of progress for the husband-and-wife owners of AA Calibration Services is access to capital, a huge need dur-

ing the company’s start-up. “Now the banks are knocking on my door,” White said.

Assessing the company’s success at its 10-year anniversary, White said it has helped tremendously that he is “one of the best” around at aircraft calibration. But, he added, the Mississippi Development Authority’s Entrepreneur Center has contributed much to the success, including helping the Whites find new business and gain certification as a minority-owned contractor.

John Brandon, head of the MDA’s Existing Industry and Business Division, said Larry White is unusually “brilliant” but his success story is typical of what the Entrepreneur Center has observed during the challenging recession years of the last decade to the present.

“It didn’t take him long to realize ‘I am out of work. Now what am I going to do about it’?”

Larry and Dorothy White were among a dozen or so entrepreneurs who took part in the Center’s opening of its new groundfloor offices in the state’s Woffolk Building last week. The Whites and other entrepreneurs who got their starts through working with the Entrepreneur Center set up display tables for visitors to the Center’s open house.

Like Wallace, the other entrepreneurs started with something they were especially good at and converted the skill into a money-making enterprise.

Fudge was the specialty of former educators Janet and Wallace Heggie of Meridian, proprietors of Fudge Etcetera, Their history with the Center that goes back to 1986.

The Center “was very instrumental in the different phases of our business,” WalSee

MDA, Page 9

The Mississippi Development Authority’s Entrepreneur Center has relocated to the Woffolk Building’s firstfloor in a move designed to make the Center and its resources more accessible to people who want to get a business off the ground.

The move to the ground-floor location spares visitors to the Center from having to empty pockets and pass through a metal detector and security check. That alone should ease any anxieties visitors to the center have about dealing with a state agency, MDA officials say.

Project managers will work from cubicles just inside the new office space. They will be the initial stop for prospective business owners and can guide them on such steps as establishing an LLC or other business structure, linking up with the Small Business Administration or identifying a population demographic for the business to target.

The mezzanine level will house a library of books and other materials on starting and Brandon growing businesses as well as training and conference rooms.

“We actually have space for our clients to come here and work,” said John Brandon, who runs the Center as a member of the MDA’s Existing Industry and Business Division.

Two cubicle spaces have computers with Internet access and Microsoft Office Suite. “You can do far more than just talk about your business plan. You can work on it while you are here,” Brandon said.

“You can spend the day with us. When you have a question we are here to answer.”

The new space also provides a place for the Center’s staff to hold training seminars and other events that they previously had to do outside the Woffolk Building, Brandon said.

The Entrepreneur Center, established 30 years ago, has a satellite office in Tupelo and can do consultations on Skype, an Internet video and voice service, for clients unable to come to Jackson or Tupelo.

The Center recently unveiled its new Web site — msenetworks.org. An especially helpful feature of the site assists users in zeroing in on resources available in the Mississippi locality in which they are interested in starting or expanding a business, Brandon said. Put in a zip code and “it tells you the resources,” he said.

Msenetworks.org also has features to help users with strategic business planning and marketing, Brandon said.

Special to the MBJ

DeShawn and Stephen Clairmont of Laurel-based Clairmont Designs sell their picture frames and other handcrafted items to 400 gift stores around the country.

April 4 2014

MDA

Mississippi Business Journal

I

9

HOSPITALITY

Continued from Page 8

lace Heggie said, and noted the business has grown along with the varieties of fudge they market at fairs, craft shows and flea markets across Mississippi and the Mid South region.

The assistance came in helping them set up, expand and grow their customer numbers through sales leads, he said. The 10 or so varieties of fudge the couple started with grew to 25 and later expanded to 48.

Sara Hays and partner Holly Evans took the leap last July and turned their skill at making sauces into Sarabella’s Southern Sauces. With the help of the Center, they’re selling Sarabella sauces from Texas to New York. A facility in Statesboro, Ga., now makes the sauces based on recipes prepared by Hays and Evans.

Their growing variety of sauces include Wicked Sweet Chutney for poultry and meat, Sassy Raspberry Chutney for meats, seafood and cheeses and Magnolia Basil-Mint for meats, poultry, seafood and such breakfast items as muffins and bagels and desserts such as cheese cakes and Key lime pie.

Many of the Center’s success stories include annual bookings with the Mississippi Marketplace, a wholesaler expo held each June at Jackson’s Trade Mart.

Vendors bought up all 184 booth spaces last year and are on a pace to do the same for this year’s Marketplace on June 5-6, said Sandy Bynum, who organizes the expo for the MDA’s Existing Industry & Business Division.

“We’re about sold out for this year,” said Bynum, an exhibitor at last week’s open house.

Mississippi Marketplace typically draws 1,500 buyer representatives from across the country, according to Bynum.

Two nearby exhibitors — Jonni R. Webb’s JRWebb Pottery and Stephen and DeShawn Clairmont of Clairmont Designs — have relied on Mississippi Marketplace to raise their profiles and attract new businesses.

“I’ve been part of Mississippi Marketplace from the beginning,” said Jonni Webb, who handmakes her pottery from the end of the driveway of her Canton home.

“It’s gotten me 90 percent of my business,” she added.

You can find Web’s works in stores and floral shops around Mississippi, including Simply Spaces on Madison’s Main Street.

The MDA is a customer as well, often using her Mississippi-centric pottery in its exhibits and in gift baskets designed to introduce business prospects to products made in The Magnolia State.

The Clairmonts have had their Clairmont Designs business on a growth curve practically from the start. They started making small handcrafted picture frames and other small furnishings four-and-ahalf years ago at their Laurel home. Today they are in a 10,000 square-foot warehouse with 10 employees, including two

I

Family and hard work » Patel named SBA’s Mississippi Small Business Person of the Year

BY WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com

Special to the MBJ

Gov. Phil Bryant could not resist a stop at the exhibit table of JRWebb Pottery, whose owner Jonni Web makes the pottery from the drive way of her Canton home.

Special to the MBJ

Sandy Bynum says the Mississippi Market place scheduled for June 5-6 at Jackson’s Trade Mart is drawing its usual strong interest from Mississippi businesses, many of which got their start with the help of the Mississippi Development Authority’s Entrepreneur Center.

sales reps who travel the region.

“We sell to 400 gift shops around the country,” mostly in the Southeast, Stephen Clairmont said.

Mississippi Marketplace is where the Clairmonts go to test the marketability of their newest items each year, they say.

“The goal is to go to the marketplace and see how it goes, and just go from there,” Stephen Clairmont said.

The reception their products get at the Marketplace has convinced them of one thing: “People like the handcrafted look,” Stephen Clairmont said.

Next up for the Clairmonts, they say, is a new line of collegiate ornaments and gifts.

Few visitors to the open house left without making a stop at Chef Ray’s Famous Gumbo, the availability of samples of the new businesses’ gumbo offering being a key reason.

The New Orleans-born proprietor, Johnny Rayford, started by providing his

gumbo to food service provider Cisco and in packaged form to Piggy Wiggly and McDades markets, a product the chef and Jackson entrepreneur boasts can go from store freezer to plate in 30 minutes.

Next up for Chef Ray’s Famous Gumbo is a place at the lunch and weekend buffet bar at Jackson’s Regency Hotel. A May start for the Regency buffet is planned, according to Rayford.

The Center, he said, “has been instrumental in getting us going, adding it has been especially helpful in getting the businesses website ready.

The Entrepreneur Center’s Brandon, in an interview after the open-house, said the mix of start-up and longer-term businesses at the open house reflected the Center’s two-pronged goal: We want to get you started. The next thing we want to do is help you grow your business….

“I don’t want you to just start. I want you t put somebody else to work.”

This year’s U.S. Small Business Administration’s Mississippi Small Business Person of the Year proves that valuing family and working hard is a winning strategy.

Bhupender “Bruce” Patel, CHA, managing principal at Tupelo-based Fusion Hospitality, a turnkey hotel development/management/construction firm, said he was both honored and humbled by the SBA award.

“They say when you love what you do, you Patel never work,” Patel said.

“I don’t get up every morning because I want to, not because I have to.”

Patel won the award on the strength of years of hard work and family support.

Born in Birmingham, England, he relocated with his family to Alabama when he was 11 years old. His parents operated a single motel beginning in 1981, and he and his siblings literally grew up in the industry.

Over that time, Patel did everything from laundry and painting to guest services.

“We lived on the property,” Patel remembered. “There is not a single job in the hotel industry I have not done. My father (Ramesh) taught us the value of hard work. He made sacrifices for us — worked two jobs — and I learned some much from him.”

After studying business and finance at the University of Alabama, Patel relocated to Mississippi in 1999 and worked at a hotel owned by his uncle. Times were tough, and Patel was not handed anything — for three years he worked as the property’s maintenance man.

Finally, Patel was afforded the opportunity to buy his own property in Tupelo in 2003. Patel would subsequently have the property totally renovated, a move that would lead to the birth of Fusion Hospitality.

“We were renovating the property, and the general contractor was hardly ever there,” Patel said. “We thought maybe we could just do this ourselves.”

That started the construction side of the See

SBA, Page 10

10 I Mississippi Business Journal I April 4 2014 TAX LAW

State to end sales tax on interest paid on storefinanced merchandise

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

Toting the note just got easier for Mississippi car dealers and other merchants who finance their customers' purchases.

Gov. Phil Bryant's signing of House Bill 260 Tuesday puts a July 1 end to sales taxes on interest and other finance charges at buy-here-pay-here retail locations, including auto dealerships and furniture and appliance stores that arrange installment payments on items they sell The signing marked an end to a 20-year effort by state Rep. Mark Formby. The Picayune Republican said he introduced versions of HB260 over the last couple decades. In some years the bills gathered steam only to come up short in the end.

“About 1996, I had 87 co-authors, with every Republican and half the Democrats,” he said. “It died on the calendar that year.

I think the push back came from the DOR (Department of Revenue) because of a perceived loss of revenue.”

Formby said “fairness” to both the buyers and sellers motivated his annual bid for a removal of the sales tax.

The big difference this year, he said, “is that my side is now in control.”

Formby said that when he began his effort only a half dozen states assessed sales taxes on interest charges at buy-here-payhere businesses. By this year, Mississippi was the last state to still levy the taxes, he said.

In addition to exempting finance charges, HB 260 exempts from the contractor's tax the engineering services performed by a professional engineer who is the general or prime contractor.

The DOR does not have an official estimate on HB260's cost to the General Fund because it cannot extract the tax

SBA

amounts from information provided on returns. “However, we believe that it is a significant amount,” said Kathy Waterbury, DOR spokeswoman.

The sales tax on car purchases is 5 percent and 7 percent on other merchandise.

The rule has been that when a seller collects finance charges from a buyer of merchandise, the finance charges become a part of that seller's "gross proceeds of sales" and subject to tax, Waterbury said.

On the other hand, if a third party is financing the sale, those charges don't meet the definition of "gross proceeds of sales," she added.

Clinton car dealer Lester Howell called HB260's passage as an act of economic fairness. “This was a charge that was actually passed down to lower income people,” said Howell, owner of Professional Car Sales.

Andrew Caldecott, executive director of the 350-member Mississippi Independent Automobile Dealers Association, said scrapping the sales tax on interest will assist businesses that “are providing a service that nobody else would” by financing buyers who otherwise couldn't get financing.

The problem, Caldecott said, is that many dealers didn't fully understand the sales tax law. Some sell as few as five cars a month while others may sell 100, he said.

“A lot of them may not have been paying the DOR” and got in trouble when audited, Caldecott added. “Eventually, it got to the point it was coming up more and more frequently.”

Accurately figuring the sales tax became especially difficult once dealers added in late fees and other charges, he said. “It became a real burden.”

Continued from Page 9

business, led by Bruce’s brother, Barry.

“I’m the pen; he’s the hammer,” Bruce quipped.

That scenario would play out again. Looking for some outside management consulting help, Patel hired a firm only to be disappointed again.

“After about two months, I paid them off and sent them on their way,” Patel said. “We just felt we could do a better job ourselves.”

Today, Fusion Hospitality employs hundreds of workers and offers management, investment, development and construc-

the state.”

Most businesses headquartered out of state with operations in Mississippi do business here year after year, Waterbury noted. So applying taxable income to out-of-state headquarters or the “nonrecurring” standard would put them off affiliate operations outside Mississippi. limits to an alternative tax apportionment The new legislation sets new conditions on the method, she said. the DOR’s selection of a taxing method based on “The language is a concern” because of its the agency’s determination that a particular method absence of clarity, she added. most fairly reflects the taxpayer’s business activity “Vague terms lead to litigation.” in the state.

By contrast, the MEC says the bill passed Tuesday The new rules are to go into effect Jan. 1, 2015. gives sorely needed “certainty” to businesses, The DOR said after the adoption of the legislation regardless of whether they are based in or out of the state’s general fund stands to lose more than the state. “Now they know they will get a fair $100 million annually through the new hearing,” said Scott Waller, COO of the MEC. apportionment rules. That amount is considerably The new rules also fall in line with the regulations less than the more than $300 million DOR said an of most other states, Waller said. earlier version of the bill would cost the state.

The bill also restricts the assessment of penalties Business groups such as the Mississippi Economic to the amount of tax in dispute, rather than the Council, which serves as the state’s Chamber of Commerce, say the legislation will undo some of the entire tax amount. It further phases in a reduction in interest on the penalties from 1 percent to .5 percent damage to Mississippi’s reputation for business friendliness caused by last summer’s state Supreme over several years.

The DOR said its data show 81 of the top 100 Court ruling involving Equifax Credit Reporting corporate taxpayers in the state are based outside Services. In that ruling, the court upheld the DOR’s Mississippi. Many out-of-state companies are use of the market-based apportionment for the Georgia-based Equifax, bringing the company’s tax “moving Mississippi income out of state,” Waterbury claimed. bill from zero to over $700,000.

Hence, it is important that DOR do what it can to Mississippi for decades has authorized the prevent that, she added. standard Uniform Division of Income for Tax But stopping the practice just got much more Purposes Act (UDITPA) that calculates taxes difficult, according to Waterbury. through a performance-based approach. The DOR says in many instances a market-based approach The DOR must now prove the multistate that calculates taxes based on revenue earned in corporation shifted the income improperly, she the state is the method that best reflects a said. “We have to ask, ‘What is improper shifting company’s tax liabilities in the state. of income?’ We are unaware of any time when The DOR can still apply the market-based shifting Mississippi income to another state is apportionment provided it meets two tests: A proper. What this does, in effect, is establish a “preponderance” of the evidence shows the method separate and vague standard for requiring a best reflects the business taxpayer’s tax liability and combined or consolidated return.” that the method is used only in “unique, At the Tax Foundation, a non-partisan think tank nonrecurring circumstances.” based in Washington, economist Scott Drenkard The bills that went to a House-Senate conference said many states are moving to market-based tax committee (HB799 and SB2487) had set a standard apportionment to get out-of-state companies to pay of “clear and convincing” evidence for applying the a larger share of taxes. They companies are, after all, alternative taxing method. using a state’s court system, road system, public The Mississippi Economic Council said replacing safety system and other resources. “But overly the “clear and convincing” requirement with one broad application of tax apportionment methods that specifies a “preponderance” of the evidence can cause a state to tax corporations that don’t owe marked a huge compromise. the state anything,” he said.

While the DOR agrees the move from “clear and In the instance of Mississippi, the issue “could be a convincing” to “preponderance” was a positive step, whole lot of hand wringing for what is not a lot of limits on when the alternative apportionment collections,” Drenkard said, and noted Tax method can be applied severely tie the revenue Foundation data for 2011, the most recent year department’s hands. The legislation, said DOR available, show that corporate tax collections spokeswoman Kathy Waterbury, limits the use of accounted for only 3.8 percent of the state’s total the market-based taxing method to “only those taxpayers who do not have an ongoing business in tax collections.

BILL

tion services. Its properties are scattered across Mississippi, Georgia, Maryland, Tennessee, Virginia and Ohio with one property under development in Texas.

The SBA recognition was not the first. Patel and his Fusion Hospitality team have won more than a dozen awards over the company’s history. These include Rookie of the Year in 2009 for Comfort Suites-Tupelo, Renovation of the Year in 2013 for Holiday Inn Express & Suites-Olive Branch and President Awards in 2008, 2010 and 2012 for Country inns & SuitesSmyrna (Ga.), just to name a few.

Not one to take credit, Patel attributes the company’s success to the support and influence of Barry, Ramesh and Lee Stafford, CPA, executive manager of the West Point-based ac-

Continued from Page 1

counting firm Watkins, Ward & Stafford, PLLC, who Patel said has served as his mentor.

“I have learned that this is not all about me,” he said. “”It’s about the 300 or so employees and their families that depend on me.”

Patel said he is looking forward to going to Washington, D.C., for SBA’s national awards ceremony that will be held next month. When asked if his father was proud of him for being named the Mississippi Small Business Person of the Year, Patel answered humbly, “I hope so.”

For more on Patel and Fusion Hospitality, visit the company’s website at fusion-hospitality.com.

April 4 2014

I

Mississippi Business Journal

I

11

TOURISM

Louis Skrmetta seems to have an ideal job ferrying visitors out to Ship Island, but he and his crew with Ship Island Excursions have to be on guard for everything from changing weather to shifting sand.

Ship Island Excursions: A captain’s job is constant

By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com

It rained part of opening weekend for Ship Island Excursions spring season, briefly interrupting ferry trips between Gulfport and the popular barrier island.

Weather — anything from high wind to a hurricane — can disrupt the Skrmetta family business that dates back to 1926. “We’re constantly watching the weather,” said Capt.

Louis Skrmetta. “We don’t want to take people out if it’s going to rain or put them in harm’s way if it’s rough out there.”

The changing weather is just one of the things Skrmetta has to keep an eye on for the safety of his passengers and crew. He worries about those aboard getting sea sick or hurt and about protecting his boats.

“You’re going 11 miles out into the Gulf,” he said. “We have to be pretty skilled at what we do because you have a helluva lot of responsibility.”

Skrmetta, who has worked in the family business for more than 40 years, said he has to stay “totally focused on this 24 hours day.”

During a recent overnight storm he was checking on the boat moorings at 4 a.m.

A third-generation captain, Skrmetta often pilots one of three ferries from Gulfport to the pristine island. It seems the idyl-

lic job, being in the salt air and sunshine, but Skrmetta said, “There’s a lot more to it than people think. It’s a tremendous responsibility. When I see pilots in airports, I can relate to them.”

Since he was a child, Skrmetta has spent his summers on Ship Island and can remember sitting on his grandfather’s lap as he steered the boat through the Mississippi Sound. Now he’s in charge of making sure weather conditions are good and there’s a safe distance between his ferry boats and all the shrimp boats, pleasure craft and barges traversing the Sound.

“Imagine peak summer time, when you’re going in and out of the harbor making three round trips a day,” Skrmetta said. “That can be interesting on the weekend.”

Once at the island, docking operations can get tricky with changing tides and shifting sands.

It’s all about seamanship, maneuvering through the narrow channel at Gulfport with its boat traffic and across the busy Intracoastal Waterway. Yielding to traffic has a different meaning on the water.

“We know what we’re doing and we drive defensively,” he said.

The captain and crew constantly monitor the ferry’s engine and steering and electrical systems.

“There are so many things that you’re watching constantly from the time you untie the lines,” Skrmetta said.

Even crab traps can pose danger. “You don't want to roll over one and lose power.”

Ship Island is part of the Gulf Islands National Seashore and the Skrmettas have been a contractor with the U.S. Park Service since 1971. They also operate the island’s food service and beach rentals.

“We are fortunate have the islands preserved and protected and to share with the world,” Skrmetta said. “It is an asset to this area.”

Skrmetta works every day during the season starting in mid-March. His father, Capt. Pete Skrmetta, is now 84 and still comes down to the boat dock occasionally.

Brothers Ken and Steve also pilot the ferries along with William Buckley, a former deckhand who has worked for the Skrmettas for many years.

Louis’s son, Peter Joseph Skrmetta, recently got his captain’s license, extending the business into the fourth generation. It’s not unusual to find among the ferry passengers some third- or fourth-generation visitors headed out for a day at Ship Island. It’s the closest barrier island to Louisiana, and

Skrmetta said about half of his passengers are from the neighboring state.

Ship Island has around 50 employees during peak season. The land-based crew sells tickets and keeps order in the parking lot where as many as 400 cars stack up in the Gulfport Harbor lots on sunny Saturdays.

“On busy weekends we might have 100 people standing on the pier before the scheduled departure,” Skrmetta said. “We’re moving people constantly. We don't have reserved seats like airlines.”

Ship Island Excursions hauled more than 51,000 passengers in 2013, mainly between its peak season from mid May through mid August.

The Park Service limits the number of boat passengers on the island at one time to 1,200.

A little rain isn’t a “showstopper,” Skrmetta said, but if heavy rain is coming he’ll cut ticket sales for the day.

“Even if we lose money, we want people to be comfortable and get inside the boat,” he said.

Customer service is a priority he shares with his father. “Dad and I are the same way.

We want to make sure people have a memorable trip. We want to create good memories.”

PERSPECTIVE

12 I Mississippi Business Journal I April 4, 2014 ÂťFROM THE GROUND UP

In search of â&#x20AC;&#x201D; and avoidance of â&#x20AC;&#x201D; uniformity

W

many communities are becoming so much alike that there is a shrinking uniqueness going on. For example, big box shopping centers look pretty much the same all over the country. Urban sprawl and rural decay are causing many places to look the same.

The desirable thing about uniformity is that it is consistent, more efficient and predictable. If I go into a McDonaldâ&#x20AC;&#x2122;s restaurant in Boston, Massachusetts I know that I will receive the same food that I receive a a McDonaldâ&#x20AC;&#x2122;s in Jackson, Mississippi. Thatâ&#x20AC;&#x2122;s not necessarily a bad thing. But if I do that I may miss out on lobster rolls at the Yankee Lobster Fish Market, a family-run lobster business thatâ&#x20AC;&#x2122;s been around for more than 50 years. And if all neighborhoods become just alike I may not get to savor the flavor of Little Italy.

Where is the line between uniformity and uniqueness?

And if a business can expand and have 20 stores that are the same, has it lost its uniqueness. Ironically, sometimes uniqueness is just the thing that leads to uniformity. Someone comes up with a new way of presenting a product or service, it succeeds in the local marketplace and the next thing we know is that it is franchised. Instead of being unique, it's now everywhere.

A research report entitled, â&#x20AC;&#x153;Franchise Business Economic Outlook for 2014,â&#x20AC;? prepared by IHS Global Insight stated that there are currently 770,360 franchise establishments in the United States. The International Franchise Association website reports that franchises not only have a higher success rate than other businesses they are predicted to create jobs at a faster rate than the broader economy. It

hat would you do if another state barred the sale of your products after having approved them for years and years even though other states allowed the sale of your products?

Depending on the volume and sales of those products you might complain to state officials, contact your Congressional office or even file a lawsuit. And what if you were told that the other state had a right to regulate what products were sold in that state? Surely states can do that. For example, sale of marijuana is legal in Colorado, but not in Mississippi. Doesnâ&#x20AC;&#x2122;t Mississippi have the right to ban the sale of a product that may be legal in another state? State rights, and all that. Or should not there be uniformity across all states on what products and services can be sold? And what about the interstate commerce clause?

What brought this subject to mind was a situation currently unfolding in California. In 2008, California voters passed Proposition 2, an initiative that requires cages large enough for egg-laying hens to stand and spread their wings.

Two years later a law was passed requiring that all eggs sold in California, including those from out of state, meet the state standards. The requirements go into effect Jan. 1, 2015. At least five states have filed suit against California over the requirements.

While it is tempting to get into the issue of caged chickens and eggs and states rights, what came to mind were the pros and cons of expanding a local business to the extent that it becomes so uniform as to have little or no individuality. That thought then led to the idea that

states that in Mississippi alone there are 108,100 direct jobs and 183,900 Phil Hardwick indirect jobs in franchises, and that franchises in the Magnolia State have a $2.57 billion payroll.

One of the real values of franchises is that their systems have been tried, tested and proven. That is why they lead to uniformity, which then leads to efficiency which then leads to sameness in every location. And if there is national expansion then every product is the same in every state. That is not to say that some franchises do not â&#x20AC;&#x153;localizeâ&#x20AC;? their stores. Many franchise restaurants, for example, have photos of local scenes and personalities. Nevertheless, when all locations, processes and procedures are basically the same then a threat to one is essentially a threat to all. It is sort of like an airline that has hundreds of only the same type airplane in its fleet. If that one model aircraft is grounded then the whole fleet is grounded.

And that brings us back to the California situation. Because of uniformity in poultry production, a threat to one process â&#x20AC;&#x201D; in this case, the type of cage - by one state could be a threat to the entire industry because of the volume of sales in California. The major suppliers, i.e. those who have a uniform process, will be greatly affected. The small producer, who is unique and can quickly change his process, will be less so.

Phil Hardwick is coordinator of capacity development at the John C. Stennis Institute of Government. Pease contact Hardwick at phil@philhardwick.com.

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April 4, 2014

I

Mississippi Business Journal

DeSoto 5.7

13

I

Tunica 17.3

MISSISSIPPI’S FEB. UNEMPLOYMENT FIGURES

Tate 8.6

Jan ’14 1,258,200 99,300 7.5 7.9 1,158,900

Feb ’13 1,297,100 122,100 9.0 9.4 1,175,000

’13 Avg. 1,286,400 110,800 XXX 8.6 1,175,700

Yalobusha 9.4

Bolivar 10.3

STATE OF MISSISSIPPI Unemployment Insurance Data •• Initial UI Claims Continued Claims Benefits Paid Weeks Paid First Payments Final Payments Average Weekly Benefit

Feb ‘14 155,027,000 10,893,000 6.7 7.0 144,134,000

Jan ’14 154,381,000 10,855,000 6.6 7.0 143,526,000

Feb ’13 154,727,000 12,500,000 7.7 8.1 142,228,000

Feb 2014 6,538 81,946 $11,740,537 61,681 3,523 1,757 $190.34

’13 Avg. 155,389,000 11,460,000 XXX 7.4 143,929,000

Jan 2014 9,891 100,911 $13,713,906 72,598 5,791 1,852 $188.90

Leflore 12.5

Humphreys 13.9

Carroll 8.9

Montgomery 10.0

Holmes 16.6

Lowndes 9.2

Oktibbeha 7.8

Winston 11.1

Leake 8.8

Neshoba 6.2

Scott 5.5

Newton 6.6

Noxubee 15.7

Kemper 13.0

Madison 5.8 Warren 8.9 Rankin 4.8

Hinds 7.1

Claiborne 13.4

Copiah 9.0

Adams 7.3

Wilkinson 10.9

Franklin 8.8

Lincoln 7.4

Amite 8.9

Pike 8.8

Covington Jones 6.6 5.9

Walthall 9.6

Marion 8.8

Lamar 5.7

Pearl River 7.5

Hancock 7.5

Lauderdale 7.5

Clarke 9.4

Wayne 9.9

Lawrence Jeff Davis 8.7 9.8

Unemployment Rates Unem ates 4.8 - 5.7 5.8 - 8.8 8.9 - 14.3 14.4 - 17.3

Jasper 8.4

Smith 6.9

Simpson 6.5

Jefferson 14.3

— Mississippi Department of Employment Security

IS WORTH REPEATING!

Monroe 11.4

Clay 16.7

Choctaw 8.7

Attala 10.5

Yazoo 10.3

Issaquena 14.4

** Average for most recent twelve months, including current month •• Unemployment Insurance amounts presented in this section only represent regular UI benefits, federal program amounts are not included.

Labor force amounts are produced in cooperation with the Bureau of Labor Statistics.

Note: Unless indicated state and county data presented are not seasonally adjusted.

GOOD NEWS

Tishomingo 8.8

Itawamba 8.0

Chickasaw 10.3

Webster 12.1

Washington 13.5

Moving Avg.** 155,380,000 11,132,000 XXX 7.2 144,248,000

Feb 2013 8,323 101,832 $14,387,099 75,614 4,502 2,076 $190.27

Calhoun 9.4

Grenada 8.2

Sunflower 14.3

Lee 7.8

Pontotoc 7.1

Quitman 13.9

Coahoma 13.4

Moving Avg.** 1,280,000 106,100 XXX 8.3 1,173,900

Lafayette 5.7

Sharkey 12.6

UNITED STATES Labor Force Data Civilian Labor Force Unemployed Unemployment Rate (Adjusted) Unemployment Rate (Unadjusted) Employed

Alcorn 7.0

Tippah 9.7 Union 6.4

Tallahatchie 11.7

Feb ‘14 1,260,000 100,400 7.4 8.0 1,159,600

Benton 10.4

Prentiss 8.6

Panola 10.3

Labor force and employment security data STATE OF MISSISSIPPI Labor Force Data Civilian Labor Force Unemployed Unemployment Rate (Adjusted) Unemployment Rate (Unadjusted) Employed

Marshall 9.3

Forrest 6.8

Perry 8.3

Stone 7.1

Harrison 7.4

Greene 9.5

George 8.2

Jackson 8.3

Source: Labor Market Data Publication February 2014 Design: Labor Market Information Department, MDES

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BANKING & FINANCE

It’s a taxing season for CPA firms » Workers look for balance in family time and work — especially with Affordable Care Act changes

By LYNN LOFTON I CONTRIBUTOR mbj@msbusiness.com

W

ITH LESS THAN two weeks left before tax filing deadline, CPA offices across Mississippi are feeling the crush. These pros, however, have learned to cope with the yearly pressures of tax season. They also took time to discuss changes and trends they’ve observed this year.

Jessica Cooley with the Jackson metro area firm of GranthamPoole says the firm’s work/life balance philosophy as one of its core values is helpful. “Our firm makes an intentional effort to manage workloads and assignments in a shared manner that allows our staff to keep up with family time and personal commitments,” she said. “Listening to my 4-year-old chatter about her

“I make sure I get some exercise several days each week and rest on Sunday,” Paul Calhoun Haddox Reid Burkes & Calhoun

day on the way home is something I would miss out on if our firm did not offer the flexibility that it does. The firm also supplies lunch and snacks on site each day during tax season.”

On a personal level, she focuses on making time to be with family and keeping up with church and other community volunteer commitments.

“We are envied by most of our professional colleagues.”

Jerry Levens Alexander Van Loon Sloan Levens & Favre

“Those connections keep me from being overwhelmed by the amount of work that needs to be done each day.”

Paul Calhoun with the Haddox Reid Burkes & Calhoun firm in Ridgeland says maintaining a regular routine is a great help. “I make sure I get some exercise several days each week and rest on Sunday,” he said.

Jerry Levens with the Gulfport firm of Alexander Van Loon Sloan Levens & Favre also tries to stick to his routines as much as possible. “That’s including volunteer commitments and exercise routine by just working a few hours extra each work day,” he said. “For our CPA firm we do a really good job managing our tax season projects, in fact generally speaking none of out staff works any weekends during tax season and that covers about 35 professional staff, of which 25 are CPAs. We are envied by most of our professional colleagues.

“This allows employees to preserve some quality-of-life features with their family commitments in light of our busy season. My wife, Cindy, reminds me often that to the rest of the world it is not tax season; it is just the first few months of a new year. That helps keep me grounded for the busy season.”

Levens points out that 2013 is the first year for two new “surtaxes” under the Affordable Care Act, which is making an impact – one is for the .9 percent on earned income and another is 3.8 percent surtax on net investment income. “These additional taxes apply to a couple with AGI greater than $250k ($200k for a single person),” he said. “Additionally new for 2013 is a new higher federal tax bracket of 39.6 percent (previously top bracket was 35 percent). This affects couples with AGI greater than $450k and a single person at $400k. Also new for 2013 long-term capital gains, federal rates increased from 15 percent to 20 percent.”

Calhoun says the Affordable Care Act is

Maintaining family connections “keep me from being overwhelmed” by work.”

Jessica Cooley Grantham Poole

confusing to clients as they wonder how it affects them for 2013 and future years. “For 2013, many clients are seeing their taxes increase by the new Medicare contribution tax of .9 percent on earned income and self-employment income,” he said. “In addition, some are paying the new 3.8 percent tax on net investment income, and how net investment income is calculated is confusing to many people.”

He adds that more clients are seeing higher amounts of medical costs as the result of incurring long-term care costs. “In addition, some clients are seeing their taxable income increase as the result of the phase out of certain itemized deductions and exemptions. The tax rates may not have changed but their taxable income and income taxes increased,” he said.

Levens observes that clients have been visiting with their investment advisers – something he strongly encourages – on how to position or rebalance their investments in light of these additional tax burdens. “Clearly for more clients, planning is a key part of a good tax strategy, not just completing the return each year,” he said.

Cooley says this is the time of year when clients need CPAs most. “It’s satisfying to get to see them and ease the pain of tax filing,” she said. “Accounting is not just about numbers but also about people and what helps them meet their financial goals.”

Many GranthamPoole clients brought in their information earlier, she says.

“However, the government shutdown in late 2013 delayed the beginning of filing season as it coincided with the IRS’ timeline of updating their programming systems,” she said. “The Affordable Care Act, on everyone’s mind this year, set into motion additional taxes on net investment income as well as a new Medicare surcharge tax on earned income. We also see more and more clients handling all of their filing and refunds electronically.”

BANKING & FINANCE

April 4, 2014

I

Mississippi Business Journal

I

15

ON THE INTERNET

Regions website provides businesses information

By BECKY GILLETTE I CONTRIBUTOR mbj@msbusiness.com

People running a business are often so busy managing day-to-day operations that it can be difficult to find time to bone up on business issues like strategic planning.

But now Regions Bank has partnered with Inc. Magazine and The Build Network to launch a new Commercial Insights website, www.regions.com/commercialinsights, that provides free access to information on topics such as finance, operations, business planning, risk management and business innovation.

Mississippi area president for Regions Bank Arthur DuCote said the intention behind Com- DuCote mercial Insights is simple: “When our customers are successful, we are successful. We are very proactive in searching for tools that help make our customers be successful. We now have the medium to do that on our Internet site.”

Commercial Insights includes commentary from Regions’ subject matter experts such as Regions’ Chief Economist Richard Moody, who discusses issues such as the economic outlook and how business can be positioned for the direction of economic growth. There are also a plethora of articles from Inc. Magazine and The Build Network.

The website is not password protected, so the information is available to anyone— not just customers of Regions Bank. One of the advantages of having the information available on a website is that it can be accessed from any place with an Internet connection. For example, someone who is waiting for a flight at an airport can take the time to do some research.

DuCote compared Commercial Insights to going into an airport and buying a business magazine to read on the plane.

If you buy a magazine, you have to flip through it to find content that might be helpful to you.

“The magic piece behind this is it is organized for you so you can pick the information you are interested in and choose only that,” DuCote said.

“If you are interested in a certain subject like hiring key executives, you can go right to it. It is a way of taking all of the content out there that is needed and wanted by business owners, and consolidating it. It works for Inc. and The Build Network as it

is a way for them to generate income. So, it is a good partnership. The media providers are keeping up with how users want information. It is evolving, and it changes rapidly. This is one way we can partner with them, meet our customers need, and land on high ground for everybody.”

Robert Leard, a senior vice president who heads up Regions’ commercial banking in Mississippi, said Commercial Insights is another tool for Regions to help customers identify and reach financial goals.

“This puts us in a position to be in an advisory capacity and ultimately build long-term relationships where the bank, the customers and communities are more successful,” Leard said.

Leard “Keep in mind, the idea is not to put the information behind a sign in or firewall. You don’t even have to be Regions’ client. The idea is anyone can access it from anywhere. We are pulling together a wide range of strategic and tactical information about how to manage finances. A customer sitting in an airport with a tablet or iPad can pull up the information, think about it and use it to effectively move their business forward in their down time.”

Often it can be hard for business people to step back from the daily grind of work and think strategically.

“It happens to us in banking, and for clients, it is the same thing,” Leard said.

“You get so focused on what is on your desk today that it is hard to think two, three or four years ahead. Go in and look at more strategic suggestions about long-term goals. There is a lot of value in that. None of us in business do that as well as we could or should.

The most valuable thing I would suggest is to use the information to set long term goals, and look at it from a strategic planning standpoint.”

In addition to strategic planning, other key areas covered in the website include: » A comprehensive risk assessment can reveal what risks your company is facing and how to deal with them. A recent study by the Institute of Internal Auditors (IIA) suggests that companies are taking a closer look at operational risk » The Business Resource Center has featured articles such as The Sales Metrics

Find Regions’ Commercial Insights site at www.regions.com/commercialinsights

You Should Be Focusing On, Your Company’s Financial Roadmap, in Just 3 Steps, and 3 things Your Employees Want More Than Money. » Small Business Calculators has calculations for issues such as how much you need to start a business, whether you should buy or lease equipment, what loan terms should be chosen, whether you should get a loan or a line of credit, whether leasing or purchasing a business location is best, and what your business is worth today.

The site’s content library will consistently grow, featuring editorial content designed to keep clients and prospects engaged.

I BankFirst.

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OLDESTS BANK

16 I Mississippi Business Journal I April 4, 2014 Name

Address

Website

The Bank of Holly Springs

114 S. Memphis St., Holly Springs, MS 38635

BancorpSouth Bank Bank of Yazoo City

Date Established

www.bankofhollysprings.com

1869

One Mississippi Plaza, Tupelo,MS 38801

www.bancorpsouth.com

1876

104 N. Main St., Yazoo City, MS 39194

www.bankofyazoo.com

1876

Bank of Winona

312 N. Applegate, Winona, MS 38967

www.bankofwinona.com

1885

The Citizens National Bank of Meridian

512 22nd Ave., Meridian, MS 39301

www.yourcnb.com

1888

BankFirst Financial Services

110 S. Jefferson St., Macon, MS 39341

www.bankfirstfs.com

1888

Trustmark National Bank

248 E. Capitol St., Jackson, MS 39201

www.trustmark.com

1889

RiverHills Bank

702 Market St., Port Gibson, MS 39150

www.riverhillsbank.com

1890

Copiah Bank, N.A.

101 Caldwell Dr., Hazlehurst, MS 39083

www.copiahbank.com

1891

Mechanics Bank

319 N. Main St., Water Valley, MS 38965

www.mechanicsbankms.com

1892

First Bank

Third Ave. & S. Broadway, McComb, MS 39648

www.firstbankms.com

1895

BNA Bank

205 Bankhead St., New Albany, MS 38652

www.bnabank.com

1896

The People Bank, Biloxi

Lameuse & Howard Aves., Biloxi, MS 39533

www.thepeoples.com

1896

State Bank & Trust Company

916 Hwy. 82 Bypass, Greenwood, MS 38930

www.statebank1898.com

1898

Hancock Bank

1 Hancock Plaza, Gulfport, MS 39501

www.hancockbank.com

1899

The First National Bank of Pontotoc

19 S. Main St., Pontotoc, MS 38863

www.1stnbpontotoc.com

1900

Sycamore Bank

301 E. Main St., Senatobia, MS 38668

www.sycamorebank.com

1900

The Bank of Forest

211 W. Third St., Forest, MS 39074

www.bkforest.com

1900

The Jefferson Bank

1445 Main St., Fayette, MS 39069

www.thejeffersonbank.com

1901

Great Southern National Bank

218 22nd Ave. S., Meridian, MS 39301

www.gsnb.com

1902

Community Bank

300 Jessamine St., Ellisville, MS 39437

www.communitybank.net

1902

Century Bank

4282 Main St., Lucedale, MS 39452

www.centurybankms.com

1903

Source: Federal Deposit Insurance Corporation. Please direct questions or comments to Wally Northway at research@msbusiness.com.

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BANKING & FINANCE

April 4, 2014

I

Mississippi Business Journal

I

17

To

P

ERHAPS SOME of you struggled through World Literature like I did in school.

Frankly, the problem wasn’t my teachers. A lot of it had to do with me and where my mind was at that stage of life. In particular, I remember trudging through Shakespeare’s Hamlet and reciting the well known pronouncement “To be or not to be, that is the question.”

This month, I’ll put the liberal arts education — my parents paid — to good use and discuss the pros and cons of funding your retirement account through a Roth IRA. Since the introduction of IRAs back in 1974, along with the rise of 401(k) programs in the 1980’s, there has always been the presumption that most working individuals will end up in a lower tax bracket after retirement. But, it is not altogether wise to assume that will occur.

Ike Trotter In fact, it could be just the opposite. And, if you throw into that mix the possibility of higher taxes down the road to pay for federal budget deficits along with Obamacare and the like, our income tax burden in the future could be higher than ever.

A great addition to the retirement tool chest for individual working Americans and one that is often misunderstood is the Roth IRA — named for the former U.S. senator, the late William V. Roth, Jr., of Delaware. The Roth IRA came into being on Jan. 1, 1998, and is growing more popular every year.

In many ways — especially as it pertains to contributions, it looks similar to a regular IRA. Contributions for 2014 (and 2013 if you’ve not filed your income taxes) are available up to $5,500 this year.

If you’re 50 or older, by the end of this year, you can add another $1,000.

You can make contributions to a Roth plan if you participate in a company sponsored retirement plan such as a 401(k), but there are certain conditions.

First, and quite obvious, you or your spouse must have compensation or alimony income equal to the amount you wish to contribute.

Second, you are limited to making a contribution on the basis of your modified adjusted gross income which can’t exceed certain limits. For the maximum contribution in 2014, according to the IRS website, the limits are $114,000 for single individuals and $181,000 for married individuals filing joint returns. The amount you can contribute reduces gradually and then is completely eliminated

Roth or not to Roth

when modified AGI exceeds $129,000 single or $191,000 married filing jointly.

As to your own specific situation, be sure to check with your accountant or financial adviser.

Here’s where a Roth differs from a regular IRA. The Roth IRA provides no income tax deduction for your retirement contribution, but instead, provides a benefit that isn’t available for any other form of retirement savings. That is — if you meet certain requirements — all earnings are tax free when you or your beneficiary withdraws them. Other benefits include avoiding the early distribution penalty in the event of certain withdrawals. That’s a key point to the Roth; with a regular IRA, if you withdraw any cash out of your retirement account before age 59½, you’ll pay a 10 percent federal tax penalty plus the entire amount withdrawn is taxable in the year of receipt at your current level of income taxation.

Ouch!

Another key benefit to Roth plans allows you to bypass the requirement for minimum distributions by age 70½, plus, in the event of death, proceeds can pass to your beneficiary more favorably — tax wise.

The chief advantage of Roth IRAs is obvious; the ability to have investment earnings completely escape taxation.

This comes at a price, however. You don't get a deduction when you contribute to a Roth. But, when you add the additional features mentioned above, it makes a compelling case that the Roth is attractive to keep your money in, and also easier to take out as well.

So, which is more important? It strongly depends on your personal situation, and also on what assumptions you want to

make concerning your future. How long before you withdraw this money? What will your tax bracket be at retirement?

Can you commit to a payment program

for 20-30 years? In addition, are you self employed? If so, does the benefit of deducting contributions help ease the pain of paying full social security /Medicare taxes at a 15.3% clip. Like everything else, the answers are not always clear.

Whatever IRA you decide — the most important thing is you do something now.

For with increasing life expectancies, an uncertain future Social Security system and employers increasingly terminating pension programs, it becomes more important than ever you plan for your own retirement wellbeing. Like my grandfather Chuck used to say, the worse thing in the world is to be old . . . and have nothing.

Always remember as it relates to the financial game of retirement: Time is money.

Ike S. Trotter, CLU, ChFC is a credential Financial Advisor in Greenville. Securities and Investment Advisory Services provided through Woodbury Financial Services, Inc., Member: FINRA, SIPC and Registered Investment Advisor, P.O. Box 64284, St. Paul, MN 55164. Tel: 800.800-2638. Ike Trotter Agency, LLC and Woodbury Financial Services, Inc. are not affiliated entities.

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NEWSMAKERS

18 I Mississippi Business Journal I April 4, 2014 Tournament officials hire staff

Emison elected fellow

Employees honored for service Chevis joins staff

Century Club Charities, host organization for the Sanderson Farms Championship, along with title sponsor, Sanderson Farms, has hired a full-time tournament staff. John Mercer is the director of sales.

Mercer previously worked for Mizuno, host communications, advertising sales and sponsorship sales at the University of South Alabama. He graduated from Millsaps College where he was a four-year starting pitcher and Conference Pitcher of Year in 1995.

Jonah Beck is the director of operations. Previously, Beck worked with Arena Football and the American Junior Golf Association, where he was vice president of tournament operations. He graduated from Ft. Hays State in Kansas where he was captain of the golf team.

Renee D’Agostino is tournament services manager. D’Agostino has worked extensively in golf, including stops in Nevada, California, Annandale Golf Club, Colonial Country Club-Deerfield, and with the tournament now known as the Sanderson Farms Championship since 2008. D’Agostino attended Illinois State University and the University of Nevada Las Vegas.

Diana Gustafson is tournament events coordinator. Gustafson has worked as a tournament events coordinator for Octagon, the BMW Championship, Hyundai Tournament of Champions and the Farmers Insurance Open. A marathoner and Habitat for Humanity volunteer, she graduated from the University of Illinois.

Gerald A. "Jerry" Emison, a professor in Mississippi State's Department of Political Science and Public Administration, has been elected to the College of Fellows of the American Institute of Certified Planners. Emison came to MSU after a professional career in public sector organizations, including Emison director of air quality planning for the Environmental Protection Agency where he was a leading architect of the Clean Air Act of 1990.

Also, he has used his experience in planning to connect practice to university teaching at MSU. Emison is author of "Practical Program Evaluations" and the coeditor of "Speaking Green with a Southern Accent" and "True Green."

In civic life, he has served as chair and member of municipal planning commissions on growth management in Bainbridge Island, Wash., and adequate public facilities in Durham, N.C. Currently chair of the Starkville Planning and Zoning Commission, he has led in adopting one of the first form-based codes in Mississippi and in the construction of a municipal complex in the city.

Mississippi State Hospital (MSH) recently honored employees with March anniversaries for their years of service to the hospital. Service award recipients include: Michelle Blakely of Brandon, five years; Eddie Williams of Pearl, five years; Rose Scott of Crystal Springs, 30 years; Leroy Evans of Jackson, 25 years; Katie Storr of Pearl, five years; Nicole Gaskin of Bolton, one year; Robert Jones of Brandon, one year; and Vernon Turner of Jackson, 25 years.

Smith seeing patients Memorial Physician Clinics’ Dr. Judith W. Smith, orthopedic surgeon, is now seeing patients at the Popp’s Ferry Road office in Biloxi. Smith is one of the few orthopedic surgeons in the state of Mississippi with fellowship training in foot and ankle reconstruction surgery. She graduated cum laude with her Smith undergraduate degree from Princeton University in New Jersey. She earned her medical degree from Columbia University, College of Physicians and Surgeons in New York. She completed her residency in Orthopedic Surgery at The Hospital for Special Surgery/The New York Hospital-Cornell Medical Center in New York, after two years of General Surgery residency at Yale-New Haven Hospital in Connecticut. She then pursued a fellowship in foot and ankle surgery at the Medical College of Wisconsin in Milwaukee, after which she joined the orthopedic faculty at The Emory Clinic in Atlanta as chief of the division of foot and ankle reconstruction.

Smith is board certified in orthopedic surgery

Curtis Stout welcomes Barker Veteran electrical industry sales associate Daniel Barker has joined the Jackson district office of Curtis Stout Company as its outside sales representative. Barker, a native of south Texas, worked for over a decade in Houston as electrical manufacturer’s representative before owning and operating a beach supply rental business in Crystal Beach, Texas.

Barker

Gilbert elected to board Mississippi State University provost and executive vice president Jerome A. "Jerry" Gilbert has been elected to the inaugural board of directors of the Association of Chief Academic Officers. Gilbert earned a bachelor's degree in biological engineering from Mississippi Gilbert State and a doctorate in biomedical engineering from Duke University. After academic appointments at Duke, North Carolina State University, University of North Carolina (Chapel Hill) Medical Center and University of Mississippi Medical Center, Gilbert has been affiliated with MSU since 1988. He was appointed MSU's provost in 2010.

He met his wife, Leigh, while both were studying at Duke. They have three children: Peter, Sallie and Caroline, all graduates of Mississippi State.

North, Nations chosen Associated General Contractors of Mississippi has hired Melanie North as the new director of membership and communications. North joins AGC after spending the past 16 years working in the marketing/sales/media arena throughout the state.

She graduated cum laude from Belhaven College with a degree in marketing and was the recipient of the James W. Park Academic Achievement Award.

In a separate item, Lee Nations, head of the AGC of Mississippi, has been appointed to the National ELC (Executive Leadership Council) Board as a southern states regional representative. The Executive Leadership Council is the group of AGC association professionals whose mission is to provide continuous and timely professional development, networking opportunities and leadership skills through effective facilitation and strategic thinking.

Shipbuilder presents awards Huntington Ingalls Industries' has recognized six teams and three individuals with "President's Awards for Excellence" for their outstanding and innovative work on shipbuilding projects. The 2014 recipients are David Dixon, Brad Mason, Michael Porter, DirulIslam Burrus, Danny George, Mike Jordan, Bryan Manson Sr., Sid Reus, Jason Rushing, Dennis Woodard, Joshua Box, Clayton Clements, Jay Hunt, David McDonald, Ronnie Walters, Warrick T. Williams, Doyle Adams, Leroy Cortez, Robert Hayes, Sterling Landry III, C.P. O'Neal, Herman Watson, John Wilson, Robert Bell, David Dixon, Brian Payton, Robert J. Shoemaker, Mike Strong, Stanley Walding, Sheryl Ash, Robert E. Baker Jr., Caroline Brown, Sammy Roberts, David Criddle, Tom Hamrick, Chris Helton, Jay Jenkins, Sammy Roberts, Steve Sloan and Scott Weldon.

Rainey moves to Legacy program Pine Grove Behavioral Health & Addiction Services has added Russell Rainey, MS, LPC, as program director of the organization’s Legacy program. A South Mississippi native, Rainey earned his bachelor of arts degree in religion and biblical studies with a focus on language at William Carey University in Hattiesburg. Rainey He also gained his master of science degree in counseling psychology from William Carey and is a licensed professional counselor.

Prior to joining the Legacy team, Rainey served as clinical director of Pine Grove’s Next Step program.

Buffington, Davidson appointed TEC has appointed Jeff Buffington as customer account manager in Jackson. Buffington brings with him 20 years of experience in the telecommunications industry.

He currently resides in Byram with his wife, Karen.

Also, TEC has appointed Teresa Davidson as customer account manager in Jackson.

Davidson, who currently lives in Brandon, brings with her several years of experience in the customer relations industry.

Buggington

Davidson

Memorial Physician Clinics welcomes Sidney Chevis, MD, in the practice of family medicine in Bay St. Louis. Chevis received his undergraduate degree from the University of Mississippi. He earned his medical doctorate, and he completed his residency in family medicine, at the University of Mississippi Medical Cen- Chevis ter in Jackson. Chevis completed his internship at St. Elizabeth Medical Center in Dayton, Ohio.

Campbell named president-elect Bradley Arant Boult Cummings, LLP litigation partner Roy D. Campbell III has been named presidentelect of the Mississippi Bar, effective June 2014. A fellow of the American College of Trial Lawyers, Campbell has been lead counsel in more than 100 jury trials.

Campbell holds a J.D. from the University of Mississippi School of Law and a B.A. from Davidson College.

Lilley practicing in Tupelo Dr. Jessica Sparks Lilley, a pediatric endocrinologist on the faculty of the University of Mississippi Medical Center and Batson Children’s Hospital in Jackson, has established a practice in Tupelo in affiliation with North Mississippi Medical Center.

Lilley will provide care to children Lilley with diabetes and other endocrine conditions such as disorders related to growth and puberty.

Lilley is a native of Belmont, and joined UMMC last July as an assistant professor, after completing a fellowship in pediatric endocrinology at Monroe Carell Jr. Children’s Hospital at Vanderbilt University in Nashville.

A Mississippi State University graduate, Lilley earned her M.D. at the Vanderbilt University School of Medicine. She completed her residency in pediatrics at Children’s Hospital of Philadelphia, Pa. Her professional affiliations include the American Academy of Pediatrics, the Pediatric Endocrine Society, the American Heart Association and the National Lipid Academy.

Lilley, who has had specific training in the management of cholesterol disorders in children, is the author or coauthor of five published articles and two more accepted for publication. She has coauthored two medical textbook chapters and five abstracts.

Among her honors are an American Heart Association Epidemiology Tahoe Fellowship, the 2010 Children’s Hospital of Philadelphia Pediatric House Staff Humanitarian Award and, last summer, the Women in Endocrinology’s Young Investigator Award. In 2011 she won the Pennsylvania Academy of Dermatology Outstanding Service Award, which stemmed from her advocacy work on sun safety in children following her own melanoma diagnosis — she is now a five-year survivor.

Lilley said she had an awareness of childhood endocrine problems at a young age, having relatives nearby with Type 1 diabetes.

Lilley and her husband, a Methodist minister, have a daughter and are expecting their second child this summer.

NEWSMAKERS Sanderson releases staff news

MGCCC honors faculty, staff

Tia Cardwell, former partner of Cardwell and Cardwell, PLLC, a general practice firm in Heidelberg, recently joined Sanderson Farms. In her new capacity within the poultry producer’s Organization Development Department, Cardwell will be responsible for managing the company’s Corporate Retention Program designed to reduce employee turnover and increase employee retention. Cardwell, a native of Heidelberg, graduated from the University of Southern Mississippi, where she received a bachelor of arts degree, as well as a master of science degree, in political science. In 2008, Cardwell earned a juris doctorate from Mississippi College’s School of Law. Prior to joining Sanderson Farms, Cardwell worked as a contract attorney for several corporations in the Dallas and Fort Worth, Texas, areas. Since 2010, she has been a partner with the general practice firm Cardwell and Cardwell, PLLC, alongside her husband and fellow attorney, Andrew S. Cardwell. She is a member of the Texas and Mississippi State Bar Associations. Cardwell also serves on the Laurel School District Advisory Council.

Cardwell and her husband have an 18-month-old son named Cal. The Cardwell family resides in Laurel.

Also, Jennifer Franklin, former corporate recruiter for Sanderson, has been named the poultry producer’s newest manager of training at the Corporate Office. Franklin is an honors graduate of the University of Southern Mississippi, where she received a bachelor of science degree in psychology. She joined Sanderson as a beginning trainee in March 2010, and has, until her recent promotion, been serving as corporate recruiter in the Organization Development Department. Prior to her employment with Sanderson, Franklin worked for the McAlister’s Deli restaurant franchise for 16 years, spending the last 11 years as a multi-unit operator and area director of more than 18 locations in the Memphis and North Mississippi areas. In her spare time, Franklin enjoys spending time with her four-year-old daughter, Isabella. They currently reside in Petal.

Finally, Jennifer Parrish has been promoted to training manager. Parrish is an honors graduate of the University of Mississippi, where she received a bachelor of science degree in consumer behavior with an emphasis in hospitality management. She also earned an associate’s degree in liberal arts from Jones County Junior College. Parrish joined Sanderson as a training coordinator in March 2013. Prior to joining Sanderson, Parrish was the director of sales and marketing for Shell Landing Golf Club in Gautier as well as the private events coordinator for Hattiesburg Country Club. In addition to her professional accomplishments, Parrish has had various roles in productions at the Laurel Little Theatre and the Hattiesburg Civic Opera House. In her spare time, she enjoys traveling, dancing, singing and spending time with her family, friends and cat, Oliver.

Mississippi Gulf Coast Community College recently recognized the 2014 Instructors of the Year and Difference Makers. The 2014 Instructors of the Year are: Marc Poole, art instructor at the Jackson County Campus; Dr. Kelly Rouse, science instructor at the Jefferson Davis Campus; and Robin Lyons, language arts instructor at the Perkinston Campus.

Four college employees have been selected each year since 2003 to receive the L. N. Dantzler Difference Maker Award based on their demonstrated willingness to make a positive difference as they interact with other employees, students and visitors. The 2014 recipients are: David Newbill, driver and mechanic in the Transportation Department at District Office; Betty Stringfellow, custodian at the Jackson County Campus; June Bounds, secretary to the dean of instruction at the Jefferson Davis Campus; and Trey Robertson, residence hall supervisor at the Perkinston Campus.

Kirby named year’s best Crossgates River Oaks Hospital has named Mike Kirby as the 2013 Employee of the Year. Kirby has worked for Crossgates River Oaks Hospital since 2009 when he began as a staff nurse. In March 2012, he was promoted to 2 East and Burn Step Down manager.

Kirby recently graduated with his bachelor’s degree in nursing xxxx from Western Governors University. He lives with his family in Brandon.

Gage tenders resignation Howell “Hal” N. Gage, a member of the Mississippi Board of Education, has resigned. Gage, who served as vice chairman of the board, decided to step down to spend more time with his family. He was appointed to the board in 2004 by former Gov. Haley Barbour to fill an unexpired term. He was reappointed in 2007 and his term was set to expire July 2016.

Gage has served as the chairman of RiverHills Bank in Vicksburg for 14 years. Actively involved in his community, he also serves as chairman of the Vicksburg Medical Foundation and past chairman of River Regional Medical Center board of directors. Gage is a former chairman to the Vicksburg-Warren Chamber of Commerce and a former advisory board member of the New Orleans branch of the Federal Reserve Bank of Atlanta. Gage served as a member of the State of Mississippi Taskforce on Restructuring of the Minimum Education Program in 1996.

Allen-Snyder awarded YAT Camille Allen-Snyder has been awarded Young Advisory Team (YAT) for NAIFA-Jackson (National Association of Financial Advisors of Jackson). AllenSnyder is a recruiting director and financial representative with Allen Financial Group, the Guardian Life agency in Jackson Allen-Snyder since 2012. She is recognized for her successful career, but also commitment to community, family and team.

Young Advisory Team are members of NAIFA-Jackson that are under the age of forty.

Allen-Snyder’s interest in the insurance industry started after spending two years unable to work due to a life-threatening illness. She became passionate about individual disability insurance and joined the Guardian Life agency in Maryland as a Disability Insurance Specialist in 2010. Allen-Snyder was an active member of NAIFA-Greater Washington and graduated from the LILI program in 2011. Her passion and love for the industry continues as a fourth generation financial advisor following in the footsteps of her father, mother, grandfather, and great-grandfather.

Allen-Snyder successfully completed Guardian’s Leadership Institute program in 2013. She is an active

April 4, 2014 member of NAIFA-Jackson serving as the presidentelect and the YAT state chair. She is a member of the Junior League of Jackson and also volunteers her time as a Governing Board member of the Cooperative Baptist Fellowship and as the alumni chapter president for Washington & Lee University.

Goodman makes Who’s Who Bradley Arant Boult Cummings, LLP’s Jackson partner William F. Goodman III has been listed in The International Who’s Who of Product Liability Defence Lawyers 2014. Goodman is a nationally recognized trial lawyer who has worked on major chemical exposure, class action, commercial and pharmaceutical litigation matters, most of which involved hundreds or thousands of claims. Earlier matters included asbestos, dioxin, hearing loss and toxic waste site and Superfund-related litigation. His practice in recent years has focused on the national-level defense of pharmaceutical and chemical companies in complex commercial and personal injury litigation.

Goodman holds a J.D. from the University of Mississippi and a B.A. (cum laude) from Millsaps College.

Morren made plant manager Power management company Eaton has named Reed Morren plant manager of the Aerospace Group's Fuel and Motion Control Systems Division manufacturing facility in Jackson. He will report to Mike Gallant, the Aerospace Group's vice president of manufacturing operations. Previously, Morren was general manager for Morren Aurora Flight Sciences in Columbus. Prior to that, he worked for The Boeing Company where he held roles of increasing responsibility, including site leader for Boeing's manufacturing plant in Macon, Ga. Morren holds an MBA from the University of Tennessee and a bachelor's degree in business administration from the University of Southern Mississippi.

Hodges earns license Martin Hodges of Beard + Riser Architects, PLLC, has successfully completed his Mississippi architect licensure. Hodges, a native of Indianola, has been working with Beard + Riser as intern architect and project manager since 2009.

He holds a bachelor of architecture degree from Mississippi State University.

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Program, planning and constructing water, sewer and stormwater infrastructure across five counties in the region as part of the Hurricane Katrina recovery.

Granger has also worked with the town of Pelahatchie in the development of its community center, creation of pedestrian-friendly safe routes and renovation of the city hall.

Granger earned an undergraduate degree from Mississippi State University.

Harris tapped for REACH Jared Harris, an environmental biologist specializing in conservation, has joined the Mississippi State University Extension Service. Harris of Poplarville will serve as the lead contact for 23 southern counties as a coordinator for the Research and Education to Advance Conservation and Habitat, or REACH, program.

His work is a new collaborative effort between the MSU Extension Service, REACH, EPA-Gulf of Mexico Program office, U.S. Department of Agriculture’s Natural Resources Conservation Service and Pearl River Community College.

Parker made Community EVP Michael F. Parker Jr. has officially joined Community Bank, North Mississippi as an executive vice president in the Olive Branch office. Parker has more than 13 years of experience in the banking industry and was most recently employed as a senior commercial lender by M&F Bank.

Parker, a Meridian native, at- Parker tended Mississippi State University where he earned a bachelor’s degree in marketing and an MBA. He is also a graduate of the Mississippi School of Banking where he was awarded a LSU Scholarship. In 2010, he used that scholarship to become a graduate of the Graduate School of Banking at LSU. Active in the community, Parker is a member of the Olive Branch Lions Club, the DeSoto Dawgs and the Olive Branch Chamber of Commerce, where he serves as the Connector Chairman. He also serves on the Young Business Leaders Steering Committee. Parker is married to Jenny Parker and has one daughter, Zoe Reese.

For announcements in Newsmakers; Contact: Wally Northway (601) 364-1016 • wally.northway@msbusiness.com

Hodges

Waggoner promotes Granger Waggoner Engineering has promoted Brian Granger to design team leader in the firm’s water resources division. He joined Waggoner as a project engineer in 1998, and is currently a board‐certified environmental engineer and experienced design engineer/project manager for the firm’s water resource improvement projects. Granger has more than 15 years of experience in water resource improvement, advanced wastewater treatment, and pumping and public utility pipeline projects. He has worked with the Mississippi Gulf Region Water and Wastewater

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© 2014 Regions Bank.

April 4 2014

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» MISSISSIPPI LEADERS by Martin Willoughby

Sound of success Up Close With ... Dennis Sankovich

Music is Sankovich’s profession and passion

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believe one of Mississippi’s real opportunities is to leverage its rich culture. Around the state there are individuals, groups and organizations who are trying to make their communities richer through the arts and education. One of Mississippi’s notable success stories in this area is the Mississippi State University Riley Center located in the heart of downtown Meridian. The MSU Riley Center includes a fully restored 1889 grand opera house theater that seats approximately 950, a 200-seat studio theater and 30,000 square feet of meeting space. The Center was opened in 2006 after a major renovation project to offer cultural, artistic, and educational experiences. The center attracts over 70,000 visitors to downtown Meridian annually for conferences, meetings, and performances. I was interested in this success story and recently interviewed Dennis Sankovich, the executive director of the MSU Riley Center, to learn more.

Sankovich was truly the right leader at the right time for this organization. An Ohio native, he has combined his love of the arts with business since his college days at the University of Toledo. As an undergraduate, he created an interdisciplinary degree combining his interests in music/performing arts and business for a degree major in perform-

Title: Executive director, MSU Riley Center Favorite Books: “A few of my favorites are In Search of Excellence by Tom Peters and Robert Waterman, Good to Great by Jim Collins, and Steve Jobs by Walter Isaacson.”

First Job: “I worked as a door-to-door salesman for Watkins Products and then working at Kmart as a Camera Department salesman.”

Proudest Moment as a Leader: ”One of my proudest moments was the grand opening of The Ritz Theatre after raising the funds, building the organization and seeing the look on the community member's faces as they left the performance I helped make possible.”

Hobbies/Interests: “I play bass, acoustic upright and electric. Music is my hobby as well as part of my profession.”

ing arts management. As a young leader, he founded a new arts organization called the Toledo Jazz Society that presented a series of jazz concerts with a professional jazz orchestra including a major three-day jazz festival. He shared, “I had to form and manage the nonprofit board, raise funds, develop members, patrons and write grants. This was a great early learning experience and a way to support me while I finished my master's degree in public administration.”

Prior to joining the MSU Riley Center in 2004, Sankovich spent almost 16 years

as executive director of The Ritz Theatre in Tiffin, Ohio, which is a historic 1928 performing arts facility in rural northwestern Ohio that successfully completed a $5 million renovation/restoration. Sankovich was responsible for the planning, development and financing of the renovation project encompassing the theatre facility and surrounding property. Sankovich utilized his experiences to lead the $25 million historic rehabilitation project at the MSU Riley Center. The Center presents an annual series of over 20 events, is a Kennedy

“I look for people who have lots of heart and inspire them to bring their best game to play toward a common goal.”

Center Partners in Education for school teachers and facilitates over 150 meetings and conferences a year through its conference spaces.

The Center has an annual budget of over Martin Willoughby $2 million and is part of the Meridian campus of Mississippi State University.

Sankovich shared that his key principle in management is simply the "Golden Rule."

He said, “I believe that it is best to manage and treat people the way you would like to be treated yourself and create a positive atmosphere with the people around you, encouraging them to work independently and together to accomplish a clear and common goal. This can bring the greatest outcomes or rewards.” He also noted the importance of getting quality creative on your team. He said, “I look for people who have lots of heart and inspire them to bring their best game to play toward a common goal.” He believes that the job of the leader is to make sure the goals are VIVID for the team.

Sankovich went on to explain that, as a leader, you have to be patient in building your team. He noted that it took him almost six years to get the right board together to undertake the project to renovate The Ritz Theatre.

Leaders like Sankovich who have a passion for developing the arts in Mississippi will play a critical role in moving the state forward in the years to come.

Martin Willoughby is a business consultant and regular contributing columnist for the Mississippi Business Journal. He serves as Chief Operating Officer of Butler Snow Advisory Services, LLC and can be reached at martin.willoughby@ butlersnow.com.

Learn how eight successful CEOs ran their companies in good times and bad

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uppose someone asked you to name the most successful chief executive officer of the last 50 years. There’s a good chance you’d answer Jack Welch, who served as CEO of General Electric for 20 years (1981 to 2001). Welch became famous for his brash, no-nonsense style of management, his tough attitude and his relentless focus on the bottom line. He did well by GE shareholders, producing a compound annual return for them of 20.9 percent. One dollar invested in GE’s stock when Welch took over turned into $48 when he stepped down two decades later. That’s nothing short of extraordinary.

But would you believe that there are a handful of CEOs who’ve performed even better and over a longer period of time than Welch? While you may have heard of some of » The Outsiders: Eight Unconventional CEOs them (like Warren Buffett), the stories behind the others and Their Radically Rational Blueprint for Success are likely unknown to you. William Thorndike’s book, The

By William N. Thorndike, Jr. Outsiders, uncovers these stories and breaks down the Published by Harvard Business Review Press $27.00 hardback

traits common to the eight exceptional CEOs he profiles.

Whether you’re curious about these traits as they relate to you and your own business or you’re looking to evaluate the leaders of companies you’re invested in, The Outsiders provides nugget after nugget of insight and inspiration.

Several of the factors Thorndike identifies with leadership success may surprise you. For instance, he writes, “All were first-time CEOs, most with very little prior management experience. Not one came to the job from a high-profile position, and all but one were new to their industries and companies. Only two had MBAs.” Furthermore, these

“outsider” CEOs typically shunned the spotlight, choosing instead to focus on the incredibly important task of capital allocation versus worrying about public relations. The “outsider” CEOs also tended to focus on building wealth for their shareholders over the long term, rather than fretting about their reputation among Wall Street’s research analysts and brokers. They led companies in industries as diverse as newspapers, cable television, defense and agricultural feed.

Quoting Thorndike again, “These eight CEOs were not charismatic visionaries, nor were they drawn to grandiose strategic pronouncements. They were practical and agnostic in temperament…” Through good economies and bad, bear markets and bull markets, these CEOs excelled. Thanks to The Outsiders, which really serves as a kind of playbook for success, we can learn a lot of useful and actionable lessons from them.

— LouAnn Lofton, mbj@msbusiness.com

22 I Mississippi Business Journal I April 4 2014 THE SPIN CYCLE

New digital marketing & advertising initiative launched by The Wall Street Journal he Wall Street Journal has launched a new digital destination — CMO Today — to address the rapidly transforming marketing, advertising and branding industries.

Designed for marketing executives and specialists, CMO Today (@wsjCMO) defines what matters and what doesn’t in the chaos of today’s marketing business. CMO Today takes a deep and investigative look at all aspects of marketing, including how social and mobile are transforming the industry, along with how television and print media are aiming to keep up.

“CMO Today allows us to expand our coverage of some of the most interesting and fast-changing parts of the advertising and media businesses, where digital technology is intersecting with marketing,” said Martin Peers (@mvpeers), the WSJ’s media and marketing bureau chief.

The new vertical has a full time staff of five, headed up by the WSJ’s newly-appointed advertising editor, Suzanne Vranica (@VranicaWSJ), who has nearly 15 years’ experience covering Madison Avenue at the Journal.

Other members of the CMO Today team are Mike Shields (@digitalshields), formerly digital editor of Adweek and previously a senior editor at Digiday, who in the late 1990s through early 2000s himself worked on Madison Avenue as a media buyer at ad agency Lowe Worldwide; Jack Marshall (@JackMarshall), formerly of Digiday, who has recently authored investigations of fraud in online ad networks; Nathalie Tadena (@nftadena), formerly of Dow Jones Newswires who most recently worked at data analytics firm Dataminr; and Steven Perlberg (@perlberg), who joins the Journal from Business Insider, where he covered Wall Street and finance.

CMO Today (wsj.com/cmo) is anchored by a continually updated blog as well as an array of important marketing news from the Journal and around the media. It is also supported by a CMO Today morning newsletter, authored by Shields and summarizing major marketing and media news.

Adobe (@Adobe) is the site’s sponsor and will provide its own clearly labeled content — including feature stories, data-driven insights and more — for and by marketing leaders. The Wall Street Journal news department is not involved with the creation of sponsored content from Adobe.

CMO Today is the fourth of the Journal’s vertical products, which include CFO Journal, CIO Journal and Risk & Compliance Journal.

T

Top 8 Twitter Moments To Celebrate 8 Years Of Social Media Ingenuity The social media company that made its mark by encouraging brevity — limiting users to 140 characters — recently turned eight years old. While its micro-blogging function remains largely the same, its user base has grown tremendously.

About 500 million tweets are sent a day by more than 241 million monthly active users, according to Twitter. Here are eight memorable moments in the significant life of Twitter: 1. SXSW Even though the company launched nine months prior, Twitter's popularity took off at the 2007 South By Southwest conference. Live tweets about events were displayed on large screens in the hallways and daily usage of the service expanded wildly.

2. James Buck's release University of California student James Buck was arrested on April 10, 2008, by authorities while photographing an anti-government protest in Mahalla, Egypt. He then sent a tweet with one word: "Arrested."

His Twitter followers in the U.S. contacted the media, the university and the American embassy, which in turn pressured for his release. Authorities let him go the next day.

3. Miracle on the Hudson US Airways Flight 1549 hit a flock of geese when leaving New York City on Jan. 15, 2009.

The engine lost power and Captain Chesley B. "Sully" Sullenberger successfully landed the plane on the Hudson River.

Twitter user Janis Krums, @jkrums, was on a ferry that day. He took a picture of the partially submerged plane and sent it out on Twitter. Moments later the photo, which is now copyrighted, went viral.

This January, on the fifth anniversary of the event, Krums retweeted his now-iconic photo.

4. Osama bin Laden raid IT consultant Sohaib Athar inadvertently tweeted the raid of Osama bin Laden's compound in Aboottabad, Pakistan. Athar heard a helicopter in the early morning hours and sent out an innocuous tweet.

"Helicopter hovering above Abbottabad at 1AM (is a rare event)," he wrote.

He tweeted for the next few hours about what he saw and heard. After reports came out saying bin Laden had been killed, Athar tweeted, "Uh oh, now I'm the guy who live blogged the Osama raid without knowing it."

5. President Obama's re-election President Obama broke the then-record

At the 2014 Oscars, host Ellen Degeneres broke the record for most retweets with a celebrity-filled selfie.

now reigns as the most retweeted photo ever, more than tripling Obama's record. iPads, Galaxys and Fires, Oh My Whether you prefer the iPad, Galaxy Tab or Todd Smith Kindle Fire, the tablet market has become a big part of the mobile computing landscape.

In fact, studies show that 42 percent of American adults currently own tablets, and sales reflect it.

Market intelligence firm IDC released two forecasts this month: one for tablets and one for PCs, which suggest tablets will outsell PCs by next year. Although the tablet market's growth rate is slowing, PC sales are declining even more.

Considering how you market to an increasingly mobile society is paramount when planning your next brand-building strategy!

for the most retweets on Nov. 6, 2012, when he sent out a photo of him hugging Michelle Obama with the words, "Four more years."

It was retweeted more than 800,000 times and sent to more than 200 countries, according to Twitter.

6. First tweet from the Vatican The Vatican set up a Twitter account for former Pope Benedict XVI and solicited questions from the public with the hashtag #AskPontifex. On Dec. 12, 2012, the pope responded. He first posted, "Dear friends, I am pleased to get in touch with you through Twitter. Thank you for your generous response. I bless all of you from my heart."

The tweet has since been removed and Pope Francis is now using the account to reach digital audiences.

7. Super Bowl XLVII blackout The advertising capabilities of Twitter became even clearer during a power outage at the 2013 Super Bowl.

While fans waited for more than 30 minutes for the lights to come back on, marketers got to work.

Within minutes, Oreo sent out a tweet that capitalized on the situation. "Power out? No problem," the tweet read. "You can still dunk in the dark."

8. Ellen's Oscar selfie At the 2014 Oscars, host Ellen Degeneres broke the record for most retweets with a celebrity-filled selfie. She crammed as many A-list stars as possible into the frame and actor Bradley Cooper took the picture. It

Golden Mic | Gail Kerr, Beloved Tennessean Columnist, Gave Voice To Voiceless Gail Kerr, who captured a changing Nashville, held elected officials accountable and spoke for homeless people, sexual assault victims and neglected children as a beloved columnist for The Tennessean (Nashville) died unexpectedly at the end of March after a valiant battle with cancer.

In short, Kerr, 52, gave voice to the voiceless for more than 30 years, and her eloquent, colorful, descriptive prose lifted up the generations — and shined a beacon of journalistic integrity across Tennessee and throughout the nation. In true Kerr fashion, she worked until the day she died, doing what she did best — chronicling our lives, and bringing light to the dark places. Somewhere beyond the clouds, God has gained a great and gifted messenger.

Each week, The Spin Cycle will bestow a Golden Mic Award to the person, group or company in the court of public opinion that best exemplifies the tenets of solid PR, marketing and advertising – and those who don’t. Stay tuned – and step-up to the mic!

And remember … Amplify Your Brand!

Todd Smith is president and chief communications officer of Deane, Smith & Partners, a fullservice branding, PR, marketing and advertising firm with offices in Jackson. The firm — based in Nashville, Tenn. — is also affiliated with Mad Genius. Contact him at todd@deanesmithpartners.com, and follow him @spinsurgeon.

April 4, 2014

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RESTAURANTS

Good Karma comes to Pass Christian

By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com

When Maharani Berg opened her third Good Karma vegetarian restaurant in the DeLisle community near Pass Christian recently, she thought only a few people would show up for the soft opening. The response caught her by surprise. “One hundred people came in that night,” she said. “It was the first time I ran out of food for an opening.

I didn’t expect that many people to be there.”

Word of the “100 percent vegetarian and vegan friendly” restaurant on Kiln-Delisle Road spread quickly through social media sites among fans of her popular restaurants in Gulfport and Ocean Springs where they enjoy lunch specials like ramen with tofu and veggie burgers.

Berg, who prepares the food for all three locations, is as surprised about being in the restaurant business as she was about the recent opening turnout.

“I am not a professional,” the Malayasian native admits.

“Cooking is not my thing but sometimes you have to listen to a calling.”

Berg had only cooked food to sell at the annual Herb Festival in Ocean Springs. It was her close friend Beverly Nava who urged her to open a restaurant. She took that advice five years ago and now when she looks back, she thinks, “My God, that was a bold start. I just went blindly into it but something guided me.”

Then her friend Beverly left the area, leaving Berg on her own to operate a restaurant that was off the beaten path and with little foot traffic but she said she expected customers would find her. A few trickled in but on the fourth day, there were no customers. “I thought, “this is crazy. What did I do.”

Finally, someone from a nearby Oriental food store bought carry out and soon afterwards called Berg. “She said, ‘I just ate your food and you better not stop doing this. Whatever you need I will help. You will be successful.

I took her word seriously and never looked back. I ran with it like crazy.”

Then after a year and a half, with her friend back home to help, Berg said it was time to branch out so she opened the Ocean Springs restaurant and Beverly became the manager. “It’s been going like crazy.” Berg said. All three restaurants serve lunch during the week and the Pass Christian location also serves Saturday dinner. The DeLisle restaurant manager is Iswari Rosario. She and all those involved in the restaurants are volunteers.

Customers sit down and everything is brought to them: first the drink, then salad, next soup, the main meal and finally dessert. “Eighty percent of the customers like the concept,” she said. “They don’t have to choose.” They do have to come early. The food sells out every day.

Before she acquired the new restaurant with its large kitchen, Berg was cooking for the Gulfport and Ocean

Springs restaurants at a certified commercial kitchen close to her home in northern Hancock County and transported the food in warmers from there. Now her daughter Surata Rangani Berg delivers the meals to the Gulfport and Ocean Springs locations.

Ingredients come mostly from Oriental stores and includes locally grown produce. “In the summertime we have a lot of vegetables coming out of our garden at the farm where I live,” she said. “I plan all the food and every day is different. I see what grows in the garden locally and seasonally.”

The farm is part of the the New Talavan community, which is affiliated with the International Society for Krishna Consciousness, commonly referred to as the Hare Krishna movement.

Berg’s husband John, a New Orleans native, operates the farm and the temple.

They met in New Orleans 30 years ago and married when they both worked at the New Orleans Hare Krishna Temple. Later Maharani became an affiliate of the Food for Life International program. The restaurants are owned by the local Food for Life organization. Berg calls his wife “the heart” of the program, which regularly supplies food to the Gulf Coast Mission. “We feed people everywhere,” she said. “We try to help the community.”

Berg said she seeks feedback from her diners and she recalled a particularly satisfying response about the Good Karma experience from a customer who told her, “I’ve never seen a place where everybody is happy. The cook, the customers, everybody is smiling and having a good time.”

» JEFFREY GITOMER

The questions that matter most in a sales presentation.

W

hen you’re giving your sales presentation, do you really know what the customer is thinking or what they’re asking themselves as you’re presenting?

I doubt it. You’re too busy trying to sell.

Shake the hand. Smile the smile. Show the slides. Talk the talk. Do the demo. Ask the superficial questions. Try the close. Try to overcome, “the price is too high.” Propose the proposal. Do the sales dance.

Meanwhile the customer is thinking. He or she is asking themselves questions about the validity of your product and your offer. They're thinking about how your stuff might fit into their company.

And while you're talking they may be Googling.

While you are trying to prove a point, they are trying to verify your information. And in these times, they can do it in a nanosecond. And you can't stop them.

While you're talking, they may be wondering if you have a Twitter account. So they do a quick search and find out that you do not. What's that about? How validating is that? If they ask you about it, you'll just brush it off. Suppose the customer is exceptionally Twitter active? How does that make you look?

That's a small "tip of the iceberg" example of the thoughts that differentiate your sales presentation from the customer’s decision to buy. But let me take it deeper.

All customers, not just the decision maker, have

a buying process. It’s a strategy and a process by which they make a purchase. And that purchase is based around the trust, safety, and comfort your customer feels when buying something from you.

In order to gain that trust, and that feeling of safety, they asked themselves a bunch of questions without ever saying a word. You answer those questions by the words you speak. Your job as a master salesperson is to answer those silent questions in a manner that drives the customer to say, "I'll take it!"

The following list of questions is exactly what goes through the mind of a prospective customer during your presentation. The list is long, and every customer may not ask themselves every one of these questions, but since you don't know specifically which ones they are going to ask themselves, you better be prepared with answers to all of them.

Here are the questions the prospective customer is asking: • What do you offer?

• What do you offer that no one else has?

• What do you offer of value?

• How does your product compare to others I have seen?

• Does it really fill my need?

• Can you deliver?

• Is it real-world?

• Will it work?

• Will it work in our environment?

• How will it impact our people?

• How could it impact our success?

• Will senior or executive management buy in?

• Will my people use it?

• How will we produce as a result of the purchase?

• How will we profit as a result of the purchase?

• How will it come together?

• How do we buy it?

• What’s the risk factor in buying?

• Will you and your company keep its promises?

• Do I trust you and the people I’m buying from, both as humans and their ability to deliver service after purchase?

• Will you be my main contact after purchase or are you going to relegate me to “the service department”?

• Do I believe you?

• Do I have confidence in you?

• Are you telling me the truth?

• Do I have the trust and comfort to buy now?

HOLY COW! All that?

YES! All that and more!

This list of questions is by far the most comprehensive I have put together. They address both confidence in product and confidence in the salesperson.

The customer is seeking validation and wants to believe you. They need what you have and they're going to buy what you offer. The only question is: From who? Depending on the answers to the above questions, they may not buy from you. OUCH!

Here are a few more thought-provoking challenges to help you understand the buying process: 1. The first sale that’s made is the salesperson. If the prospect doesn’t buy you, he’s not going to buy your product or service.

2. How’s your online reputation? What’s your Google ranking and reputation? NOT YOUR COMPANY. YOU! 3. What’s your social media reputation? Not Tweeting is a choice, but a poor one. How about LinkedIn? Do you have a business Facebook page?

4. Did you offer proof? Did you use “voice-ofcustomer” as testimonial proof to your claims?

4.5 Does the buyer have enough peace of mind to purchase?

I have just given you a mind full of sales information, from the mind of the only person that matters in your sales conversations: The customer.

Jeffrey Gitomer is the author of “The Sales Bible”, “Customer Satisfaction is Worthless” “Customer Loyalty is Priceless”, “The Little Red Book of Selling”, “The Little Red Book of Sales Answers”, “The Little Black Book of Connections”, “The Little Gold Book of YES! Attitude”, “The Little Green Book of Getting Your Way”, “The Little Platinum Book of ChaChing”, “The Little Teal Book of Trust”, “The Little Book of Leadership”, and “Social BOOM!” His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at salesman@gitomer.com.

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