November Business Connection

Volume 4, No. 11

November 2012

Business Kelso Longview

Connection Chamber of Commerce

Calendar Thursday

November 1 - 4:30 p.m.

Ribbon Cutting Hop-N-Grape 924 15th Ave., Longview

Sunday

November 4 – Daylight Savings Time Fall Back

Wednesday

November 7 - 8 to 9 a.m.

Education Committee Monticello Hotel

Thursday

November 8 - 6 to 8 p.m.

Lower Columbia Professionals Bunko Night at the Red Lion Register online

Tuesday

November 13 - 5 to 7 p.m.

Business After Hours Columbia Theatre Register online

Thursday

Holidays Kick Off with Home for Holidays Parade Santa Claus is coming to town – he, the Mrs. and hundreds of other participants and spectators as the “Home for the Holidays” Christmas Parade rolls into downtown Longview Dec. 1.

November 15 - 2 p.m.

Ribbon Cutting 3RAC CrossFit 403 Catlin St., Kelso

“It’s a pretty awesome event,” parade chair Arleen Hubble said. “Everybody has a super good time.”

Friday

The Christmas Parade has been bringing the young and young at heart to downtown Longview for the past 32 years. This year’s twilight parade starts at 5 p.m., with close to 100 participants expected to march, ride and dance their way along Commerce Avenue to Maple Street, along 14th Avenue, down Broadway Street and eventually to the Civic Center past the library to the Monticello Hotel for the annual Longview Tree Lighting.

November 16 - 3 p.m.

Ribbon Cutting Community Home Health & Hospice “James Avery Center” 1000 12th Ave., Longview

Thursday

November 29 - 5 to 7:30 p.m.

CEDC and Kelso Longview Chamber Economic Summit Red Lion Register online $25 in advance, $35 at the door

Scout troops, floats, high school bands, equestrian and drill teams and

many more have secured their spot in the lineup. Commercial industry leaders, retail sector members, religious and youth organizations, school groups and community service volunteers are encouraged to participate.

All participants are asked to register ahead of time and to lineup at 3:30 p.m. in the 900 and 1000 blocks of Commerce Avenue.

There is no charge to enter the Christmas parade, but the Longview Downtowners would appreciate any contribution to help expand the decorations from downtown Longview to the Civic Center.

Parade participants are expected to go all out in their decorating. Plaques will be awarded to the best entry in each category. A panel of judges will make the final decisions.

Hubble said the theme “Home For

Please see Parade, page 4

Kelso Longview Business Connection

November 2012

PUD’s New Software System Will Offer Exciting New Customer Services and Options The next time your Cowlitz PUD electric bill arrives, it will look a whole lot different than this month’s bill. Within a few months, if you choose, your bill can be delivered to your email inbox rather than your mail box.

It’s all part of the changes coming as the PUD’s three-year Project Focus wraps up. It’s really a complete overhaul of our business software system here at the PUD. It integrates our

customer services, financial and job order systems, which has not been the case previously.

offered soon, some by the end of 2012 and the others will become available in 2013:

The new Cayenta software will work hand-in-hand with our automated metering infrastructure to provide customers with new products and choices.

• Enhanced online services at cowlitzpud.org • Electronic utility bill delivery (via email) • The ability to track your energy usage online

What you can expect What kinds of new products and services are coming? The services listed below will be

Get High-Speed Internet

We’re excited to begin offering more choices.

“Go Live” – Tuesday, Nov. 13 Many of our employees will be working long hours over the three-day Veteran’s Day week-

• Select a monthly due date that better fits your budget

end, Nov. 10-12, to be ready for

• 24-hour, 7-days a week bill paying service via your telephone

new system.

• Pre-paid electric service, which will eliminate deposits for those selecting that service All of these pending new services will be optional. Customers will have more-and-more choices – and it will be their choice as to what, if any, of the services they participate in.

our first business day with the Anytime a business converts to a new customer service software system, it will slow down the normal business processes for awhile. So we thank you in advance for your understanding during those first few weeks, as we become acclimated to the new system.

Practical Project Management GET ON WITH LIFE. Get High-Speed Internet for a fast, worry-free connection in your business or home.

Lower Columbia College is offering a two-day Practical Project Management class.

Learn how to manage projects from initiation to close‐out.

This practical course teaches participants how to successfully initiate, plan, execute, control and close-out projects applying industry best practices.

Easy to Order Call for a FREE Site Survey

Nov. 7 and 8, 8 a.m. to 3:30 p.m., Don Talley Building Room 201. Cost: $395.

Call Today!

360 414-5990

Contact Continuing Education to register

www.cni.net

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The Kelso Longview Chamber of Commerce presents:

Date: 12•12•12 Location: Downtown Longview Time: Cost:

Prizes for: • Top 12 Overall Finishers • Best Festive Costume Individual • Best Festive Costume Group

(Broadway & Commerce intersection)

5k 6:00-8:00 p.m.

Kids’ Backwards Run 5:40 p.m. $25 per adult (with shirt) $18 per adult (no shirt) $65 for Families of 4 ($10 each additional shirt)

Register by Thursday, November 29th online at www.kelsolongviewchamber.org or call the Chamber at 360-423-8400 Sponsored by:

Bring out your festive gear and holiday cheer for this moonlight 5k, and run to the tune of our local school bands/ choirs throughout the course route, prizes and refreshments at the finish line. Explore and experience our historic downtown businesses before, during and after the event. Don’t miss out on this inaugural event!

1563 Olympia Way | Longview, WA 98632 | www.kelsolongviewchamber.org Phone: (360)423-8400 | Fax: (360) 423-0432

Business Connection

November 2012

Blue Benches

The Kelso Downtown Revitalization Association’s ribbon cutting this summer honored Kelso Rotary Club’s donation of $1,500 to buy one of three “blue benches” installed in Downtown Kelso. The Kelso Rotary bench is located at Third Avenue and Oak Street and features a laser-cut Kelso Rotary logo.

Pictured are members of the Kelso Rotary Club and Carol Zonich (far left) of the Kelso Downtown Revitalization Association.

Parade, from page 1

This family-friendly event features free photographs with Santa, hot cocoa, cookies and cider and kids games.

The Holidays” serves as a reminder for residents to shop local for their holiday gifts and supplies before and after Saturday night’s parade.

For information, call Kelso Tree Lighting Chairpersons Cindy Donaldson at 360-423-8110 or Patty Murray 360-423-0900.

Santa and Mrs. Claus will continue the tradition as the last entry in the parade and when the charming pair arrives at the Civic Center they will light up the square to signify the start of the holiday season.

Santa will stick around to hear from nice boys and girls and several local choirs are expected to perform.

Business Checking Done Right!

Anyone interested in more information about the parade is encouraged to contact, Hubble via email at ahubble61@gmail. com or by calling 360-425-7707.

Kelso Tree Lighting Can’t wait for Dec. 1, then head over to the annual Kelso Tree Lighting which is scheduled for 5:30 to 8 p.m. Nov. 30 at the Train Depot in downtown Kelso.

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Kelso Longview Business Connection

November 2012

Director’s Message

Homelessness and Your Bottom Line

By Steve Harvey CWCOG Director

time people are homeless; 3) increase placements in permanent housing; and 4) reduce repeated episodes of homelessness. Between 2006 and 2012 there has been a 42% reduction in overall homelessness in Cowlitz County; however, street homelessness has increased. The Coalition is developing innovative programs geared specifically for this population.

As a business owner, manager or employee, you may wonder what is the impact of homelessness in Cowlitz County on my business, my bottom line? And, why should I care?

Cowlitz County Commissioners recently approved contracts for five projects that help carry out the goals of the plan: operating support for Community House on Broadway and the Emergency Support Shelter, more readily accessible housing, homeless prevention and rapid rehousing assistance, and a landlord liaison program. Most of the funds come from document recording fees collected by the Auditor’s office on real estate transactions, as required by state statute; some are from federal and state programs.

The longer that individuals and families are without housing, the greater the drag on the local economy. No matter the reason, folks without stable housing have limited opportunities for education, job training or working for a decent wage that result in purchases of local goods or services. Homelessness places demands on public funds, personnel and resources that could target infrastructure and services that “brighten” the community, making it more attractive to new and expanding businesses. It costs about $13,000 to shelter a homeless family for a year, while a housing voucher costs about $7,200 per year. Limited rental assistance is often effective, and costs about $1,500 per household. Each of these options is necessary, depending on a family’s situation.

Upcoming projects will address housing retention, life skills training, extreme weather shelter, and permanent housing with supportive services for people with high needs. The Coalition is working on coordinated program intake, assessment and referrals to services most appropriate for resolving homeless situations. If enhanced coordination of services reduces the time spent homeless, we are all the better for it. For more information, contact Melissa Taylor or Dawn Hanson at the COG, 360-577-3041.

Chronic street homelessness is a frequent source of frustration. Extensive studies across the nation have shown that street homelessness costs you and me an average of $40,000 per person, per year – in the emergency room, the jail, police calls, and other costs. This means that our community spends between $1.6 million and $2.4 million each year on the 40 to 60 chronically homeless persons identified during our annual count. Studies have shown that these folks, many of whom have serious mental health and chronic substance abuse problems, can be successfully housed with services for a cost ranging from $20,000 to $40,000 per year, in a manner that solves the problem.

Steve Harvey is the director of the Cowlitz-Wahkiakum Council of Government

Trusted.

Since 1982, Cowlitz County Title has been the company the community turns to when buying, selling or refinancing a property.

Whether you need title, escrow or property search information, come in for our exceptional service. Leave with the confidence that your real estate investment is properly insured and protected.

What’s being done locally? The Cowlitz County Housing First! Coalition, staffed by the Council of Governments, has been tackling homelessness in the county since 2005 with strategies identified in a 10-year plan. There are four performance benchmarks used to gauge progress: 1) reduce the number of people that are homeless; 2) reduce the length of

Bianca Lemmons Vice President/Manager

1159 14th Avenue, Longview, WA 98632 Phone: 360.423.5330 ■ www.cowlitztitle.com

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Kelso Longview Business Connection

November 2012

How Much Should a Retailer Invest in Advertising Dollars...

Depends on a Number of Factors

By Chuck Nau

customer has. Facts create objections...BENEFITS reinforce your value and sell your goods or services. A business that guarantees lowest price or features continual sale efforts will need a larger dollar investment in advertising to continually reinforce this message.

Last but not least, When you advertise price, or if you are only selling price...you have to continue to lower the price, or come up with enhanced incentives, on an ongoing basis in order to continue building your customer base. Value! It’s ALL about value...your business or service value!

Now that you have answered or clarified some of the factors to consider as you move forward with your advertising investment planning...the next question is how to establish an advertising budget.

Most retailers set their investment in advertising dollars based on a percentage of sales. In other words, if your monthly sales goal is $10,000 to maintain a positive cash flow and GROW your business, most retailers would consider a $300 (3% of monthly sales goal) to $500 (5% of monthly sales goal) monthly ad budget BEFORE taking the aforementioned contributing factors into consideration.

In closing, and reiterating some points from last month’s column, don’t allow your advertising investment to be wasted. One time or “hit and miss” advertising has a very high likelihood of generating minimal, if any results.

Planning an advertising campaign (a series of ads, with a set aside/allocated budget, within a time frame, to meet an IDENTIFIED need, problem or opportunity, with a DESIRED outcome) will maximize your advertising investment dollars. © Murray & Nau, Inc. Chuck Nau of Murray & Nau, Inc. is a retail consultant and sales and management trainer. He has been a speaker for and conducted advertising and marketing workshops with retailers, chambers of commerce, community marketing groups, and retail organizations throughout North America.

Based in Seattle, Nau is a 25-year veteran of advertising, sales, media and management, who knows and understands the everyday challenges of starting up, growing, and surviving in today’s ever changing retail climate.

Comments and questions are welcome and may be directed to Chuck via email: murnau@nwlink.com or at 425-603-0984.

My past few columns on advertising have prompted a number of questions, the most common one being “How much should I spend on advertising for my business?” and “How do you establish an advertising budget?”

So, the focus of this month’s column will be to answer those two questions and reiterate some valuable points from last month’s column on the importance of an advertising campaign as opposed to one at a time or “hit and miss” advertising.

Investing in your business or the service you provide through advertising depends on a number of factors. But first, let’s clarify a basic assumption, advertising promoting your business or service is NOT a cost. Rather, as I just stated, advertising is an INVESTMENT in your business or the service that you provide to the community. It’s also an investment in the YOUR community.

How much should you invest in your retail business, the service you provide or your business depends on a number of factors. Let’s explore the four contributing factors in determining the amount of your advertising investment and also review what happens when you advertise price or if you are only promoting (selling) based on price alone.

• Business Location – You have heard it before...location, location, location! High-traffic area? Low-traffic area? The lower the traffic, the more rural or out of mainstream flow the larger dollar investment in advertising required.

• Top of Mind Awareness – Or, as I like to say...“Name a (business) in your community?” Will YOUR business name or service be “top of mind” or quickly identified? A new business as opposed to an established business with awareness, familiarity and trust will need a larger dollar investment in advertising.

• Competitive Market – Do you know who your competitors are? Have you reviewed your competitive advantages...what benefits set you off from others in your community? What’s unique about your business or service? Businesses in a market with a number of competitors will need a larger dollar investment in advertising as opposed to a one of a kind business in a market.

• Price vs. Value – It’s ALL About Value! What’s the value of your business or service. Teach your staff (and remind yourself) to NOT give “facts.” Rather talk BENEFITS or how the facts or features will help solve a need or problem (or opportunity) your

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Ambassador Q & A

Kelso Longview Business Connection

Nick Lemiere

November 2012

Lisa Allen

Edward Jones

Banda’s Bouquets

FAMILY: Wife Tiffanie; son, Levi

FAMILY: Husband Steve Hornback; five children and seven grandchildren

HOW LONG HAVE YOUR BEEN AN AMBASSADOR? I’m not exactly sure; I believe since 2007

HOW LONG HAVE YOUR BEEN AN AMBASSADOR? 5 years

WHAT PROMPTED YOU TO BE AN AMBASSADOR? Russ Chittoch encouraged me to join, and I wanted to participate so I could help serve the Chamber at monthly events.

WHAT PROMPTED YOU TO BE AN AMBASSADOR? I find it easier to network at Chamber functions.

WHAT DO YOU LIKE MOST ABOUT VOLUNTEERING WITH THE AMBASSADORS? I enjoy the networking opportunity the Ambassador team provides.

WHAT DO YOU LIKE MOST ABOUT VOLUNTEERING WITH THE AMBASSADORS? I like our group. I like meeting new businesses when they first join.

YOUR FAVORITE AMBASSADOR STORY? Well, often times I was the only male Ambassador at our monthly meetings, so the women of the group would try to embarrass me by sharing stories which I will not repeat here.

YOUR FAVORITE AMBASSADOR STORY? The overall experience is good. I don’t have a specific story.

DO YOU VOLUNTEER WITH ANY OTHER

DO YOU VOLUNTEER WITH ANY OTHER ORGANIZATIONS? Southwest Washington YMCA Board, Longview Pioneer Lions, The Bridge Church Community Home Health and Hospice Foundation.

ORGANIZATIONS? Yes. Altrusa, hospice.

WHAT ARE YOU MOST PROUD OF? Other than family and speaking strictly in terms of business pride: Small

WHAT ARE YOU MOST PROUD OF? I am most proud of my son Levi. He’s a stud.

Business of the Year Award and enduring difficult times

WHAT DO YOU LIKE TO DO FOR FUN? I play music, walk or bike Lake Sacajawea with my family, and hang out with family.

WHAT DO YOU LIKE TO DO FOR FUN? Garden, spend

and continuing to grow my business.

time with my family and grandchildren, play Wordfeud, playing games.

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Kelso Longview Business Connection

November 2012

Sears Closure Could Open Doors for Future

By Ted Sprague President - Cowlitz Economic Development Council

the Internet brought an entire new way of shopping to our lives. Once in fashion, malls fell out of fashion, with innovation, they will be fashionable again. Times change. They will change again. In a previous job I typed the newsletter on a typewriter…

The news of the January closure of the Sears located in Kelso’s Three Rivers Mall was disappointing and especially difficult for the 43 employees and their families, but in today’s retail environment it did not come as a surprise.

Every year the 24/7 Wall Street website predicts 10 brands that will disappear. Last year they correctly predicted the demise of Sony Ericsson, MySpace and Saab. They also predicted American Apparel, which is now a penny stock, and Nokia, which recently let go 10,000 employees, would close.

Interestingly, last year they predicted Sears would disappear. According to 24/7 Wall Street more iconic institutions will close in 2013. For next year they predict the demise of household names like Avon, Talbots, Suzuki and American Airlines.

Chicago-based Sears Holdings lost $3.1 billion (yes, billion) in 2011. If a $3.1 billion loss does not precipitate change something is wrong with your business model. Unfortunately, Sears closed its store in Walla Walla and its Kmart in Lacey earlier this year.

Sears means a lot of things to a lot of people. I remember waiting at the mailbox after Thanksgiving with my sister for the Sears Christmas Wishbook to arrive. Many of us have relied on Sears for their products and services through the decades. For the economy the question is, “How is that relevant today?”

As we know, change, especially in the retail world is inevitable. A positive change at the Kelso Three Rivers Mall is the new ownership and leadership of Rouse Properties. Rouse Properties is a New York-based company that believes in the future of the mall. They have plans to improve the mall and entice new tenants. While the news of the closure is sad, I am excited to see what the future holds for one of our community’s greatest assets.

When the news of the Sears closure came out I received calls from people lamenting the state of the economy and asking why this happened. My first question back was, “When was the last time you shopped at the Kelso Sears?” That question was greeted, more often than not, with silence. The advent of

For more information or to get in touch with staff, please go to our website – www.cowlitzedc.com.

Kelso Longview Chamber of Commerce Team

Facilitating Growth Through Leadership and Action

Bill Marcum, President/CEO Amy Hallock, Bookkeeper Brooke Fisher, Project Manager

We are a membership based not-for-profit organization.

Join us today!

Kelso Longview Business Connection is published monthly by the Kelso Longview Chamber of Commerce 1563 Olympia Way • Longview, WA 98632 • 360-423-8400

Resources • Access • Partnerships

To advertise, call Brooke Fisher, 360-423-8400 ext. 16 or email bfisher@kelsolongviewchamber.org.

Ad Deadline: 20th of each month.

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1452 Hudson St. • US Bank Building Suite 208 • Longview, WA 360.423.9921 www.cowlitzedc.com

Kelso Longview Business Connection

November 2012

President’s Message

Reaching Great Heights with 2013 Economic Summit

By Bill Marcum President and CEO This month we will partner with the Cowlitz Economic Development Council, headed by Ted Sprague, to bring you the 2013 Economic Summit.

We are currently working on the speakers to present the economic forecast in these critical areas: education, real estate, healthcare, politics and business. Within the next couple of weeks we will have the speakers in place and ready to bring you an excellent look at what 2013 will bring

to Cowlitz County and local businesses.

The 2013 Economic Summit will take place Thursday, Nov. 29, at the Red Lion Hotel. We will have appetizers and a no host bar from 5 to 6 p.m. So, plan to attend early, enjoy some great food and have a chance to mingle and ask questions of many of our speakers prior to the program that is scheduled to begin at 6 p.m. and conclude at 7:30.

A special thank you to our sponsors Millennium Bulk Terminals, Signature Transportation, JH Kelly and PeaceHealth

whose partnership with the Kelso Longview Chamber and the CEDC bring you this very important and informative event.

Tickets can be purchased in advance at www.kelsolongviewchamber.org for $25.

Tickets will also be available at the door for $35. We are anticipating a thoughtprovoking event so please plan to attend, be engaged, be informed and ready for a successful 2013.

Local Bank Means Local Business CANYONVIEW CYCLERY

I had a plan to fulfill a childhood dream and start up my own business.

Just when every bank was saying NO, Twin City Bank said yes. They help me to make that dream a reality. I would not be open today if it had not been for the willingness of Twin City Bank and its priority of helping local businesses succeed.

Thank you Twin City Bank.

Mark Plotkin Canyonview Cyclery

729 Vandercook Way Longview, WA 98632 1-800-319-2265 | 360-414-4101 twincitybank.com Mark Plotkin, Owner Canyonview Cyclery

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Kelso Longview Business Connection

November 2012

Redefined BID Still Focused on Downtown

By Janice Forbes President, Longview Downtown Partnership Owner, Highlander Cycling Imports

We would like to extend our appreciation to all who supported this effort with their time, talent and passion for our community.

Your efforts resulted in many positive outcomes that we will use as building blocks to our future.

To every property and business owner who signed the petition we extend a heartfelt and hearty “Thank you!” It is encouraging to know that so many were willing to take a chance on a positive program of change and forward momentum for the benefit of all whose lives would be touched by a revitalized downtown.

The Longview Downtown Partnership (LDP) Business Improvement District (BID) Team has completed its effort to establish a Business Improvement District that would serve all of the properties and businesses in the Downtown district. The response in support of this effort was strong, but not strong enough to establish an areawide BID at this time. The project team has determined they will suspend the area wide effort, redefine the program outcomes and focus attention on the areas where support was strongest. The BID can then be expanded upon request as adjacent property owners and businesses see the advantage of working together as a district to improve business and value by creating a more attractive and vibrant downtown. A timeline for these actions has not been established.

It is my hope that we will work together in the future, and that we will all hold a vision of purpose, growth and prosperity for every individual, business and the community as a whole.

20% OFF STOREWIDE

The LDP Board is excited about every opportunity to bring business and property owners together to facilitate a revitalized Downtown. We encourage any and all who are interested in a new future to join us as we continue to explore ideas and ways to improve and re-energize our downtown community. Downtown Partnership meetings take place the second Tuesday of each month at Los Rocas on Commerce Avenue. Everyone is welcome!

Take your relaxation seriously.

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exclusive santa cruz mountain bike dealership!

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Kelso Longview Chamber of Commerce Board of Directors Anne O’Connor onthemark associates

Bianca Lemmons Cowlitz County Title Co.

Micheal Julian Kelso Theater Pub

Chris Bailey Lower Columbia College

Clayton J. Bartness, DC Longview Chiropractic Clinic

Chet Makinster Longview City Council

Frank V. McShane, Past Chair Cascade Networks, Inc.

George Raiter Cowlitz County Commissioner

Diane Craft, Vice Chair Koelsch Senior Communities

Jerri Henry, Chair Futcher-Henry CPA Group

Joel Hanson, Chair Elect KLOG KUKN The Wave

Ginny Whiffen Red Lion Hotel & Conference Center

Michael Claxton Walstead Mertsching

Ted Sprague Cowlitz Economic Development Council

Julie Rinard Community Home Health & Hospice

Sarah Cave PeaceHealth

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Neil Zick, Treasurer Twin City Bank

Kelso Longview Business Connection

November 2012

Kelso

Longview

The True Costs of Driving

Vision City’s International Allure

By Mayor David Futcher

By Mayor Dennis Weber

We are an auto-centric country.

We like the freedom of having our own vehicle so that we can go where we want, when we want. Our friends in the big cities largely eschew the thought of carpooling and are willing to sit in traffic for hours, beside their fellow commuters who also have one person per car.

The City of Longview has an open door policy regarding overseas business. Whether importing windmill components from Denmark and bauxite from Jamaica and Australia or exporting silicon crystals, grain, and logs to Japan and Korea, Longview is ideally located for international commerce.

I think that’s a reflection of the value we place on independence. And there’s nothing wrong with that. Okay, maybe it stinks up the nation a bit, but independence is our heritage.

Stay tuned for important announcements as the City partners with the Economic Development Council, the Port of Longview and Weyerhaeuser in welcoming foreign investors to join with our other important Asian investments: NORPAC on Industrial Way, EGT at the Port, and Toyocom Epson at the Mint Farm Industrial Park. We even have Foreign Trade Zone status from the U.S. Department of Commerce for manufacturing from tax-free imports.

Driving isn’t cheap, though. Beyond the price of your car, you’ve got costs like fuel and insurance, and you probably want a road to drive on. Building your own street isn’t practical, so we’ve asked government to handle that for us.

Not too many years ago, back in 1999, we paid license fees of 2.2% of our car’s value each year. That’s $440 on a $20,000 car.

In Kelso, that money went largely to public safety and street maintenance. But the allure of cheaper car tabs was strong, so with Initiative 695, we chose to reduce that cost to a flat $30 per year.

Our access to the Pacific Ocean helped Long-Bell, Longview Fibre, Weyerhaeuser, and Reynolds Metals build Longview. While some of those mills are gone, vigorous export activities still employ hundreds. Tonnage shipped over Longview docks grows every year, much of it destined for exotic locations (i.e. – South America, Middle East, the Philippines, and Indonesia). The recent channel-deepening of the Columbia River is proving to be key to our future development.

Because cuts to public safety were distasteful, the adjustment many cities were forced to make was to reduce street maintenance to cover the reduction in revenue. That’s gotten us through a decade or so, but now that choice is coming home to roost.

Streets are the kind of thing that you can spend $1 on to fix now, or $5 to replace later. That’s like investing money and getting a 500% return. In Kelso, we weren’t able to spend the $400,000 per year our public works department said we needed, so now we’re looking at needing $1.2 million annually to get things back on track. Believe it or not, we don’t have it.

Of course, China’s the biggest potential market for American products. We have often hosted representatives from the Chinese government interested in opportunities here, most recently last month. The Longview School District is currently playing host to Chinese language teachers – a real benefit to youngsters of all ages. And any conversation with Lower Columbia College President Chris Bailey eventually gets to his plan for expanding the number of foreign students attending there, especially from China.

What the council does have is the ability to tack on another $20 to the annual car tab fee. Nobody likes that, but how does it make sense to keep pushing back an accumulating problem?

The thing to know, though, is that this doesn’t come close to fixing the problem. The $20 fee provides another $175,000 a year for street maintenance. You might notice that’s a lot less than we

Please see Kelso, page 13

Longview – Where Opportunity Knocks!

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Kelso Longview Business Connection

November 2012

Business Toolbox

Eight Ways to Increase Your Cash Flow in Today’s Economy

By Jerry D. Petrick

down. Oops! So, he took a gamble and advertised on TV. It was hard to spend the money, but the results have been increasing sales every month since he opened. Another client doubled her sales force and has increased sales every month of the downturn. There really is a lot of opportunity out there. In many cases you may be facing significantly reduced competition in your markets.

Every day I hear about cash flow problems from business owners.

In this economy, most of us are having cash flow concerns. I am hearing that sales of most retail businesses are down 10 to 20% from prior years. If you don’t understand the different ways to improve your cash flow, you can get stuck thinking you have no options. If you are having cash flow concerns, chances are it is difficult for you to get a loan from the bank.

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Cut Your Costs: This one seems like a no brainer, however, many of my clients have been slow to do the difficult cost cutting that is required to stay profitable. One of my clients was very slow to cut costs. We worked together and talked about each expense and explored other ways to get what she needed without spending so much. We found several creative ways to cut costs without hurting productivity or customer service.

My clients continue to develop inventive ways to solve their cash flow challenges. I want to share some of their stories with the hope they will be helpful to you. I’ve broken these down to eight ideas to help your business.

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Reduce or Restructure Debt Payments: The payments you make on business debts, because it is money out of your bank account, are an important area that affects your cash flow. One client talked to their banker, but the banker was reluctant to refinance or restructure the debt. I told this client that the secret was to talk to a bank other than his own. Banks other than yours view gaining your deposit and loan accounts as a big win. Your current bank doesn’t always appreciate your accounts until they are about to lose them. Needless to say, this client did well in lowering their debt payments and received some other nice perks as well. (Naturally, this becomes a challenge if your loan is not current or in default – restructuring is not the same as a ‘workout’).

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Create a Positive Cash Flow Cycle: The cash flow cycle refers to the difference in timing between when you pay for products or payroll and when you get paid by your clients or customers. A negative cash flow cycle means you pay out before you get paid. A positive cash flow cycle means you get paid before you have to pay out. One client recently asked her vendors for 30-day terms and got it. It put her into a positive cash flow immediately. Other clients have started to ask for half down before they start the job and some clients offer small incentives for paying accounts receivable early.

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2

Reduce or Eliminate Capital Expenditures: One business I worked with had a very tight cash flow because she was growing. Growth always creates a drain on cash. She needed equipment and trucks to get to the next step. Buying new stuff was out of the question. She started asking people she knew for what she wanted and got the equipment and trucks for almost nothing.

Increase Your Average Sale: If you can get your customers to buy more of your stuff, for more money, and more often you will increase your average sale. When your average sale goes up more dollars go into your bank account. I have one retail client that started carrying more upscale products, increased her prices on some items, and bundled or packaged some products together. She saw an immediate improvement in her cash flow.

7

Increase the Productivity of Your Team: I worked with a small business with a tight cash flow that was doing about $800,000 in annual sales but there was very little profit – they

3

Increase Your Sales and Marketing Efforts: This is a hard time for building supply companies. One client opened a building supply company before the real estate market slow

Please see Petrick, page 13

12

Kelso Longview Business Connection

Petrick, from page 12 were just breaking even. We determined through a break-even analysis that if we increased sales to $1,000,000 they should add about $100,000 to the bottom line.

When they came back the next year they had actually increased their sales to $1,400,000, but there was still no profit.

Based on the numbers, our analysis of the situation was that they hadn’t increased the productivity of their people.

When they added new business, their staff costs expanded with their sales. The idea is to find ways for your staff to get more done in less time, with less effort and cost.

8

Increase Your Prices: No I’m not crazy. Increasing prices is one of the hardest things for business owners to do. I worked with one business owner

November 2012

to research the prices her competitors charged. We found that her prices were at least 25% below those of her competitors. We experimented with pricing and found that some items actually sold faster when they were priced higher. One business owner increased his prices by just $1. It added an extra $3,000 a month or $36,000 annually to the cash flow.

You all know that “cash is king.” It is the key to surviving the tough times and thriving in better times. By working smarter as well as harder you will improve your chances of survival and increase the value of your business. You might want to think of it this way: By improving your cash flow now in this economy, when it bounces back (and it will), you will benefit from improved profitability, productivity and positive

cash flow.

This article was prepared by Jerry Petrick, MBA, SPHR, PMP and Certified Business Advisor with the Washington Small Business Development Center in Longview. Jerry provides no-cost, confidential business advisory services by appointment. He can be reached via email at jerry.petrick@wsbdc.org.

Kelso, from page 11 need.

We need to keep up a strong infrastructure in order to attract development, preserve our desired lifestyle, and keep our front end alignment bills down. It’s going to take a lot more than $20 per car. It’s going to take a willingness to pay for the true costs of driving.

Longview Urology to Host Testosterone Forum Chad Chesley, MD, of Longview Urology will explain problems caused by low testosterone and discuss available treatment options at an informational forum at Pacific Surgical Institute on Tuesday, November 13th.

PSI is located at 625 9th Avenue. The event begins at 6 p.m. There is no charge to attend.

Declining testosterone levels are common in men over 35. But of those who suffer from this condition, only 5 percent ever seek treatment.

The bottom line is that low testosterone makes men less manly. Effects can include fatigue, depression, muscle loss, decreased sex drive, and erectile dysfunction. Low testosterone has also been linked to weight gain, diabetes, and high blood pressure.

Dr. Chesley will explain detection methods and a variety of testosterone replacement options available through Longview Urology.

Spouses are welcome to attend. Call 360.425.3720 for more information.

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Chad Chesley, MD Pacific Surgical Institute 625 9th Avenue Longview, WA 98632

Kelso Longview Business Connection

November 2012

Business After Hours

Pedal Power Chamber members and their guests cruised to Canyonview Cyclery for the October Business After Hours. Mark Plotkin was the perfect host offering bike demonstrations, great food, prizes and a presentation on the Bikecentennial challenge.

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Kelso Longview Business Connection

November 2012

Chamber Board Spotlight Frank McShane - Past Chairman Cascade Networks, Inc., Chief Operating Officer

Evolving with the world around

Frank McShane arrived in the Longview-Kelso area at a time of change.

The economy was up in 2004 when McShane traded his consulting career in Seattle for a position with Longview Fibre. Five years later he made the move to Cascade Networks, Inc., where he serves as chief operating officer.

In that short span, he has not only seen the shift from a business community centered on serving its local community to one expanding its reputation and partnerships in the global market, but through Cascade Networks, he’s been a part of it.

Most Longview residents know Cascade Networks as its Internet service provider, a role the 12-year-old company has expanded and grown with voice and television service. What many community members may not know is in the past few years, Cascade Networks has been a reseller of broadband equipment to Internet service providers around the world.

“It now makes up 70 percent of the business,” McShane said.

Two years ago, the company branched into the two-way radio business for public safety vehicles and Cascade Networks latest venture – integrating all the technology pieces together for surveillance monitoring – is “growing rapidly,” McShane said. The company’s initial project was the Port of Longview. Currently, crews are now working with the City of Seattle.

McShane relishes being part of a field that “moves and changes at a very fast pace.”

He anticipates a change in the wind for the Longview-Kelso area too and believes the Chamber of Commerce can play a key role.

In his spare time, he plays guitar – the blues – and enjoys getting together for jam sessions with friends.

McShane served as Chairman for the Chamber Board of Directors for two years and currently serves as past Chair, a position he will maintain through 2013.

He believes the Chamber’s ability to bring together many business owners with several agendas for a single cause is one of its greatest assets.

“What gets reinforced with the Chamber is the ability to represent a very diverse business community in a single voice,” he said.

“The Chamber presents a balanced and united voice that’s very unique.”

The Longview-Kelso area has changed since McShane and his family moved to town, most of the changes, he noted, have been economy driven. He expects the next change could be a boon for the area’s economy with more opportunity to expand its global presence and its local character as well.

“It’s coming, but hasn’t hit, we’re a distant arm of the PortlandVancouver area. As that area grows bigger the impact is heading our way,” he said.

“There’s a good opportunity that we have to be ready for; or we’ll be absorbed. I think the Chamber can play a big role,” he said.

“The Chamber can help build that strong sense of identity we want to preserve.”

About a year after arriving at Longview Fibre, McShane joined the Chamber. It was his first experience with such an organization and he discovered it was a good way to get integrated into the community and gain an understanding for the business climate in the area.

NOW OPEN For All Your Bicycling Needs • Bicycles • Sales • Service • Repair

He and his family have become threads in the fabric of the community. His wife teaches at Lower Columbia College. McShane’s son attends Seton Catholic College Preparatory School in Vancouver, and his daughter is enrolled at Pacific University in Forest Grove, Ore.

Canyonview Cyclery Service is our Specialty

1051 14th Ave, Suite 120 Longview, Washington

360-200-5550

McShane also helps raise horses his wife and daughter ride and a couple of miniature donkeys that joined the family more recently.

canyonviewcyclery@gmail.com

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Kelso Longview Business Connection

November 2012

Ribbon Cutting

Red Jackets at Red Leaf The Chamber Ambassadors welcomed Ray and Melissa Vandervalk of Red Leaf Coffee with a ribbon cutting Oct. 8. The new business opened its doors at 209 W. Main St., Kelso.

you

TUNE IN every Wednesday Your Chamber Connection

health.

You know . We know Let’s get together!

KEDO AM 1400 – 3 to 4 p.m.

Contact the Chamber to schedule YOUR 10-minute business spotlight

For class information or to register, visit www.peacehealth.org/st-john or call 360-501-3701.

Join us for one of our FREE events:

 Bone Health 101: Osteoporosis Risk Factors & Prevention Wednesday, November 14, 6 – 7:30 p.m.

Sshhhh!

 Pain 101: Injection Therapy Thursday, November 15, 6 – 7 p.m.

A new, innovative community education series from PeaceHealth St. John Medical Center.

I’ll let you in on a little secret...

PreSCriPTioN For A HeAlTHy liFe:

Nutrition Exercise & Weight Management

...Cowlitz PUD’s new enhanced website will be available to the public on November 13. Even more great information and easier to use. Watch for it!

Wednesday, November 7

6 p.m. (Social time) • 6:30 – 8 p.m. (Presentation) Make the 1st Wednesday of each month “Red Hot Mamas” night!

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Kelso Longview Business Connection

November 2012

Ribbon Cutting

New Horizon

Jessie Jones celebrated her Chamber ribbon cutting and new location for Horizon Events Oct. 4 inside Teague’s Interiors at 1267 Commerce Ave., Longview.

Christmas Bazaar at CanterBury inn Friday, Nov. 9, 9am~4pm

Shuttle bus between Canterbury Inn and the Expo Center during the bazaar.

Start Christmas shopping early!

Complimentary Children’s Photos with Santa. Holiday Lunch Available.

Sweet Treat

Subzero Ice Cream & Yogurt celebrated its Chamber ribbon cutting Oct. 1 at 1208 Washington Way, Longview.

Owned by David Russell and his family, Subzero provides a great ice cream making experience for kids and adults.

The ice cream is made with liquid nitrogen and has cool fog and light effects. Subzero has trillions of flavor combinations and can accommodate company parties and social gatherings.

CANTERBURY INN

1324 3rd Avenue in Longview (360) 425-7947

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Business After Hours Columbia Theatre 1231 Vandercook Way November 13, 2012 5:00 p.m.-7:00 p.m.

Register Today! www.kelsolongviewchamber.org NOW ONLINE All Credit Cards Accepted Chamber Members: $10 in advance/$15 at the door

Business Connection

Lower Columbia Professionals

November 2012

A Hoppin’ Scene The Hop-N-Grape was hopping Oct. 25 during a Lower Columbia Professionals gathering. The late afternoon event included plenty of information about beer and wine and many networking opportunities, all for a good cause with proceeds from the event supporting the LCP’s scholarship fund.

• Design/Build

• Petroleum Construction

• Municipal Construction

• Licensed in 36 States

• Commercial Construction

• Tenant Improvements

1081 Columbia Blvd. Longview, WA

Toll Free: 1-800-533-2867 360-423-2245 www.pnecorp.com

Call today to see how we can help you.

PNE CONSTRUCTION 20