InBusiness Magazine – January 2011

JAN. 2011

Social Media: Powerful. Revolutionary. Right for Business?

inbusinessmag.com

Our Legislature

Can they prime the pump for business?

This Issue Tempe Chamber of Commerce Arizona Technology Council Dome of the Historic Arizona State Capitol Building

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January 2011

www.inbusinessmag.com In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

Partner Organizations

Donna Davis, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 • www.aztechcouncil.org

Cindy Hynes, President NAWBO Phoenix Metro Chapter (602) 772-4985 • www.nawbophx.org

Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 • www.scottsdalechamber.com

Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 • www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona.

As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

Associate Partners Arizona Chamber of Commerce & Industry www.azchamber.com

net·work·ing me·di·a – n.

A supportive system of sharing communication that reaches or influences people widely.

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com Arizona Hispanic Chamber of Commerce www.azhcc.com Chandler Chamber of Commerce www.chandlerchamber.com Economic Club of Phoenix www.econclubphx.org

Join us:

Glendale Chamber of Commerce www.glendaleazchamber.org Mesa Chamber of Commerce www.mesachamber.org North Phoenix Chamber of Commerce www.northphoenixchamber.com North Scottsdale Chamber of Commerce www.northscottsdalechamber.org Peoria Chamber of Commerce www.peoriachamber.com

www.inbusinessmag.com 6

J a n u a r y 2011

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Contents

January 2011

26

The Arizona Legislature: Can They Prime the Pump for Business?

From all sides, there seems to be agreement that jobs and stabilizing the economy are the primary issues on people’s minds as the new legislative session begins. The debate is on the route to get there. Speaker of the House Kirk Adams and House Minority Leader Chad Campbell speak with RaeAnne Marsh.

Departments

11 Guest Editor

36 Nonprofit

Group, introduces the “Legislature and

Boys & Girls Clubs of Greater Scottsdale

James E. Pederson, CEO of The Pederson

Arthritis Foundation

Business” issue.

Features

12 Feedback

42 Assets

“Getting it Done with the Stroke of a Pen,”

20

Top executives Susan Ratliff, Patrick

“CFO — Chief Fashion Officer” and “Eating On

Burkhart and Scottsdale Mayor Jim

the Job: Corporate Meetings with Taste”

Members of the business community share with Kate Nolan

question of the month.

The Goods on Manufacturing: Do We Have What It Takes to Compete?

their speculations on what it would take to make Arizona a successful manufacturing center.

Lane respond to IBM’s burning business

14 Briefs

“Arizona Unemployment Below Nation:

20

22

43 Power Lunch

Elements of Good Taste at Sanctuary Camelback Mountain Resort. Plus: “Picture This: Framing That Meaningful Business Dinner”

Will Jobs Continue to Grow?,” “Women Entrepreneurs’ Boot Camp Shapes Small Business,” “Bowl Games Inject $420 Million, Market Arizona,” “Nonprofit

66 Roundtable

SB 1070: Is It a Friend of Business?

Launches Social Entrepreneur Venture,” “Not Going to Pot: Medical Marijuana Dispensaries Big Business?” and “Register to ‘Voice’ Your Opinion”

18 By the Numbers

22

The Power of e-Commerce: Is It Changing the Way We Do Business?

As e-commerce blazes new avenues beyond the confines

of geographic accessibility, Don Harris explores some of its challenges and pitfalls for companies.

32

Social Media: Powerful.

Revolutionary. But Is It Right for Business?

Despite the never-ending buzz about social media over the past few years, there are many who are confused by it. Sue KernFleischer looks into why your business can’t ignore it.

Networking

37 On the Agenda

January’s calendar of business events presented by our partners

Balancing the Arizona Budget; Key Economic Indicators provide a sense of the health of the local economy.

24 Trickle Up

View from the top looks at how James May built business success with a little herb from Paraguay.

Special Partner Section

45 Tempe Chamber

of Commerce

By Mary Ann

Miller, President/CEO, Tempe Chamber of Commerce

Forging policies so you

Jan. – Mar. 2O11 • tempechamber.org

can mind your business

Curve:

L

S taying Ahead of the Curve S uccess Stories C hamber Committees Strengthen Community Ties

Te m p e C h a m b e r.

org

TEMPE CHAMBE R A D VA N TA G E

33 Books

New releases on Communication and Social Media

34 Finance

Factoring as a finance option.

55 Arizona Technology

Council

A nother Door Opens W inning Ways C hange Agents

Arizona Technolo

Arizona Technology Council: The Voice of the Technology Industry

Winning Ways Change Agents

Opens ... Page ... Page 5 ... Page 6

Who We Are The Arizona Technology Council is a private, not-for-profit trade association with a mission to CONNECT, REPRESENT, and SUPPORT the state’s expanding technology industry.

Phoenix Office

One Renaissance Square 2 N. Central Ave., Suite 750 Phoenix, Arizona 85004 Phone: 602-343-8324 Fax: 602-343-8330 info@aztechcoun cil.org

On the cover: “Winged Victory,” a zinc-plated iron statue 17 feet tall, stands on the copper dome of the historic Arizona State Capitol building.

aztechcoun

gy Report Jan. – Apr. 2O11 aztechcouncil.org

President’s Mess age

In This Issue Another Door

Tucson Office

J a n u a r y 2011

ADVANTAGE

Staying Ahead of the

By Mary Ann Miller, President/CEO, I was giving a short tour to a Tempe Chamber colleague from of Commerce California a while ago. We drove ocation, location, down Rio location. Just Salado Parkway like and Apache Boulevard, buying a house, what needs to deciding where be fixed; and went past Tempe to have what needs to Marketplace, ASU your business be communicated. is a major consideration. and the Biodesign Institute, From this information, You look for obvious stopped at Tempe committee develops the Town factors like Lake and strolled recommendations visibility and a down Mill Avenue. for the Chamber’s Local, good customer I told him about projects State and Federal base, adequate transportation under way and Agendas.

These recommendations and a qualified described those planned. At the work force. You are then discussed personally want end of an hour our Board of Directors, by a good quality he turned to me and said, “Wow! of life, with safe who set the policy neighborhoods, You really like the Chamber. for excellent schools your community!”

Topics ranging and cultural activities. And from education to transportation when you open Not only do I like to the economy your doors to your business, create the guidebook for it, I’m proud of you want to concentrate our advocacy the on efforts. making it a success. impact the Tempe Armed with our You need someone Legislative Agenda, look out for your to Tempe Chamber staff Chamber has interests, and can analyze bills had on that’s where the Chamber comes to see if they fall under its tenets the community in. over and advocate accordingly.

Eighty-six percent We partner with the years. It’s of Tempe Chamber our job other organizations members are busine both to make our voice to create a strong sses with fewer than stronger and to employees. Few 50 forge workable compromises. local economy, have the time And we spend and staff to track what government a lot of time explaining to elected represent the is doing that may needs officials how well-meaning the future of their affect legislation can of businesses business. They negatively impact before discover regulatory challenges businesses. government, promote Each year, more than Mary Ann Miller, only when presented President/CEO, 1,000 bills, resolutio with them. Key Tempe Chamber and memorials the community ns to our mission of Commerce are taken up by and is representing businesses before the State Legislature. The provide networking government, creating City Council looks environment where the at dozens of issues each month. opportunities. you want to work been at the forefront We’ve Congress folds and live.

“The Tempe Chamber a myriad of of many issues issues into a single and have keeps me up worked hand-in-hand bill. With new to date on issues elected officials with our partners and budget challenges affecting my business at the City, the Tempe at all government locally, regionally and Convention and the decisions levels, nationally,” says Visitors Bureau made in the next and the Downtown Steve Bauer, Development year will have Tempe Community huge impact on Partner in The a to the way you do position Tempe Kinetic Companies and Chairman business and as a leader in your quality of of the Tempe one of the largest life in the future. metropolitan areas Chamber Board Directors. “As of in the country. a small business The Tempe Chamber owner, I don’t of Commerce have the time urges government to or staff to track strive to further Among our many or testify on legislation. The streamline accomplishments: processes, implement Chamber’s proven • Tempe Leadership wa policies that allow influence in business advocacy business to flourish s started in 1984. allows me to concentrate More than 400 gradu and provide maximum growing my firm.” on ates have gone on to service with minimal lead businesses,

costs to the taxpayer.

Our advocacy serve on nonprofit We will work to cycle actually boards foster a climate and city commissions begins over the summer. Our of growth, development and be elected Government Relations and high wages. to public office.

Committee surveys And we are committed to businesses, brings helping communicate • The Chamber was a f in guest speakers and policies and programs orerunner in the stat researches issues to businesses, by dedicating a com e of concern to so the that greater business they can mittee in the early ’9 make appropriate community. We management 0s seek out solutions to decisions and take advantage ease business of every opportunity operations and listen for available to them.

CONTINUED ON movements to T.C.A. 6 lay burdens on business. We look at what’s We watch out working well; for your interests so that you can work on your business.

The University of Arizona Science and Technology Park 9040 S. Rita Road, Suite 1150 (near I-10 and Rita Road) Tucson, Arizona 85747 Phone: 520-829-3440 Fax: 520-829-3441 tucson@aztechco uncil.org

8

TEMPE CHAMBER

Chamber’s Leadership Strengthens Communit y

2

Partners. Who can say they can go through life, in love, in life never business? At the Arizona Technology needing a partner – in ourselves partners Council, we consider with our member because we know companies to ensure their in today’s climate success, especially it can For our nearly be tough to go 600 member companies the it alone.

Council works hard to make sure we can offer the programs that help organizations grow and prosper.

That’s important to 43 percent of our member companies, because they have no more than three FTEs. With our assistance, have a shot at they grabbing that brass ring.

And while they may be small in size, most are doing big things—from aerospace and defense to renewable energy, from research and development to support services. Many are shaping our history in science and technology.

On the pages that follow this message we offer a glimpse of the we have for professionals.programs that Some exist for personal development, Steven G. Zylstra, some offer ways stretch a dollar, to President and all fulfill a need.

CEO, These programs Arizona Technology and others like Council them would be impossible to host without teams of people working behind the scenes to make them happen.

With the help of other volunteers, we start the business our staff, “ambassadors” and called Council day with a breakfast Connect and seminar series end the day with our After 5 events. networking opportunities Often we collaborate Phoenix Chamber at with other organizations to bring you like the events, such Business Expo. as the Legislative We even take Kickoff and time to mark community with successes in our annual Governor’s Arizona’s technology year’s winners Celebration of also are named Innovation. (This here.)

Our impact and reach continue to grow. I recently a group to China to begin building returned from heading the bridges that markets for our we expect to members and lead to new the rest of Arizona’s Council is not just statewide; technology industry. it’s now global. observations The Also, on these from the road pages we share written in a blog I invite you to by a member learn more about of our group. the Council and proud of what we offer our what we’re doing. members as We’re day. After all, well as what that’s what partners they accomplish are for. every

cil.org ARIZONA TE CHNOLOGY

REPORT

1

inbusinessmag.com

1

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Publisher Rick McCartney Editor RaeAnne Marsh

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Art Director Benjamin Little Calendar Editor Kerri Metcalf Contributing Writers Gremlyn Bradley-Waddell Don Harris Mike Hunter Sue Kern-Fleischer Kate Nolan Alison Stanton

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* Business Insurance, July 2010

More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of businessrelated events, please visit our website.

Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

President & CEO Rick McCartney

Financial Manager Ryan Cope

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little Administration Kerri Metcalf

Corporate Offices 6360 E. Thomas Road, Suite 210 Scottsdale, AZ 85251 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 2, No. 1. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to: To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2011 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

inbusinessmag.com

James E. Pederson, The Pederson Group, Inc Phoenix

Guest Editor

Looking Forward to the New Year

James E. Pederson is CEO of The Pederson Group, Inc., a Phoenix-based real estate development company established in 1983 with more than 5 million square feet of successful neighborhood, community and specialty retail centers throughout Arizona.

The New Year always feels a bit like a refresher for us in business ­— the start of something new and a time to recharge. With where our economy has been, I can’t think of a time when ringing in the New Year was more welcome. As a businessman and someone who has been vested in Valley business and our public policy for many years, I am especially pleased to have been asked to guest edit this January 2011 edition.

Our state legislature is in a unique situation as they begin their 50th Session this month.

With budget deficits projected over the next several years, the loss of thousands of jobs and the sour real estate market, there is plenty that our legislature will be looking to do to improve our economic situation.

Our political leaders and we in the private sector must not be short-sighted in acknowledging what it will take to bring higher-paid jobs to Arizona and to sustain the businesses we already have. Priority number one needs to be the development and improvement of our work force. This involves job training, education and maintaining the sustainability of our quality of life. Without significant investment to satisfy these objectives, the prospects for quality job growth will be limited.

In Business Magazine editor RaeAnne Marsh has spoken with leaders of both parties, leaders of the business community and heads of our strongest local business organizations to explore their efforts in shaping and improving our economic condition and job picture for 2011. While much of their efforts will be focused on balancing our state budget, there is important legislation, powerful partnerships and innovative private sector thinking that will make for a hard-working and substantive new year.

As In Business Magazine takes a look at major sectors of the Arizona economy, in this issue, Kate Nolan focuses on manufacturing and asks the question, “Can we compete?” She finds that with some state and municipal incentives, and a concentration on efforts in high-tech, biotech and new types of manufacturing such as sustainable energy, Arizona is getting noticed and has the potential to become a leader in this sector.

With the success of online retail over the holidays last month, e-commerce is becoming as much a part of business as marketing and store-front sales. Don Harris looks at the power of e-commerce and how it is changing the way we do business. He provides some tips and advice from local businesspeople to point out the power of leveraging a good plan.

I know that you will enjoy this issue, as In Business Magazine is truly all about engaging us as businesspeople in the economic development and public policy that will shape our economy and put us back on top.

Jim Pederson CEO • Pederson Group, Inc.

Business Will Drive Us Out of This Economy Every economist, businessperson and politician I have spoken to over the past two months has said that jobs are what will lead us to a true recovery. From The Wall Street Journal to Horizon, it seems that this is the fix. If that is true, then I ask, “Who will employ these people?”

Yes, you got it — businesses. The local businessperson is our way out of this mess and incentives, deregulation and a lower tax burden is what will drive this recovery fast. I spoke with Speaker Kirk Adams and asked him what he thought the 50th Session of the Arizona State Legislature looked like for building business. His reply was that it would focus on efforts to balance the budget and stimulate business. When I asked him

inbusinessmag.com

how, this is where it got complicated. RaeAnne Marsh spoke with many state leaders and has answered and dissected many of these subjects in an effort to answer the question in our cover story this month.

I asked Jim Pederson to be our Guest Editor for this issue because of his relationship to both business and politics. His insight and understanding of the power of the private sector and what business can do to stimulate an economy makes him a successful leader for us.

He has chosen to focus on his own company and not run for Mayor of Phoenix this next go-around, but we are certain that his involvement will build business for us all. —Rick McCartney, Publisher

In Business Magazine

11

Feedback

Q:

Valley Leaders Sound Off

Executives Answer As a leader vested in our business community, what do you see as the priority for the Arizona State Legislature in 2011 to build business and strengthen our local economy?

Susan Ratliff

Patrick J. Burkhart

Susan Ratliff is president of Susan Ratliff Presents Inc., producer of the Women Entrepreneurs’ Small Business Boot Camp and founder of Exhibit Experts, which she sold in August 2010. She is an award-winning entrepreneur, published author and professional speaker. She is a graduate of the School of Hard Knocks and an avid supporter of local small business owners.

Patrick Burkhart, assistant director of Human Services, Workforce Development Division of Maricopa County, heads Maricopa Workforce Connections. Honored by Human Resources Awards in 2009 as an Industry Leader, Burkhart brings to his position four years’ experience as president of the nonprofit Arizona Arts, Sciences and Technology Academy and 11 years as executive director of Strategic Research Initiatives at Arizona State University.

Susan Ratliff Presents Inc.

Maricopa Workforce Connections

President Susan Ratliff Presents Inc. Sector: Tradeshows Job growth and economic development should be top priorities for 2011. Until politicians understand that government does not create jobs, businesses create jobs, we will not see economic recovery. Stimulus happens when money is available to those who produce goods and hire people. Ask the man on the street if he would prefer a $500 tax refund or a steady job. Jobs are the key. Big business is not the bad guy. Put out the welcome mat to Fortune 500 companies. They hire hundreds and donate thousands to charitable causes in every community. Reduce restrictions and offer incentives that make our state an inviting place to relocate to. Get the banks to start lending.

Small businesses are eager to hire help, expand inventory and increase locations. Encourage tourism. Every meeting, tradeshow and convention brings millions in taxes and revenue to thousands of small businesses. They secure jobs for hotel and restaurant workers, but also for the florist, delivery man, exhibit installer, limo driver, printer, souvenir seller, airport shop cashier and thousands more. Help small businesses flourish, then see the recovery soar.

www.susanratliffpresents.com

Mayor Jim Lane

Mayor City of Scottsdale Sector: Government As the mayor of Scottsdale, a city that supplies critical core services that provide the very topsoil for businesses to grow and thrive, I believe that it is important that the state does nothing to undermine that cultivating platform.

The state legislature should focus on creating a fair and attractive business atmosphere with simple and concise taxing methods that are lower than competition. Arizona should provide straightforward and clear business regulations based on real and objective needs that do not unnecessarily burden productive endeavors.

12

J a n u a r y 2011

Assistant Director Maricopa County Human Services Department Workforce Development Division Sector: Human Resources The most daunting challenge facing the Arizona State Legislature will be its capacity to think and act strategically, with 2020 as their time horizon, and begin building an economic foundation that incentivizes sustainable growth beyond a near-term recovery.

One key component to a decadal plan will be Arizona’s commitment to transforming its work force from its present “under-skilled” status to a level that can be truly considered internationally competitive.

To accomplish this, bold innovation is required on two fronts: (1) Accelerated systemic reform of public education, and (2) Highly effective, low-cost, business-driven and widely available remediation and skills training for the 41.7 percent of Arizonans over age 25 who lack education and credentials beyond the 12th-grade level.

Thus, with a budget crisis looming, resisting the temptation to legislate tactically — to solve the immediate problem and defer until a later date affirmative measures to strengthen both the existing and emerging work force — will only serve to decelerate Arizona’s economic recovery and will impose an avoidable constraint on what Arizona could be in 2020.

www.maricopaworkforceconnection.com

The state should continue to coordinate economic and business development efforts with cities and towns while supervising and enforcing the constitutional gift prohibition [the Arizona Constitution’s Gift Clause] so that taxpayer funds will not be misused.

At the same time, we must reward capital investments and substantive training of Arizona residents in the state with tax credits.

And, finally, the state legislature should concentrate on reducing the cost of government, which benefits businesses and residents alike, through eliminating unnecessary programs and agencies, selling state-owned businesses or outsourcing where appropriate, and reducing personnel costs through progressively-tiered compensation level reductions.

Mayor W. J. “Jim” Lane began his first term as Mayor of Scottsdale in January 2009. He previously served a term on the Scottsdale City Council from June 2004 until his election as Mayor. He is also the owner of Chatham Hill Group LLC, a Scottsdale-based Internet service provider, financial consulting and telecommunications company. He holds a B.S. in accounting from St. Joseph’s University in Pennsylvania.

City of Scottsdale

www.scottsdaleaz.gov

inbusinessmag.com

Celebrating Avnet’s 50th year on the New York Stock Exchange.

Roy Vallee

flanked by les Avnet (middle) Founder/CEO Char th served bo o wh bert Avnet, sons Lester and Ro er. th fa their as Avnet CEO after

Chairman and CEO, Avnet

A Legacy of Industry Leadership Since the Avnet family started selling surplus radio parts in New York City in 1921, Avnet’s leaders and talented employees have defined what makes a world-class company. On December 15, 2010, Avnet will commemorate a milestone that only 350 other companies have ever achieved in the history of the New York Stock Exchange – we will celebrate our 50th anniversary on the NYSE. This milestone distinguishes Avnet as a premier company – one with global scale and scope, five decades of demonstrated adaptability, a strong global culture, and leading financial strength. It is these capabilities that

have allowed Avnet to grow consistently and profitably over time, and become the leader in technology distribution. Avnet would like to thank our 16,000 plus employees who have made our company so great, our trading partners who have placed their trust in us to deliver the highest service and value, our shareholders who invest in us as well as our business and community partners who work with us to help make the world a better place to live and work. We are proud of our legacy and look forward to achieving far more in the next 50 years than we can only imagine today!

View Avnet’s history on www.avnetondemand.com

Briefs

Quick and to the Point

Register to ‘Voice’ Your Opinion A function on the Arizona legislature’s website, “Register to Speak,” makes it easy for interested citizens (or business owners, as may be the case) to voice their views on bills being considered by a House or Senate committee. Sign up to speak in person at the hearing or simply register support or opposition to the measure.

To actually speak at a committee meeting, sign in at any of the kiosks around the House and Senate buildings. The committee will call you to testify or read your position into the meeting.

“There are variables, like how much time there is and how many other people are speaking, that affect whether you will get your turn,” says Andy Swann, president of Phoenix-based lobbying firm Swann & Associates. But he notes, “There is a box for comments, and sometimes the chairman will read those into the record. But even if not, they’re in the official record” — part of the information of “all opposed” or “all in favor.” The system even allows you to remotely sign in from anywhere in the world and register your position, and that, too, becomes part of the official record.

Swann notes that legislators need input from the public. While they depend on professional consultants from both sides for reliable information, he says, “They put their faith in folks who are living it day to day and know how it will affect them.” And they weigh the numbers of people signed in on either side of a measure.

The legislative website facilitates participation in the legislative process, providing fact sheets as well as text of House and Senate bills, and even video of live proceedings in addition to the opportunity to take part in hearings on the measures. Initial registration for “Register to Speak,” however, must be done in person at the capital — at either the House or Senate building. —RaeAnne Marsh Arizona State Legislature Register to Speak

Arizona Unemployment Below Nation: Will Jobs Continue to Grow?

There is a consensus among economists that job growth is the only way out of this soured economy and that slow but consistent growth will come when job numbers begin to increase. Arizona posted the fourth consecutive net jobs gain in November, totaling 12,800 jobs. The unemployment rate dropped from 9.5 percent to 9.4 percent, according to information released by the Arizona Commerce Authority (formerly the Arizona Department of Commerce) in mid-December. Since September, Arizona unemployment numbers are better than the U.S. numbers at 9.8 percent unemployment.

“Every Arizona indicator should show improvement next year,” says Research Professor Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business. “The state’s economy ‘bumped along the bottom’ for most of 2010, but the Arizona outlook for 2011 is brighter than we’ve seen since the national recession began in December 2007.”

Six of the 11 sectors tracked gained jobs, with most sectors gaining lower than the historical average (Professional and Business Services was the notable exception). PBS gained 2,300 jobs (0.7 percent) compared to a 10-year average of 500 jobs or 0.1 percent gained in the Employment Services Industry. Trade, Transportation and Utilities had a gain of 9,900, which was the largest month-overmonth gain for November 2010. This gain was mainly from retail, with 8,700 jobs, many of which may be temporary. The Leisure and Hospitality sector, contrary to usual November numbers, posted a loss of 900 jobs. This is primarily from the loss of 900 jobs in Arts, Entertainment and Recreation. Construction posted losses of 3,000 jobs, which is similar to historical data, but is up over November 2009 by 600 jobs.

—Mike Hunter

www.azleg.gov Arizona Commerce Authority

alistrack.azleg.gov/rts/login.asp

Swann & Associates LLC www.linkedin.com/in/swannandy

www.azcommerce.com

W. P. Carey School of Business

www.wpcarey.asu.edu

Nonprofit Launches Social Entrepreneur Venture Jewish Family & Children’s Service has launched a private-pay program as part of its services to older adults and the physically challenged, making it less reliant on outside funding. Jewish Family Home Care of Arizona was established as part of a new business model that enables the organization to generate funds it can then funnel back into the overall budget to help low-income older adults in other JFCS programs.

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J a n u a r y 2011

Utilizing a $126,000 seed grant from the Virginia G. Piper Charitable Trust, this nonprofit, entrepreneurial start-up provides a free, comprehensive in-home assessment to determine a client’s specific needs. From the assessment, a personalized care plan is developed to help clients maintain quality of life and independence. Established 75 years ago to serve older adults, JFCS has operated a senior care management program for the past 35 years.

Jewish Family Home Care allows the agency to extend its one-on-one guidance, support and resources to a growing population of older adults.

—RaeAnne Marsh Jewish Family & Children’s Service www.jfcsaz.org Jewish Family Home Care of Arizona www.jewishfamilyhomecareaz.org

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If one-stop planning service, an all-inclusive meeting package and high-end amenities sound pretty good on your budget, then the Executive Conference Center – Downtown Phoenix is the perfect choice. The ECC offers more than 21,000 square feet of IACC-certified meeting space, featuring a 192-seat lecture hall, sophisticated furnishings and leading-edge technology for groups as large as 300 attendees. So start looking beyond the same old meeting experience — and enjoy a few pleasant surprises with your next event.

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Briefs

Quick and to the Point

Not Going to Pot: Medical Marijuana Dispensaries Big Business?

Women Entrepreneurs’ Boot Camp to Shape Small Business

Spoofed by The Daily Show with Jon Stuart and the content for theweedbusiness. com, the business of medical marijuana dispensaries is coming to a corner near you. Not likely to have the saturation of Starbucks or Circle K, these dispensaries are bona fide businesses that will crop up everywhere. Prop. 203 caps the number of dispensaries to one for every 10 pharmacies.

The Arizona Department of Health Services recently released a draft of the rules, which includes the criteria for establishing and operating a dispensary. While the rules do not specify how the state will review and approve applications to go into the business, officials will decide on procedures by the time they will be accepting applications. Proprietors, who must be Arizona residents for a minimum of two years, will be required to connect their surveillance systems to the ADHS, perform background checks of employees and owners, provide floor plans and security policies, and adhere to the strictest guidelines for inventory control. Each dispensary must also grow 70 percent of the marijuana it provides to patients and may not acquire from or sell to other shops more than 30 percent of its product.

Will Humble, ADHS director, will oversee the process and is said to be taking this very seriously. His goal is to enact the Medical Marijuana Act and ensure there is no abuse. The department is seeking the public’s input through a formal press release.

“We are using the Initiative as a guideline to set up a system that is good for all the people in Arizona — those who voted yes and those who voted no,” says Humble.

“We really need everyone’s input to make this work, because everyone will be affected by it, whether they use medical marijuana or not.”

—Mike Hunter

An all-day educational conference will include a tradeshow, seminars and reception, making this more like a boot camp for the mind. In a time when advice and know-how make such a difference, conferences like this one have had great attendance. Held annually since 2005, “perhaps none is more important than this year,” says Susan Ratliff, owner and organizer of this event. “More of the content is specific to what is happening in our economy and to small business.”

Women entrepreneurs will participate in this seventh annual Women Entrepreneurs’ Small Business Boot Camp event taking place at the Chaparral Suites in Scottsdale on Feb. 12 from 8:00 a.m. to 5:00 p.m. Nine informationpacked workshops delivered by local business experts are designed to provide attendees tools and strategies they can immediately implement in their businesses. Presenters include Kim Casault of Cruxwire Web; Joel Martin of Traid West; Marlene Beading of Simplicity of Selling; Maria Simone of Passion to Prosperity; and Annette Bau, owner of the Millionaire Series.

The event includes materials and an opportunity to mingle among the tradeshow, which includes more than 50 vendors, all with resources to take business to that next level. “This conference is no time waster.

It delivers relevant content and valuable networking to the busy woman business owner,” says Ratliff. “No theory, philosophy or fluff; just an arsenal of ideas and practical ammunition to help battle the most difficult business challenges.”

—Mike Hunter

Arizona Department of Health Services www.azdhs.gov

Women Entrepreneurs’ Small Business Boot Camp www.womensbusinessbootcamp.com

Bowl Games Inject $420 Million, Market Arizona With three major college bowls in a span of just two weeks, Metropolitan Phoenix is certain to feel a financial boon. According to Duane Woods, Fiesta Bowl chairman and senior vice president of the Western Group at Waste Management, this year will likely inject more than $420 million dollars into our local economy. That is an estimated 4.6 percent growth over the previous three-bowl season.

The Insight Bowl at Sun Devil Stadium on Dec. 28, the 40th Annual Tostitos Fiesta Bowl that will play on Jan. 1 at the University of

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J a n u a r y 2011

Phoenix Stadium and the Tostitos BCS National Championship Game on Jan. 10 also at the University of Phoenix Stadium are all expected to be sold-out games and will be televised on ESPN. The publicity for the Metro Phoenix area is great. “The Impact far outreaches just the games themselves,” says Lorraine Pino, tourism manager of the Glendale Convention & Visitors Bureau. “Three of the four teams coming to University of Phoenix Stadium are coming for the first time. These are people who will see Arizona and will come back.”

Hotels report strong bookings, and everything from rental car agencies to restaurants and retailers expect to see a boost in revenues this year. “In the 2006/2007 season, when we also had the three bowl games, we saw revenues of $400 million,” says Pino. “The great thing is that fans come early and stay late.”

—Mike Hunter Fiesta Bowl

www.fiestabowl.org

Glendale Convention & Visitors Bureau www.visitglendale.com

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17

By the numbers

Metrics & Measurements

Fiscal Crisis: Balancing the Budget Is a Numbers Game?

Running any entity with a fiscally sound budget is the only way to succeed and move forward in business. For decades now, it has been the way of government to show us that we can run on a deficit as long as we “keep our house in order.” It seems this numbers game can last for only so long. As you have likely heard, Arizona’s numbers are not projected to add up for years to come.

General Fund revenues have declined by one-third in the last three years and are only now starting to see some level of increase.

This decline means an estimated $825-million shortfall for FY 2011 (July – June), followed by a $1.4-billion shortfall in FY 2012. Of a total annual budget of $9.5 billion, 48 percent is education spending, 29 percent is Medicaid and 10 percent is prisons — all to be scrutinized in an effort to balance the budget.

Key Indicators

Adding to our outlook, in FY 2010, nearly 80 percent of the “solutions” to keeping us solvent were temporary fixes — meaning the one-time cuts will cost us down the road.

The projected shortfalls for next two years do not even include the more than $1 billion in suspended funding that has been implemented to get our numbers down for FY 2010.

In Arizona, basically, Democrats believe they can add $2-3 billion to state coffers by overhauling the tax code to close loopholes, while Republicans hope that measures made specifically to attract business will result in additional revenues for the state. (See our cover story for a fuller discussion of these approaches.) — Mike Hunter

Key indicators for the Metro Phoenix economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy.

Economic Indicators Unemployment (Oct. 2010-REV)

-3.2

1721.0

1.4

Housing Permits (Oct 2010)

604.0

-20.2

Consumer Confidence (Q4 2010)

55.7%

1.1

Consumer Price Index* (Oct 2010)

218.7

1.1

September 2010

YOY %Change

$3,905,295

7.0

Job Growth (2010) in thousands

Eller Business Research

Retail Sales (Metro Phoenix) Joint Legislative Budget Committee

Retail Sales (in thousands)

www.azleg.gov/jlbc

Arizona Budget By the Numbers Projected Shortfall in Millions

General Fund Budget FY 2011

FY '13

FY '14

($1,275) ($1,411) ($1,999)

(FY '11 $ in Millions) Education (K-12) Medicaid Higher Education Prisions State Workers Debt Service Other Total

$3,559.1 2,749.7 990.9 985.8 509.0 270.7 459.1 $9,524.3

10.4

9.5

9

10.0

Ongoing Expenditures Ongoing Revenue 9.7

9.5

9.6

8.8

5

7.6

Surplus/Shortfall FY '07 ($ in Millions) 76

8.1

9.8

10.0

8.5 7.9

7.0

($ Billions) $ ininBillions

7

FY '09 (3,000)

FY '10 (3,519)

FY '11 (1,897)

FY '12 (1,528)

FY '13 (1,340)

FY '14 (2,117)

11/19/2010 — JBLC Revenue & Budget Update

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J a n u a r y 2011

6.8

618,569

13.0

Restaurants & Bars

481,848

2.3

Gasoline

345,298

5.0

Contracting

497,846

-9.5

Eller Business Research

Real Estate Commercial: Office Vacancy Rate Net Absorption Rental Rates (Class A)

Commercial: Indust.

Rental Rates (Class A)

Residential Total Sales Volume

Q3 2010

Q3 2009

27.9%

26.3%

(86,775)

(79,838)

$25.09

$26.29

Q3 2010

Q3 2009

14.4%

15.2%

2,157,929

(1,193,860)

$0.50

$0.54

Nov. 2010

Nov. 2009

6,328

7,487

Total Median Sale Price

$129,900

$146,000

New Build Sales Volume

466

983

New Median Sale Price

$219,175

$200,000

5,862

6,504

$121,548

$135,000

Resale Sales Volume Resale Median Sale Price

6.2 FY '08 (1,604)

2,459,581

Food

Net Absorption

Ongoing Revenue vs. Ongoing Expenditures 9.6

Retail

Vacancy Rate

Structural Gap Exceeds Cash Gap 11

YOY %Change

8.5%

Total Sales

FY '12

Number

* Consumer Price index refers to the increase or decrease of certain consumer goods priced month over month. ** Sales Tax refers to Arizona Transaction Privilege, Severance and Use Taxes.

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SE C TOR

Industry Updates & Deals

The Goods on Manufacturing:

Do we have what it takes to compete?

by Kate Nolan Goodyear City Council members voted in September to grant $760,000 in incentives to get Sub-Zero, Inc., a Wisconsinbased maker of refrigeration units, to open a manufacturing plant in their city. In the next seven years, the manufacturing facility is expected to yield nearly 400 jobs, $1 million in city tax revenues and an economic impact of $214 million on Goodyear.

All that amid a wrenching recession whose best feature is that it may finally finish off Arizona’s shaky dependency on tourism and home building.

Glimmers of hope for manufacturing, like the Sub-Zero deal, may not yet be everyday events, but recent financial stability among the state’s manufacturing mainstays has led members of the business community to speculate on what it would take to make Arizona a major manufacturing center.

Manufacturing jobs decrease nationally every year, due to outsourcing and competitive global pressures; Arizona’s do, too — with a loss of 1,500 manufacturing jobs in the past year. But the state’s strength is in electronics, aerospace and other high-tech products that account for a healthy chunk of the U.S. manufacturing dollar.

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Most encouraging is what’s already here, according to Mark Dobbins, a senior vice president at SUMCO Corporation, one of the world’s largest suppliers of silicon wafers to the semi-conductor industry. He’s also on the boards of the Arizona Manufacturers Council and the National Manufacturers Association.

“We have a wonderful manufacturing base now. We are heavily into aerospace and defense with magnificent companies in Greater Phoenix and Tucson — Raytheon, Boeing and Orbital. And we are one of the few spots in the United States heavily associated with the semiconductor business,” says Dobbins, who is chairman-elect of the Arizona Chamber of Commerce and Industry’s board of directors.

In addition, the state boasts about 50,000 small or medium-sized manufacturers that often are suppliers to the major manufacturers.

“We need to work to retain that base and make it attractive for the companies that are here to stay and increase their investment here,” says Dobbins. “A lot of the policies we should be involved in work as well for attracting ‘relocates’ as for retaining our current businesses.”

The advantages of manufacturing in Arizona are its comparatively reasonable tax structure

and good university system, including community colleges that increasingly gear programs to the training needs of employers.

The state is close to California’s ports and it tends to have a non-union work force, an attraction to potential employers.

Arizona could become a leading manufacturing center, particularly in high tech and biotech and new types of manufacturing such as sustainable energy, says Lee McPheters, a research professor of economics at the W. P. Carey School of Business at ASU who also edits the Arizona Blue Chip Economic Forecast and Western Blue Chip Economic Forecast newsletters. Like Dobbins, McPheters is encouraged by growth among more established firms. “Intel has committed to expanding facilities in Arizona that will create up to 1,000 jobs,” McPheters says. “Manufacturing jobs tend to pay above average, and that is why there are such pressures to move them out of the country. Any time Arizona can add jobs that pay above average, this improves the quality of the economy.”

But making that happen is subject to the machinations of the free market. Attracting and maintaining manufacturers depends on delivering an amalgam of favorable conditions.

Topping off most lists is the obvious one of reducing the tax bite to a nibble for desirable industries as well as throwing in some government-sponsored amenities. “It costs Intel a billion dollars more to locate a factory in the U.S. than it does in Asia,” says Jayson Bagley, government affairs manager for Intel Corporation, which has invested $12 billion in manufacturing in Arizona since 1980 and now employs 10,000 workers here. “People think the cost benefit is simply cheap labor, but it’s not. For Intel, with the type of products we make, the labor costs are negligible. Ninety percent of the billion-dollar difference is represented in tax and incentive treatment.”

Let’s Compete To make Arizona more competitive, Bagley recommends continuing to reduce tax liability.

Most states use three factors to calculate income tax: sales, payroll and property value, including equipment. Having a highly compensated work force or investment in new equipment raises tax liability, which are huge disincentives to investment. In 2005, Arizona changed the formula it used for calculating corporate income taxes, giving more weight to sales conducted in the state. For a company

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like Intel, whose entire Arizona manufacturing output is exported, the change has had a powerfully positive effect.

Bagley thinks a similar incentive to invest in Arizona would come from lowering the business property tax rate. Contrast its current 21 percent with the residential real estate tax, kept artificially low at 10 percent, which is tied to an old era when home building was the main industry and the state was luring builders and homebuyers to invest.

Bagley maintains corporate tax revenues would be better spent on job creation, and, based on previous business tax rate decreases, the reduction would not necessarily lead to higher residential rates.

Dobbins sees a need for tax reform, but he says the more urgent necessity is a better-educated work force. A recent story by Arizona Republic reporter Anne Ryman revealed that only a fifth of Arizona’s high-school graduates obtain a college degree within six years of graduation.

Couple that with a high-school dropout rate above 30 percent, and the challenge is clear. “The greatest need for the state to attract manufacturing is for us to corral our efforts around education and workforce development, to have an educated, technically functional employment base for manufacturers,” Dobbins says. He cites good programs at the community colleges and at least talk in the legislature about training efforts. “We really all need to get on the same page,” he says, noting that in this economy the solution may have to be something more creative than throwing money at the problem.

We Have Hurdles Speaking of money, manufacturers say we’re at a disadvantage there, too. “Economically, we are truly not in the ballgame to offer financial incentives to the degree our competitive states offer them,” says Dobbins. The amount of tax credits and training grants state legislators have proposed to encourage manufacturing investment is only a fraction of what the city of Austin, Texas, offers.

McPheters points to a lack of venture capital as well as infrastructural shortcomings, such as a limited number of international direct flights from Phoenix, especially to the Pacific Basin.

A transportation system that makes it hard to get goods to market is a core issue. Because Arizona’s air service for international cargo is sadly lacking, Dobbins points out, commercial

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cargo from Arizona travels in the belly of a passenger airline jet or by rail or truck to ports in California or Texas. One solution may be expanding Phoenix Mesa Gateway Airport, says Dobbins, who worked on a project to expand cargo service there, adding it would take substantial capital and probably a public/ private partnership of some type.

The state budget and the faltering economy notwithstanding, Intel is creating a new research and development site and expanding its manufacturing capacity here.

Raytheon, Honeywell, Motorola and others continue to hire locally or bring in a qualified manufacturing workforce. And factory relocations are slowly popping up in Goodyear, Surprise, Tucson, Phoenix and other cities.

In fact, the tough economy strangely sounds like a call to action for Arizona’s

manufacturers. Says Dobbins, “There is a lot we could be doing under strong leadership to address our core deficiencies, by finding a way to get us all to work together to focus on the outstanding resources we have in Arizona and incrementally improve them.”

Arizona Chamber of Commerce and Industry www.azchamber.com Arizona Manufacturers Council www.azchamber.com/amc Intel Corporation www.intel.com National Manufacturers Association www.nam.org SUMCO Phoenix Corporation www.sumcousa.com W. P. Carey School of Business www.wpcarey.asu.edu

The Value of Manufacturing as a Measure of Economic Health Manufacturing was once a bedrock of a region’s economy. In addition to the jobs it provided, it brought in outside dollars when the manufactured goods were sold elsewhere. Now, says Lee McPheters, research professor in the Department of Economics and director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business at Arizona State University, “As a measure of economic health, it’s lost its effectiveness.”

Global competition has made it hard to quantify what’s going on, he explains.

Products can be made somewhere else — cheaper and closer to the raw materials.

“Globalization has picked up in the last few decades,” McPheters says. “Manufacturing as a source of job growth has evaporated in the U.S.” In 1997, manufacturing accounted for 14 percent of all jobs; in 2007, it accounted for 10 percent.

As far as new business start-ups, he notes new companies emerge and flourish around a new invention, but says that information is hard to track. Success factors include the product’s physical location and where it falls in the overall business cycle. Items such as windows and doors and trusses, for example,

are impacted by what’s happening in the construction industry.

“Manufacturing (particularly in Arizona) continues to be an industry with good paying jobs, particularly in high tech.

But global competition and continuing increases in productivity and improvements in the technology of production lead to pressures to reduce the number of workers,” says McPheters.

In spite of Intel hiring more people, the overall number of manufacturing jobs in Arizona continues to decline. McPheters reports that manufacturing employment in Arizona peaked in December of 2000 at 212,400 workers, and he projects the number to be 147,000 by December of 2010 — a loss of 65,400 jobs, or 30 percent, with more than 80 percent of that loss in Phoenix. “New industries may soon be hiring, such as solar and sustainable energy. And high tech is still important, particularly in Phoenix, but don’t expect a surge in manufacturing jobs to lead the economy out of the current employment recession.”

—RaeAnne Marsh W. P. Carey School of Business www.wpcarey.asu.edu

In Business Magazine

21

Tech

Innovations for Business

The Power of e-Commerce: Is it changing the way we do business?

by Don Harris In today’s technology-overloaded world, it’s rare that any company lacks an Internet strategy, whether to sell products or services online or merely to promote its business. Even nonprofits have something to sell — a vision — as they appeal for support. Thus, the era of e-commerce is providing entrepreneurs with an added venue to enhance their bottom line and is giving consumers the opportunity to purchase just about anything with a few clicks.

And it’s blazing new avenues beyond the confines of geographic accessibility. Etsy.com, for instance, provides an Internet marketplace for craftsmen and artisans selling such items as paintings and jewelry. It gives these craftsmen, many of whom are sole proprietors, global exposure where, historically, they have relied on local art fairs to sell their hand-crafted wares.

Of course, there are hazards to breach.

Experts say there are ways to defuse a bad customer experience by monitoring social media — find out what disgruntled customers are saying on Facebook, YouTube or Twitter, and fix the problem. And when customers are making purchases online using their credit card, security and privacy become issues.

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J a n u a r y 2011

Steve Zylstra, president and CEO of the Arizona Technology Council, says e-commerce has its challenges and pitfalls for companies, but the benefits can be substantial. Among the challenges, he says, are differentiating your company from the competition and making your website easy to for visitors to use.

“You need to make it really quick and easy to navigate your website. Make sure people are one click away from whatever it is they’re seeking to do. If they get frustrated, they’ll go away and find someone else.” In today’s fast-paced world, e-commerce should provide a painless way to shop. “People don’t necessarily want to jump in the car and drive here and there to get what they need,” Zylstra says. “If they can quickly transact business online and get what they want shipped, that’s a much happier customer.”

Unfortunately, e-commerce can paint a misleading picture. Customers sometimes find that what arrives at their home is not what they thought they were buying. “An important aspect is to give customers an opportunity to really get what they need online,” Zylstra says.

“There are many features on the Web today that some companies use to give the consumer

a more realistic experience of their product.” A business must be honest with the consumer for it to be successful in the long-term.

Products that are readily describable, like TVs, phones, printers and cameras, are easier to sell online, but comparisons can lead to price-cutting. “The more sophisticated or customized your product or service is makes it more difficult to sell online,” Zylstra says.

“Sometimes you need to describe your product in a face-to-face conversation.” He notes also that, while services are widely and successfully offered online, they can be somewhat more difficult to sell because they are “less tangible.”

Associate Professor of Information Systems Julie Smith David, director of the Center for Advancing Business through Information Technology at the W. P. Carey School of Business at Arizona State University, emphasizes the importance of “service recovery” for businesses utilizing e-commerce and underscores how they can benefit from social media — an opportunity she feels many in business are missing. “People aren’t learning how to gather information from the Web to understand what customers want

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and if they’re saying something is really good or bad on Facebook, YouTube or Twitter,” says Smith David, who also co-founded the Privacy by Design Research Lab at the school, which works to encourage organizations to monitor and improve their techniques for data protection. “If you’re not listening to what’s going on on the Internet, you allow them to control the conversation — and disgruntled customers have a pretty loud voice.”

There are cloud-monitoring tools — Webanalytic tools — that enable you to find out what customers may be saying about your company, product or service, Smith David points out. “You have an opportunity to respond, to try to have service recovery,” she notes. “If you have a strong service recovery, you have a more loyal customer than a customer who has never had a problem.”

Smith David reports her students are most concerned about security and privacy issues as they relate to e-commerce — they wrestle with the fact that organizations are keeping track of every key stroke, identifying purchase patterns. “That is really a strategic question organizations need to deal with,” Smith David says. “They need to be mindful of their responsibility regarding customer and employee data.” A security/privacy/ethical issue comes into play for supermarkets if, for example, a customer using a debit or credit card buys large quantities of cigarettes and booze. If the supermarket doesn’t protect that information, it could be obtained by an insurance company, to the detriment of the customer and possibly impacting the reputation of the supermarket.

It’s important, therefore, that businesses be “respectful stewards of individual information,” says Smith David.

Despite the growing popularity of e-commerce, Zylstra doubts that shopping malls are facing major downsizing. “A lot of people enjoy the experience of shopping,” he says. “It’s not the same experience online.”

Yet Zylstra expects e-commerce to become more sophisticated with such advances as 3-D images online. “There will probably be innovations that we haven’t even thought about that will change everything,” he says. “I call it disruptive technology — it will disrupt the existing paradigm.”

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23

Trickle Up

A View from the Top

by Alison Stanton

Perseverance: How Sweet It Is How James May built a business on stevia

Stevia and James May: The sweet story of success M ay has been honored for his work on behalf of the indigent farmers of Latin America M ay is Honorary President of the Stevia Association of the Americas, an organization of stevia growers, academics, processors and manufacturers throughout Central and South America.

I n November 2010, May was inducted into the Phoenix College Hall of Fame I n May 2010, May was the first to receive a Lifetime Achievement Award from Stevia World International at the Stevia World Europe conference in Geneva S tevia leaves contain 100 vital nutrients P rocessing extracts and isolates the glycoside compounds that are combined for a calorie-free sweetener 300 times sweeter than sugar S weetLeaf® is the only all-natural stevia sweetener with zero calories, zero carbohydrates, zero chemicals and zero glycemic index

24

J a n u a r y 2011

How do you get from selling a sweet herb called stevia out of your garage to being head of the leading U.S. manufacturer of stevia products?

In a word: perseverance.

James May, founder and president of Wisdom Natural Brands, maker of SweetLeaf Sweetener®, recalls being introduced to stevia, a naturally sweet herb from Paraguay, in 1982. He says a friend of a friend who had served in the Peace Corps in the South American country had a baggie full of green stevia leaves with him and asked May to give one a try. “I thought, ‘I’m not putting anything from Paraguay in my mouth,’” he says, laughing. “But they coaxed me to try it, and boy, it was sweet. And the longer I held it in my mouth, the sweeter it got.”

The experience piqued his interest in stevia.

May, who had served as the Arizona Kidney Foundation’s first executive director as well as director of the Artificial Organs and Transplant Program at Good Samaritan Hospital in Phoenix during a 20-plus-year career as an executive in the healthcare industry, began researching the plant.

The vast amount of information he found included research that showed both the herb’s medicinal properties and its potential as a safe and natural alternative to traditional table sugar.

That same year, May traveled to Paraguay to import stevia to the U.S. He also checked in with the United States Food and Drug Administration to make sure he was cleared to market the herb.

“I went to the FDA office and I showed what had, which was leaves and a tea, and I asked, ‘What do I have to do to market this in the United States?’ — and I was told it would be OK and that it’s perfectly safe. So I started bringing in and marketing stevia, shipping it out of the garage, and trying to promote my new product.” He sold the stevia both as an extract and in a tea.

Although the FDA had initially been supportive of his quest, May soon learned — from an FDA employee who told him off the record — that the agency was being pressured from other artificial sweetener companies, one of which was on a mission to get Aspartame approved for public use.

When the FDA did, in fact, reverse its approval of stevia, banning it from being imported into the U.S., May spoke with officials at the FDA and was given clearance to continue to sell his stevia tea.

He later developed and sold skin care products with stevia.

Working with a scientist from South America, May perfected his method of processing, extracting the naturally sweet flavor from the leaves using only cool, pure water. But even letters from Arizona senators John McCain and Jon Kyl did not sway the FDA’s position on the sweetener.

Then, in 1994, Congress approved the Dietary Supplement Health & Education Act (DSHEA), which defined dietary supplements as vitamins, minerals, amino acids, herbs, and botanical extracts and derivatives. But there was still another hurdle to overcome.

“The FDA finally said, ‘Yes, you can sell stevia, but you can’t inform them it tastes sweet. And you can’t say it improves the taste of food and beverage,’” May relates. “I thought, ‘How am I going to sell a product if I’m not allowed to say how it tastes or tell people what it’s like?’” His solution was the brand name SweetLeaf, which he coined in 1994. “I had an FDA agent actually tell me it was brilliant, that I was able to inform the public what it did without saying it. And I began selling it as a dietary supplement.”

By 2007, May says his company controlled 80 percent of the stevia market, and his products were doing well in the natural product portion of many stores. However, because stevia was classified as a dietary supplement, SweetLeaf could not be on the shelves with the sweeteners or labeled as such. That changed in 2008, when two independent groups of scientists gave stevia “Generally Recognized as Safe” (GRAS) status, allowing SweetLeaf products to be labeled as sweeteners and described as tasting sweet.

Since then, some stores have placed SweetLeaf with the sweeteners. Others, May says, don’t want to move the SweetLeaf products from the natural products section, because customers expect to find them there. “So I’m still fighting that battle. It still takes perseverance.” But he feels he has taste and tenacity on his side. “I’ve battled multi-billion[-dollar] companies and I’m doing fine.”

Wisdom Natural Brands www. wisdomnatural brands.com

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The Arizona Legislature Can they prime the pump for business?

I

n Arizona, retaining and attracting business promises to be a central concern as the 50th legislative session gets into gear.

“The creation of jobs really comes from the entrepreneur, the risk-takers, the people who put up capital to make business happen,” says Speaker of the House Kirk Adams (R-Dist.19). “But what the legislature can do, in conjunction with the governor, is create that environment where that kind of activity can thrive.”

Promoting job creation seems to be a goal shared across the board and on both sides of the aisle.

The debate is on the route to get there.

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inbusinessmag.com

Cover Story

by RaeAnne Marsh

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In Business Magazine

27

Fertile Ground for Business

Describing the economic policy package he expects to be working on in the new session, Adams notes the goal is to incentivize business activity and business investment in Arizona rather than directly create jobs. “What it means is we’re lowering some of the competitive barriers that have inhibited Arizona from growing the way we’d like it to.”

The package’s multiple components — not nailed down at the time of this interview but proposed in principle by the Arizona Commerce Authority, on which Adams is an ex-officio member — include lowering of business taxes and creation of a statewide enterprise zone.

Enterprise zones are created to provide tax breaks to businesses to enhance investment opportunities in areas with high poverty or unemployment. The current system expires in 2011, and the proposed HB 2595 — Enterprise Zone Jobs Incentive Act — would create a statewide “zone” instead of defining specific areas. What’s holding Arizona back from being competitive in attracting capital, Adams says, is “high commercial property taxes and an uncompetitive corporate income tax for our region.”

Of the budget’s importance to economic growth, Adams points out, “Businesses want to operate in a stable environment. So the state government needs to get its house together so there can be a level of predictability about how we’re going to operate, what types of services we can provide, and what types of services we can’t provide.

“We have picked all the low-hanging fruit. A lot of one-time items, borrowing and easy cuts have already been done. The three main cost-drivers in the Arizona state budget are Medicaid, education and corrections.

We cannot balance the budget any more unless we dip into those buckets.” Keeping those three areas of the state government and eliminating everything else, Adams says, will realize a savings of $820 million but still leave a deficit of $825 million.

ADAMS “We have picked all the low-

hanging fruit. A lot of one-time

items, borrowing and easy cuts have already been done.”

—Rep. Kirk Adams

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“In the Arizona constitution, we are given two primary responsibilities: education and public safety. It’s my personal belief those two areas should be higher priority than Medicaid.”

Making the tough decisions, says Adams, will result in significantly reducing the state’s nearterm deficit and long-term structural deficit.

“We will [then] have stability in state finances, and that is incredibly important for a strong business environment.” The historical revenue increases of about 6 percent annually were based on Arizona’s high-growth economy, he notes. “But we can’t expect any revenue growth in the next couple of years, so we must balance the budget with revenues we do have — so we have to balance it operationally.”

Decisions about taxes and economic policy, Adams says, are all about growing jobs and creating economic growth — and he believes this comes from taking care of the private sector. “The more healthy the private sector is, the more healthy state government is. The key to pulling ourselves out of this [budget crisis] is job creation, getting incomes up again, getting through the housing inventory.”

Meetings with site selection specialists, on whose advice companies may decide where to relocate, yielded information on how Arizona shows in their matrix. Positives are the state’s low workers compensation and its unemployment insurance system, but, Adams says, “Our income tax — higher than everyone in the region except New Mexico or California — puts us on the bottom of their list.”

Adams says changes to the Enterprise Zone laws are part of the broad-based tax reform he’d like to see to make the enterprise zone more broad-based and more accessible to more employers. This, he says, would help make Arizona more competitive in terms of commercial property tax. “We want employers who purchase equipment, put money in the ground — have that kind of footprint in the state.”

And he says he supports a report by the Arizona Commerce Authority that recommends eliminating capital gains taxes for small employers and people who invest in small businesses. “We want small employers to excel and achieve success.

They are critical — usually the number one

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net producer of jobs in the state of Arizona (and across the country).”

Adams also identifies a qualified work force as a key component to business success.

“Arizona needs to do more with less in higher education,” he says, noting a need to remodel the system “to increase the number of bachelor-degree-holding citizens in our state.”

Long-term Stability

“The number one focus is to craft policy that leads to creation of jobs, helps us retain jobs, helps the small businesses of the state continue to succeed,” says House Minority Leader Chad Campbell (D-Dist. 14), looking ahead to the new session. With that, he believes it’s important to go beyond a short-term vision and not “sacrifice the long-term future of the state by cutting off funding for education and cutting off funding for public safety.”

Serious attention needs to be given to revising Arizona’s tax code in a comprehensive way, he says, and that includes ending bad tax credit programs that cost the state billions of dollars a year. “Then we can have some leeway to go in and fix some of the disparity we see in the business tax side, while at the same time making sure we have the revenue we need to fund the education system …, to fund public safety and to fund programs like Medicaid.”

Higher education is one of the state’s key assets, Campbell says, with three great, state-run schools that produce a highly educated potential employee. He believes it’s important to continue to fund education, making sure students are getting the best education possible and that “we have workers and citizens in this state capable of competing with anyone around the world.”

Gutting these programs, Campbell says, will not make Arizona attractive to the business community. For instance, if Medicaid were to be cut, he says, “You would have a mass exodus of the healthcare industry from the state. We would literally see hospitals, healthcare plans and other facilities and programs scaling back massively on healthcare programs.” This would have a negative impact on the overall community as well as the ability to attract and keep employers in Arizona.

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The cut would also have a direct impact on jobs in the state, he says. “A study done last year showed that if you were to cut Medicaid and lose the federal money that comes with it, we would see a loss of over 40,000 jobs in healthcare and related sectors in Arizona.

“We’ve got to fund these programs, and the only way to do that is to overhaul our tax code from top to bottom and make us more competitive across the board.”

Loopholes in the tax code add up to $2-$3 billion, even allowing for certain exemptions for items he feels should stay. “We shouldn’t tax food or medical,” he says, and adds that allowance may also be appropriate in the case of some B2B services, for which double taxation could otherwise conceivably be the effective result. The current tax structure plays favorites, he says.

“It’s picking winners and losers within the tax code.”

Campbell does not see business being reassured by short-term fixes. Creating a consistent tax policy ­— so everybody knows what they’re getting, what to expect, what they’re going to be paying and what they’ll be receiving in return — will create a more stable environment for business as well as individuals. That, says Campbell, will give a better sense of security about operating the business in Arizona, both to those considering relocating a business to Arizona and those considering whether to remain in the state.

Campbell believes the Deal Closing Fund (to which Governor Jan Brewer has allocated $12 million of the federal stimulus funds as part of efforts to persuade businesses to locate or expand in the state) and the Enterprise Zone Jobs Incentive Act may have some merit, but notes the details have yet to be worked out. The more critical need is to look at the tax code in its entirety. “Not only do we have all these loopholes, not only do we have a property tax structure that’s probably the most complicated in the nation, besides Michigan, but we have a massive debt load we’re carrying.”

Emphasizing the necessity to pay off our debt, he points

CAMPBELL

“We’ve got to fund these programs, and the only way to do that is to overhaul our tax code from top to bottom and make us more competitive across the board.”

—Rep. Chad Campbell

>> In Business Magazine

29

out, “We’re seeing it in our bond ratings — confidence in Arizona’s economy and in our ability to fund projects is starting to go down.”

Noting the irony of espousing the conservative principle of putting everyone on a level playing field, Campbell says, “I don’t know why a small business should be paying a TPT [transaction privilege tax] and a large business shouldn’t be. [It’s] not fair. If we’re going to rely on the TPT, which we seem to have agreed upon as our main source of revenue, we need to make it fair, as low as possible in terms of its burden and impact — especially on retailers — and make it competitive with other states. Now, we fail on all three counts.

“And we talk about not raising taxes, but then we shift complete agencies to fee-based funding,” says Campbell. A fee-based system represents new costs to business as transaction fees charged by the government agency to the business for permits or other services.

Although not technically a tax, they do, in effect, raise the cost to business. “Essentially, it’s a hidden tax,” Campbell says. “It’s like taxing one segment of the economy at a greater rate.”

Campbell sees the present time as offering an opportunity for Arizona to get out of the cyclical economy it typically experiences and to modernize the tax structure for businesses as well as individuals to make it more competitive with other states. “With the crisis we’re having now, there isn’t a better time to do it.”

Business Sights on the Capital

Michelle Bolton, vice president of Public Affairs & Economic Development with the Greater Phoenix Chamber of Commerce, pegs a few other areas as ones she expects the lawmakers to address this session that will impact business: Arizona Health Care Cost Containment System (AHCCCS; phonetically known as “Access”), the state retirement system and unemployment insurance. But she notes, “The budget is the big elephant in the room.”

Among factors competing for attention, Bolton points to the Environmental Protection Agency’s denial of Arizona’s latest plan to deal with air quality issues, noting that if the state fails to address the issue it risks losing federal transportation funding. And the state’s unemployment insurance fund, which she lauds as very well run, had to borrow from the federal government in recent months because the significant employment loss statewide placed a tremendous burden on the

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system — and this money needs to be repaid.

In fact, interest begins accruing in January, which puts Arizona between a rock and a hard place: Borrow more to pay back the money or have penalties added to the amount. “Some legislators want to eliminate the fund, but even if they do, the fund needs to be repaid,” she says. “They have to deal with it now, even if they change it. They must stabilize it.”

Legislators may also look at changing the state shared revenue allocations, Bolton says.

Cities rely on these funds, which the state doles out to them from the state income tax revenue, to provide fire and rescue, trash collection, libraries and other municipal services. “Will they eliminate the state shared revenue? If so, will they allow the localities to tax?” she wonders.

Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry, sees the legislature responding to the 300,000 jobs the state has lost in the economic downturn by passing a jobs bill. Among its essential elements is making the tax code “more competitive than our regional competitors,” he says. Another aspect he expects to see discussed is the corporate sales tax on goods manufactured in Arizona. At present, the tax is levied on all products produced here even if they are exported and sold outside the state, which, he points out, penalizes a company “for producing goods in Arizona that will be used elsewhere.”

Hamer identifies tax issues that the Arizona Chamber believes are important: a business property tax that, at approximately double the residential rate, is “among the worst in the country”; a corporate income tax that is in the mid-range nationally but is poor in relation to other states in our region; and a capital gains tax rate that is higher than the federal rate. “We can use federal stimulus dollars to help close relocations and transfers, providing job training for businesses that need technical skills,” he adds.

From all sides, there seems to be agreement that jobs and stabilizing the economy are the primary issues on people’s minds as the new legislative session begins, and Hamer expresses the positive attitude of many as he says, “The legislature seems poised to do something major.”

Rep. Kirk Adams

www.azleg.gov

Rep. Chad Campbell

www.azleg.gov

Arizona Chamber of Commerce and Industry www.azchamber.com Greater Phoenix Chamber of Commerce www.phoenixchamber.com

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Communicate

Louder than Words

Social Media

Powerful. Revolutionary.

But Is It Right for Business?

by Sue Kern-Fleischer Are you confused by it? You’re not alone.

Despite the never-ending buzz about social media over the past few years, there are many others like you who don’t want to deal with it, don’t care about it, don’t get it or just don’t like it. But just because you don’t like it doesn’t mean you can ignore it, especially if you own a business or work in a position where you need to influence public opinion and improve your firm’s bottom line. According to a recent Emarketer.com report, in 2011, four out of five national companies with 100 or more employees will use social media marketing.

That’s a significant change from 2008, when just 42 percent of companies used social media to market their products and services.

Chris Sietsema is president of Teach to Fish Digital, LLC, a Mesa-based consulting firm that trains small to medium-sized businesses

Some confusion stems from the misconception that the majority of people using social media tools, like Twitter and Facebook, post pointless information such as what they ate for breakfast or spend most of their time playing games. But Sietsema points out, “When you peel back the layers of social media, you’ll find the core tenants that are business friendly.” Businesses, he notes, can utilize social media tools to conduct market research, improve customer service and increase general awareness of their brand.

Abbie Fink, vice president and general manager of Phoenix-based HMA Public Relations, considers digital communications so important it is on her agency’s daily agenda and on every client’s agenda. A member of Public Relations Society of America’s national Counselor’s Academy, Fink says

and advertising agencies on how to create, implement and measure the success of marketing campaigns with digital tactics such as search, social media, online advertising, e-mail and Web analytics. He finds there is still a lot of confusion about social media among business executives. “People tend to think of social media as a silo. In actuality, it should be used as an extension of all of your marketing programs. Social media is not a side dish; it is like a condiment. It goes over everything.”

Considered to be the “toddler” of digital marketing tactics, social media continues to evolve quickly, which can sometimes seem overwhelming. “Some people are unwilling to take a look at it simply because they don’t understand how it works. There is so much noise out there about social media itself, it causes confusion,” Sietsema says.

Social Success Story in Spite of Recession Mike Shaldjian sees the value in utilizing social media tools to strengthen professional relationships. The co-owner of Media Watch AZ, LLC, a full-service national broadcast news monitoring and retrieval company based in Phoenix, first delved into social media with a Facebook presence to keep in touch with family and friends. In December 2007, Shaldjian began using Facebook and Twitter to see how they could help him build and maintain his business.

“After six months of experimenting with social media, I realized how tremendous the impact was, and it only got stronger from there,” he says. “I can attribute a 17-percent increase in revenue from 2008 to 2009 directly to my social media efforts. That would be a 17-percent of a total 25-percent increase in revenue during one of our nation’s worst recessions.”

Shaldjian uses Twitter to build personal relationships and rarely tweets about his business. “The only time I’ll tweet about Media Watch or post something on Facebook is if I’m running a contest or sponsoring an event, or, on a rare occasion, running a special price for services. I’ve been fortunate in that many of my clients tout my services for me on these social media vehicles. It is much more credible coming from them than from me,” he says.

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Since establishing a Twitter profile, Shaldjian has posted more than 36,000 tweets to his more than 2,100 followers. He also credits his time on Twitter with helping him acquire more than a dozen new clients. “I tried for two years to get face time with a major public relations agency and couldn’t until I started using social media. Now, not a day goes by where I don’t get a phone call or an e-mail from a client or a prospective client referencing my presence on Twitter and Facebook.”

Social media had such a tremendous impact on Shaldjian’s business, he co-founded Buzzcation, a popular social media networking event that brings Valley professionals together at trendy restaurants and bars five to six times a year while benefitting a local charity.

“Buzzcation is so much more than a tweet-up,” he says. “We’re averaging 240 people who tweet about the event, the restaurant and the nonprofit organization for nearly two weeks prior, the night of the event and several days after. You can’t place a value on that kind of exposure.”

—Sue Kern-Fleischer Media Watch AZ, LLC

www.mediawatchaz.com

inbusinessmag.com

Books many businesses mistakenly think that just because they establish a Facebook fan page, set up a Twitter handle or sign up for a LinkedIn account, they’re successful at social media. “When we counsel our clients, we go back to the basic principles. What are their objectives and strategies, and how are they going to accomplish that? It may or may not be through social media, but more often than not, opportunities exist to utilize social media tools,” she says.

Fink says social media has revolutionized communications, just as the fax machine and e-mail did several decades ago.

“This is a time when businesses of any kind can position themselves as thought leaders by having dialogues and engaging in conversations like never before,” she says. “And, whether you choose to be there or not, someone will mention your brand via social media. You may not need to actively post messages but, if you’re smart, you will listen, respond and, if necessary, change the direction of the conversation.”

Proactive management of social media tools, she notes, is critical to achieving success. That means determining what your key messages are, when and how often you post them, who within your organization is responsible for posting them, and who will monitor mentions and respond. “It’s similar to any entrepreneurial endeavor. If we help you publicize that, do you have someone ready to answer the phones? If not, you’re not ready to launch yet,” she says.

Take It Slow Maybe your firm has tried to implement a social media campaign but you didn’t see immediate results. “A lot of companies experiment with social media, and, if it doesn’t work right away, they quickly abandon it,” Sietsema says. “It is not like a blind date; it is more like a marriage. It takes a long-term commitment to work.”

That commitment means dedicating time daily to manage social media efforts, which can be overwhelming for any business. “Some ‘experts’ say social media is free, but time is still money and it does take a lot of time,” Sietsema says. “If I was starting out, I would begin with a listening tool to find out if people are talking about my firm or brand, and then decide if we should be involved in those conversations. If we decide to move forward, we need to determine who on our team will manage our efforts.” The best people for that, he says, may be those on the front line — in customer service, sales and marketing.

Sietsema suggests setting a short-term objective and then implementing a social marketing plan for one to three months. Then, evaluate your campaign and modify your strategy and tactics for your next phase. “No scenario is the same,” he says. “It is better to take baby steps than jumping into the deep end head first.”

HMA Public Relations

www.hmapr.com

Teach to Fish Digital, LLC

www.teachtofishdigital.com

Social Strategy The Executive’s Guide to Enterprise Social Media Strategy: How Social Networks Are Radically Transforming Your Business Using straightforward language, this book offers realworld stories and revealing anecdotes to demonstrate how executives and business leaders develop successful corporate social media strategies. For leaders who are looking for the fundamentals and a framework for building their own strategy. An actionable framework for developing and executing successful social media strategies supporting collaboration, teamwork and communication in modern corporations.

Mike Barlow and David B. Thomas $45 • Wiley, John & Sons • February 2011

The NOW Revolution: 7 Shifts to Make Your Business Faster, Smarter and More Social This book isn’t about how to “do” social media. Instead, The Now Revolution outlines how you must retool your organization to make real-time business work for you rather than against you. Read about seven shifts that will help you make your company faster, smarter and more social: Engineer a New Bedrock, Find Talent You Can Trust, Organize Your Armies, Answer the New Telephone, Emphasize Response-Ability, Build a Fire Extinguisher, and Make a Calculator.

Jay Baer and Amber Naslund $24.95 • Wiley, John & Sons • February 2011

Brand Media Strategy: Integrated Communications Planning in the Digital Era Media and brand expert Antony Young explores how today’s most innovative marketers are integrating the latest media tools into a comprehensive strategy to grow their brands and are getting unprecedented results. He explores the future of advertising in traditional media and how to judge; the investment’s value in today’s results-driven marketing world; how to get the maximum impact out of digital media, including online searches, social media and mobile phones; and the importance of employing nontraditional media vehicles, such as marketing, PR, branded entertainment and product placement.

Antony Young $29 • Palgrave Macmillan • On shelves and online

Mobile Marketing: Fundamentals and Strategy This is a blueprint for creating a mobile platform that connects you with customers in new, unique and potentially profitable ways. The book brings you fully up to date on the world of mobile marketing with the latest facts, statistics and academic research about the mobile medium and mobile consumer behavior. The Basics of Mobile Marketing: short message service (SMS), multimedia messaging services (MMS), Internet, interactive voice response (IVR), games, services and more.

Kaan Varnali, Aysegul Toker and Cengiz Yilmaz $26 • McGraw-Hill • On shelves and online

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33

Finance

Fundimentals of Funding

Factoring In the Finance Options Cash flow solutions outside the bank

by Gremlyn Bradley-Waddell It’s no secret that times are tough in the current economic climate. Many small to mid-sized firms and newer start-ups are strapped for cash, and the place that business owners typically turn to for a loan is the bank.

But banks are particularly tight-fisted with the dollars these days, so what do business owners do when the bank turns down a loan request?

Sadly, they often close up shop. “If the bank can’t help, they go home,” says Phoenix-based entrepreneur Robyn Barrett. “It’s unfortunate that most small businesses don’t look beyond their bank.”

In fact, Barrett says, many economically stressed companies could likely be salvaged thanks to an alternative to traditional financing

known as factoring, or accounts receivable funding. Factoring is the selling of accounts receivables at a discount to a third-party agency — a factor — in order to free up cash flow while the company waits for slow-paying customers to remit their balance.

Barrett owns such an agency, Factors Southwest, and has worked since 2001 to help firms access working capital. She says she carefully evaluates any client before signing on. “If a company’s margin is thin and I factor them, it won’t help,” says Barrett, who holds a CPA license and an MBA. “It’ll be a slow death, unless it’s a really short-term relationship. If a company has a good margin, factoring makes sense.”

Even though the financing solution is hundreds of years old, many people are not familiar with the concept. Essentially, factoring is akin to a line of credit, but the invoice is advanced upon almost immediately. A typical transaction at Factors Southwest, for example, would be a cash advance of 70 to 85 percent of the invoice amount deposited or wired to the client’s bank account within a day.

Factors, or asset-based lenders, will collect the receivables on behalf of their clients and take responsibility for credit losses, explains Bob Wilson of Stoney-Wilson Business Consulting in Scottsdale. Factors do not act as a collections agency. They will, however, notify

Pitching for Cash: The Venture Capitalist Way Entrepreneurs seeking venture capital funding often attempt to sell an investor with the same presentation they prepared to sell their product or service to a customer, and feel they are properly prepared with their pitch. Not so, says Doug Bruhnke, president of Growth Nation. “It’s a different goal.” It takes a different perspective, he emphasizes, because venture capitalists are not looking to buy your product. “They want you to be successful so they can make a lot of money.”

To that end, it’s important to back up the service or product idea with evidence that you have a well-thought-out business plan plus the business skills to make it succeed ­— and this includes your management team. Be specific about their experience and other advantages they bring such as contacts; a resume of “30 years in the industry” does not convey what qualifies a person to help your venture.

The best opening is a compelling story that builds into a core pillar, such as nonprofits or green technology or the military, that is of interest to the prospective investor. The investor’s attitude, Bruhnke

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notes, is “I’m not just investing in a company, but investing in a company that supports my world view.”

Just as important are the softer aspects. How to stand, how to answer questions and how to get into the rhythm of the investor’s approach are critical to your gaining their buy-in. It’s perhaps obvious, but some stand-by phrases can actually hurt your presentation. “If someone asks you a question, don’t say, ‘That’s a good question’ — they’ll think you’re stalling,” says Bruhnke, whose business includes mentoring, candidly sharing advice of fellow businessman Dee Harris, general manager of Arizona Angels Venture Group, Inc. Be openminded rather than defensive in answering questions, as that’s a positive indication of flexibility toward managing the business. You’re selling more than your good idea— you’re selling your trustworthiness and your leadership capabilities.

— RaeAnne Marsh Growth Nation

www.growthnation.com

Arizona Angels Venture Group, Inc.

http://bit.ly/angelsoft

inbusinessmag.com

Come join us and Celebrate our 10th Anniversary a client’s customers that payments need to be forwarded to them.

“It’s an accepted means of financing,” Wilson says, observing there seems to be no stigma attached to using a factor. “Having a factor says [the company] does have a credit facility in place, and in this economy, let’s face it, who isn’t hurting?” One of the most important points to consider, he says, is whether a company can afford a factor, as the fees are much higher than those surrounding traditional funding. Factoring fees may range from 1.5 to as much as 4 percent per month.

“It’s a pretty heavy price to pay, but if you need it, you need it,” he adds.

As for why a factor may be of help and a bank may not, the difference lies in underwriting. Lou Wallace, managing member of Performance Funding Group and part of the finance industry for nearly 40 years, says a factor looks at the quality of the receivables — in other words, the client’s customers — not the creditworthiness of the client itself. “If you’re in business a year, the bank won’t talk to you,” he says. “We can make allowances. We can help someone who’s been in business a short time.”

That said, both Barrett and Wallace note that not every factor will work with every industry, so some shopping around may be in order.

Barrett’s company, for example, does not do consumer, medical, construction or trucking receivables. And even though the relationship is likely to be short-term, Wallace says there are a lot of fly-by-night firms interested only in collecting as many fees as possible — so you want to make sure you know with whom you’re doing business.

Barrett emphasizes the point as well, and describes selecting the right factor as “almost like picking a partner or picking a spouse.” She says smart business owners will do their due diligence, ask the hard questions and read any agreements before signing. “Make sure [the factor has] the backing and the financing,” Barrett adds. “Ask them, ‘Where are you getting your financing from?’ Your factor should be honest with you. Also, ask how long they’ve been in business and ask for referrals. The good factors will give them to you, the bad ones won’t.”

Join Us for LUNCH! Bento Box Lunch Specials (Served daily till 3) Sushi Brokers offers a variety of Bento boxes each featuring a small portion of miso soup, cucumber salad, rice, wokked vegetables and choice of entrée.

Teriyaki Chicken Teppan Shrimp Chicken Katsu *Yaki Niku (Beef Stir-Fry) Tempura Combo ( Shrimp and Veggie) *Beef and Broccoli Chicken and Mushrooms (All $9)

Reverse Happy Hour Everyday!

Friday & Saturday 10p to 1a

*Sushi Lunch Bento box with California roll, one piece tuna, yeallowtail, and salmon, $11

(480) 515-5000 17025 North Scottsdale Road www.SushiBrokers.com

*Specialty Bento Bento Box with choice of any specialty roll as entrée, $15

M-T: 11a to 11p F Sa: 11a to 1a Su: 4p to 10p

Happy Hour Everyday!

4PM to 6:30PM

Locally owned and operated

Subscribe To In Business Magazine Our Valleywide Magazine to Business Success

Factors Southwest www.factors-southwest.com Performance Funding Group www.performancefunding.com Stoney-Wilson Business Consulting, LLC

12 issues per year only $24.95 www.inbusinessmag.com

www.stoneywilson.com

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35

NonProfit

Investing in Community

by Alison Stanton

Arthritis Foundation: 1.7 Million Lives Touched by the Greater Southwest Chapter For decades, the Arthritis Foundation Greater Southwest Chapter’s mission has been to be a leader in the prevention, control and cure of arthritis. To achieve these goals, Dee Nortman, the chapter’s executive vice president of administration, says the nonprofit is funded through a wide range of sources that include individual giving, corporate sponsorships, foundation grants and special events.

“Our chapter covers Arizona, New Mexico and El Paso, Texas, with approximately $7.5 million in assets,” Nortman says. “We have 15 employees in three offices — Phoenix, Tucson and Albuquerque — and, in 2009, approximately 425 volunteers were engaged in our chapter.”

Chapter President Vikki Scarafiotti says the nonprofit works hard to support any national initiatives about arthritis, as well as to serve both children and adults locally who suffer from one of the condition’s many forms by offering support, information, educational seminars, referrals and much more. She reports the Southwest Chapter serves 1.7 million people, including more than 7,000 children, whose lives are impacted by arthritis, and notes, “Treating it costs $128 billion annually to the American economy, and arthritis is the number one cause of workforce disability.” ­ Arthritis Foundation Greater Southwest Chapter

www.arthritis.org/chapters/greater-southwest

EVENT: Oscar Night America will be held on Sunday, Feb. 27, 2011, at the InterContinental Montelucia Resort & Spa in Paradise Valley T he nonprofit’s Oscar Season 2011 includes a total of three events, all of which benefit the Greater Southwest Chapter T he Greater Southwest Chapter offers two scholarships: a college scholarship for people with rheumatic diseases and another that helps individuals cover the costs of self-help devices and assistive equipment There are more than 120 types of arthritis, including osteoarthritis, rheumatoid arthritis, lupus and juvenile rheumatoid arthritis T he nonprofit supports parents of children with juvenile arthritis by offering educational seminars and social activities for families, as well as Camp Cruz, a resident camp that allows kids with arthritis to have a fun camp experience just like other children The nonprofit conducts more than 2,000 classes and seminars at 27 locations in the Valley

Boys & Girls Clubs of Greater Scottsdale: Helping Youth Achieve Their Potential Since 1954, Boys & Girls Clubs of Greater Scottsdale has provided more than 100,000 Northeast Valley kids with a positive, encouraging and supervised environment. Steven E. Davidson, president and chief executive officer of the nonprofit organization, says programs are currently offered at nine club locations by professional full-time and part-time staff as well as a core volunteer group of about 500 people. The organization’s vision, Davidson says, is to “provide a positive impact for the youth in Greater Scottsdale and the Native American communities we serve by helping each youth reach their ultimate potential.”

Revenue comes from a variety of areas, including contributions, an annual campaign, special events, EVENT

: The Mark Grace Celebrity Invitational will be held on Feb. 10 and 11, 2011, grants, foundations and program fees. The total budget at The Phoenician Golf Club in Scottsdale, and includes an upscale cigar dinner at for the organization is $8.9 million a year, according to the Scottsdale Plaza Resort Davidson.

“We provide youth development services that T he organization currently serves 16,000 children and teens through nine instill strong core values and life-enhancing skills in a branches and 12 outreach sites located in Scottsdale, Fountain Hills, Salt safe environment, ” he says.

“We have a great national River Pima-Maricopa Indian Community, Hualapai Indian Community and other reputation with Boys & Girls Clubs of America as one Northeast Valley neighborhoods of the top 30 Boys & Girls Clubs in the country, out of T he Club offers more than 100 youth development programs that emphasize five 4,000 national organizations. ” core areas: the arts; character and leadership development; education and career ­ development; health and life skills; and sports, fitness and recreation

Boys & Girls Clubs of Greater Scottsdale

www.bgcs.org

In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting their upcoming fundraising event.

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www.inbusinessmag.com

January 2011

O n t h e Ag e n g a

A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.

Valley Women Connecting in Business economic club of phoenix

Lead. Inform.

Influence.

Economic Club of Phoenix Luncheons Thurs., Jan. 13 — 11:30a to 1:30p Speaker: William F. Glavin Jr., Chairman, President & CEO, OppenheimerFunds, Inc. The Westin Kierland, Scottsdale The Economic Club of Phoenix has long been the place to meet national and international leaders in business. The monthly luncheons have included CEOs from Southwest Airlines to the Ford Motor Company who have taken the stage to speak to local executives about their experiences.

The Economic Club of Phoenix drives the collective power of Arizona business.

Through local networking, exposure to national and international industry icons, and access to the leadership and knowledge of Arizona State University’s W. P. Carey School of Business, this pre-eminent forum is an essential resource for every Valley business leader.

William F. Glavin Jr., head of OppenheimerFunds, Inc., is the January guest speaker who will enlighten attendees on the state of the financial markets and the outlook for 2011. His unique perspective will certainly give insight into the financial world and its effect on Valley business. Non-members and guests are welcome to attend for an $80 luncheon fee; however, advance registration and payment is required.

Economic Club of Phoenix www.wpcarey.asu.edu/Economic-Club

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Connecting women in business has been the impetus behind Linda M. Herold’s efforts to create “the best network of women’s groups in Metropolitan Phoenix.” Linda Herold is president of Herold Enterprises, the company behind the Valley’s most prominent women’s groups: Central Phoenix Women, West Valley Women and Women of Scottsdale. In June 2010, The Business Journal ranked all of her organizations in the top 25 Valley networking organizations.

Herold founded Woman of Scottsdale in 1998 with well-known publicist Wink Blair, president of Wink, Inc., with the notion that women could connect over lunch in support of their community to discuss business and politics, enjoy mutual interests and enhance the “spirit of Scottsdale.” Businesswomen in the Metropolitan Phoenix area attend Central Phoenix Women for career development, personal development and education. West Valley Women, which she sold last year, is made up of businesswomen, community leaders and government officials who live and work in the West Valley and are invested in building business and their community.

Herold also has other ventures, one of which is Identity Arts, a consulting practice assisting individuals, organizations and companies in the art of creating and managing their images and reputations within the business community. She recently launched LindaLandAZ.com, a photo blog that chronicles Valley life and philanthropy, sharing photos and thoughts about events, people, activities and organizations.

Herold’s writings on local society have become a part of the Arizona Historical Society’s records and have resulted in many local and national awards.

Central Phoenix Women Thurs., Jan. 27 — 7:30a to 9:00a The Ritz-Carlton, Biltmore West Valley Women Tues., Jan 11 — 11:30a to 1:00p Skye Fine Dining, Peoria Women of Scottsdale Fri., Jan 21 — 11:30a to 1:00p The Westin Kierland, Scottsdale Central Phoenix Women www.centralphoenixwomen.org West Valley Women www.westvalleywomen.org Women of Scottsdale www.womenofscottsdale.org

Notable Dates This Month Wed., Jan 1 New Year’s Day Fri., Jan 17 Martin Luther King Day Agenda events are submitted by the organizations and are subject to changes. Please check with the organization to ensure accuracy. www.inbusinessmag.com.

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Ag e n d a AHWATUKEE CHAMBER OF COMMERCE

Evening Mixer

Ahwatukee Financial and Executive Resource Group

The Print Shop of Ahwatukee 11022 S. 51st Street, Phoenix www.ahwatukeechamber.com

Tuesdays throughout the month 8:00a – 9:00a

Wed., Jan. 19 5:30p – 7:30p

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

Business Roundtable Breakfast

LeadzSmart

Enhance your business toolbox.

Workforce recruitment and training, private consultants, collateral enhancement. Councilman Sal DiCiccio will address the group.

Grace Inn 10831 S. 51st St., Phoenix www.ahwatukeechamber.com

Wednesdays throughout the month 8:00a – 9:00a

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

Business Builders Leads Group Tues., Jan. 4 12noon – 1:00pm

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

Ambassadors Committee Meeting Wed., Jan. 5 9:00a – 10:00a

Wed., Jan. 19 8:00a – 10:00a

Women in Business Monthly Meeting Thurs., Jan. 20 12noon – 1:00p

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

Golf Committee Meeting

Golf Committee Meeting

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

Fri., Jan. 7 9:30a – 10:30a

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

S.C.O.R.E. Counseling Thurs., Jan. 13 9:00a – 12noon

Ahwatukee Chamber Offices (480) 753-7676 RSVP for your appointment

East Valley Chambers of Commerce Alliance Breakfast with the Governor Thurs., Jan. 13 7:30a – 9:00a

Governor Brewer will address business issues which impact the East Valley. Q&A period will follow the Governor’s remarks.

Pre-registration required. $40 per person Mesa Community College www.ahwatukeechamber.com

Marketing Think Tank Thurs., Jan. 13 12noon – 1:00p

Get valuable marketing strategies from your peers in a round table format.

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

Fri., Jan. 21 9:30a – 10:30a

Get to Know Your Chamber Breakfast Thurs., Jan. 27 8:00a – 9:00a

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

S.C.O.R.E. Counseling Thurs., Jan. 27 9:00a – 12noon

Ahwatukee Chamber Offices (480) 753-7676 RSVP for your appointment

ARIZONA CHAMBER OF COMMERCE AND INDUSTRY 2011 Arizona Legislative Forecast Luncheon Presentation of the Business Agenda 2011 Fri., Jan. 7 11:00a – 1:30p

Forecast sponsorship $3,000; table sponsorship $600 Members: $60; non-members: $75 Hyatt Regency Phoenix 122 N. 2nd St., Phoenix www.azchamber.com/events

Business Builders Leads Group

ARIZONA SMALL BUSINESS ASSOCIATION

Ahwatukee Chamber of Commerce www.ahwatukeechamber.com

ASBA Entrepreneurial Development Exchange — What Obstacles?

Tues., Jan. 18 12noon – 1:00p

Tues., Jan. 11 9:00a – 10:30a

Connect and network on a monthly basis with other small business owners

and entrepreneurs that share interests and needs along with ways to best solve common problems.

Members: free; non-members: $25 ASBA’s Business Education Center www.asba.com/events

ASBA Fast & Curious Speed Networking — Central Tues., Jan. 11 3:00p – 4:30p

This is a “ready-set-go” style of networking that allows members to meet other members in 3-minute intervals, maximizing participants’ time and gaining them many valuable contacts in 90 minutes. This is a fun, fast-paced format. Bring your business cards and brush up on your 30-second commercial.

Members: free; non-members: $10 ASBA’s Business Education Center www.asba.com/events

2011 Annual Meeting & Volunteer Celebration Tues., Jan. 25 8:30a – 10:30a

Join us to celebrate our amazing accomplishments of 2010 and to welcome the incoming Board of Directors for 2011. Recognitions for Volunteer of the year, Employee of the Year, Board Member of the Year and much more will also be announced.

Members: $10; non-members: $20 Tempe Center for the Arts 700 E. Rio Salado Parkway, Tempe www.asba.com/events

ASBA Fast & Curious Speed Networking — NE/Scottsdale Tues., Jan. 25 3:00p – 4:30p

This is a “ready-set-go” style of networking that allows members to meet other members in 3-minute intervals, maximizing participants’ time and gaining them many valuable contacts in 90 minutes. This is a fun, fast-paced format. Bring your business cards and brush up on your 30-second commercial.

Members: free; non-members: $10 The Compound Grill 7000 E. Mayo Blvd., Phoenix www.asba.com/events

ASBA New Member Orientation Thurs., Jan. 27 8:30a – 10:00a

Join us to network with other members, meet your Member Services Team and learn all about the resources available to you as an asba member.

New members – this is the place to start! Renewing members and anyone who needs an “asba refresher” are also welcome and encouraged to attend.

Free ASBA’s Business Education Center www.asba.com/events

ARIZONA TECHNOLOGY COUNCIL Lunch and Learn: Creating an Effective and Usable Sales Plan Tues., Jan. 11 11:30a – 1:00p

Identify and discuss the necessary components of a sales plan. Presented by SHERPA & Associates.

Members: free; non-members: $15 Telesphere 9237 E. Vía de Ventura, Scottsdale www.aztechcouncil.org

Second Annual Phoenix Golf Outing Thurs., Jan. 27 7:00a – 2:00p

Scramble format will be followed by lunch with awards presentations and raffle prizes.

Members: $125 for single, $500 for foursome; non-members: $150 for single, $600 for foursome Stonecreek Golf Club 4435 E. Paradise Village Parkway South, Phoenix www.aztechcouncil.org

BUSINESS PROFESSIONALS Business Professionals Breakfast Mixer Wed., Jan. 12 8:30a – 10:00a

Connect and share ideas with other local business professionals in a unique venue.

Starbucks coffee and breakfast goodies are served.

Free Microsoft Store Scottsdale Fashion Square – Nordstrom wing (480) 308-0800

CENTRAL PHOENIX WOMEN Central Phoenix Women Monthly Meeting Thurs., Jan. 27 7:30a – 9:00a

$75 per person The Ritz Carlton 2401 E. Camelback Road, Phoenix www.centralphoenixwomen.org

CHANDLER CHAMBER OF COMMERCE Legislative Reception Wed., Jan. 6 5:30p – 7:00p

Members: $20; non-members: $30 Hilton Chandler/Phoenix 2929 W. Frye Road, Chandler www.chandlerchamber.com

Economic Update Luncheon Wed., Jan. 26 11:30a – 1:00p

Members: $18; non-members: $25 Noah’s 2100 E. Yeager Drive, Chandler www.chandlerchamber.com

Please confirm, as dates & times are subject to change.

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State of the Chamber 2011 Thurs., Jan. 27 7:30a – 9:30a

Meet the 2011 Board of Directors, celebrate accomplishments for 2010 and see what’s on the horizon.

Members: free; non-members: $20 Crown Plaza San Marcos Resort One San Marcos Place, Chandler www.chandlerchamber.com

Economic Club of Phoenix January Luncheon Thurs., Jan. 13 11:30a to 1:30p

William F. Glavin Jr., head of OppenheimerFunds, Inc., is the January guest speaker who will enlighten attendees on the state of the financial markets and the outlook for 2011. His unique perspective will certainly give insight into the financial world and its effect on Valley business.

Non-members and guests are welcome to attend for an $80 luncheon fee.

Advance registration and payment is required.

The Westin Kierland Resort 6902 E. Greenway Parkway, Scottsdale www.wpcarey.asu.edu/economic-club

GILBERT CHAMBER OF COMMERCE Gilbert Town Council Candidate Forum Wed., Jan. 12 11:00a – 1:00p

Brought to you by the SRP Good Government Keep In Touch Series, this forum will bring together candidates running for Gilbert’s Town Council in a Q&A format. Candidates will provide responses to questions concerning priorities on town issues.

Members: $20; non-member general admission: $35 Higley Center for the Performing Arts 4132 E. Pecos Road, Gilbert www.gilbertaz.com

East Valley Chambers of Commerce Alliance Breakfast with the Governor Thurs., Jan. 13 7:30a – 9:00a

Governor Brewer will address business issues which impact the East Valley. Q&A period will follow the Governor’s remarks.

Pre-registration required. $40 per person Mesa Community College www.gilbertaz.com

Live Demo: Microsoft Office 2010 and Windows 7 Wed., Jan. 19 7:30a – 10:30a

Come learn how to modernize your business PCs. Take a few minutes to

inbusinessmag.com

experience a hands-on look at how to make the most of your current and future technology investment.

Demo admission is free with paid entry to the Referral Institute on Jan. 19.

Villa Siena 890 W. Elliot Road, Gilbert www.gilbertaz.com

Referral Institute Wed., Jan. 19 7:30a – 10:00a

The Gilbert Chamber of Commerce presents the third workshop in the Referral Institute series, presented by business referral strategist Victoria Trafton. Trafton will share her expertise with business owners who want to significantly increase their referral business.

Members: $10; non-members: please register Val Vista Lakes Meeting & Banquet Facility 1600 E. Lakeside Drive, Gilbert (480) 926-6003

Front Runner Tues., Jan. 25 5:30p – 8:30p

The Gilbert Business Development Office and Gilbert Chamber of Commerce have partnered to deliver a 10-week program with an emphasis on growing your business through optimizing business tools, market research and analysis. Tuesday of every week from Jan. 25 through March 29.

Limited to 20 participants; must represent a business registered with Town of Gilbert.

Tuition: $150 Gilbert Municipal Campus Conference Room 100 90 E. Civic Center Drive, Gilbert www.gilbertft.com

What Women Want …

In Business Tues., Jan. 25 11:30a – 1:00p

Celebrates women in the community and their contributions to Gilbert; sponsored by National Bank of Arizona.

Members: $20; non-members: $35 SanTan Elegante and Legado Hotel 1800 S. SanTan Village Parkway, Gilbert www.gilbertaz.com

GLENDALE CHAMBER OF COMMERCE S.C.O.R.E. Appointments

Mondays throughout the month 9:00a – 12noon

Free consulting sessions with a S.C.O.R.E. consultant Glendale Chamber of Commerce www.glendaleazchamber.org

Sunshine Club — Wednesday Edition

Wednesdays throughout the month 7:30a – 8:30a

Networking/Leads group for Chamber members. $75 quarterly dues Old Country Buffet Restaurant 17125 N. 79th Avenue, Glendale www.glendaleazchamber.org

Sunshine Club — Friday Edition Fridays throughout the month 7:30a – 8:30a

Networking/Leads Group for Chamber members. $75 quarterly dues Bitzee Mama’s Restaurant 7023 N. 58th Avenue, Glendale www.glendaleazchamber.org

MESA CHAMBER OF COMMERCE Morning Mixer Tues., Jan. 4 7:30a – 8:30a

Networking and continental breakfast.

Network and socialize with other business professionals from all over the Valley.

Free Hubbard Family Swim School 1061 N. Dobson Road, Mesa (480) 969-1307

Grow Your Business Tues., Jan. 11 11:30a – 1:00p

Help your business grow by attending this luncheon with great food and good networking opportunities.

Members: $15; non-members: $25 Buca di Beppo 1730 S. Val Vista Drive, Mesa www.mesachamber.org

Good Morning East Valley Fri., Jan. 14 6:30a – 9:00a

Enjoy the delicious hot buffet and take advantage of the opportunity to promote your business.

Members: $20 pre-paid; $25 at the door Mesa Country Club 660 W. Fairway Drive, Mesa www.mesachamber.org

Taste of Mesa Tues., Jan. 18 5:30p – 7:30p

Great monthly networking event to market and showcase your business.

Members: $15; non-members: $25 Power Square 2055 S. Power Road, Mesa www.mesachamber.org

Ag e n d a

Women’s Business Council Wed., Jan. 26 11:30a – 1:00p

Lunch and networking.

Members: $15; non-members: $25 Citadel Assisted Living Retirement Community 520 S. Higley Road, Mesa www.mesachamber.org

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS NAWBO U

Wed., Jan. 12 9:00a – 10:30a

Featuring Krista Watson, Program Analyst for the Phoenix District Office of the U.S. Equal Employment Opportunity Commission (EEOC).

Members: $15; non-members: $30 Phoenix Country Club 2901 N. 7th Street, Phoenix www.nawbophx.org

January Luncheon Wed., Jan. 12 10:45a – 1:00p

A panel discussion on board governance facilitated by Linda Searfoss.

Members: $38; non-members: $48 Phoenix Country Club 2901 N. 7th Street, Phoenix www.nawbophx.org

NORTH SCOTTSDALE CHAMBER OF COMMERCE NSCC Breakfast Wed., Jan. 5 7:30a – 9:00a

Held the first Wednesday of every month. Hot breakfast and great networking. This month’s topic: New Year’s Business Resolutions to Jump Start Your 2011.

Members: $15; guests: $25 Starfire Golf Club 11500 N. Hayden Road, Scottsdale www.starfiregolfclub.com

Business Resource Lunch Wed., Jan. 12 11:30a – 1:00p

Please join us for our bi-monthly networking lunch. Enjoy great food and networking in a casual business atmosphere.

Members: $15; guests: $25 Maggiano’s 16405 N. Scottsdale Road, Scottsdale www.maggianos.com

>> In Business Magazine

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Ag e n d a

Speed Connectors — Networking Tues., Jan. 18 3:30p – 4:30p

Held the 3rd Tuesday of every month, Speed Connectors is sort of like “speed dating” for your business. Exciting and fun-filled networking event where you have the opportunity to meet dozens of businesspeople in a fast-paced “speed networking” environment.

Free for everyone The Compound Grill 7000 E. Mayo Blvd., Phoenix www.thecompoundgrill.com

Meet & Mingle Wed., Jan. 19 5:00p – 7:30p

Join us as we network in a relaxed casual atmosphere. Great food & drink specials!

Members: free; guests: $10 Blue Martini 5455 E. High Street, Phoenix www.bluemartinilounge.com

Networking & 9 Golf Event Fri., Jan. 21 3:00p Shotgun Start

2:30p – 3:00p networking and optional practice time on the driving range, followed by a Shotgun Start promptly at 3:00p. Any ability level is welcome.

Members: $45; guests: $55 Troon North Golf Club 10320 E. Dynamite Blvd., Scottsdale www.troonnorthgolf.com

Business Resource Lunch Wed., Jan. 26 11:30a – 1:00p

Please join us for our bi-monthly networking lunch. Enjoy great food and networking in a casual business atmosphere.

Members: $15; guests: $25 Outback Steakhouse 7000 E. Mayo Blvd., Phoenix www.outback.com

PEORIA CHAMBER OF COMMERCE Network Group Tues., Jan. 4 7:30a – 8:30a

Networking among members to learn more about each other’s business. $4 fee for continental breakfast.

Firebirds Wood Fired Grill 16067 N. Arrowhead Fountain Center, Peoria www.peoriachamber.com

New Member Orientation

SCOTTSDALE AREA CHAMBER OF COMMERCE

Peoria Chamber of Commerce www.peoriachamber.com

Member Orientation

Business Development Meeting

New and renewing Chamber members are invited to join us at our monthly Member Orientation! Meet and network with other Chamber members, staff and volunteer leaders, learn about the resources available to you through your membership and identify specific strategies to help you reach your business goals.

Free Scottsdale Area Chamber www.scottsdalechamber.com

Mon., Jan. 10 12noon – 1:00p

Tues., Jan. 11 4:00p – 5:00p

Peoria Chamber of Commerce www.peoriachamber.com

January Membership Luncheon Wed., Jan. 12

Mayor Barrett’s State of the City Address. RSVP Required. $25 Rio Vista Recreation Center 8866-A W. Thunderbird Road, Peoria www.peoriachamber.com

Connecting the Chamber & Community Wine Tasting Thurs., Jan. 13 5:30p – 6:30p

Great opportunity to meet new business leaders, socialize with other professionals and increase your business opportunities. $5; includes wine tasting.

The Tasting Room 28645 N. Vistancia Blvd., Peoria www.peoriachamber.com

Network Group Tues., Jan. 18 7:30a – 8:30a

Networking among members to learn more about each other’s business. $4 fee for continental breakfast.

Firebirds Wood Fired Grill 16067 N. Arrowhead Fountain Center, Peoria www.peoriachamber.com

Ambassador Group Meeting Thurs., Jan. 20 11:30a – 1:00p

Peoria Chamber of Commerce www.peoriachamber.com

Monthly Breakfast Meeting Tues., Jan. 25 7:30a – 8:30p

$10 in advance; $12 at the door Rock Bottom Restaurant & Brewery 7640 W. Bell Road, Glendale www.peoriachamber.com

Equity Real Estate Arizona Mixer Wed., Jan. 26 5:00p – 7:00p

Free 7605 W. Kerry Lane, Glendale www.peoriachamber.com

interactions. Eight people per table.

Maximum exposure!

Members: free; non-members: $20 Contact the Chamber for location www.scottsdalechamber.com

Wed., Jan. 5 7:30a – 9:00a

Champions Breakfast: 30-Second Claim to Fame Thurs., Jan. 6 7:15a – 9:00a

First impressions matter and everyone needs a 30-second “elevator speech.”

Build relationships, generate leads and create buzz!

Members: free; non-members: $20 Microsoft Store Scottsdale Fashion Square — Nordstrom Wing www.scottsdalechamber.com

First Friday Airpark Breakfast: Scottsdale Tourism & Events Fri., Jan. 7 7:15a – 9:00a

Join us for a tourism update by the CVB followed by a panel discussion on Scottsdale’s signature events, how they impact the community and how Airpark businesses can get involved with and capitalize on them.

Panel includes representatives from WestWorld, Barrett Jackson Collector Car Auction, Waste Management Phoenix Open and more.

Members: $15; non-members: $25 (with advance registration) Scottsdale Thunderbird Suites 7515 E. Butherus Drive, Scottsdale www.scottsdalechamber.com

Inspire Luncheon Wed., Jan. 19 11:30a – 1:15p

Connect to a community of businesswomen for personal and professional development and be inspired by guest speaker Ann Meyers Drysdale.

Members $35; non-members: $45 (with advance registration) Gainey Ranch Golf Club 7600 Gainey Club Drive, Scottsdale www.scottsdalechamber.com

Champions Breakfast: Roundtable Exchange

Business After Hours “Sushi & Saki” Mixer Wed., Jan. 26 5:00p – 7:00p

Welcome the new year in style at Roka Akor, ranked one of the top 10 sushi spots in the U.S. by Bon Appetit!

Roka Akor 7299 N. Scottsdale Road, Scottsdale www.scottsdalechamber.com

SURPRISE REGIONAL CHAMBER OF COMMERCE Traffic Catcher Workshop Tues., Jan. 4 8:30a – 10:00a

Chamber members invited to a Traffic Catcher Website workshop for assistance in initial setup, or help to manage your existing traffic catcher website. Limited to first 10 members.

Please register on the chamber website calendar or contact Robin for info.

Surprise Regional Chamber Conference Center rpotter@surpriseregionalchamber.com

“Capture a Customer” — Training for Members Wed., Jan. 5 5:00p – 6:00p

This class will be hosted by Jeanne Brovelli from Chamber Nation and will take our members through an online presentation about growing your business, followed by a Q&A. Members should register on the chamber website.

Online class www.surpriseregionalchamber.com

Sam’s Club Networking Event Thurs., Jan. 6 7:30a – 9:30a

Networking Group meets at Sam’s Club in Surprise on the 1st & 3rd Thursday of each month. This is sponsored

by Sam’s Club and supported by the Surprise Regional Chamber. Bring door prizes and business cards and join us for valuable networking time!

Free Sam’s Club 16573 W. Bell Road, Surprise www.surpriseregionalchamber.com

Membership / Retention Committee Thurs., Jan. 6 1:00p – 2:00p

Surprise Regional Chamber Conference Center www.surpriseregionalchamber.com

Thurs., Jan. 20 7:15a – 9:00a

Round-robin tabletop discussions provide high-quality, focused

Please confirm, as dates & times are subject to change.

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Civic Affairs Committee Meeting Fri., Jan. 7 1:00p – 2:00p

Surprise Regional Chamber Conference Center www.surpriseregionalchamber.com

First Friday Brown Bag Lunch Fri., Jan. 7 12noon – 1:00p

BYO Lunch and network with other chamber members at the Chamber Conference Center. Due to space limitations this event is open to the first 30 registrants only. Each attendee will be given the opportunity to provide a 35 second commercial for their business.

Surprise Regional Chamber Conference Center www.surpriseregionalchamber.org

“Capture a Customer” Training for Members Fri., Jan. 7 12noon – 1:00p

This online class will be hosted

by Jeanne Brovelli from Chamber Nation and will take our members through an online presentation about growing your business, followed by a Q&A. Members should register on the chamber website.

Online class www.surpriseregionalchamber.org

Monthly Chamber Breakfast Tues., Jan. 11 7:30a – 9:00a

Join us for our monthly Chamber Networking Breakfast. Bring your business collateral materials to share, and any gifts for the raffle.

Members: $15; non-members: $20 The Colonnade at Surprise 19116 Colonnade Way, Surprise mary.orta@surpriseregionalchamber.com

Education Committee Meeting Wed., Jan. 12 1:00p – 2:00p

Communiversity 15950 N Civic Center Drive, Surprise todd.aakhus@riosalado.edu

Free Sam’s Club 16573 W. Bell Road, Surprise www.surpriseregionalchamber.com

Monthly Newsmakers Luncheon Fri., Jan. 21 11:30a – 1:00p

Please join us for a fun and informative networking opportunity.

Members: $10; non-members: $20 Communiversity 15950 W. Civic Center Plaza, Surprise mary.orta@surpriseregionalchamber.com

New Member Orientation Thurs., Jan. 27 3:30p – 4:45p

Join in this networking event and explore the full range of benefits available from your membership in The Surprise Regional Chamber of Commerce. Bring business cards and meet other new members.

Surprise Regional Chamber Conference Center mary.orta@surpriseregionalchamber.com

Member Mixer Thurs., Jan. 27 5:00 – 6:30p

Member mixer to follow the Member Orientation. Networking with your fellow chamber members and meet our newest members in an informal environment at the Chamber Conference Center.

Surprise Regional Chamber Conference Center mary.orta@surpriseregionalchamber.com

TEMPE CHAMBER OF COMMERCE Networking @ Noon Thurs., Jan. 13 11:30a – 1:00p

Learn the art of relationship building, enjoy a fantastic lunch and have fun promoting your services at this “speed dating for business” event.

Members: $25; non-members: $35 Joe’s Crab Shack 1604 E. Southern Avenue, Tempe www.tempechamber.org

Small Business Council Meeting Tues., Jan. 18 3:00p – 4:00p

Surprise Regional Chamber Conference Center stephen.wright@micorp.com

Sam’s Club Networking Event Thurs., Jan. 20 7:30a – 9:00a

Networking Group meets at Sam’s Club in Surprise on the 1st & 3rd Thursday of each month. This is sponsored

by Sam’s Club and supported by the Surprise Regional Chamber. Bring door prizes and business cards and join us for valuable networking time!

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Business After Hours Wed., Jan. 26 5:30p – 7:00p

This informal mixer provides a casual atmosphere where you can mingle with other members of the business community.

Members: free; non-members: $10 GameWorks — Arizona Mills Mall 5000 Arizona Mills Circle, Tempe www.tempechamber.org

Hot Topics and Lunch: Social Media Resolutions

Ag e n d a

Wed., Jan 26 7:30a – 10:30a

Cost: TBD Glendale Civic Center 5750 W. Glenn Drive, Glendale Darah Mann: dara@westmarc.org

WOMEN IN BUSINESS Women in Business Breakfast Social Tues., Jan. 25 8:30a – 10:00a

A panel of experts in social media and marketing strategies will give a presentation on what resolutions you should be making in 2011.

Members: $25; non-members: $35 Monti’s La Casa Vieja 100 S. Mill Avenue, Tempe www.tempechamber.org

This monthly networking breakfast unites dynamic business women and encourages connecting and sharing ideas. Starbucks coffee and breakfast goodies will be served, and a new informative guest speaker will be featured each month.

Free Microsoft Store Scottsdale Fashion Square – Nordstrom wing www.microsoftstore.com

Business Before Hours

WOMEN OF SCOTTSDALE

Thurs., Jan. 20 11:30a – 1:00p

Tues., Jan. 18 7:30a – 8:30a

Bring brochures and business cards and be ready to give a 30-second commercial about yourself or your business. A light breakfast is provided.

Members: free; non-members: $7 Chick-fil-A 905 N. Dobson Road, Mesa www.tempechamber.org

WEST VALLEY WOMEN West Valley Women Monthly Luncheon “Meet the New Director & Ambassadors” Tues., Jan. 11 11:30 am - 1:00 pm

$35 per person SKYE Fine Dining 16844 N. Arrowhead Fountain Center Drive, Peoria www.westvalleywomen.org

WESTMARC WESTMARC Annual Meeting and Economic Forecast Breakfast

Women of Scottsdale Monthly Luncheon “Meet the New Director & Ambassadors” Fri., Jan. 21 11:30a – 1:00p

$35.00 per person The Westin Kierland Resort and Spa 6902 E. Greenway Parkway, Scottsdale www.womenofscottsdale.org

WORLDWIDE EMPLOYEE BENEFITS NETWORK — PHOENIX Disability Insurance Services Thurs., Jan. 13 7:30a – 9:15a

A discussion on the importance of Disability Insurance and how Combination Disability allows you to combine the best features of individual disability income and group long-term disability programs.

Member: $25; non-member: $35 Phoenix Country Club 2901 N. 7th Street, Phoenix (623) 203-5177

Expanded Calendar Business Resources Business Forms Job Search . . . and more.

In Business Magazine

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ASSETS

We Value What We Own

by Gremlyn Bradley-Waddell

Getting it Done with the Stroke of a Pen Nothing impresses like success, so who wouldn’t want to sign into a business relationship with someone whose signature is scribed with a Montblanc pen? The Montblanc Boutique at Scottsdale Fashion Square offers the dealmaker an array of choices, all well crafted by the German firm that’s been around since 1906. Put the Meisterstück 149 fountain pen, the beloved signature model, to paper and see if your penmanship alone doesn’t take on some new flair. Choose the classic black-resin barrel or take a shine to the solid gold, silver or diamond-encrusted yellow gold options. If your needs are more refined, consider the ultimate offering: a custom-fit pen designed and tailored specifically for you — or a deserving client. The custom-fit pen service starts at $275,000 and includes a first-class plane ticket to Hamburg, where craftsmen such as goldsmiths and stone setters await at the Artisan Atelier to assist you in creating the implement worthy of closing your most important deals.

Montblanc Boutique at Scottsdale Fashion Square

www.montblanc.com

CFO — Chief Fashion Officer Businesspeople spend an average of 9.6 hours a day at the office or in business-related meetings. “Dressed for success” is the saying, but what we have to do to look great is the task. However, tailored clothes — which used to be an option for the very rich — are a smart “asset” to your success these days and can come in at close to what the better department stores are offering.

Two local resources are tailors Steve Wilson of S.W. Wilson Bespoke Clothiers and Nick Esposito of Moda Georgio, both of whom have a great deal of experience working with businessmen and businesswomen.

Wilson has been in the business for 40 years and will make house calls or even “office calls.” “I go to them, whenever it is convenient,” he says of clients, and, yes, that includes weekends and evenings.

Esposito — whose store was a Biltmore Fashion Park fixture for 26 years before he moved up Camelback Road five years ago — offers services in his shop using the highest quality fabrics and has the type of definitive opinion that you’ll surely wish you had in the boardroom. And if time is an issue — which it usually is for the success-bound — then this is a position you’ll want to outsource.

S.W. Wilson Bespoke Clothiers

Montblanc Meisterstück 149 Fountain Pen $760

Eating On the Job: Corporate Meetings with Taste Whether you are the chairman of the board or a guest at a client meeting, eating on the job is always something to look forward to. Having a corporate caterer at arm’s length is the solution that many large and small companies are opting for.

Plan ahead by collaborating with a corporate caterer to set up for that quick staff meeting or the more impressive deal signing.

Great food, saving time and making anything possible is the concept behind Fabulous Food, a full-service catering firm based in Phoenix that also has a satellite location in Kalispell, Mont. Chantal Hause, who owns Fabulous Food along with husband and executive chef Alan “Skip” Hause, says her team can do just about anything. “We’ve set up kitchens in the middle of the desert,” she says, “and we did a lunch for Laura Bush in Glacier National Park.”

Squire Sanders, a law firm in Downtown Phoenix, call in the team to take over their new CityScape kitchen facility for corporate events and community gatherings. Many corporations, large and small, are looking to outsource these services for by including in their offices state-of-the-art kitchen facilities that are prepped and ready to go, and then calling in the corporate chef.

www.swwilsonclothiers.com Moda Georgio www.modageorgio.com

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Fabulous Food

Squire, Sanders & Dempsey L.L.P.

www.fabulousfood.net www.ssd.com

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Meals that Matter

Power Lunch

Picture This: Framing That Meaningful Business Dinner From the beginning of time, man has looked to climb higher and higher heights to show off a sense of success. The Rainbow Room at 30 Rockefeller Center in Manhattan is home to celebration every time GE makes that next big deal. It is also the best view of New York City. Here are some of our own great “sights” for that meaningful meeting.

Chart House

Like its name, this dinner-only locale is nautical Arizona. Dine lakeside with views of Camelback Mountain and the hills of Paradise Valley. Steaks like you remember them and seafood that will remind you of either coast.

7255 McCormick Parkway, Scottsdale (480) 951-2550 chart-house.com

The Compass Arizona Grill — Hyatt Regency Phoenix

Elements of Good Taste Stunning sensations for the eyes and the taste buds

Photo: Sanctuary Camelback Mountain Resort & Spa

by Gremlyn Bradley-Waddell If you can focus on the food at Elements — and that could be a challenge, given the eatery’s stunning location up on the north side of Camelback Mountain, the iconic Praying Monk a part of the scenery — it, too, will leave you in awe.

The elegant signature restaurant at Sanctuary Camelback Mountain Resort & Spa in Paradise Valley not only underwent a $2.5 million renovation in the last year or so, but the revamped menu also has turned it into a darling of the dining scene.

That’s thanks to executive chef Beau MacMillan’s keep-it-simple approach, love of fresh ingredients and Asian-infused flavors. Savory lunch offerings include an Angus beef or turkey burger and even a Kobe beef hot dog. But this is a place to live a little, so go for pan-fried short rib ravioli or Loch Duart salmon with udon noodles.

The noontime crowd is a vibrant blend, including ladies who lunch, corporate types and resort guests. While tables are ample and there is room to park a briefcase or laptop nearby, keep in mind that this is a peaceful setting. You can talk shop, but conversation should be of the face-to-face variety. In fact, a note on the menu reminds patrons to turn off cell phones while in the restaurant. So, sit back, take in the view and — if the glass walls are open — perhaps a little sun and some breezes.

There’s no better way to spend the lunch hour.

Elements Sanctuary Camelback Mountain Resort & Spa 5700 E. McDonald Drive, Paradise Valley 480-948-2100

Okay, so the restaurant revolves — every city’s got one.

It is big-city dining with some award-winning dishes to seal the deal. It is the perfect foreground for that memorable client or celebration of that international deal — and in the background: Metropolitan Phoenix.

122 N. Second Street, Phoenix (602) 440-3166 phoenix.hyatt.com

Different Pointe of View — Pointe Hilton Tapatio Cliffs Resort

Atop North Mountain in Phoenix, this Valley classic has been redesigned, making the interior as inspiring as the views. Twinkling city lights and service to match will accommodate your every need so that you can get down to business atop this mountain.

11111 N. 7th Street, Phoenix (602) 866-6350 tapatiocliffshilton.com

J&G Steakhouse Scottsdale at The Phoenician

This Scottsdale invention by chef Jean-Georges Vongerichten is all about the food, the view and the ambiance. Vanity Fair called J&G “a place for powerbrokering and playing.” Meats and dishes from Asia to New Orleans make J&G a destination for any successful businessperson. Path to success starts at the bar.

6000 E. Camelback Road, Scottsdale (480) 214-8000 jgsteakhousescottsdale.com

www.sanctuaryoncamelback.com

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TEMPE CHAMBER

Advantage Chamber’s Leadership Strengthens Community

By Mary Ann Miller, President/CEO, Tempe Chamber of Commerce I was giving a short tour to a colleague from California a while ago. We drove down Rio Salado Parkway and Apache Boulevard, went past Tempe Marketplace, ASU and the Biodesign Institute, stopped at Tempe Town Lake and strolled down Mill Avenue. I told him about projects under way and described those planned. At the end of an hour he turned to me and said, “Wow! You really like your community!”

Not only do I like it, I’m proud of the impact the Tempe Chamber has had on the community over the years. It’s our job to create a strong local economy, represent the needs of businesses before government, promote Mary Ann Miller, President/CEO, the community and Tempe Chamber of Commerce provide networking opportunities. We’ve been at the forefront of many issues and have worked hand-in-hand with our partners at the City, the Tempe Convention and Visitors Bureau and the Downtown Tempe Community to position Tempe as a leader in one of the largest metropolitan areas in the country.

Among our many accomplishments: • Tempe Leadership was started in 1984.

More than 400 graduates have gone on to lead businesses, serve on nonprofit boards and city commissions and be elected to public office.

• The Chamber was a forerunner in the state by dedicating a committee in the early ’90s

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Jan. – Mar. 2O11 • tempechamber.org

Staying Ahead of the Curve: Forging policies so you can mind your business

By Mary Ann Miller, President/CEO, Tempe Chamber of Commerce

L

ocation, location, location. Just like buying a house, deciding where to have your business is a major consideration.

You look for obvious factors like visibility and a good customer base, adequate transportation and a qualified work force. You personally want a good quality of life, with safe neighborhoods, excellent schools and cultural activities. And when you open your doors to your business, you want to concentrate on making it a success. You need someone to look out for your interests, and that’s where the Chamber comes in.

Eighty-six percent of Tempe Chamber members are businesses with fewer than 50 employees. Few have the time and staff to track what government is doing that may affect the future of their business. They discover regulatory challenges only when presented with them. Key to our mission is representing businesses before government, creating the environment where you want to work and live.

“The Tempe Chamber keeps me up to date on issues affecting my business locally, regionally and nationally,” says Steve Bauer, Development Partner in The Kinetic Companies and Chairman of the Tempe Chamber Board of Directors. “As a small business owner, I don’t have the time or staff to track or testify on legislation. The Chamber’s proven influence in business advocacy allows me to concentrate on growing my firm.”

Our advocacy cycle actually begins over the summer. Our Government Relations Committee surveys businesses, brings in guest speakers and researches issues of concern to the greater business community. We seek out solutions to ease business operations and listen for movements to lay burdens on business. We look at what’s working well;

what needs to be fixed; and what needs to be communicated. From this information, the committee develops recommendations for the Chamber’s Local, State and Federal Agendas.

These recommendations are then discussed by our Board of Directors, who set the policy for the Chamber. Topics ranging from education to transportation to the economy create the guidebook for our advocacy efforts.

Armed with our Legislative Agenda, Tempe Chamber staff can analyze bills to see if they fall under its tenets and advocate accordingly.

We partner with other organizations both to make our voice stronger and to forge workable compromises. And we spend a lot of time explaining to elected officials how well-meaning legislation can negatively impact businesses.

Each year, more than 1,000 bills, resolutions and memorials are taken up by the State Legislature. The City Council looks at dozens of issues each month. Congress folds a myriad of issues into a single bill. With new elected officials and budget challenges at all government levels, the decisions made in the next year will have a huge impact on the way you do business and your quality of life in the future.

The Tempe Chamber of Commerce urges government to strive to further streamline processes, implement policies that allow business to flourish and provide maximum service with minimal costs to the taxpayer.

We will work to foster a climate of growth, development and high wages. And we are committed to helping communicate policies and programs to businesses, so that they can make appropriate management decisions and take advantage of every opportunity available to them.

We watch out for your interests so that you can work on your business.

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Success Stories

One of our main goals at the Tempe Chamber is to ensure the success of our members. We’ve consistently done so by fostering an economic climate that ensures that all businesses enjoy a progressive environment in which to grow. We asked some local businesses to share their experiences with us and talk about the successes they’ve enjoyed.

Clark Peterson

R.J. Orr

CEO, Telesphere • telesphere.com

VP of Sales, bluemedia • bluemedia.com

What was the moment when you felt your company went from good to great?

I believe it was when it became evident to me that our No. 1 value of “Wow the customer” was instilled in our employees.

Their daily interactions with customers became evidence that this belief and desire was instilled in them. This translated into larger and larger customers being able to be handled in a way that exceeded their expectations, and it is this employee attitude and action that I attribute to making us one of the top 10 fastest-growing companies in Arizona.

What was the moment when you felt your company went from good to great?

For me my “aha” moment came when I realized that bluemedia had become a brand and a company that could stand on its own independently of those that worked for the company. It is a great feeling to have helped build a company that for so long was known for and recognized by the people that worked at the company. And that at some point things changed and the company became bigger than us. It is a great feeling to tell people that I work at the company and they have no idea that I was one of the people that started it.

Tell us about a business success you’ve had and how you benefitted from it.

We recently added to our customer list the largest advertising agency in the world. Although Telesphere has unprecedented features and services, the one attribute that the customer most appreciated was calling our support and immediately getting a live person each time they called. It was a clear reminder that despite all the technological advances, the real moment of truth comes down to that interface with the customer, and that is how we are most significantly measured.

Tell us about a business success you’ve had and how you benefitted from it.

When bluemedia started all we really had was our work ethic and our relationships gained as a result of that hard work. As we have grown and become a leader in our industry we have not lost that fire for increased relationships in every vertical that we do business in. Our relationships have given us the opportunity to be successful, and the Chamber has been an important part of that success. Through that process we have learned that all relationships are important and that you never know where your next best referral will come from.

How have you used the Tempe Chamber to help your business?

The Tempe Chamber was very strategic to our initial entry into the Arizona market. They were not only a great business partner to help us navigate the Arizona waters of key introductions and recommendations, but soon became a Telesphere customer and were a tremendous example of what new technology can do to make a business more cost-effective and productive. Your reputation and credibility is clearly influenced by those you hang around, and being associated with the Temple Chamber has been great company to keep to further our own reputation and image in Arizona.

How have you used the Tempe Chamber to help your business?

In a word, connections. Since the moment we became involved with the Chamber we have been connected with a multitude of businesses around the community. Some we have collaborated with, some have turned into clients and others have turned into friends. I am a firm believer in that you are as good as your network, and the more solid people you can add to your network the better. Prospects love third party verifications, and if you can structure your network in such a way that you continue to grow your business through referrals you will never have to make another cold call again.

Here’s what other companies have to say about the Tempe Chamber.

“Joining the Chamber when we first moved to Tempe was the best way to be part of the community. The staff and members welcomed us with open arms and really made us feel right at home. Also, the leadership opportunities have helped me personally and I have enjoyed getting to know and learn from the staff, other members and businesses that participate. This has been the most fulfilling membership that my business has been involved with and I would highly recommend the Chamber to any business owners.”

Kristine Kassel, RHU President, Benefits by Design

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“The Tempe Chamber crafts powerful, well-planned, cohesive public policy and consistently strives to ensure that the needs of the business community are being met. They work closely and cooperatively with the City of Tempe to best represent their membership and are a wonderful asset to the community of Tempe.”

Amber Wakeman City of Tempe

“Joining the Tempe Chamber was the best decision we ever made. At almost every function, committee meeting or luncheon someone will come up to me to let me know that they have just booked someone at the hotel or they have someone coming in soon that will be staying with us. By staying active in the Tempe Chamber you are always current on what’s going on in the business community and the city of Tempe.”

Pat Thielen, C.M.P. General Manager, Twin Palms Hotel

Benefits of Membership

By Renee Lopata

The Tempe Chamber recently celebrated its 100th anniversary, quite a milestone for any organization. But what set Tempe and its chamber apart is its innovation, diverse membership and willingness to adjust and change with the times. There is no better time to become involved than now. The opportunity for business growth, professional development and leadership skills are all a part of what the Chamber provides.

Networking has been a top priority for our members, and the Tempe Chamber provides three monthly events to help our members make those connections.

• B usiness Before Hours Mixer: Members give a 30-second commercial about their business (free for members).

• Business After Hours Mixer: Held at local restaurants, hotels and favorite nighttime locations, this mixer is more social in nature and provides networking in a relaxed environment (free for members).

• Networking @ Noon: A “speed dating for networking” luncheon that averages between 40 and 50 members and broadens the reach

and contacts our members are looking for in a high-energy and fun atmosphere.

• With more than 1,500 in attendance at these networking functions annually, members can build the relationships that grow their businesses.

The Chamber provides professional development for our members through our committees, educational programs and Tempe Leadership. The Chamber has a variety of committees that appeal to a wide range of personal and business interests. Open to all members, this helps the Chamber receive input in developing programming relevant to our members.

All committees are open to our members and are sure to appeal to any business or individual.

Committees include: • Ambassadors • Business Resource Advantage • Government Relations and Transportation • Military Affairs • Tempe Links Classic • Women in Business Council • Business Excellence Awards

Since 1985, more than 400 men and women have graduated from the Tempe Leadership program. Each class consists of a diverse group of individuals from the business community, the City of Tempe, community volunteers and nonprofit organizations. Tempe Leadership is a nine-month program that teaches participants about the strengths, needs and challenges facing Tempe.

Education abounds in many forms at the Tempe Chamber. Monthly Hot Topics and Lunch speakers give pertinent and timely information on current trends and issues. Free programs like The Whale Hunters seminars and committee guest speakers give members added value and education as a part of their investment. Guest articles in the monthly Business Advocate along with the Chamber’s blog give members access to information when they need it.

The Chamber offers medical insurance and workers’ compensation discounts, identity theft protection, Pre-Paid Legal discounts and a representative from S.C.O.R.E (Service Core of Retired Executives) to answer your business questions.

Advocacy plays an important role at the Tempe Chamber, from our Government Relations and Transportation Committee actively tracking legislation that will impact business to our staff lobbyist working on behalf of the Tempe business community. The Chamber takes care of local, state and federal politics so you can take care of business.

As a member of the Tempe Chamber, your employees have access to all the Chamber has to offer. Whether it is becoming involved in a committee, attending a seminar or participating in networking activities, the Chamber is a vital tool to develop, motivate and improve your staff and business.

For more information, contact the Tempe Chamber at (480) 967-7891 or www.tempechamber.org.

Renee Lopata is Senior Vice President of the Tempe Chamber of Commerce.

As members of the Tempe Chamber of Commerce, you and your employees have access to exclusive discounts and programs. Through a variety of partnerships and affiliations, we are able to provide our members with discounts on health insurance, legal services, identity theft protection, workers’ compensation and more, as well as provide access to educational programs and services. Visit tempechamber.org to take advantage of these great benefits.

Te m p e C h a m b e r. o r g

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Member Forum

The Tempe Chamber of Commerce recently asked some of its members to answer the following question:

Members of the Women in Business Council with one of last year’s speakers, Eileen Spitalny (far right), co-founder of Fairytale Brownies

Jan. 21 - Arlene Rosenberg, business and personal coach and founder of Leading Achievers Jan. 28 - Terri Morrison, RN BS, co-owner of the Morrison Vein Institute Feb. 4 - TBD Feb. 11 - Betty Uribe, Executive Vice President, Comerica Bank Inc. The series takes place at the Homewood Suites

by Hilton, 4750 E. Cotton Center Blvd., in Phoenix on Jan. 21 and 28 and Feb. 4 and 11.

8 – 8:30: R egistration, breakfast and networking 8:30 – 9:30: Presentation and program Tickets are $20 for members, and $30 for the general public per session.

Members of the Tempe Chamber can purchase a series pass at the discounted price of $60.

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What one thing would you say is key to the success of your business and why?

Take a look at the variety of answers we received!

“I believe everyone needs a reason to come to work every day. I am fortunate to love what I do so it is a pleasure to come to work and work so hard for so many years. I work until the job is done and make sure I surround myself with people that have a passion for serving others. That is what this business is all about. I have learned to appreciate my own strengths and recognized my weaknesses. I hire people to complement the two.

I did not buy what I could not afford or borrow money I wasn’t sure I could pay back.

I understand the value of a solid foundation and the importance of staying current with industry trends. I truly understand that I am only as strong and successful as those that represent me. I feel strongly about the values I have set for myself and the company and believe they are present when I am not. Success is not only measured on the P&Ls but by the quality of the life we live. I sleep well at night!” ­—Heidi Vail, Heidi’s Events & Catering

“The key to our success in this economy has been our community outreach. We’ve been working with the Tempe Chamber and other organizations to promote Alphagraphics, making the Tempe business community aware of the resources and services we offer. We will continue to work with our clients to maximize their marketing dollars, ensuring the success of their business and ours.”

—Eric Adams, Alphagraphics

“I would say it’s the ‘yes, can do’ attitude. I think customers like that attitude (especially in my trade) because it tells them you will help them, even if you don’t know how you will – you will. That, in the long run, builds trust.”

—Mark Erhardt, Purcell Tire “I think my main key is ‘attitude.’ In these economic times, I think dealing with people in a positive, upbeat and professional manner is critical. Many people are dealing with the devastating effects of the economy and are looking for a ray of light. Hopefully I can be that ray.”

—Terry Anderson, Keller Williams Arizona Realty “I strongly believe in a strong, deep and loyal network of contacts and associates.

Maintaining contact with past and present business associates, clients and vendors on a regular basis is key to the success of my business. I like to maintain contact through social media, telephone, one-on-one visits and networking events through the course of the year. This has opened doors personally and professionally. I find that it develops a two-way connection which benefits both parties. I like to think of myself as a connector and problem solver; it is always a pleasure to refer one of my contacts to someone in need. And I am utterly amazed and delighted when I receive feedback that a problem or situation was handled professionally.”

—Debbie Burnett, Arizona Exterminating Company

All photos taken by Meegan Tevebaugh-Adams, except for Heidi Vail

The Tempe Chamber of Commerce and its Women in Business Council are pleased to present the four-part speaker series “Passport to Success: The Journey”.

During this inspirational and educational series, attendees will enjoy an intimate sitdown with powerful women as they share their secrets of leadership and success.

Each Friday morning event starts with casual networking over breakfast followed by a presentation by the day’s featured speaker.

Awards Breakfast Honors Leaders, Volunteers, Community Service The Tempe Chamber of Commerce presents the 14th Annual Breakfast for Chamber Champions on Wednesday, Feb. 23. The event honors those individuals and businesses that have excelled in their efforts to make Tempe a thriving community. Awards to be presented include the Business Excellence Awards, Spirit of Tempe

Award, Volunteer of the Year Award and the Tempe Leadership Outstanding Community Leadership Award.

This year’s Business Excellence Awards finalists are: Benefits by Design, Brock Supply, Honeymoon Sweets, IKEA, Morrison Vein Institute and Veolia Transportation. The

House of Tricks, 2010 Business Excellence Award recipient

recipients will be announced live at the Breakfast for Chamber Champions.

The event takes place from 7:30 to 9 a.m. at the Tempe Mission Palms Hotel, 60 E. 5th St. Tickets are $50 for Chamber members and $60 for the general public. To RSVP, please call (480) 967-7891, e-mail info@tempechamber.org or register online at www.tempechamber.org.

Educational Options, 2010 Business Excellence Award recipient

“Turning Obstacles Into Opportunities Together” Banking and Credit Relationships Establishing complete banking and loan relationships for small to mid-size business clients.

Financial Acumen Assist businesses to properly produce accurate financial information for their company and to understand what the financials tell them.

Expense Reduction Review and recommendations to reduce operating expenses.

Accounting/Bookkeeping Services Our accounting service provides businesses with accurate and timely financial accounting and bookkeeping services tailored to the individual client’s needs.

Stoney-Wilson Business Consulting, LLC www.stoneywilson.com Julie Stoney

6501 E. Greenway Pkwy #103-583 Scottsdale, AZ 85254

(602) 370-1776 juliestoney@stoneywilson.com

Te m p e C h a m b e r. o r g

Robert S. Wilson

(602) 696-1060 robertwilson@stoneywilson.com

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to the special issues faced by women in the business world. The Women in Business Council is still going strong.

The Tempe Chamber was the impetus behind the 1996 Tempe transit tax approval, lobbied extensively for light rail and worked closely with other stakeholders on the regional transportation plan.

Realizing the impact of construction of the light rail, the Chamber partnered with the City of Tempe and Tempe Schools Credit Union to develop a lowcost line-of-credit-program for affected businesses. This program was the first of its kind in the country.

Our efforts led to a new state law making it possible for corporate filing in one day.

A more-than-10-year effort led to changes in Tempe’s sign code allowing for greater visibility for businesses.

Working with City departments, we helped develop a rehabilitation code that would encourage investment in older commercial properties without sacrificing safety.

The Tempe Chamber was one of the founding members of the East Valley Chambers of Commerce Alliance, creating a model for the chamber industry to work on common legislative issues.

And then there are the individual achievements – the businesses that have grown and prospered because of exposure they’ve received at our events, connections they’ve made at our committees and lessons they’ve learned at our seminars.

The Tempe Chamber offers a myriad of opportunities for personal and professional growth, and I couldn’t begin to list the success stories.

We at the Tempe Chamber realize that you can’t have a strong business community without healthy and effective schools, government and cultural organizations. We pledge to continue to work to ensure that Tempe remains a leader in the nation while providing the day-to-day tools to grow your business. At the Tempe Chamber, “Your Success is Our Business” is more than a slogan – it’s a promise.

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Get Ready for the Women in Business Conference and Trade Show!

Carolyn Warner, one of the keynote speakers at last year’s event

The Tempe Chamber will be holding its 16th Annual Women in Business Conference and Trade Show on May 25, 2011, at The Buttes, a Marriott Resort.

Each year, this powerful event brings together more than 300 business leaders in a setting that celebrates success, facilitates networking and offers incredible opportunities for personal and business growth. A trade show featuring local and national organizations, businesses and companies provides the backdrop to a wonderful luncheon and presentations by powerful keynote speakers. The half-day event culminates with the presentation of the Business Woman of the Year award.

The event takes place from 8 a.m. to 1:30 p.m. and includes an outstanding lunch prepared exclusively for the Tempe Chamber by the chefs at The Buttes. Advance registration is now open for exhibitors and attendees. Please call (480) 967-7891 or e-mail info@tempechamber.org to secure your booth today.

Connect with the Tempe Chamber!

Join us on Facebook: h ttp://www.facebook.com/people/ tempe-chamber/1762132500 Follow us on Twitter: http://twitter.com/tempechamber

Read our monthly e-newsletter: http://bit.ly/tccnews

Check out our blog: http://bit.ly/tccblog

Join the Tempe Chamber group on LinkedIn

Photo: Jay Mark

Continued From T.C.A. 1

Board of Directors Chairman of the Board: Steve Bauer Chair-Elect: Dave Long Mary Ann Miller, President and CEO, maryann@tempechamber.org

Treasurer: Phil Howard Vice-Chairs: Lorraine Bergman, Mark Thompson, RJ Orr

Sean Donovan, Vice President, Media and Program Development, sean@tempechamber.org Brian Krupski, Membership Development, brian@tempechamber.org Renee Lopata, CAE, Senior Vice President, renee@tempechamber.org Sachiyo Ragsdale, Communications Director, sachiyo@tempechamber.org

Immediate Past Chair: Vicki Kringen Directors: Todd Christy, Margaret Hunnicutt, Kristine Kassel, Sharon Kausal, Jeff Mirasola, Clark Peterson, Jack Pisano, Jody Robertson Ex-Officios: Chad Ackerley, Mark Duplissis, Charlie Meyer, Stephanie Nowack, Virgil Renzulli, Jackie Thompson

Heidi Santos, Bookkeeper, heidi@tempechamber.org

Committee Chairs: Julie Armstrong, Neil Chitel, Vicki Kringen, Lori Murphy, Laura Opstad, Jack Pisano, Curt Ritland, Hal Salem

Magdalena Warecka, Director of Operations, magdalena@tempechamber.org

Tempe Chamber of Commerce 909 E. Apache Blvd., Tempe, AZ 85281 • (480) 967-7891

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Te m p e C h a m b e r. o r g

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Chamber Committees Strengthen Community Ties Through the work of its committee structure, a wide variety of programming is planned and executed on behalf of the Tempe Chamber. These include educational programs, seminars, workshops, networking events and luncheons that help to foster and maintain ties with the business community.

Seven committees meet on a monthly basis to advance the interests of the Chamber and its members. Involvement ranges from government affairs, transportation, business resources, military affairs and event planning and is open to all members.

In particular, the Business Resource Advantage Committee and the Women in Business Council are dedicated to the needs of business.

Each works to ensure that the needs of manufacturers, retailers, vendors, entrepreneurs and all employers and employees are addressed.

Business Resource Advantage Committee Dedicated to establishing programs and educational tools to deliver vital information and resources to profitably impact businesses, this committee plays an important role within the Chamber. Continually evaluating members’ business needs and establishing community alliances to provide more value and outreach, it meets the needs of business in the 21st century.

Chaired by CPA Laura Opstad, the committee has hosted several daylong Business Solutions Clinics, providing free legal, marketing, social media and sales training in one-on-one private settings in an office environment.

It has also organized the Tempe Chamber’s first leads group, Coffee Connection, which fosters new contacts, sales and profits for its members.

The committee plans monthly business-related seminars for the Hot Topics and Lunch series featuring expert instructors addressing and educating on current trends and hot-button issues.

Women in Business Council Creating opportunities for the development of women in business by providing the tools, training, education and motivational atmosphere to foster growth and success, the Women in Business Council plans educational programs and seminars with powerful speakers. The committee produces the dynamic annual Women in Business Conference and Trade Show, where the Business Woman of the Year is honored during a day-long trade show featuring powerful keynote speakers.

Chaired by Julie Armstrong, the Women in Business Council also produces educational programs including a month-long speaker series titled “Passport to Success” where successful businesswomen share their stories, secrets and facilitate a community of shared growth. In late 2010, it hosted a Health and Wellness fair, drawing dozens of health-based exhibitors for an afternoon of networking and education to create a healthy community.

Members of the Tempe Chamber have the opportunity to join these and other committees to make a positive change in their personal and professional lives. Members of the public are also welcome to attend with advance notice to the Tempe Chamber. Though some meetings are closed, we make every effort to accommodate those who wish to share in the benefits that these committees regularly bring to the community.

The Year in Review As we enter into a new year, the Tempe Chamber of Commerce first and foremost offers our sincerest thanks to all of our wonderful members who continue to provide support to Tempe’s business community and the Chamber. This past year, the Tempe Chamber implemented several new programs and partnerships to provide even more benefits to our membership.

Online learning Continuing in our efforts to provide educational support to our membership, we recently partnered with Management Training Systems, Inc., to provide new e-learning opportunities to our members.

Sales strategies The Tempe Chamber also teamed up with The Whale Hunters, a strategic sales coaching company that helps small businesses grow fast by making bigger sales to bigger customers.

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T e m p e C h a m b e r A d v a n ta g e

Business Solutions Clinics In conjunction with our Business Resource Advantage Committee, we also introduced the Business Solutions Clinic to provide complimentary business counseling sessions with industry experts to our membership.

Employee benefits and discount programs We partnered with LifeLock to offer a discount to our membership. Through this program, our members can keep themselves and their employees safe from one of the fastest-growing crimes in America – identity theft.

We also partnered with Pre-Paid Legal Services, Inc., to provide our members a discounted rate on a new voluntary employee benefit program offering legal services and identity theft protection.

In an effort to also ensure the physical health and safety of our membership, we continue to offer discount programs through SCF of Arizona and Blue Cross Blue Shield of Arizona.

Communications outreach The Tempe Chamber, always working on new ways to improve our Chamber communications, partnered with InMedia Company on this fine publication, In Business Magazine, a hands-on monthly publication with an in-depth editorial focus on building business, opportunity, networking and best practices that is distributed directly to members of the Valley’s top business organizations.

Several other items of note include the startup of our very own leads group, Coffee Connection; an affinity program with Telesphere; and a partnership with Constant Contact to improve our weekly newsletters.

We will continue to look for new ways to bring you even greater opportunities in the future, and we gladly accept all suggestions and feedback.

Thank you again for your continued support. We look forward to a new year and can’t wait to find more ways to help you thrive and grow in 2011.

Your success is our business!

To read the full article, see the December 2010 issue of The Business Advocate at www.tempechamber.org.

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To learn more about how you can compete strategically through the science of service, visit wpcarey.asu.edu/csl today.

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Arizona Technology Report Arizona Technology Council: The Voice of the Technology Industry

In This Issue Another Door Opens ... Page 2 Winning Ways ... Page 5 Change Agents ... Page 6

Who We Are The Arizona Technology Council is a private, not-for-profit trade association with a mission to CONNECT, REPRESENT, and SUPPORT the state’s expanding technology industry.

Phoenix Office One Renaissance Square 2 N. Central Ave., Suite 750 Phoenix, Arizona 85004 Phone: 602-343-8324 Fax: 602-343-8330 info@aztechcouncil.org

Tucson Office The University of Arizona Science and Technology Park 9040 S. Rita Road, Suite 1150 (near I-10 and Rita Road) Tucson, Arizona 85747 Phone: 520-829-3440 Fax: 520-829-3441 tucson@aztechcouncil.org

aztechcouncil.org

Jan. – Apr. 2O11 aztechcouncil.org

President’s Message Partners. Who can say they can go through life never needing a partner – in life, in love, in business? At the Arizona Technology Council, we consider ourselves partners with our member companies to ensure their success, because we know in today’s climate especially it can be tough to go it alone.

For our nearly 600 member companies the Council works hard to make sure we can offer the programs that help organizations grow and prosper. That’s important to 43 percent of our member companies, because they have no more than three FTEs. With our assistance, they have a shot at grabbing that brass ring.

And while they may be small in size, most are doing big things—from aerospace and defense to renewable energy, from research and development to support services. Many are shaping our history in science and technology.

On the pages that follow this message we offer a glimpse of the programs that we have for professionals. Some exist for personal development, some offer ways to stretch a dollar, all fulfill a need.

Steven G. Zylstra, These programs and others like them President and CEO, would be impossible to host without Arizona Technology Council teams of people working behind the scenes to make them happen. With the help of our staff, “ambassadors” and other volunteers, we start the business day with a breakfast seminar series called Council Connect and end the day with networking opportunities at our After 5 events. Often we collaborate with other organizations like the Phoenix Chamber to bring you events, such as the Legislative Kickoff and Business Expo. We even take time to mark successes in Arizona’s technology community with our annual Governor’s Celebration of Innovation. (This year’s winners also are named here.)

Our impact and reach continue to grow. I recently returned from heading a group to China to begin building the bridges that we expect to lead to new markets for our members and the rest of Arizona’s technology industry. The Council is not just statewide; it’s now global. Also, on these pages we share observations from the road written in a blog by a member of our group.

I invite you to learn more about the Council and what we’re doing. We’re proud of what we offer our members as well as what they accomplish every day. After all, that’s what partners are for.

Arizona Technology Report

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Another Door Opens

Council group travels to seek new opportunities in China developers in five countries, including the United States. To customers from all over the globe, Beyond Soft provides services such as software and website development, application testing and localizing software for the Chinese market.

Xi’an The Council's Merry Merrell, director, marketing and communication (second from left), and Steven G. Zylstra, president and CEO (second from right)

A

s the world continues to recover from the recession, one lesson learned is businesses no longer can count on customers coming to them. To stay competitive, companies need to reach out, even if that means going to the other side of the globe.

With this in mind the Arizona Technology Council recently led a trade mission to China to introduce members of the delegation to business opportunities through meetings with government officials, industrial park leaders, peer companies, and consumers. The trip was organized in conjunction with the Arizona Department of Commerce and the Arizona U.S. Export Assistance Center.

Observations of cities visited in the 10-day trip that began Oct. 27 were chronicled in a blog by Karen Dickinson, an attorney with Quarles & Brady in Phoenix. The cities and highlights included:

Beijing The group visited Zpark software park with over 200 software and IT companies employing 20,000 people. While companies such as Oracle, IBM and Thompson Reuters are located in this software park, amazingly 95 percent of the companies in the park are Chinese. One of those companies is Beyond Soft, which won Best Employer in China in 2010. Beyond Soft is part of the burgeoning software outsourcing industry in China. It employs 4,000

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We were hosted by the Xi’an Hi-Tech Industries Development Zone, which was founded in 1991 as one of earliest high-tech parks in China. It now houses more than 14,000 companies employing 250,000 people. And there are 55 other high tech parks in China just like this one. The park’s focus is on four areas: electronic information such as IT, software and telecom; biomedical; advanced manufacturing research and development for industries such as semiconductors and optics; and services such as law offices and design. Fifty new IP applications are filed by the companies in the park per day. While there are multinational companies with offices in the park—such as Applied Materials, NEC, Fujitsu, Intel, Micron, Oracle, Sybase, SAP and IBM—most of the companies are Chinese. The software park alone has 80,000 employees working for 900 companies. Special incentives are offered for U.S.-based software companies to locate in Xi’an software park.

Zhangjiagang The port city has an entrepreneurial government that has been one of the first to embrace each of the many changes since China opened to the West in 1979. Not surprisingly, Zhangjiagang has a burgeoning solar industry as well as major manufacturing. We were hosted by high-level government officials from the Zhangjiagang Economic Development Zone as well as the Investment Promotion Bureau. This is a “model” city, one that other city governments visit as an example of how to create a livable, economically successful city. In fact, the average annual income

in this small city is one of the highest in China: $15,000. The Zhangjiagang government has created parkland and lakes, and has strict rules in the city regarding cleanliness and maintenance.

Because of the city government’s intense focus on sustainability and environmental regulation, it is known as one of the most livable cities in China, and it certainly lived up to its reputation. This city really is the new China.

Suzhou Known as the “Venice of China,” we visited the brand spankin’ New Town. In that town is the Suzhou Industrial Park, a cooperative project between the Chinese and Singaporan governments. Once again, the scale of this industrial park, the sophistication of the technology and the beauty of the living areas are indescribable.

Hangzhou Eighty of the top 500 Chinese private companies are headquartered here.

We visited the Hangzhou North Software Park Service Center, which provides one-stop free services to companies in the park. The companies include the creative industries—multimedia, Internet, advertising and entertainment— along with IT and software. We had a quick visit with a Chinese website development company, Panshi, with 1,600 employees helping companies in the Zhejiang province in which Hangzhou is located.

Shanghai A highly educated city, with 65 colleges and universities, 51 graduate schools, and half a million students. This large talent base, the lifestyle, and special incentives have drawn many companies to locate in the Zhangjiang Science Park, growing quickly after 2002 due to special preferential policies such as a 14 percent rebate on the usual 17 percent value added tax for software companies located in the park. Many large private and publicly traded Chinese companies—such as ZTE, Lenovo, Apexone and Shanda—join multinationals, such as Infosys, Capgemini, Dupont and Honeywell, in the park and our own ON Semiconductor and Freescale. In fact, Park is home to more than 5,000 companies with 150,000 hi-tech employees. That’s more than all the hi-tech employees in all of Arizona! And the companies at the park are provided support services such as human resources talent searching, a shared data center, even a patent processing center for free.

aztechcouncil.org

Why is this important to the economy and Arizona businesses?

Because exports mean jobs. And lots of help is available for Arizona companies that want to export. A National Export Initiative (NEI) is now in effect focusing on five areas: access to credit, especially for small and mid size firms; more trade advocacy and export promotion efforts; removing barriers to the sale of U.S. goods and services abroad; enforcement of trade rules; and pursuing policies that will increase global economic growth so that there’s a strong worldwide market for U.S. goods and services.

Some first steps have been taken as part of the NEI that could be important to your business. For example, until now a U.S. exporter of encryption-based products, such as a cell phone or a network storage system, was required to request a technical review from the federal government prior to export, a process that takes between 30 and 60 days. A proposed new rule could eliminate up to 85 percent of all the technical reviews of these products, helping U.S. companies access the global market more quickly.

In addition, Congress recently passed the U.S. Manufacturing Enhancement Act, which suspends duties on a number of imported goods that are of special interest to U.S. manufacturers. The bill provides relief to manufacturers from duties they had to pay for imported inputs, such as chemicals and specialty parts. This is expected to reduce the cost to U.S. manufacturers, making products competitive in the global market. And, the Small Business Administration has recently made changes making it easier for small and medium sized businesses to get export financing. More changes are planned as part of the NEI, so stay tuned.

—Karen Dickinson

Arizona Technology Council's delegation to China

Arizona Technology Report

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Connect with the Arizona Technology Council

T

he Arizona Technology Council is a private, not-for-profit trade association with a mission to connect, represent and support the state’s expanding technology industry. With nearly 600 member companies throughout the state, the Council is dedicated to helpings its members succeed.

Roy Vallee, chairman and CEO of Avnet, was featured in this year's Keynote Speaker series.

It uses a three-pronged approach to serving members’ needs:

Connect: Bringing Innovators Together With more than 130 events each year, the Council offers abundant opportunities to get involved. Members can find like-minded peers on committees, showcase their companies at Lunch and Learn events, or come armed with business cards to the monthly After5 networking series. Members get the chance to display their companies’ capabilities to prospective partners and customers at the Partnering Conference, an annual one-day matchmaking event.

Represent: Providing a Voice for the Technology Industry The Council’s public policy advocacy efforts have resulted in Arizona having one of the friendliest environments in the country for research and development. Each election year the Council publishes its Vote TechSmart guide to highlight state legislators who support a technology agenda as well as those who don’t.

In 2010 the Council was instrumental in the expansion of R&D tax credits to be refundable as a source of capital for smaller innovation-based companies and an incentive for R&D investment.

Participants at this year's Partnering Conference

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Additionally, the Council publishes TechConnect, Arizona’s technology magazine, which chronicles innovation throughout the state.

Support: A Variety of Programs Member companies have access to free job postings on the Career Center powered by Jobing.com, as well as reduced prices on insurance, computer products, and more with the affinity and member-to-member discount programs. These services can cut company expenditures and increase profits.

Additionally, the Council has resources for business leaders and entrepreneurs, such as the CEO network, the mentoring program and the newly launched Consultants on Demand service, which provides a comprehensive listing of temporary contract opportunities for businesses seeking help and professionals seeking work.

Winning Ways

Governor’s Celebration of Innovation honors the best of the best in the tech community Members of the state’s technology community gathered to honor their own at the annual Governor’s Celebration of Innovation held recently at the Phoenix Convention Center.

The event is presented by the Arizona Technology Council and the Arizona Commerce Authority. This year’s theme of Arizona in Motion was appropriate as companies continue to move forward in the light of the economic news.

The winners and the reasons for their recognition are: D O neNeck IT Services People’s Choice Lifetime Achievement Award Steve Sanghi, president and CEO of Microchip Technology in Chandler. He is credited with leading the evolution of the company into one of the most successful microcontroller companies in the world as well as being a champion of science, math and engineering education in schools.

D C hairman’s Award - Sandra Watson, chief operating officer of the Arizona Commerce Authority.

D E

d Denison Business Leader of the Year - Robert Breault, president and founder of Breault Research in Tucson D W illiam F. McWhortor Community Service Leader of the Year - Dr. Jack Johnson, president of SciEnTeK-12 Foundation in Tucson.

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ioneering Award - GlobalMedia Group in Scottsdale. CapSure/CONi system that includes images in electronic medical records.

D G reen Innovator of the Year - Global Water Resources in Maricopa. FATHOM platform to help save water.

D G lobal Competitiveness Leadership Michael Manson, co-founder and CEO

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• Scott Olson, Highland High School in Gilbert, Project: “A Novel Fiber Optic Backlight System Utilizing Controlled Light Attenuation” • Stan Palasek, Sonoran Science Academy in Tucson, Project: “Heat Stress Reveals Hexose Transport Rates in Saccharomyces cerevisiae” • Varun Ramesch, Hamilton High School in Chandler, Project: “A Parallel Algorithm for Real-Time Hand Gesture Recognition”

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egislators of the Year - Sen. Barbara Leff, R-Paradise Valley, and Rep. David Stevens, R-Sierra Vista.

D T

he Tech Ten legislators honored for their support of technology were Sens. Manuel Alvarez, D-Elfrida; Frank Antenori, R-Vail; Rebecca Rios, D-Apache Junction; and Reps. Chad Campbell, D-Phoenix; Bill Konopnicki, R-Safford; Lucy Mason, R-Prescott; John McComish, R- Ahwatukee; Michele Reagan, R-Scottsdale; Kyrsten Sinema, D-Phoenix; and Andy Tobin, R-Dewey.

New service for employment seekers and employers

Want to find the most comprehensive listing of employment opportunities throughout Arizona?

Thanks to a partnership between the Arizona Technology Council and Jobing.com, you can.

It’s a win-win for users of the Council’s Career Center powered by Jobing.com.

Job seekers get the chance to post their

aztechcouncil.org

of Motor Excellence in Flagstaff, which makes electric motors for vehicles ranging from bikes to cars.

D Innovator of the Year/Start-Up

Company - WebPT in Phoenix. Webbased system for physical therapists to keep records and schedules.

D Innovator of the Year/Small Company Breault Research in Tucson. APEX, an optical engineering application.

D Innovator of the Year/Large Company

- IBM Corp. in Tucson. System Storage Easy Tier application that uses solid state discs to speed access time to data on computers.

D Innovator of the Year/Academia Arizona State University’s School of Life Sciences in Tempe. Deep-brain stimulation technique to help various neurological and psychiatric conditions.

D Teacher of the Year - Robert Hobbins from Sonoran Science Academy in Tucson.

D Students named Future Innovators of

the Year and their projects are: • Kurt Andres, Pusch Ridge Christian Academy in Tucson, Project: “Augmenting Energy Efficiency by Ameliorating Mass Imbalance in Wind Turbines”

resumes to apply for open positions and allow employers to find the resumes in the Jobing. com database. In turn, employers get their positions in front of industry professionals who come to the Council for support.

It gets even better for employers. Positions can also be posted for a fee in more than 100

Career Centers in the community. Through Jan. 31, Council members get a 50 percent discount off the regular rate of $349. Nonmembers can also post for only $389.

For more information, visit the Council Web site at www.aztechcouncil.org.

Arizona Technology Report

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Change Agents

Get the chance to innovate and create We are facing changes that cannot be addressed with traditional methods, because change itself has changed. We no longer face incremental, predictable changes, but massive unprecedented shifts.

Many solutions that worked in the past now simply cause more problems. A whole new perspective is needed to successfully approach this new era.

Your managers and other employees can tap into their own creative and innovative competencies to help them develop winning approaches to change, thanks to the Arizona Innovation Institute.

The Arizona Innovation Institute develops creative thinking skills and decision-making methodologies through classroom offerings and on-site sessions for specific client needs. With either approach, the Institute can provide tools and methodologies for creative thinking and decision-making to drive innovation.

Dr. George Land and FarSight Group, Inc., an Arizona firm with decades of experience helping organizations innovate, will bring together a unique combination of innovative methodologies and collaborative decision-making technologies. More than 100 organizations have successfully used this proprietary, systematic approach to new product, service and front/back-end processes. In turn, you’ll identify new ways to discover important and emerging customer needs, processes for creating business strategy, and methods for creating breakthrough innovative solutions to existing business problems.

The business applications for the techniques you’ll learn include: D N ew market identification D M anufacturing D N ew product development D P

roduct delivery D C

ustomer service D O rganizational design D S

ales and marketing” D I T and process alignment D R

isk management Who should attend the Arizona Innovation Institute programs? Any

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Arizona Technology Report

employee who can contribute to innovation, including executive leaders, business unit and product line leaders, workers with profit and loss responsibility, and research and development team members.

A full calendar of sessions is set for 2011 starting Jan. 26, with registration

Dr. George Land

available at www.azinnovate.org. For more information, contact Kim Kressaty at kkressaty@aztechcouncil.org or 480-654-4669.

Permanent Solutions Temp experts offer boost to small businesses

There seems to be no shortage of temporary workers when it comes to getting business done. If only there were “temporary experts” to assist small businesses.

Now there are.

The Arizona Technology Council has partnered with Go1099, an Arizonabased career consulting company, to help small businesses manage costs and organizational structure by providing experts for contract services. All Council members now can access Go1099.com’s consultant and professional contract services as well as post projects and special assignment needs without charge.

“This free exchange marketplace of talent and jobs is a tremendous resource to our members and one that they can trust,” said Steven G. Zylstra, president and CEO of the Arizona Technology Council. “This Council is completely aligned with Go1099’s vision of boosting Arizona job creation and business performance.”

This convenient online resource provides businesses with the flexibility to access high-caliber talent and expertise without the expense and commitment of long-term payroll employees, equity dilution of partnership, or shared ownership.

By providing the ability to scale capacity and production up or down rapidly and efficiently, Go1099 offers freedom and flexibility to its clients.

“Our goal is to accelerate local business growth and build a community that is based on trust and relationships,” said Dick Stover, CEO of Go1099. “We are pleased that the Arizona Technology Council shares this community vision and is taking the important step of offering its members this value-added service. Everyone in the Greater Phoenix area wins.”

For more information, go to http://aztechcouncil.go1099.com or visit the Council’s home page www.aztechcouncil.org and click on RESOURCES then CONSULTANTS ON DEMAND. Go1099 also offers without charge a prime opportunity for consultants and professionals to access and bid on projects, increase their income and actively manage and optimize their career. Consultants and professionals work with the small business clients of Go1099 on a contract basis, skills and knowledge are kept fresh, and diversified experience is gained. Go1099 also has a professional coaching service to mentor professionals on business creation and how to successfully become an independent contractor. Go1099 only charges for results in the form of overrides on actual contracts between businesses, consultants and professionals.

For more information, contact Stover at dick@go1099.com and 480-585-5580.

At the Top Imagine participating in a group whose members are peers with whom you can discuss your most difficult decisions.

For CEOs, those decisions can indeed be difficult, if not life-altering.

The Arizona Technology Council addresses this need by offering its members the CEO Network, a professional peer-to-peer board of advisors assembled to help business leaders reach their highest levels of success. CEO Network provides in a confidential, non-competitive environment, Network members can share experience-based knowledge to solve business problems addressed by every businessperson. It’s like having your personal board of directors.

Each trusted peer group consists of 10 to 14 individuals with diverse backgrounds who meet once monthly to discuss business issues. Meetings are chaired by an experienced entrepreneur and follow

CEOs help each other with challenges a structured protocol to ensure rules of engagement are followed and topics are relevant and productive.

Although important relationships are often forged within the group, CEO Network is not a “leads” group. It is also not a networking association or intended for members whose companies are in “turnaround” situations.

Members are the CEOs, presidents or owners of their respective companies, with decision-making and budgetary responsibilities. They are Council members in good standing with a minimum of three years’ experience (equivalent experience will be considered). Over a one year period each member must offer at least two business issues for discussion.

To become a member each person must complete an application, which shares information about his or her business that includes revenue, number of employees, a

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government

businesses

description of products and services, and current business issues. Also evaluated are the candidate’s experience, education and core competencies to determine the “fit” with the group. Vendor/client associations will be evaluated for potential issues and competing firms will not be placed in the same group.

An annual nonrefundable fee of $350 for returning members and $450 for new applicants is payable upon acceptance of an application. (Comparable programs offered by for-profit firms begin at $2,500 per year.) The fee covers session materials, refreshments, and parking.

Applications for the 2011sessions will be accepted through Jan. 7. For additional information, contact the Arizona Technology Council at 602-343-8324 or events@aztechcouncil.org.

connecting & empowering technology The Arizona Technology Council brings together all sectors of progress in Arizona—networking, small business, academia and government to the top thinkers in technology.

We promote exposure and visibility by unifying technology groups around common goals. Join today at our Web site, www.aztechcouncil.org.

www.aztechcouncil Arizona Technology Report

7

Second Chance Keep it green with Technology Recycling Day

Management and Staff

Every year our nation’s landfills are filled with toxic waste that once sat on our desks and in our homes.

Computers and other electronics contain lead and other poisonous materials. To help, the Arizona Technology Council is preparing to host the first statewide Technology Recycling Day of 2011.

The Jan. 22 event will be held 8 a.m. to 3 p.m. in conjunction with Westech Recyclers. Any used or no longer operating computers or electronic equipment will be accepted for recycling and refurbishing. If recycled, the materials received will undergo domestic and global processing through responsible processors.

Material will be handled in accordance with all state and federal recycling regulations.

Everything donated will help make an impact on our environment. Americans disposed of 157 million computer products, 126 million cell phones and more than 20 million televisions in 2007, according to the most recent figures from the U.S. Environmental Protection Agency. Only 18 percent of the computer

Steven G. Zylstra President and CEO products and TVs and 10 percent of the cell phones were recycled.

Accepted at Recycling Day will be computer equipment, such as PCs and laptops; point of sale, telecom, printing and audio/visual equipment; electronic components; miscellaneous electronic items; and surplus metals and wire and cable.

All Data Doctors locations will be accepting donations. For their locations and hours, got to www.datadoctors.com/locations.

Additional information and locations can be found at the Council site, www.aztechcouncil.org.

We’ve Got You Covered

Workers’ comp coverage need not be too pricey If you’re doing business in Arizona, you can’t afford to be without workers’ compensation insurance. Now Arizona Technology Council members can make the expense better for the bottom line.

The Council has entered into a partnership with SCF Arizona, the state’s largest provider of workers’ compensation insurance, that could save members money. For example, policyholders with established good safety records may qualify for substantial premium savings by paying 10 percent less than the standard rate if they are SCF Arizona policyholders. Those who qualify for SCF Western or SCF Premier, two subsidiaries of SCF Arizona, could receive savings of 20 percent or 40 percent, respectively.

There is also an upfront 5 percent discount for implementing an approved drug and alcohol policy. SCF also allows policyholders to receive a 5 percent discount at the beginning of the policy year for additional savings at policy renewal time. And depending on the business, deductibles can range from $100 up to a maximum of $25,000 per claim.

Because safety is the key to whether workers’ compensation costs rise or fall over

8

Arizona Technology Report

the long run, SCF offers its Association Safety Program, which provides myriad training opportunities designed to make workplaces safer. Member businesses with good safety records and SCF policies can enroll in the program, which carries no cost, but offers a number of benefits.

For example, policyholders who earn individual dividends for their good safety records also are eligible to receive an additional ASP bonus dividend should the SCF Board of Directors declare one.

(Dividends are never guaranteed, but they can be declared annually.) Also, SCF provides safety-related services to help ASP members maintain good safety records and manage workers’ compensation costs, both of which can translate into lower premiums.

SCF’s loss control consultants will work with you to identify and solve potential workplace hazards to reduce workplace injuries. You also can receive SCF’s popular Safety Plan Template so you can design a safety plan that is unique to your business.

Members who want more information can contact Council President and CEO Steven G. Zylstra at sgzylstra@aztechcouncil.org.

Deborah Zack Director, Membership Services Merry Lake Merrell Director, Marketing and Communication Jamy Battle Director, Finance and Administration Leigh Goldstein Managing Director, Programs & Events Don Rodriguez Editor, TechConnect Ron Schott Executive Emeritus Justin Williams Director, Tucson Office Don Ruedy Executive Emeritus, Tucson Office Dan Semenchuck Sales Representative George Land Director, Arizona Innovation Institute Kim Kressaty Deputy Director, Arizona Innovation Institute Joe Tidwell Project Manager, GetSTEM-AZ, and State Director, Project Lead the Way Phillip Huebner Director, Arizona Science and Engineering Fair

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INDE X Dobbins, Mark, 20

MacMillan, Beau, 43

Smith David, Julie, 22

Esposito, Nick, 42

May, James, 24

Swann, Andy, 14

Adams, Kirk, 26

Fink, Abbie, 32

McCain, John, 24

Thomas, David B., 33

Baer, Jay, 33

Glavin Jr., William F., 37

McPheters, Lee, 14, 20

Toker, Aysegul, 33

Bagley, Jayson, 20

Hause, Chantal, 42

Naslund, Amber, 33

Varnali , Kaan, 33

Barlow, Mike, 33

Hamer, Glenn, 26

Nortman, Dee, 36

Wallace, Lou, 34

Barrett, Robyn, 34

Henry, Sherry, 66

Pederson, James E., 11

Warner, Craig, 44

Blair, Wink, 37

Herold, Linda, 37

Ratliff, Susan, 12, 16

Wilson , Bob, 34

Bolton, Michelle, 26

Humble, Will, 16

Reagan, Michele, 66

Wilson , Steve, 42

Broome, Barry, 66

Jarnagin, Kristen, 66

Ryman, Anne, 20

Wood, Duane, 16

Burkhart, Patrick J., 12

Kyl, Jon, 24

Scarafiotti, Vikki, 36

Yilmaz, Gengiz, 33

Campbell, Chad, 26

Lane, J.W. “Jim”, 12

Shaldjian, Mike, 32

Young, Antony, 33

Davidson, Steven E., 36

Lehet, Mike, 66

Sietsema, Chris, 32

Zylstra, Steve, 22

Chandler Chamber of Commerce, 38

Maricopa County Human Services

SteviaWorld International, 24

Index By Name

Index by Company A.T. Still University, 17 Advantage Office Suites, 25 Ahwatukee Chamber of Commerce, 38 Alerus Bank & Trust , 44 Argosy University, 23 Arthritis Foundation, The — Greater Southwest Chapter, 36 Arizona Blue Chip Economic Forecast, 20 Arizona Chamber of Commerce and Industry, 20, 26, 38 Arizona Commerce Authority, 14 Arizona Department of Health Services, 16 Arizona Historical Society, 37 Arizona Hotel & Lodging Association, 66 Arizona Kidney Foundation, 24 Arizona Manufacturers Council, 20 Arizona Office of Tourism, 66 Arizona Republic, 20 Arizona Small Business Association, 25, 38 Arizona State Legislature, 14, 26 Arizona Technology Council, 22, 38 Artificial Organs and Transplant Program , 24 AT&T, 3 Avnet, 13 Biltmore Fashion Park, 42 Blue Cross Blue Shield of Arizona, 68 Boeing, 20 Boys & Girls Clubs of Greater Scottsdale, 36 Buchalter Nemer, 17 Business Professionals, 38 Cancer Treatment Centers of America, 31 Cassidy Turley BRE Commercial, 10 Center for Advancing Business through Information Technology, 22 Center for Services Leadership — ASU, 53 Central Phoenix Women, 37, 38

64

J a n u a r y 2011

Chart House, 43

Department , 12

Stoney-Wilson Business

City of Scottsdale, 12

Maricopa Workforce Connections, 65

Compass Arizona Grill, The , 43

Mayo Clinic, 67

Sub-Zero, Inc., 20

Cox Business, 5

Media Watch AZ, LLC, 32

SUMCO Corporation, 20

Dietary Supplement

Medicaid , 18

Surprise Regional Chamber of

Health & Education Act, 24

Mesa Chamber of Commerce, 39

Consulting, LLC, 34

Commerce, 40

Different Pointe of View, 43

Moda Georgio, 42

Susan Ratliff Presents, Inc., 12

Economic Club of Phoenix, 37, 39

Montblanc Boutique, 42

Sushi Brokers, 35

Elements, 43

Motorola, 20

Swann & Associates LLC, 14

Eller College of Management, 6

National Association of Women

SweetLeaf, 24

Emarketer.com, 32

Business Owners, 39

Teach to Fish Digital, LLC, 32

Etsy.com, 22

National Bank of Arizona, 4

Tempe Chamber of Commerce, 41

Fabulous Food, 42

National Manufacturers Association, 20

Twitter, 22

Facebook, 22

North Scottsdale Chamber of Commerce, 39

United States Food and Drug

Factors Southwest, 34

OppenheimerFunds, Inc., 37

Fiesta Bowl, 16

Orbital, 20

Vermillion Photo, 54

Ford Motor Company, 37

Pederson Group, Inc., 11

W.P. Carey School of

Gilbert Chamber of Commerce, 39

Peoria Chamber of Commerce, 40

Glendale Chamber of Commerce, 39

Performance Funding Group, 34

Waste Management , 63

Glendale Convention &

Phoenician, The, 43

Wells Fargo, 7

Phoenix Mesa Gateway Airport, 20

West Valley Women, 37, 41

Good Samaritan Hospital, 24

Phoenix Art Museum , 19

Western Blue Chip Economic Forecast, 20

Goodyear City Council, 20

Phoenix College, 24, 54

Westin Kierland, The, 37

Grand Canyon University, 51

Phoenix Convention Center , 15

WestMarc, 41

Greater Phoenix Chamber of Commerce, 26

Pointe Hilton Tapatio Cliffs Resort, 43

Wink, Inc., 37

Greater Phoenix Economic Council, 66

Privacy by Design Research Lab, 22

Wisdom Natural Brands, 24

Herberger Theater Center, 30

Public Relations Society of America, 32

Women in Business, 41

Herold Enterprises, 37

Rainbow Room, The, 43

Women Entrepreneurs’ Boot Camp, 16

HMA Public Relations, 32

Raytheon, 20

Women of Scottsdale, 37, 41

Holmes Murphy, 10

Register to Speak, 14

Worldwide Employee Benefits Network, 41

Honeywell, 20

Reliable Background Screening, 23

YouTube, 22

Hyatt Regency Phoenix, 43

Rockefeller Center, 43

Identity Arts, 37

S.W. Wilson Bespoke Clothiers, 42

Intel Corporation, 20

Sanctuary Camelback Mountain

Visitors Bureau, 16

InterContinental Montelucia Resort & Spa, 36 J&G Steakhouse Scottsdale, 43 Jewish Family & Children’s Service, 14 Jewish Family Home Care of Arizona, 14 JPMorgan Chase Economic Outlook Center, 20

Resort & Spa, 43 SCF Arizona, 2 Schumacher European Mercedes-Benz, 9 Scottsdale Area Chamber of Commerce, 40 Scottsdale Fashion Square, 42

LindaLandAZ.com, 37

Southwest Airlines, 37

Littler Mendelson, 66

Stevia Association of the Americas, 24

Administration, 24

Business, 14, 20, 37, 53

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Roundtable

A Candid Forum

SB 1070: Is it a friend of business?

by RaeAnne Marsh The furor over Senate Bill 1070 has made waves in disparate industries. Businesses reliant on tourism may have felt it first: Kristen Jarnagin, vice president of communications for the Arizona Hotel & Lodging Association, says that for the period of April to July 2010, at least 40 meetings were cancelled due to boycotts — and those meetings could have infused $15 million into Arizona’s economy.

Plus, she notes, “That does not include ancillary spending on rental cars, at restaurants and at stores.” Senator Michele Reagan says the Arizona tourism industry took a hit not only from the general economic downturn, but, “Add on top of that the big outcry over Senate Bill 1070.” To Arizona Office of Tourism director Sherry Henry, tourism is the “window” to economic

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J a n u a r y 2011

development, and, she notes, “Nobody relocates their family or business to Arizona without first visiting the state.” And speaking about efforts to attract new business to the region, Barry Broome, president and CEO of the Greater Phoenix Economic Council, says, “Companies from Latin American or South American countries may raise questions as to the quality of life of their employees, and we have to overcome that.”

But what about the law’s impact on employers?

Mike Lehet, an attorney with Littler Mendelson in Phoenix, looks first at 2007’s Legal Arizona Workers Act (commonly called the Employer Sanctions Law) to explain SB 1070’s ramifications. That law, which went into effect on Jan. 1, 2008, states that employers may not hire undocumented workers, or risk suspension or revocation of their business license. It required employers to use the national E-Verify system to check a person’s employment eligibility status.

“There was a lot of drama about its enactment,” Lehet says. “People were terrified it would upend businesses.”

It did make employers more aware of immigration issues in the work force, but, Lehet observes, “its bark was much worse than its bite.” This may be because it was enacted on a going-forward basis and would not affect undocumented workers hired before January 2008, says Lehet. He’s seen only three enforcement actions since the law went into effect.

SB 1070 contains two provisions that amend the Legal Arizona Workers Act. One is a requirement that employers keep records of the E-verification reports, which many businesses are already doing anyway. “The more interesting amendment with SB 1070 is that it added a defense under the Legal Arizona Workers Act for entrapment.”

The Act itself contains two defenses for employers: use of E-Verify or showing good faith compliance with the I-9 process. But SB 1070 adds a provision whereby, if employers are entrapped into hiring an undocumented

worker — “And I think those circumstances will be pretty rare,” says Lehet — they have the defense of entrapment to argue against losing their business license.

Adding the entrapment defense “might be a signal there are heightened or more creative efforts by state and local agencies to investigate employers for these issues,” says Lehet, explaining, “When you have heightened investigation and more creative investigation and surveillance, that’s when you get into the entrapment issue.”

Lehet notes that, while SB 1070 has been challenged in the courts, these employer sanction provisions have never been an issue. “Those have been in effect for a while and are going to remain in effect.” The basic requirements on employers are diligence about I-9 compliance, with the initial reporting and periodic audits; use of E-Verify when needed; and training the staff regarding the issues. And the employer must investigate if an agency or payroll service raises a question as to identification or risk “being on the hook for hiring an undocumented worker,” says Lehet.

“Be aware and responsive to situations that would generally cause an employer to think, ‘I think I need to do something.’”

Lehet notes SB 1070 could have an impact on certain industries, indirectly. “There are industries that seem to have more issues with unauthorized labor,” he says. “If certain parts of that labor pool dries up, it would have an indirect impact on employers with respect to their work force — are they going to have enough work force?” But the impact there may not emerge until the economy turns around.

Senate Bill 1070

http://bit.ly/sb1070s

S.B. 1070 Senate Fact Sheet http://bit.ly/1070pshs Arizona Hotel and Lodging Association www.azhla.com Arizona Office of Tourism www.arizonaguide.com Greater Phoenix Economic Council www.gpec.org Littler Mendelson

www.littler.com

Sen. Michelle Reagan

www.azleg.gov

inbusinessmag.com

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