July 2013 In Business Magazine

JULY 2013

Special Section: Top 50 Greater Phoenix Industry Leaders

Start-ups & Entrepreneurs Are These the 'Big Bang' of Our Economy?

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This Issue National Association of Women Business Owners

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JULY 2013

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

Rick Murray, 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

Located at The Phoenician 6000 E. Camelback Road, Scottsdale, AZ 85251 (480) 214-8000

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

www.jgsteakhousescottsdale.com

INDOOR KART RACING

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.

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JULY 2013

IN BUSINESS MAGAZINE

CONTENTS

Special Section: Top 50 Greater Phoenix Industry Leaders

JULY 2013

ENTREPRENEURSHIP

Start-ups & Entrepreneurs Are These the 'Big Bang' of Our Economy?

JULY 2013 • inbusinessmag.com

24

Power Lunch By the Numbers Business Calendar $4.95 INBUSINESSMAG.COM

This Issue National Association of Women Business Owners

Start-ups & Entrepreneurs: Are These the ‘Big Bang’ of Our Economy?

Arizona is the national leader in new business start-ups. Eric Jay Toll examines what entrepreneurship means to our local economy, the growing interest in encouraging it, and the potential it holds for continued economic growth.

DEPARTMENTS

20 Insurance: Quietly Supporting the

Economy

Exploring the insurance industry in Arizona, Don Rodriguez shows it is strong, growing and a core part of our economy.

30 Spot Business Opportunity in G. Michael Maddock and Maria Ferrante-Schepis discuss how to grasp innovative opportunity and the trap of old myths that can hold a company back.

36 Facebook or Face Time?

In communicating with clients and co-workers, the approach matters, says Michael Houlihan. For relationshipbuilding, the personal touch is more effective than pixels on a screen.

38 Due Diligence as Partnership

“Making Language Barriers Disappear,” “New App Ties Location to Files,” “Track What They Say About You,” “Executive MBA Is Competitive Edge for Law Firm,” “Leadership Connections Series,” “Marketing Gelato Spot Creates Win/ Win Op for Local Chefs,’” “Business Booms from Home Show,” “National IT Staffing Company Expands” and “Food Distribution HQ Moves to Phoenix”

Study explores the correlation of time and results in sales managers’ allocation of their time.

Plus: Key economic indicators provide a sense of the health of the local economy.

Prese

nts

43 Top 50 Greater Phoenix

22 Trickle Up

Industry Leaders

A small business resource guide made up of industry leaders

Celebrat

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years

of serv

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57 National Association of

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View from the top looks at how Richard Lehmann steered Biltmore Bank of Arizona to strength by focusing on the basics.

31 Books

New releases explore motivations and interactions to better us in business.

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J U LY 2013

40 Assets

Noted business leaders MaryAnn Guerra, Derek Neighbors and Jeff Saville respond to IBM’s burning business question of the month.

18 By the Numbers

In successful mergers and acquisitions, both buyer and seller win. Otta Ramos and Dan Avery explain how each party can help the process produce best results.

8

12 Feedback

S

We spotlight The Leukemia & Lymphoma Society – Arizona Chapter and United Food Bank.

2014 Buick Enclave Plus: A View to Remember

40

14 Briefs

Tomorrow’s Economy

Partner section

32 Nonprofit

Jeffrey Pruitt, partner and CEO of Tallwave, introduces the “Entrepreneurship” issue.

FEATURES

SPECIAL SECTIONS

11 Guest Editor

42 Del Frisco’s Grille

42 Power Lunch

Del Frisco’s Grille Plus: Pizza Places that Please

66 Roundtable

An increased uptake in tailoring assessment and certification tools can help address the national skills crisis.

ON THE AGENDA

33 Spotlight

“The Genius Is in the Process, or Should Be” “Social Media & Internet Risk Management: Are You Exposed?”

34 Calendar

Business events throughout the Valley

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J U LY 2013

9

JULY 2013 • VOL. 4, NO. 7

Cash flow solutions to help your business grow.

PUBLISHER Rick McCartney EDITOR RaeAnne Marsh

“My business runs better now that I’m not chasing invoices.”

Jay, Hallmark Global Tech.

ART DIRECTOR Benjamin Little CONTRIBUTING WRITERS Dan Avery Maria Ferrante-Schepis Michael Houlihan Mike Hunter G. Michael Maddock Otta Ramos Don Rodriguez Kristian Seemeyer Eric Jay Toll Don Wagner

PHOTOGRAPHER-AT-LARGE Dan Vermillion

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

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

PRESIDENT & CEO Rick McCartney EDITORIAL DIRECTOR RaeAnne Marsh SENIOR ART DIRECTOR Benjamin Little FINANCIAL MANAGER Donna C. Mitchell, CPA ACCOUNTING Diane Meyer OFFICE MANAGER Matthew D. Whitmire

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. 4, No. 7. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. 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. © 2013 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.

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INBUSINE SSMAG.COM

JEFFREY PRUITT, PARTNER & CEO, TALLWAVE

GUEST EDITOR

Entrepreneurs Build the Future

JEFFREY PRUITT IS a founding partner and CEO of Tallwave, a company formed in 2009 to create commercial success and shareholder value for entrepreneurs and investors by validating, scaling and managing early-stage and growth ventures. Previously, Pruitt served as president of iCrossing, where he drove the growth of the industry’s largest independent search and interactive agency. He has an undergraduate accounting degree from ASU and is a CPA. Pruitt has also sat on the advisory councils of Google, Yahoo! and Microsoft.

SMALL BUSINESS IS touted as the backbone of our economy. And Arizona is ranked No. 1 among the 50 states on the respected Kauffman Index of Entrepreneurial Activity. Taking these two realities in tandem gives a very positive outlook for our statewide economy — and an even stronger one for the Valley, with its preponderance of business incubators hosted by municipalities, educational institutions and privately funded enterprises.

At Tallwave, providing entrepreneurs with the resources, funding and support to bring their ideas to commercialization has given us a profound understanding of the value of entrepreneurship.

Entrepreneurs create jobs, transform communities as well as industries, and are extremely resourceful in both good times and bad. Here in Arizona, in what we like to call the “Entrepreneur Valley,” entrepreneurship is a means to solve local and global challenges. Supporting it should be one of the highest priorities of both our leaders and our citizens.

In this issue’s cover story “Start-ups & Entrepreneurs: Are These the ‘Big Bang’ of Big Business?” Eric Jay Toll explores entrepreneurship from a variety of angles: academic programs that focus on nurturing entrepreneurship as an approach to business and helping individuals build a skill foundation to support it, business incubators that interface with and help start-ups, and entrepreneurial businesses that have succeeded beyond the start-up phase. Municipal economic development officials, heads of university programs and business incubators, and CEOs recognized for their entrepreneurialism are among those sharing insights on the impact of entrepreneurship on our local economy.

Insurance, which plays a critical role in commerce and business operations, is the industry Don Rodriguez examines in this issue’s Sector feature. And in the Focus feature, mergers and acquisitions come in for a careful analysis by business consultants Otta Ramos and Dan Avery as to what businesses on either side of the transaction can do to assure a win/win outcome for both parties.

In addition to offering other feature articles on recognizing business opportunity and facilitating communication within an organization, this “Entrepreneurship” issue of In Business Magazine presents the second annual “Top 50 Small Business Resources Guide,” made up of services from funding to marketing, to be an aid to those starting or growing a small business in the Valley.

With its usual broad range of subjects, In Business Magazine continues to inform and help strengthen the business community of Greater Phoenix and beyond. I hope you enjoy this “Entrepreneurship” issue.

Sincerely,

Jeffrey Pruitt Partner & CEO Tallwave

Let’s Start Something ARIZONA IS PREPPING itself to become known as the start-up and entrepreneurial capital of the world if local officials and economic development professionals have anything to do with it. And, as you will read in this month’s cover story, that’s not at all a bad thing. Becoming innovative in how we grow our economy is equal to us attracting innovation. I am pleased to see how this is finally catching on and how this kind of thinking will likely change the way we build business in Arizona and elsewhere.

INBUSINE SSMAG.COM

An innovator himself, Jeff Pruitt, CEO and founder of Tallwave, introduces our Start-ups & Entrepreneurs issue. We want to thank him for working with us on this informative issue and salute Tallwave for its leadership in this realm.

Tallwave is a great push toward the new way of thinking and funding business start-ups and those who will likely lead our local economy one day.

—Rick McCartney, Publisher

Connect with us: Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com

J U LY 2013

11

FEEDBACK

VALLEY LEADERS SOUND OFF

Executives Answer

The force of entrepreneurship is strong in the Valley. We hear a lot about start-ups, but what are we doing to help our entrepreneurs sustain success?

MaryAnn Guerra

Derek Neighbors

CEO BioAccel ENTREPRENEURIAL ENERGY IS strong in Arizona. BioAccel, a nonprofit organization focused on economic development in healthcare, is dedicated to creating sustainable new ventures.

Entrepreneurs entering the medical device industry need commercialization guidance while investors need qualified deals to feel confident about investing.

BioAccel bridges that gap by providing early stage feedback, guidance, rigorous diligence, investment up to $300,000 and partners that create value to attract downstream investor participation.

BioAccel creates relationships with entrepreneurs that are aligned with their success. Our equity-based investments, rent subsidy and intimate industry-specific mentorships provide the education and support needed for success. We have recently launched a new signature program called the BioAccel Solutions Challenge, which encourages entrepreneurs to create solutions to our researched healthcare needs.

Successful winners will receive $100,000 on their new venture, thus creating a strong foundation to build. This program is perfectly aligned with our mission and the sustainable success of entrepreneurs in this industry; it not only channels entrepreneurial spirit, but it also provides an avenue for new investors to feel comfortable in this industry.

MaryAnn Guerra is chairman of the board, CEO and co-founder of BioAccel™. She is well-known for creating novel programs to accelerate the transfer of technology from the lab into useful products and new business opportunities. Guerra has numerous awards for her work, including the 2012 State Science and Technology Institutes’ award for Most Promising Initiative. She has served on numerous boards and is currently a member of the Flinn Bioscience Steering Committee.

Jeff Saville Executive Director Center for Entrepreneurial Innovation QUITE SIMPLY, WE must stay relevant to the start-ups we support. Phoenix has really emerged as an entrepreneurial hot spot, and there is an exciting youth movement right now with some incredibly bright, forwardthinking entrepreneurial leaders, such as Jenny Poon (Co+Hoots), Kyle McIntosh (MAC6), Courtney Klein and Chris Petroff (Seed Spot), and the list goes on. Couple that with a tremendous infrastructure of technologically advanced incubators, accelerators, coJ U LY 2013

ARIZONA DEFINITELY HAS an emerging start-up scene. The ecosystem to fully support commercialization of it is still a bit nascent, but a number of incubators and accelerators have formed and started collaborating under the Arizona Business Incubator Association (AZIBA). Collaborative workspaces and co-working facilities are popping up throughout the state, allowing entrepreneurs to have the density and support necessary for good ideas to be brought to market. The Arizona Technology Council and others have been pushing for legislation to help capital formation happen and encourage more venture capital to be available for the system. The Arizona Commerce Authority has one of the most aggressive grant programs in its innovation challenge. The University systems have been hard at work providing paths for their students and researchers to bring product to market. Local companies like Infusionsoft and Go Daddy have received significant capital investment and are looking to move toward an initial public offering and showing it is possible to launch and grow here in Arizona. It is a good time to be an entrepreneur in Arizona.

Gangplank gangplankhq.com

BioAccel bioaccel.org

12

Co-founder Gangplank

Derek Neighbors is a serial entrepreneur who helps people bring ideas to reality.

Neighbors co-founded Gangplank, a collaborative workspace, to help encourage local creatives to explore innovative ideas and create what they are passionate about. He is a partner at Integrum Technologies, a consulting services firm that helps companies build high-performing teams to compete in the new economy.

work spaces, etc., and local start-ups have a strong support network to grow their business.

And there is also a new era of accountability; incubators are not only challenging outdated models and methods but they are also challenging the entrepreneurs to be better leaders of their business. Speaking strictly from our perspective here at CEI, we hold our clients to a high standard, with monthly and quarterly benchmark reviews to ensure their commitment to gaining traction during their tenure in our program. By pushing them to be better, we position them for long-term growth and success.

Center for Entrepreneurial Innovation ceigateway.com

Jeff Saville is the executive director of the Center for Entrepreneurial Innovation, an energetic business incubator supporting bioscience, software and technology start-ups. Prior to assuming his role at CEI, Saville was the vice president of NACET, a Flagstaff incubator.

He received his Bachelor of Science in Communications from Northern Arizona University and is also an entrepreneur in his own right, having started and sold multiple businesses.

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BRIEFS

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Executive MBA Is Competitive Edge for Law Firm

BYTES Making Language Barriers Disappear WHETHER WE WANT to acknowledge it or not, U.S.

Lang Meanuage Busins ess

organizations are facing a critical skills gap in foreign languages. Only 5.6 percent of the world population speaks English as a primary language, yet only 11.4 percent of the U.S.

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New App Ties Location to Files PEOPLE OR ORGANIZATIONS can tag maps and floor plans of specific buildings, maintenance records and educational videos to a piece of equipment, or relevant tasks and checklists to a certain area of a facility. Any type of file or document that can be stored in the cloud can be tied to a location for easy lookup with the new Float Mobile Learning app, Wayfiler. floatlearning.com

Track What They Say About You REVIEW TRACKERS IS a brand new review monitoring solution designed to help mom-andpops, small businesses and entrepreneurs manage their online reputation by helping business owners listen and respond to what their customers are saying about their product and service. reviewtrackers.com

NATIONAL LAW FIRM Quarles & Brady recently developed an executive MBA program for its partner-level attorneys in collaboration with The Mendoza College of Business at the University of Notre Dame. “It was an opportunity to learn in the way business owners learn all the things our businessowner clients are concerned with,” says Leezie Kim, one of two partners in the Phoenix office who were among the inaugural class.

Kim, whose background spans international business, immigration enforcement policy and campaign finance and includes two-and-a-half years in Washington, D.C., with the Department of Homeland Security, says, “It was a chance to hone skills as a lawyer who understands what it’s like to be a businessperson; to be able to advise someone, looking at all those factors that they must consider.” In addition to a heavy emphasis on accounting, the nine-month program deals with leadership and organizational development and offers critical perspectives in the key elements of a graduate business curriculum.

Noting that spending patterns have “changed dramatically” since 2008, Michael Ostermeyer — a partner in the firm’s Milwaukee office who helped in developing this Partner Development Program — explains today’s economic model is changing toward more concern with the value being delivered than the activity (notably based on

billable hours) to deliver the service. “One way to be more competitive is to demonstrate [to the market] that you understand their business,” he says, explaining the program was designed for attorneys at the partner level because “partners set the tone” for the practice.

Another significant benefit the program offers participants is the opportunity to work together with their cohorts. This was an aspect that attracted Kim going into the program.

“Clients are multi-dimensional, so they need law firms that also work like they do — in teams rather than silos,” she says. Recognizing that dealing with a single event or decision in a business could have broader implications such as affecting its real estate, employment and immigration strategies, Kim says, “It’s important for everyone in the firm to know and understand what’s going on in the [client’s] company.”

—RaeAnne Marsh Quarles & Brady LLP quarles.com

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leadership-connections

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Photo courtesy of Xxxxxxx

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In today’s competitive marketplace, business and technology professionals are constantly called upon to prove they have the ability to help their organization run more efficiently no matter their field or area of expertise. Northcentral University’s School of Business and Technology Management has adopted a similar results-oriented approach, delivering rigorous online MBA, DBA and PhD programs designed to provide high-level training that can help you solve problems, improve processes and make informed decisions in your field as you develop the business acumen that today’s organizations and clients demand.

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Northcentral’s business programs in the School of Business and Technology Management are accredited by the Accreditation Council for Business Schools and Programs (ACBSP).

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BRIEFS

by RaeAnne Marsh

QUICK AND TO THE POINT

Business Booms from Home Show

MORE THAN 500 local home improvement businesses will showcase their products and services at the Maricopa County Home Show at the University of Phoenix Stadium this month.

A survey by Maricopa County Home Shows indicates 43 percent of attendees will hire a contractor within 60 days after a show, and are more likely to spend their combined budgets of more than $148 million with businesses they interacted with at the event.

“Exhibiting businesses are exposed to tens of thousands of qualified homeowners throughout the course of one weekend. We even have some exhibitors who literally operate all year long solely off the customers they are introduced to at each of our [five annual] home shows,” says Rene Smith, who founded MCHS in 1992 with $8,000 borrowed from her mother. Prescreening exhibitors for licenses and BBB rating, MCHS hosts 12-13 percent of the booths to new exhibitors to keep the shows fresh with new and innovative products. Of the nearly 90 percent of returning companies, more than 65 percent sign up a full year in advance.

Maricopa County Home Shows maricopacountyhomeshows.com

Marketing Gelato Spot Creates Win/Win Op for Local Chefs

GELATO SPOT’S CURRENT marketing campaign combines cross-promotion within the restaurant realm of small business with support of community nonprofit Phoenix Children’s Hospital. Through the summer, Gelato Spot is hosting a flavor competition among chefs at noted local restaurants, who have created his and her own flavor, and funds raised will be donated to the hospital in the name of the winning chef.

Pictures of the participating chefs, along with the name of their restaurants, are prominently posted in the Gelato Spot stores, and the chefs will be serving their flavor and promoting the competition at their own establishments. Voting options capture the diverse buying and social networking habits of different demographics — from in-store purchase to texting.

“I know gelato; they know ingredients and how to [layer them] to bring flavors out,” says Tommy Plato, a principal in the family-owned business. Working with them for a month of R&D, he shared his knowledge of the science of gelato — characteristics of different sugars and fat contents and how to balance the recipes to have the same freezing points — while they experimented with “tons of batches and different flavors.” Plato credits the chefs for their commitment to helping raise awareness of the fundraiser. He provides the gelato base, which he has developed to be flexible about the freezing point, and the chefs contribute their own ingredients, which he says are all high-quality. “The chefs are very competitive; their attitude is, ‘I don’t care how much it costs, I just want it to taste amazing.’”

Participating chefs are Justin Beckett and Jeffrey Schoening (Beckett’s Table), Keenan Bosworth and Joshua Riesner (Pig & Pickle), Cullen Campbell (Crudo), Matt Carter (Zinc Bistro, The Mission, The House Brasserie), Payton Curry (Brat Haus), Tracy Dempsey (Tracy Dempsey Originals), James Fox (Bootleggers), Joshua Hebert (Posh) and Walter Sterling (formerly with Oakville Grocery; will be opening Ocotillo next year).

Gelato Spot gelatospot.com

National IT Staffing Company Expands PHOENIX IS THE latest expansion for Digital Intelligence Systems, ranked by Staffing Industry Analysts as the second-fastestgrowing company in the staffing industry among companies with revenues exceeding $100 million. “Phoenix has always been on the radar screen for DISYS,” says Tim Kirby, managing director for the Phoenix office, which opened in February. Noting Phoenix is among the top 10 markets for IT job creation, Kirby says the Greater Phoenix area has a strong workforce pool — thanks to “great universities and technical schools” — as well as a lot of technical employers in a broad range of industries, including large employers in aerospace, financial services and healthcare.

With the IT unemployment rate at 1-2 percent, compared to 10 percent in Arizona’s overall economy, companies may need help

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with IT functions while seeking to find talent to hire. DISYS’s Phoenix office will provide IT services in enterprise resource planning, infrastructure support, and cloud deployment and management in addition to helping with staffing needs. An additional impetus for opening an office here at this time was to better service DISYS’s national and global accounts that have a physical presence in Phoenix.

Digital Intelligence Systems disys.com

Food Distribution HQ Moves to Phoenix WINCO FOODS IS building an 800,000-squarefoot distribution center in Phoenix at 75th Avenue and Buckeye Road. One of the largest build-to-suit projects here in recent years, according to Greater Phoenix Economic Council president and CEO Barry Broome, the center is expected to open sometime next year

and create up to 200 jobs in its first phase.

Noting the grocery store chain is experiencing strong growth in the Phoenix market and southern Nevada, company spokesman Mike Read points to the advantage of moving distribution from the current location in Modesto, Calif., to Phoenix. “It’s more economic for us, particularly with the plans we have for future growth.” Not only can the company also service some of its Southern California stores from Arizona, the Phoenix distribution center may also help the company “open other markets we’re not in, in southern Utah for example.”

Arizona Commerce Authority president and CEO Sandra Watson says this project “demonstrates how collaborative regional partnerships attract quality employers such as WinCo to Arizona.” The ACA provided project management and support; GPEC helped the company understand the Greater Phoenix market; and the City of Phoenix helped WinCo evaluate specific sites in Phoenix.

WinCo Foods wincofoods.com

INBUSINE SSMAG.COM

Photo courtesy of Gelato Spot (James Fox creation)

Expansion & Jobs

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BY THE NUMBERS

by RaeAnne Marsh

METRICS & MEASUREMENTS

Sales Managers are Key to Unlocking Peak Sales Performance “FORECAST ACCURACY” IS an oxymoron, according to the recently released Sales Management Optimization Study from CSO Insights. Key findings show that only 45.7 percent of forecast opportunities are being won as projected. The report also shows that, while process and coaching are considered important areas for sales management time allocation, these functions are disconnected from how managers are measured and compensated.

“The data clearly support the value of investing in your sales managers and the return paid when they effectively coach their reps,” says Jim Dickie, managing partner and co-founder of CSO Insights, a sales and marketing effectiveness research firm that specializes in measuring how companies are leveraging people, process, technology and knowledge to improve the way they market and sell to customers. “Once again, we see [that the] companies developing their people,

implementing higher levels of sales process and leveraging technology — for example, analytics and networking in addition to CRM — are outdistancing firms that ignore or halfheartedly include these in their day-to-day selling and managing activities.” Data indicates the advantage seems to lie with companies whose sales managers actively work at developing the individuals in their sales teams to be sales “heroes” rather than concentrating their efforts on being the hero themselves.

Noting the survey’s detailed look at sales manager time allocation and focus, Barry Trailer, who, like Dickie, is co-founder and managing partner at CSO Insights, says, “The best-in-class companies’ managers spend less time selling and more time coaching. They also focus their coaching less on specific deals and more on their reps’ development — using metrics, not hunches, to do so.”

—Mike Hunter

Key Indicators KEY INDICATORS FOR our state 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 (Arizona) Unemployment (May 2013)

-0.54

2,515.4

0.01

No. of Housing Permits (Apr. 2013)

2,428

42.4

Consumer Confidence (Q3 2012)

71.3

32.04

Average Hourly Earnings (May 2013)

$22.85

1.0

Eller Business Research

Retail Sales (Arizona) Retail Sales (in thousands)

Mar. 2013

Apr. 2013

Total Sales

7,757,901

$7,049,984

5.42%

2.38%

Retail

$4,790,302

$4,263,676

Food

$1,034,675

$1,037,359

Restaurants & Bars

Change Y0Y

CSO Insights csoinsights.com

30%

$1,051,819

$943,669

Gasoline

$881,106

$805,280

Contracting

$851,944

$897,177

Eller Business Research

28% 27%

Real Estate

25%

Commercial: Office*

25%

21% 20% 20% 18%

Net Absorption (in SF) Rental Rates (Class A)

17%

16% 16%

16%

14%

15%

Q1 2013

Vacancy Rate

20%

20%

15%

Net Absorption (in SF)

10%

Residential: Total Median Sale Price

% Selling Time

% CoachingTime Best-in-Class

% Forcast Management Next 60%

% Meeting/ Tasks Last 30%

12.0%

12.0%

1,216,340

550,835

$0.49†

$0.49†

May 2013

8,934

9,703

$152,000

$190,000

720

820

New Median Sale Price

$236,451

$268,552

Resale Median Sale Price

8,214

8,883

$145,000

$182,000

* Cassidy Turley Arizona †

CSO Insights’ 2013 Sales Management Optimization Study © 2013 CSO Insights

$23.23

Q2 2013

New Build Sales Volume

Resale Sales Volume

% Other

21.9% 163,279

May 2012

Total Sales Volume

5%

22.1%

Q1 2013

Vacancy Rate

Q2 2013

(39,279) $23.25

Commercial: Indust.*

Rental Rates (General Industrial)

0%

YOY % Change

7.8

Job Growth (in thousands) (May 2013)

How Do Sales Managers Allocate Their Time?

30%

Number

Industrial rents are expressed as triple net.

Latest data at time of press

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INBUSINE SSMAG.COM

SECTOR

INDUSTRY AT ITS BEST

Insurance: Quietly Supporting the Economy Arizona’s insurance industry remains strong with more growth expected

by Don Rodriguez

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development powerhouse. According to the most recent annual report from the Arizona Department of Insurance, there were 1,818 companies licensed in Arizona that wrote premiums worth more than $24.5 billion (yes, the italics really appear in the report). “With an open-door policy and willingness to sit down with insurers and related businesses, it is an appealing place to do business,” says Director Germaine Marks.

While most companies are based elsewhere, the shining star among the Arizona insurers is SCF Arizona, which, since its start in 1925 by the Arizona Legislature, has focused on workers’ compensation plans.

Collectively, its seven subsidiaries reported a balance of just under $1.1 billion by the end of 2012, an increase of nearly 40 percent from the previous year.

Now come new possibilities for SCF Arizona as 2012 brought the end of its status as a quasi-governmental agency. Foremost on the company’s agenda is to become regional and provide other products, Smith says. Its

first plan is to provide property and casualty coverage to businesses. “We’re staying true to the mission,” he says. “Originally, we had supported business.”

There are few property and casualty companies in the West that do regionalized business compared to the Midwest where Smith grew up. “It helps create consistency and continuity in the marketplace,” he says. But before any growth, plans call for the company to assume a new name by year’s end to reflect its separation from the state, Smith says.

The Legislature has interest in the industry in a different way. One measure approved by the House and making its way through the state Senate would give the state’s insurers the chance to invest in Arizona’s future through technology.

If HB 2646 sponsored by Speaker Andy Tobin (R-District 1) is enacted, companies will be allowed to take up to $50 million in credits against state taxes owed in the next three years if they invest that amount in high-tech, early-stage firms. Tobin declined to be interviewed as long as his bill hasn’t had a final vote.

Photo courtesy of Ben Arnold Photography

IT’S NOT TOO often that Arizona State University President Michael Crow is joined by Arizona Gov. Jan Brewer to say, “Welcome to the neighborhood!” But when ASU’s new neighbor is looking to occupy 2 million square feet of office space valued at $600 million, who can blame the duo for leading the welcome wagon?

The planned regional headquarters for State Farm Insurance recently announced for ASU-owned property along Tempe Town Lake will bring with it jobs — hundreds of them from construction to occupation — and a land lease that will help the university pay for new sports facilities. Across the Valley in midtown Phoenix, homegrown SCF Arizona has extended its headquarters’ building lease for another 17 years while working on plans for growth that will bring its share of more highpaying jobs. “We look forward to bringing new opportunities,” says Don Smith, president and CEO of SCF Arizona.

These are just a few reminders that, while the insurance industry has quietly gone about its business, it has become an economic

INBUSINE SSMAG.COM

Photo courtesy of Ben Arnold Photography

But the speaker’s idea is in good company. A 2010 policy brief from the Arizona Chamber Foundation stated, “Lowering the tax liability for insurers through either credits or rate reductions could encourage these companies to invest in Arizona-based operations, create and retain jobs, and maintain competitive insurance rates.”

A question about rate levels arose in 2011 when the U.S. Department of Health and Human Services reviewed the state department’s health-insurance rate hikes of at least 10 percent, noting Arizona was a state without regulation for effective rate reviews. In its five-year plan effective July 1, the Department of Insurance commits to improving the efficiency and effectiveness of a state-based regulatory system, noting it is better equipped than the federal government to handle consumer complaints and insurance law violations. The state’s firm but fair regulatory environment is what underlies the strategic plan, and “that is one of many considerations for insurers when they are determining where they want to base their business or sell their products,” Marks says.

While regulatory environment can impact where a company does business, some types of insurance are deciding factors whether sectors can do any business at all. This is the case of title insurance, which all federally regulated lending institutions require for mortgages and construction loans — making it a good barometer of real estate activity. As real estate bounces back, so does the amount of title insurance. Currently in Arizona, residential title insurance is at 80 percent of the level seen in 2007 and commercial is at 50 to 60 percent, says Richard M. Marsh, Tempe-based vice president and regional counsel for Fidelity National Title Group.

In residential, some buyers have paid cash for investment homes, allowing them to skip the title insurance. However, Marsh is far from bitter about being left out. “Without the investors, the residential market would have been dead,” he says. And after renting out the homes through a bad economy, the owners are helping the market again by putting those homes up for sale. No doubt many of the buyers will get bank-issued mortgages — requiring title insurance. The circle of life continues in the business world.

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Arizona Department of Insurance id.state.az.us Arizona Legislature azleg.gov Fidelity National Title Group fntg.com SCF Arizona scfaz.com

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TRICKLE UP

A VIEW FROM THE TOP

Richard Lehmann: A Sure Hand at the Helm of Biltmore Bank His foresight and proactive strategy helped the bank stand on its own SOMETIMES PREVENTION REALLY is the best cure. Through sound decisions made in the midst of a very sick economy, Richard Lehmann, founder and CEO of Biltmore Bank of Arizona, warded off troubles other banks encountered. But he knows all too well the woes of being the forgotten patient, or at least one left to fend on its own.

Think about being that patient, not well, coming down with one heck of a bug threatening to take you under, only the doctor you’re seeing has devoted all her resources to a handful of her largest patients: CitiGroup, Bank of America, and old warhorse General Motors, among many others. Biltmore Bank is one of millions of American businesses taken ill during the recession and mending now without the help of taxpayer funds.

“When we started the business in 2003, the economy was in good shape. Our investor base was local, and we grew rapidly. But in 2006, we started seeing signs of the housing bubble and subsequent wreckage,” Lehmann relates.

It was at that time, Lehmann says, that Biltmore Bank exited the mortgage business.

It was this proactive move that positioned Biltmore Bank to survive what is undoubtedly the toughest economy Arizona has ever seen.

The Copper State entered the recession three months before the rest of the nation and as far exiting it, some would say the jury is still out.

“I never imagined it would get as bad as it did,” says Lehmann, referring to the Valley’s housing market. “It really cratered.”

When Lehman speaks about this unprecedented time in the state’s economic history, a shade of disbelief is still evident in his voice. “I have been in the business for 44 years and I have never seen anything like it,” he says. Unemployment hit a 27-year high, the state lost one-tenth of its jobs and, at one point during the recession, foreclosures accounted for nearly one-half of Arizona home sales.

Biltmore Bank was not a recipient of the Troubled Assets Relief Program (TARP) money or any government recovery funds.

“We were apparently not too big to fail,” Lehmann chuckles, “unlike GM, Goldman Sachs, Wells Fargo.” Indeed, its safety net was one woven not with taxpayer-funded loans but with tough decisions and precise actions.

In addition to exiting the mortgage sector of the business and cutting salaries and bonuses, Lehmann says the company refocused its efforts on the basics. The overarching emphasis became conserving capital and serving customers. Lehmann and his son, Biltmore Bank’s managing director Greg Lehmann, made serving the Arizona business community their point of direction. They honed in on how to understand the needs of the state’s businesses, setting their bank apart from

Banking on Success ■■ In 1969 when Richard Lehmann finished

■■

22

graduate school, he was offered jobs with both Citibank and Ford Motor Company — both of whom took some form of government assistance in the wake of the Great Recession. Biltmore Bank made it through the recession on moxie.

Lehmann had studied abroad and the first years of career were spent working in Europe, focused on international banking.

In 1977, he moved back to the U.S.

J U LY 2013

■■ In 1985, Lehmann took his family

■■

abroad again as he worked for Citibank, overseeing clients in Africa, the Middle East and Europe. The family settled in Arizona in 1988 when Lehmann took the position of CEO of Valley National Bank.

In June 2013, Biltmore Bank of Arizona marked the 10th anniversary of its founding. It now has two locations: its Camelback Office in central Phoenix and its Scottsdale Airpark Office in Scottsdale.

national banks. “Through that focus, we stayed proud, and we stayed whole — a team,” says Lehmann. From decades gaining knowledge in the international banking market, the elder Lehmann has a tremendous understanding of the distinction.

Serving Arizona businesses through two locations and with 50 employees, Biltmore Bank offers customized loan solutions, treasury management, SBA lending, business checking and online services. And its assets have grown to more than $260 million.

Widening the gap between “big guys” and Biltmore Bank’s style of doing business has paid off. And the payoff is all the more evident now that Arizona’s economy seems to be headed for brighter days.

“We’ve been able to start growing loan portfolios in the last six months,” says Lehmann, “and that’s a good sign. Arizona’s economy is on the mend, but it sure hasn’t come back like it has in the past. Still, I’m bullish on Arizona. As a state, we’ve got our issues to deal with, but it feels to me like we’re headed in the right direction.”

The Biltmore Bank of Arizona biltmorebankaz.com

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Photo courtesy of The Biltmore Bank of Arizona

by Kristian Seemeyer

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by Eric Jay Toll

A start-up is an idea, a corner of the garage, the spare bedroom and every spare minute. The Great Recession may have been Arizona’s start-up booster.

“There were suddenly a lot of people with great ideas and no jobs,” says Setheraman “Panch” Panchanathan, ASU’s senior vice president for the Office of Knowledge Enterprise Development. “They didn’t have much more to lose, so they decided to take risks and start a business.”

The old way of building business in Arizona was shaken during the recession. Locally, job creation swirled around retail, services and construction. Governments measured economic development success by quantity of jobs created. After 2008, the jobs may as well have been circling the drain. The way the recession hit Arizona, those jobs were headed down the tubes.

“A big lesson learned about job creation is that growing local businesses have stronger staying power when the economy falters,” says Chris Mackay, economic development director for the City of Chandler.

“It’s the reason we decided to invest in growing our own.”

Two paths diverged in the desert sun, poet Robert Frost might have said in early 2009. Arizona took the one less traveled, and it is making all the difference.

While all new firms are start-ups — Arizona saw a quarter million of them open doors in 2012 — start-ups diverge into two categories: businesses and enterprises. The roles are simply a matter of founder ambition and scale. The impact on the future state economy is significantly different. It’s that entrepreneurial difference that makes the state and cities perk up and take notice.

Most Arizona businesses tend to remain small. That is no reflection on a firm’s success; it’s a matter of scale. Of the more than 400,000 entities in Arizona — proprietorships, partnerships, L.L.C.s and corporations — only 16,000 have more than 20 employees, according to the U.S. Small Business Administration.

An entrepreneur is the founder of a company that just happens to be small right now. The economy’s future leaders are talking at networking events, sharing challenges over coffee with Startup Arizona and turning ideas into businesses in collaborative workspaces like Co+Hoots, Seed Spot and Gangplank.

Growing these companies requires an effective policy environment, a trained work “A big lesson learned about force and a product or service with value to job creation is that growing take to market. When a small company scales local businesses have stronger up, it puts more jobs into the economy. When staying power when the economy it’s a local company, roots grow deeply into the community. falters,” says Chris Mackay, Currently, Arizona’s new business creation economic development director is ranked first in the nation, according to for the City of Chandler. the Kauffman Foundation. The 2012 Index of Entrepreneurship Activity ranks states on the number of new companies per 100,000 adults. Arizona clocked in with 520 start-ups.

California and Texas tied at second, both with 440 new firms per 100,000 adults; Colorado hit 420; Georgia, 350; and Utah, 250. The new crop of baby business boomers is a reflection of necessity, creativity and public policy shift.

Cities realized quickly that the future for citizens and consumer businesses is encouraging successful new companies in the local area. Organizations like the Greater Phoenix Economic Council, Valley Partnership, partnership organizations in East and West Valley and the Arizona Commerce Authority connected business ideas with a new breed of civic leaders. From this cooperation, cities started investing in growing new

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INBUSINE SSMAG.COM

companies instead of just recruiting job promises. Incubators and accelerators opened opportunities across the metropolitan area.

ACA’s CEO Sandra Watson and GPEC’s CEO Barry Broome shifted recruitment policy to measuring return on investment. No longer throwing money at job numbers, these government-funded or -supported enterprises became entrepreneurial and focused on companies growing roots and infusing jobs into communities. The same emphasis is given to expanding existing businesses.

Cities like helping start-ups with growth potential and do so by providing resources that build success. Any new or established business entrepreneur wanting to grow should be calling the local economic development department. Various Phoenix-area cities fund incubators or accelerators to grow those future Over the past four years, jobs from concept to traction. Most cities will seven Valley cities and ASU also provide some incentive to established invested in incubators and businesses ready to grow quality jobs. accelerators to help move an Commercial traction is the common thread placing a business into a city’s entrepreneur’s idea toward incubator or accelerator. The funding city reality and capture angel or or organization wants to take a business venture capital for growth. with a commercially viable idea and help its founders get a viable product to market.

The business’s success means more highAll are technology-related businesses. “It’s a three- to five-year process,” paying jobs for local residents and more money to be spent in local Neal says. “We provide mentors, resources and a business address. stores. Arizona governments’ ability to deliver services is driven The firms get some back-office services. To join, the founder needs by the amount of sales tax collected — sales taxes increases from a company, a plan, and know the direction it’s heading.” Surprise’s discretionary income and spending by the local workers staffing the objective for anchoring that entrepreneur to the city is to encourage its new entrepreneurships. future staff to live, work and play in the Northwest Valley.

Chandler and Mesa are focused on the same objectives for the East Valley. Mesa just announced a partnership with ASU for a technology accelerator at its aerospace lab in the Phoenix-Mesa Gateway area.

Over the past four years, seven Valley cities and ASU invested in Chandler’s Innovations Incubator accelerator is readying its first incubators and accelerators to help move an entrepreneur’s idea toward graduate this year. In Scottsdale, the city’s partnership with ASU, reality and capture angel or venture capital for growth. “We know that SkySong, is creating multiple paths of entrepreneurial development. if Surprise puts the time and money into helping a business develop Phoenix pushes collaborative workspaces like Seed Spot and Co+Hoots a market and find angel capital, the business is more likely to stay in for newborn enterprises. Peoria is directed toward medical and Surprise,” says Julie Neal, coordinator of the city’s AZ TechCelerator, the biotechnology in a partnership with nonprofit organization BioAccel. oldest incubator in the state. Not yet four years old, the facility spans a While none of the jurisdictions have a target business size, all want four-building campus in Surprise’s old city hall complex. to incubate businesses that can grow into employers larger than the “We take a formed business entity with something of value, and typical small business. The return on investment when a firm tops 20 help nurture it to the stage where angel investors are ready to cut employees is significant. According to the SBA, those firms hand out checks,” she explains. “The company must be scalable to eventually two of every three Arizona paychecks, with a payroll worth $110 billion become a larger employer.” annually. Businesses with more than 20 employees represent 70 percent Of its 11 firms and four affiliates, AZ TechCelerator is incubating of the total Arizona private-sector payroll. some firms employing just a founder and some with several employees.

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27

Entrepreneurs are business founders with ambition. Ongoing studies of who is an entrepreneur and how entrepreneurial enterprises succeed come from the Babson Entrepreneurship Ecosystem Project at Boston’s Babson College, the No. 1-rated entrepreneurship school in the U.S. and the only source of studies that measure who is an entrepreneur. “Ambition is not a dirty word,” says founding executive director Daniel Isenberg, Ph.D. “To have an impact in a local economy, a business has scale up from a small idea to a larger company.” The state and local governments want new businesses to grow, and it’s why their efforts focus on entrepreneurs.

“Arizona has an enviable ecosystem for entrepreneurs,” says Sidnee Peck, director of Arizona State University’s Edson Student Entrepreneurial Initiative. The program is designed to cross disciplines and turn out entrepreneurs. Right now, 80 percent of students going through the program graduate as founders of a functioning business enterprise.” She also notes, “We’re not just a program for students.”

The Initiative includes the Rapid Startup School designed for business professionals wanting to grow a scalable business model. The program is a refresher for existing businesses and an eye-opening experience for newly formed companies.

“Arizona business professionals are very giving to help others succeed,” Peck says. “Many area executives also serve as advisors and mentors to growing companies. It’s important to the market to grow small businesses and expand Arizona’s economy.” Overall, when the state’s economy increases, it benefits everyone.

The state’s ecosystem includes informal efforts, like Startup Arizona, which launched in October of last year. The regional branch of national Startup America Partnership is led by coordinator Brandon Clark.

“We bring together entrepreneurs in informal settings to share ideas, challenges and opportunities,” he says. According to Startup Arizona’s website, nearly 70 percent of startups are less than three years old, and only 10 percent are six years or older. The organization’s goal is to strengthen connections within what it calls Arizona’s “entrepreneurial ecosystem” so that start-ups will find Arizona to be the easiest place for them to connect with the resources they need for long-term success.

Existing businesses need to instill an entrepreneurial spirit or the business will stagnate. General Motors created its Technology Innovation Centers to in-source advanced technical development.

In-sourcing research and development efforts that used to be shuttled to an outside company Existing businesses need to instill an created this entirely new department at G.M. entrepreneurial spirit or the business will One of its four entrepreneurial centers opens stagnate. General Motors created its in Chandler this year with 1,000 employees. It functions as an innovation enterprise within Technology Innovation Centers to one of America’s oldest corporations. in-source advanced technical development.

Owning system innovation is also a form One of its four entrepreneurial centers opens of entrepreneurship. Avnet, Inc.’s RESULTS in Chandler this year with 1,000 employees. program instills entrepreneurial spirit through It functions as an innovation enterprise within the entire organization. Derinda Ehrlich, vice president of Global Operational Excellence, one of America’s oldest corporations. says that the enterprise ideas become best practices, solutions to operational problems and improvements in customer service. “The best entrepreneurial ideas come from the people in your business. There’s no one who understands innovations and solutions better than the person who does the work,” she says.

Although not a research and development company, Avnet grows its business with an entrepreneurial system aimed at harnessing innovation. RESULTS implements solutions to problems identified by any employee. Ehrlich says that the program increases efficiency and reduces costs — a simple change in floor plan saved the company three million steps per year, the same distance as walking from Phoenix to Chicago. While an employee at any level can generate the idea, the prototype

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must be “sold” to department managers. Just as if a product were being developed, there is a budget and a third-party audit for vetting.

The future of Arizona’s economy relies on building effective clusters in diverse business segments. Policy leaders learned painfully that over-reliance on one sector’s jobs is devastating if that sector’s economy falters. At the same time, it became apparent that the difference between small business and entrepreneurial enterprise is the measure of the Valley’s longterm economic health.

In the 2013 SRP Forum last month, IO.INC CEO Ioanna Morfessis, Ph.D., said that Arizona’s economy can grow best when it keeps building business within its strongest market sectors. The research company’s The importance of the new entrepreneurial study for the East Valley Partnership found enterprises is, as they grow, they are that the Phoenix market’s most sustainable building the work force in each market job clusters are advanced business services; sector and adding to Arizona’s already highly advanced manufacturing and semiconductor manufacturing; aerospace and defense trained work force. The entrepreneurial manufacturing; biomedical, life sciences and growth adds muscle for ACA and GPEC when biotechnology; and communications, clean they pitch a company looking at relocation. technology and information technology.

When companies laid off workers, some new businesses were started by the formerly employed, and these generally reflected the fields in which “The biggest opportunity for a growing business in Phoenix,” says those individuals had worked. Many new businesses were started by Brandon Clark, “is writing your own playbook. Nothing is defined, and entrepreneurs deciding that there was opportunity to be their own the new start-up leaders are crafting the story for the next 20 years.” bosses and visionaries in their sector. These new businesses are the seeds Arizona Commerce Authority azcommerce.com of Arizona’s growing sustainable market clusters.

Arizona TechCelerator aztechcelerator.com “It’s a golden triangle,” says Isenberg. “Entrepreneurs need cash, Avnet, Inc. avnet.com customers and people.” The Arizona ecosystem connects entrepreneurs Babson College babson.edu to capital. Locating near similar businesses provides a well-qualified BioAccel bioaccel.org work force. At the same time, locating within the clusters provides Innovations Incubator chandleraz.gov access to potential customers or partners.

Co+Hoots cohoots.com Entrepreneurs start developing new ideas, improving old ones, and East Valley Partnership evp-az.org Edson Student Entrepreneurial Initiative studentventures.asu.edu innovating to distinguish their positions in the marketplace. Using the Gangplank gangplankhq.com market ecosystem and resources, these businesses are growing and hiring.

Greater Phoenix Economic Council gpec.org Some grew from a couple employees to a dozen in a matter of months; IO.INC ioworldwide.com others are looking at the magic number 20 as an end-of-year goal.

Kauffman Foundation kauffman.org The importance of the new entrepreneurial enterprises is, as they Mesa Technology Accelerator mesaaz.gov grow, they are building the work force in each market sector and adding Office of Knowledge Enterprise Development asuresearch.asu.edu to Arizona’s already highly-trained work force. The entrepreneurial Seed Spot seedspot.org growth adds muscle for ACA and GPEC when they pitch a company SkySong skysongcenter.com looking at relocation, “Yes, you can succeed here. We have the stories to Startup Arizona s.co/region/arizona prove we know how.”

U.S. Small Business Administration sba.gov INBUSINE SSMAG.COM

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ENTERPRISE

RISKS & REWARDS

Spot Business Opportunity in Tomorrow’s Economy And avoid the mistakes that quash corporate innovation

by G. Michael Maddock and Maria Ferrante-Schepis SOME OF TODAY’S largest, most recognizable companies may not be around after the next several years. To succeed, company leaders must not only be able to innovate, they must recognize opportunity and ensure they’re poised to seize it. Napster’s impact on the music industry is an example of the need to be alert to opportunities in innovation.

Napster was a rule-breaking company that paved the way for iTunes and the complete disruption of the music industry. When someone who has no business being in your business comes along and puts you out of business, we call that a “Napster Moment.” And Napster Moments are happening more and more often.

In a recent radio interview, hit maker and former Sony CEO Tommy Mottola (think: Mariah Carey, Celine Dion and Beyoncé) said that seasoned record execs saw Napster as a “mosquito unworthy of swatting,” and in hindsight realized that if they had just purchased the company, they would have “beaten iTunes to the punch.”

With years of experience and published titles in this realm, we explore “opportunity” and “innovation” in practical terms. A starting point for business leaders is to get organized to innovate by focusing on the following considerations: Balancing act — In every innovative culture, there are two primary personalities in leadership: the “idea monkeys,” who have no shortage of great ideas but do not have the follow-through to see a project to completion, and the (ring)leaders, who specialize in execution and managing details. Every great enterprise needs a “yin” for a “yang” — Walt Disney had Roy Disney, Steve Jobs had Steve Wozniak, Wilbur Wright had Orville Wright. Ideally, an innovator needs a (ring)leader at his or her side, and vice versa. Too much of one of these personalities spells disaster for any organization, and a company’s leadership must be humble enough to understand this.

Laughter (more than stress relief) — As a response to humor, laughter is uniquely human; as far as we know, no other living thing

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can laugh. In business, laughter is the antithesis of fear. It is impossible for a person to innovate effectively if he or she is afraid; nothing kills great ideas like fear. Fun-loving environments where workers are free to laugh are healthy places for creativity. And it’s not just a mood; if a lot of people laugh at an idea, there is usually a meaningful insight there worthy of much deeper exploration.

Failing forward — History is filled with people who risked and lost much, yet went on to change the world. From religious leaders to Christopher Columbus to Winston Churchill to today’s budding entrepreneurs, learning how to efficiently experiment and learn is key to innovation success. Companies too afraid to fail cannot embrace the risk-taking that is inherent in innovation.

Be ruthless — Ultimately, the buck stops with leadership, and managers get the team they deserve. Most well-adjusted people do not like firing employees; however, people stuck in the “victim” mindset are incapable of innovation. Why? Because they are always looking for fault or blame instead of possibility. Leadership needs a team of creators, not a team of victims.

Outside the jar — There’s a great saying in the South: “You can’t read the label when you’re sitting inside the jar.” A person who has been at the same company for longer than six months is likely in the jar. Their response to new ideas is typically, “We’ve tried that and it didn’t work”; or “Yes, but…”; or silence; or even a dumbfounded, “Huh?” Fortunately, there are several ways to get one’s head outside the jar: Accept ideas from junior personnel, seek perspectives from different departments, and switch up leadership roles — for instance, have a senior marketer switch from retail to manufacturing for a period of time. Most important, infuse perspective from outside the industry. Diversity is the key to a fresh perspective; expertise alone can kill a company.

To echo Harvard Business School professor Theodore Levitt back in 1960, “In every case, the reason growth [in business] is threatened, INBUSINE SSMAG.COM

BOOKS slowed or stopped is not because the market is saturated. It is because there has been a failure of management.” Many of the world’s biggest companies are simply riding on inertia. The biggest breakthroughs in the history of business — and the history of the world — are never the result of conventional thinking.

Don’t be bound by myths that hamper corporate innovation.

The preference of four out of five dentists doesn’t necessarily matter. Many years ago, when our firm consulted with Procter & Gamble to develop new oral healthcare products, Crest was recommended by most dentists. However, it turns out the market had shifted; consumers became more interested in bright smiles than healthy gums. Many industries make the mistake of getting their insights from their own experts rather than asking the consumer.

Giving all your love to those who already love you is shortsighted. In the interest of preserving customer morale, too many companies focus on those who already love their service. But that’s not what companies need to work on; they need to focus on what’s not working in order to improve. The haters very often offer welltargeted insights that can tremendously improve products, customer service and/or operations.

“We tried that idea. It didn’t work.” What idea, exactly? People who are in the jar interpret new ideas based on how they last saw them.

Business leaders may think they’ve tried or tested an idea, but if they applied it in a conventional way, the way it’s always been used, they haven’t really tried it. Consider the term “auction”: In-the-jar thinkers envision Sotheby’s and not the more practical and innovative eBay. Trying to impress with insider jargon can backfire.

Communication is a huge part of innovation. Policies in the health-insurance industry, for example, include language that may make sense to insiders but say nothing to the average middle-class customer, which is prohibitive. Companies need to be very careful about the language they use. In this case, “voice of the customer” should be taken literally. Customers recognize, respond to and build from their own words more than from a business’s.

More hours at the desk and in the office may not be the best way to get the job done. Doubling down on what already has not worked is not innovative. It helps to get outside the office and act like an anthropologist — spending time with customers and bringing an expert interpreter and a couple members of the team. It will be eye-opening to compare notes and discover how differently each sees the situation.

It’s hard for someone who has been inside one business or industry for a long time to see a need and invent a way to fill that need.

Recognizing those needs requires stepping outside of the jar and viewing things from the outside.

Maddock Douglas, Inc. maddockdouglas.com

G. Michael Maddock is the founding partner and CEO of leading innovation agency Maddock Douglas, Inc., which has helped more than 25 percent of Fortune 100 companies invent, brand and launch new products, services and business models. Co-author of Free the Idea Monkey with Maddock Douglas president Raphael Louis Vitón, Maddock is a serial entrepreneur who has launched four successful businesses and co-chairs the Gathering of Titans Entrepreneurial Conclave at MIT. Maria Ferrante-Schepis, who co-authored Flirting with the Uninterested with G. Michael Maddock, is a veteran in the insurance and financial services industry who now consults with Fortune 100 companies such as GE as Maddock Douglas, Inc.’s managing principal of insurance and financial services.

INBUSINE SSMAG.COM

BETTERING BUSINESS

Out Think: How to Lead a Culture of Results-Driven Innovation FROM CEOS TO marketing departments, company leaders are searching for ways to leap-frog their businesses to the leading edge, imprint their brand on the public consciousness, and become more relevant to the ever-changing global marketplace — to transform their businesses into 21st-century competitive game-changers. Out Think explains how to stand out, to express creativity and lead companies into the creative age.

Shawn Hunter $29.95 • John Wiley & Sons, Inc. • August 2013

Compelling People: The Hidden Qualities That Make Us Influential DRAWING ON CUTTING-EDGE social science research as well as their own work with Fortune 500 executives, members of Congress and Nobel Prize winners, the authors demystify the process we use to size each other up. It turns out that we judge each other primarily on two critical criteria: strength and warmth. The authors explain the inner workings of each, the tension that makes it so hard to project both at once, and the successful strategies that the most admired among us use to win respect and affection.

John Neffinger and Matthew Kohut $25.95 • Hudson Street Press • August 2013

The Chaos Imperative: How Chance and Disruption Increase Innovation, Effectiveness, and Success IN THE CHAOS Imperative, organizational expert and bestselling author Ori Brafman shows how even the best and most efficient organizations, from Fortune 500 companies to today’s U.S. Army, benefit from allowing a little unstructured space and disruption into their planning and decision-making. The authors reveal how organizations can drive growth and profits by allowing contained chaos and disruption the space to flourish, generating new ideas that trigger innovation.

Ori Brafman and Judah Pollack $24 • Crown Publishing Group • August 2013

The Rise of the Naked Economy: How to Benefit from the Changing Workplace THIS BOOK SHOWS readers how to achieve both personal and professional success in an economy that does not guarantee lifetime employment by covering how the rise in non-traditional employment calls for a new infrastructure, strategy and attitude for workers, companies and communities alike. Through interviews with the people, companies and policymakers who are leading the change and already profiting from it, The Rise of the Naked Economy provides an optimistic, humorous and inspirational vision for readers who want reclaim their lives and livelihoods.

Ryan Coonerty and Jeremy Neuner $28 • Palgrave Macmillan • On shelves and online

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NONPROFIT

by RaeAnne Marsh

ACTIONS TO BUILD COMMUNITY

United Food Bank: Provisions for East Side Pantries

INCORPORATED IN 1985 as United Food Bank, the food distribution center had begun two years earlier as United Food Distribution Center to support the many food pantries on the Valley’s East Side. “It was a combination of various [municipal] United Ways that existed back then and civic leaders who came together when folks in the East Valley decided we needed some help out here,” says SNAPSHOT Robert Evans, United Food Bank CEO, explaining there were food banks that served other parts of the One of four organizations in Arizona that serve the state as part of the Feeding Valley but on the East Side “a lot of organizations and America Network, United Food Bank serves southern Apache, Gila, eastern food pantries were running out of food.”

Maricopa, Pinal and Navajo counties.

United Food Bank now works with about 270 agencies The organization has a staff of 30, who are assisted by volunteers who and sites. “We supply all or most [of the food] for their contribute a total of about 50,000 hours per year. food assistance programs,” Evans says. The amount Handling the food requires a lot of hands-on work, CEO Robert Evans explains, as distributed in the fiscal year that just ended in June was everything must be inspected to make sure containers are not compromised and an all-time high of more than 21 million pounds of food then sorted into the categories by which the partner organizations can order it.

— the equivalent of 17,500,000 meals, or food for nearly The organization’s annual budget is $4.2 million.

48,000 meals every day for a full year.

In addition to grants and being the beneficiary of fundraising events by others, It’s a year-round need, Evans emphasizes. “We become United Food Bank holds two fundraisers each year: Gourmets for Food, a tasting very popular in November and December. But ‘hungry’ event with local chefs held in the fall, and, in the spring, a breakfast held in the is 24/7/365; we need help in July and August, too.” warehouse facility that Evans calls more of a “friend-raising” event that lets

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people see the facility.

United Food Bank unitedfoodbank.org

ONE OF FEW voluntary health organizations that still provide direct financial support to the people it serves, according to Executive Director Jim Brewer, The Leukemia & Lymphoma Society helps cancer patients pay for their drugs and also advocates for issues that include addressing the high cost of cancer drugs. “Some drugs can cost as much as $3,500 per month, out of pocket — with insurance,” Brewer says.

SNAPSHOT The Arizona chapter just finished its first year as a single-state chapter, after having been in the Desert Mountain States Chapter with The Arizona chapter of The Leukemia & Lymphoma Society serves parts of Nevada and Utah since 1963. Being an Arizona-only chapter, about 21,000 people; 2,000 new patients are diagnosed every year. says Brewer, “allows us to focus on patients and engaging with the Blood cancer is the No. 3 cause of cancer mortality, affecting ages community for fundraising — to be part of the local community.” from pediatric to the elderly, and Leukemia is the No. 1 cause of The organization invests heavily in blood cancer research; there cancer deaths among people younger than 20. is currently no prevention and no early detection. Patient-directed The organization relies on fundraising events, donor development services include First Connection, which pairs a newly diagnosed and some grants for its revenue; it gets no government support. patient with a local peer volunteer who has been through treatment Among its many fundraising events are Team In Training, a sports for that specific disease, and Staying Connected, which helps train training program that works with athletes of all levels to train for school personnel as well as parents to help children coming back to endurance events around the world, and School & Youth Programs a school environment while undergoing what is often two to three such as “Pennies for Patients,” which includes a science and math years of treatment. curriculum “so there can be some lessons around what the kids are

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raising money for,” Brewer says.

■■ Hundreds of volunteers augment the core support staff of 14.

The Leukemia & Lymphoma Society – Arizona lls.org/aboutlls/chapters/az

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 an upcoming fundraising event.

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Photos courtesy of United Food Bank (top), Leukemia & Lymphoma Society (bottom)

The Leukemia & Lymphoma Society: For Patients, for Research

WWW.INBUSINESSMAG.COM

July 2013

ON THE AGENDA

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.

Human Capital Strategies

Tempe Chamber of Commerce

CARES Series: ‘The Genius Is in the Process, or Should Be’

Hot Topics and Lunch: ‘Social Media & Internet Risk Management: Are You Exposed?’

Photo courtesy of Jay Mark

Fri., July 12 — Noon – 2:00p GENIUS SHOULD BE in the process, maintains Scott Sandberg, who will be presenting the program at this month’s seminar from Human Capital Strategies — but he finds it seldom is. “The only business asset that a company has is its operations process,” he says, offering franchises as an example (“What do you really get when you purchase a franchise?” he asks. “Their process.”).

Noting that a business’s key functioning is usually reliant on the controller or operations manager or owner, Sandberg says, “The vulnerability of that is astounding.” The seminar, which will be held at SkySong in Scottsdale, is designed to provide tactical instruction on getting a company’s process down into usable format.

Sandberg, manager of education and development at Human Capital Strategies, puts together the monthly program aimed at bringing Fortune 500-level training to the small-business community. Observing, “The best facilitators are great showmen, very good at mixing humor and interest and content,” he invites top-notch trainers and authors to share the topic they are most passionate about while he focuses on ensuring the messages are “classically applicable to small-business owners.” And this month’s topic being one he is passionate about, he shares that he has been especially looking forward to presenting the seminar.

The seminar is part of the monthly Creating A Rewarding Educational System (CARES) series that HCS presents and to which Sandberg brings his understanding of the psychology of training. “If behavior hasn’t changed, then learning hasn’t taken place,” he states. “Every one of our courses in designed to be tactical enough to actually change behavior, not just entertain.”

Partnering with HCS to help present the programs — which are free to attend — are Growth Nation, Arizona International Growth Group, Gateway Community College’s Center for Entrepreneurial Innovation, and Snell & Wilmer. Each session starts with a lunch, provided by HCS, then the presentation begins at 12:15.

—RaeAnne Marsh

Thurs., July 18 — 11:30a – 1:00p THE TEMPE CHAMBER of Commerce’s “hot topic” presentation this month addresses social media and Internet policies in the workplace. “There’s a lot of new ground people haven’t considered before — such as personal devices,” says Sean Donovan, VP of media and program development at the Tempe Chamber, observing there may be issues people aren’t aware of and it’s important to keep up to date because not playing by the rules can pose risks to both individuals and the company. The event will be held at Four Points, 1333 S. Rural Road in Tempe.

The session will be broken into three 15-minute presentations, with Q&A after each. Part I, “We Want the Airwaves – BYOD and Internet Access Policies,” will be presented by Barry Johnson, risk manager with ManageStaff, Inc., a Tempe-based professional employer organization that provides integrated human resources outsourcing services. In Part II, “Your IT Department and Compliance Issues,” representatives from accounting firm Ernst & Young will cover IT compliance issues on the various programs and devices that employees are using. For instance, explains Donovan, there can be firewalls on computers, but on an iPhone — which is personal property — there are no physical restrictions. Part III, “Legal Responsibilities and Employer Obligations,” presented by Lori Higuera, a partner with Fennemore Craig, P.C., will cover legal responsibilities and employer obligations. Examples of situations employers may need to address include seizing an employee’s personal LinkedIn account when he or she leaves the company and deleted records of text messages of trade secrets — even when that deletion is on the employee’s personal phone.

TCC’s Hot Topics and Lunch is sponsored by SRP. Registration for members is $25 in advance, $30 the day of the event; for non-members, $35.

—RaeAnne Marsh Tempe Chamber of Commerce tempechamber.org

Notable Dates This Month Thurs., July 4

Independence Day

Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.

Human Capital Strategies hcscando.com

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ON THE AGENDA AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE Ahwatukee After 5 Evening Mixer Wed., July 17 5:30p – 7:00p

Members: $5; guests: $15 San Tan Ford 1429 E. Motorplex Loop, Gilbert ahwatukeechamber.com

SCORE One-on-One Business Counseling

Thurs., July 18 9:00a – noon; call for appointment

Free Ahwatukee Chamber of Commerce 4435 E. Chandler Blvd., Phoenix (480) 753-7676

Candidate Forum Wed., July 24 6:00p – 7:30p

Candidates seeking to represent District 6 will address a wide variety of issues that affect our community’s sustainability and livability.

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

ARIZONA INTERNATIONAL GROWTH GROUP “Sustainability and Solar at Greekfest” Mon., Aug. 5 11:00a – 1:00p

Annual lunch; Speakers to be announced. $37 Greekfest Restaurant 1940 E. Camelback Rd., Phoenix growthnation.com/azigg

ARIZONA SMALL BUSINESS ASSOCIATION Grow Your Business with Email and Social Media Tues., July 9 10:00a – noon

Learn how to make the most of the important combination of email and social media for your business. We’ll also cover what a “campaign” is, and what to write about and offer in the campaign.

Presented by Leap Innovation.

Free ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com

Fast and Curious Speed Networking™ Tues., July 9 3:00p – 4:30p

A fun, fast-paced format of networking that allows you to meet other businesses at 3-minute intervals.

Members: free; non-members: $25 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com

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JULY 2013

ARIZONA TECHNOLOGY COUNCIL VIP Networking Event: Hosted by Cancer Treatment Centers of America Thur., July 18 5:00p – 7:00p

Network while learning more about the Centers, which focus on complex and advanced-stage cancer.

Members, $15; non-members, $25. Food and drink are included.

Cancer Treatment Centers of America Western Regional Medical Center 14200 W. Fillmore St., Goodyear aztechcouncil.org

CENTRAL PHOENIX WOMEN Breakfast

Wed., July 17 7:30a – 9:00a.

Speaker: Courtney Klein Johnson, cofounder of SEED SPOT, on “The Power of a Generation.” $75 per person The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

CHANDLER CHAMBER OF COMMERCE Start-Up Lab

Tues., July 9 2:00p – 3:00p

The Start-Up Lab has various sessions that offer a unique program that uses real life examples of business problems and shows how using technology can help solve those problems. This will help small businesses grow and succeed. We provide the tools to research and address the challenges that start-ups face every day.

Free Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler chandlerchamber.com

Workshop: Crowd Funding Thurs., July 18 3:00p – 5:00p

Learn the key components of crowd funding and how to get the most out of networking with others. $25; veterans with vetsfastlaunch.org: free Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler chandlerchamber.com

Business After Business Thurs., July 18 5:00p – 7:00p

Meet new Chamber members, make business contacts, and get a chance to win the “Chamber Cash Pot” sponsored

by Thorobred Chevrolet.

Members: $5; non-members: $15 Outback Steakhouse 2520 W. Chandler Blvd., Chandler chandlerchamber.com

GREATER PHOENIX CHAMBER OF COMMERCE Professional Women’s Alliance Panel: Women Lead: Conceive It, Believe It, Achieve It Tues., July 9 11:00a – 1:00p

Interactive event presented by the Greater Phoenix Chamber of Commerce and University of Phoenix featuring five executive women leaders who will provide unique personal and professional insights on career paths and leadership in their fields. Receive a complimentary copy of Women Lead: Career Perspectives from Workplace Leaders.

Panel: free. Lunch: Members $15; nonmembers $25 National Bank of Arizona – Arizona Biltmore Circle Conference Center 6001 N. 24th St., Phoenix Amanda Ellis, (602) 495-2194

Valley Young Professionals CSI Experience Tour Thurs., July 11 5:30p – 7:00p

An exciting and fascinating look behind the scenes at the Phoenix Police Crime Lab. Real-life forensic scientists will reveal their secrets as you take a tour of the lab, see the techniques that help solve crimes and even try your hand at black powder processing.

GPCC and VYP members: free; non-members: $20 Phoenix Police Department Crime Lab 621 W. Washington St., Phoenix (602) 495-6479

Business Showcase Thurs., July 25 7:30a – 9:00a

Visit a variety of tabletop displays, make new business connections and enjoy a light breakfast.

Free Paradise Valley Mall Food Court 4568 E. Cactus Rd., Phoenix Amanda Ellis, (602) 495-2194

MESA CHAMBER OF COMMERCE Grow Your Business – Leadership Leverage Tues., July 9 11:30a – 1:00p

The Growth Coach and Business Expert, Wayne Pratt, will explore ways to help you get more focused on those things that bring success.

Members: $15; non-members: $25 Waxie Sanitary Supply 4136 E. McDowell Rd., Mesa (480) 969-1307 ext. 12

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS “The Power of Mentoring” Wed., July 10 10:45a – 1:00p

Moderator: Victoria Trafton. Panelists

include: Rena Huber, director of the APS Academy for the Advancement of Small, Minority and Women Owned Enterprises; Eileen Rogers, award-winning business owner of Allegra Marketing and Print and Athena award winner.

Members: $38; non-members: $48; after July 5: add $15 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

NORTH PHOENIX CHAMBER OF COMMERCE Business Resource and Networking Luncheon Tues., July 9 11:30a – 1:00p

Our nonprofit member charities will speak about the good work they are doing and our Philanthropy Committee will share ways the community can help support. Luncheon sponsors: C & R Tire and Automotive, and Paradise Valley Community College.

Members: $15; non-members: $20; after July 5, all: $25 Stone Creek Golf Club 4435 E. Paradise Village Pkwy. S., Phoenix bit.ly/11pyyIV

SCOTTSDALE AREA CHAMBER OF COMMERCE Business Owners Forum Thurs., July 11 8:00a – 9:00a

Moderated by SCORE Free Scottsdale Area Chamber of Commerce 7501 E. McCormick Pkwy., Scottsdale Kelly Rich, krich@scottsdalechamber.com

A.M. Connect

Thurs., July 18 7:30a – 9:00a

Members: free; guests: $20; at the door: add $5 Maggianos Little Italy 16405 N. Scottsdale Rd., Scottsdale Nikki Hoffman, nhoffman@scottsdalechamber.com

SURPRISE REGIONAL CHAMBER OF COMMERCE Networking Breakfast Tues., July 9 7:00a – 9:00a

Members: free; non-members: $6 The Colonnade at Surprise 19116 Colonnade Way, Surprise Mary Orta, (623) 583-0692

Business Education Seminar Fri., July 26 8:30a – 10:00a

Presented in partnership with Greater Phoenix SCORE. As always, in addition to great training, there will be a continental breakfast, prizes given away and great networking before and after the presentation.

INBUSINE SSMAG.COM

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

Communiversity @ Surprise 15950 N. Civic Center Plaza, Surprise Mary Orta, (623) 583-0692

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

Learn the art of relationship building.

Members: $25 in advance, $30 day of; non-members: $35 Lucky Break 1807 E. Baseline Rd., Tempe Sachiyo Spires, sachiyo@tempechamber.org

Hot Topics and Lunch: Social Media & Internet Risk Management: Are You Exposed?

Thurs., July 18 11:30a – 1:00p

A panel of experts will address social media policies in the workplace, Wi-Fi regulations and responsibilities, BYOD (bring your own device) policies, IT responsibilities and legal obligations of the employer. Sponsored by SRP. Members: $25 in advance, $30 day of; non-members: $35 Four Points 1333 S. Rural Rd., Tempe Sachiyo Spires, sachiyo@tempechamber.org (See article on page 33.)

WEST VALLEY WOMEN 8th Anniversary Luncheon Tues., July 9 11:30a – 1:00p

$35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org

WOMEN OF SCOTTSDALE Luncheon

Fri., July 19 11:30a – 1:00p

$35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org

OTHER BUSINESS EVENTS Arizona Association for Economic Development Luncheon Tues., July 9 11:00a – 1:15p

Jane Morris, A.A.E., executive director of Phoenix-Mesa Gateway Airport, will discuss Phoenix-Mesa Gateway Airport’s economic impact on the region.

Members and their guests: $40 by July 5, $50 after July 5; non-members: $50

statewide exposure to • Gain thousands of business owners exclusive discounts on • Access business and insurance services • Magnify your voice in public policy

Phoenix Country Club 2901 N. 7th St., Phoenix aaed.com

“Global Services Cultural Consulting Elite”

The Dimensions of DISC

Two-day workshop by Lamson Consulting on building your crosscultural business, accelerating your ability to brand, strategize, market and sell cross-cultural consulting services.

Learn easy steps to win more business and establish yourself as a thought leader in the intercultural field. Half-day workshop available on Sat., July 13. $1,150 Location TBA lamsonconsulting.com

Thurs. & Fri., July 11 & 12 9:30a – 5:30p

Tues. – Thurs., July 9 – 11 6:00p – 8:30p

The major objective for this program is to develop a deep understanding of the social styles model. Participation in the first session is mandatory to register for subsequent sessions.

Session 1 – DISC and Managing Business Relationships Session 2 – DISC and Communication Session 3 – Influence: Gaining Commitment and Achieving Results $35 for session 1, $20 for sessions 2 and 3 Center for Entrepreneurial Innovation 275 N. Gateway Dr., Phoenix (602) 286-8950

Business Professionals Breakfast Mixer Thurs., July 11 8:30a – 11:30a

Each month, a featured guest speaker presents on a business subject. Microsoft offerings and products are evangelized to the attendees.

Free Microsoft Store at Scottsdale Fashion Square 7014 E Camelback Rd., Scottsdale (480) 308-0800

“The Genius Is in the Process, or Should Be” Fri., July 12 Noon – 2:00p

HCS CARES series presented by Growth Nation and Human Capital Strategies.

This month’s topic is on the benefit of a company keeping a written description of the habits, practices and mindset that underlie performance of job functions.

Free SkySong 1475 N. Scottsdale Rd., Scottsdale growthnation.com (See article on page 33.)

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asba.com | 602-306-4000

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COMMUNICATE

LOUDER THAN WORDS

Facebook or Face Time? Communication Approach Matters For relationship-building, the personal touch is more effective than pixels on a screen

by Michael Houlihan TECHNOLOGY HAS MADE many aspects of modern living more convenient and “connected,” but the pendulum has swung too far. This “technology takeover” is not without consequence. Misunderstandings abound. Relationships stagnate. Trust is at an all-time low. And all of these issues are at least partially due to the fact that genuine human connections are becoming a thing of the past, replaced by mouse-clicks and keystrokes.

Face-to-face meetings are how my partner Bonnie Harvey and I bootstrapped our Barefoot Cellars wine company from its laundryroom beginnings to the successful brand we sold to E&J Gallo. I can’t say how many retailers, suppliers and potential customers I visited in person during those early years; what I can say is that I would have never gotten satisfactory results if I had tried to build those relationships via email and social media. People don’t just buy your product; they buy you. Now, as business consultants, we’ve seen this truth proved in the many different companies we work with.

Those who make the time necessary for personal meetings — if not in person, then via Skype or, at the very least, on the phone — find others will not only remember them but will appreciate the effort put forth.

The time investment shows you really care. It’s a fairly universal truth that human beings want to be valued and appreciated. Spending time with someone else is one of the best ways to convey these things.

Minutes and hours spent with another person have the power to create a bond that money can’t buy. Plus, visiting someone repeatedly over a period of time can also provide valuable non-verbal clues to his or her values and concerns.

You’re better able to give personalized attention. This is perhaps the biggest key to successful sales and the establishment of any long-term relationship. When you use someone’s name along with eye contact and an attentive demeanor, they’re more likely to be agreeable and to give you the benefit of the doubt. They know that your time is valuable and that you chose to give it to them. The next time they see you, they will be more relaxed and familiar in your company. And the more visits you have, the more your relationship with that individual strengthens.

You’re more effective in general. When you’re talking to someone else in real time, you can make progress in real time and solve problems in real time. Thanks to facial expressions, body language and tone of voice, you’ll usually find out more than just the basics when you have a verbal conversation. In fact, if you’re really observant, you may notice things about the other company or clients they themselves aren’t even aware of!

Facial expressions, body language and tonality help get your message across. Did you know that the human face has at least 20 muscles that work in concert to create a myriad of telling facial expressions? Observing those expressions during verbal communication can give you instant feedback about how your message is being received.

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Similarly, and unlike looking at a posed profile shot or any still image sent over email, being face-to-face with another person gives you the opportunity to see the other person’s dynamic reaction and make adjustments to your own message. Real-time body language provides tons of non-verbal cues that are impossible to convey in a text or email.

Words themselves can have very different meanings based on the tone, inflection and emphasis the speaker gives. It’s much easier to “get” intentions behind the spoken word than through text or email.

And if the other person sounds reluctant, uncomfortable or guarded, for instance, you can take advantage of the opportunity to ask why and discuss ideas that might never have been brought forward over email.

With these in-person cues, you can quickly adjust your message on the spot to make it more meaningful or agreeable, and avoid possible misunderstandings.

Your vulnerability shows (and that’s a good thing!). In the virtual world, you can almost totally control the image you show to other people. But in a real-time, face-to-face relationship, the other person can see you in 3-D and observe your dynamic, spontaneous behavior.

The other party sees your human imperfections and vulnerability, which make you appear more believable and sincere. This can be a big advantage in the long run. And in the short run, you take precedence over all the other person’s virtual relationships.

A relationship can start through text, email or social media; entrepreneurs and other businesspeople should utilize those resources. But in order to be lasting and dependable, a relationship has to grow in person.

Barefoot Wine Founders barefootwinefounders.com

Michael Houlihan and Bonnie Harvey, authors of The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand, started the Barefoot Wine brand with virtually no money and no wine industry experience, employing innovative ideas to overcome obstacles and create new markets. They now share their experience and innovative approach to business as consultants, authors, speakers, mentors and workshop leaders.

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Meet in the boardroom.

Connect on the fairway.

Omni understands Meet. Golf. Connect. Repeat. Do it all and more at the award-winning Omni Tucson National Resort.

520-297-2271 • omnihotels.com/thinktucson

Š2012 Omni Hotels & Resorts

FOCUS

OUR SUBJECT IN-DEPTH

Due Diligence as Partnership In successful M&As, both buyer and seller win

by Otta Ramos and Dan Avery AS THE ECONOMY picks up, so does mid-market merger and acquisition activity. Yet successful deals remain elusive. According to a wide array of respected industry studies, the failure rate of M&A deals ranges between 70 and 90 percent. Even the most upbeat research shows M&A success as a 50/50 proposition at best — daunting odds for such a high-stakes venture.

The good news is that buyers and sellers can dramatically improve those odds and control their respective destinies by approaching due diligence in a spirit of partnership. Think of it as enlightened selfinterest: Ultimately, both the buyer and the seller want to feel they got a good deal. Even when the going gets tough — maybe especially when it does — both parties will benefit from understanding each other’s interests and remembering they’re in this together.

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Due diligence is a critical time for buyers who want to know what they’re getting into so they can confirm the value they see in the opportunity and make the right decisions to achieve it. As buyers plan for integration, they value the seller’s insights and participation in the process.

Sellers want the best possible price for the business they’ve built.

Most care about creating a positive outcome for their employees who will be making the move. During due diligence, the seller can influence both the value of the deal and a soft landing for employees by demonstrating the value of those people and their willingness to contribute to a smooth transition.

In many transactions, buyers and sellers remain connected for a period of time through a Transition Service Agreement. This critical phase in a merger can be contentious or cooperative. Either way, it will INBUSINE SSMAG.COM

impact the ultimate success and the realized value of the transaction for both parties.

For all of these reasons and more, buyers and sellers will get their deal off to the right start by putting themselves in each other’s shoes. It pays to know and respect what makes a deal attractive to the other party.

What Buyers Are Looking for, and Why From the buyer’s point of view, due diligence is not only about legal risk and financial modeling. It also sets the stage for integrating the business to capture value as quickly and cost-effectively as possible.

Buyers can improve the chances of getting the information they need by making clear, direct information requests that give sellers ample time to respond. Sellers can show good faith by being timely, thorough and straightforward in recognizing the buyer’s needs to: ■■ A ssess the challenge and cost of achieving synergies. Synergies are often the initial drawing card for a deal. An acquisition may lead to new buying power and economies of scale. Right now, many M&As are taking place in healthcare to achieve such synergies. Buyers may also gain operational synergies, such as the ability to combine two Enterprise Resource Planning systems (enterprise systems that generally support core functions that include financials, procurement, human resources and asset management) into one.

Revenue synergies can be substantial due to new customers and cross-selling opportunities. Most synergies are not automatic. In addition to assessing their value, buyers need to determine what it will take to achieve them.

■■ Get a handle on all integration costs. Because the costs of integration can affect the economics of the deal, buyers need these numbers as early as possible. All one-time costs related to the integration should be identified, including costs to achieve synergies, reduce dis-synergies and mitigate integration risks.

What will it cost to integrate IT systems? Will marketing or travel budgets need to be increased to achieve some of the market-facing synergies? Will dis-synergies cause some operational costs to increase, or revenue to decrease? This analysis should include the costs of mandatory integration tasks, such as integrating financial reporting. It should also cover the legal, accounting and other consulting services related to integration.

■■ Get integration risks out on the table. In order to determine integration costs, buyers need a clear-eyed appraisal of integration risks. What could go wrong? Risks may range from business disruption to loss of customers and key employees, culture clash, productivity declines and delays in realizing synergies. Now’s the time to identify the risks, quantify them as much as possible, and develop mitigation plans.

■■ C onsider the impact of culture. M&A deals create one company from two cultures, each with its own strengths, weaknesses and idiosyncrasies. Buyers need to assess the culture gap between the two companies and incorporate their findings into their integration strategy and change management plans.

Buyers can learn a lot about culture during due diligence. For instance, knowing how people are compensated gives meaningful insight into incentives and behavior. Consider the value of cultural similarities and differences. Is there value in the differences? Or is it all INBUSINE SSMAG.COM

downside? Cultural misalignments may be difficult to quantify, but they can be just as important to consider as the latest P&L statement.

What Smart Sellers Do to Maximize Value Sellers can command the best price by seeing the deal through their buyers’ eyes. For a buyer, uncertainties mean higher risk. And higher risk requires higher returns, which take the form of a reduced purchase price.

Sellers can reduce risk and maximize the value of their enterprise by being a good due diligence partner by planning to: ■■ A nticipate and prepare operational information and metrics.

First impressions matter. The simple act of showing up with the readiness to address the buyer’s wants and needs can increase the value of the business. If the seller is a “small fish” being acquired by a larger company, a high level of professional preparedness can elevate the profile of the business in the buyer’s eyes.

Sellers should put themselves in the buyer’s shoes. Consider what they would want to know about how efficiently and effectively the operation runs. Anticipating the buyer’s needs will give the seller time to prepare and provide this information before it’s requested.

■■ Carve out the business to be sold early on. If only part of the business is being sold, the seller will profit from developing the stand-alone business model and cost structure well in advance of the sale. This added clarity during due diligence can lead to a better price by reducing buyer uncertainties, making the deal more attractive and simplifying the transition at the time of sale.

The seller can take early steps to separate product lines, financials, vendors and even physical business spaces so the entity can be uncoupled more easily later on. The more the seller does to separate the business in advance, the clearer its value to the buyer. The seller can attract a premium price when the buyer gets a modular piece of business that is a straightforward “plug and play.”

■■ Be forthcoming; get any bad news out early. Bad news is worse for everyone when it comes at the eleventh hour. If a lawsuit is pending or some other unsavory issue is going to come out sooner or later, make it sooner. The seller should be the one to bring it up and outline what’s being done to mitigate the risk. By being candid, transparent and thorough, the seller earns the buyer’s trust that there won’t be any unpleasant surprises later on.

Beat the Odds At the end of the day, M&A deals are negotiations, and negotiations can be tough. Of course, each party is expected to put its own interests first.

But those interests are often more entwined than companies might think.

When buyers and sellers enter due diligence in a spirit of partnership, they serve their own best interests, too. Life is long, and the aftermath of the deal can be dramatically affected by what’s gone on in the weeks and months leading up to it. Keeping the other party’s concerns and interests in mind throughout the due diligence process will increase the odds of success.

Point B pointb.com

Otta Ramos and Dan Avery are both senior associates with Phoenix-based Point B and specialize in leading buyers and sellers through a strategic process to maximize the value of their transactions. Point B is a management consulting and venture investment firm that combines industry and functional expertise with an ability to execute, and its capital group’s deep venture advisory expertise leverages the company’s broad network to drive portfolio companies’ growth and success.

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ASSETS

by Mike Hunter

WE VALUE WHAT WE OWN

2014 Buick Enclave: Safe Luxury THE NEW 2014 Buick Enclave is getting high marks for safety among other accolades for comfort, space and overall design. The car manufacturer has hit on a true success across the board with this latest version of what they call their crossover. We call it a full-sized SUV. While is has not been dramatically restyled or technologically reinvented, the 2014 has been engineered to be everything to all who drive it — making it hard to determine the key demographic that Buick was going after.

The 3.6L VVT V6 engine with direct injection (SIDI) boasts 288 horsepower and 270 poundfeet of torque. The All Wheel Drive (AWD) edition provides both the StabiliTrak and fulltime traction control systems that constantly monitor and help retain traction for a smooth ride regardless of the terrain. This year’s model is improved to include an innovative new powertrain system to achieve fuel efficiency — a selling point for all crossover vehicles that a bigger crossover doesn’t have to mean a bigger fuel budget.

The Enclave gets an EPA-estimated 24 mpg on the highway and 17 mpg in the city.

Soft-touch premium materials are used, making this a true luxury automobile. Heated and cooled leather seating, warm wood tones, brushed chrome accents and ambient lighting create a contemporary interior that is spacious and convenient. The Buick IntelliLink Infotainment System, voice commands for smartphone use and other audio options mean the latest technology is part of the package at the Premium Group level. Navigation and premium-sound Bose system are also well displayed on the dash with easy controls and steering-wheel connectivity.

All of the safety options are included at the Premium Group level as well. Buick Enclave’s newest addition to its already extensive list of safety options includes forward collision alert and lane departure warning systems. The front center air bag, which Buick was first to offer, and the side blind zone with rear cross traffic 2014 Buick Enclave alerts make this classy vehicle one of the safest on the road.

City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 sec Transmission. . . . . . . . . . . . . . . 6-speed automatic MSRP. . . . . . . . . . . . . . . . . . $48,315 (Top of the line)

Buick.com/enclave

A View to Remember STARING AT WORK all day, every day with a high-quality, large monitor can be like staring through the clearest of windows at a great view. Here are some of our picks to brighten up the day and the productivity of everyone who spends the workday at a computer.

THE DELL ULTRASHARP U3014

This beast was recently named as a top pick by PC Magazine. This 30-inch monitor is sharp and offers great color and detail with a wide ISP viewing angle.

A drawback may be its size, but once it is plugged in, users will be happy to see most work at 100 percent or larger. Great for spreadsheets.

MSRP $1499 dell.com

NEC MULTISYNC EA244WMI

The NEC MultiSync EA244WMi is a fullfeatured 24-inch business monitor that offers solid IPS performance without using much power and is priced to use in the executive suite or in all of the offices. Color is calibrated automatically and functionality is limited only by the size of this monitor.

MSRP $379 necdisplay.com

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INBUSINE SSMAG.COM

Photos courtesy of Buick (left), Dell, NEC, ViewSonic (left, top to bottom)

VIEWSONIC VG2437MC-LED

This ergonomic display is the ideal video conferencing solution, with integrated 2 megapixel webcam, MIC and speakers. The 1080p LED panel provides an incredibly sharp picture and video. It has many features and is energy efficient.

MSRP $312 viewsonic.com

by Mike Hunter

MEALS THAT MATTER

POWER LUNCH

Pizza Places that Please WHEN IS PIZZA not a great suggestion?

Here are some great lunchtime takes on this American concoction, a nearly universal favorite, that has been influenced by most cuisines around the world.

IL BOSCO PIZZA

Quaint and authentic, this pizzeria does all its pizzas wood-fired in an oven imported from Italy. Ingredients are creative and combinations of flavors are amazing, with self-rising dough, hand-made mozzarella and toppings that surprise in taste. Cannot miss this place.

7120 E. Becker Ln., Scottsdale (480) 335-8680 ilboscopizza.com

LA PIAZZA AL FORNO

This brick-oven pizzeria and Italian kitchen located in historic Glendale was born from family tradition and passion, serving pizzas just like the Old Country, using methods and recipes dating back years. Using homemade mozzarella, homemade dough and San Marzano tomatoes imported from Italy is the secret.

5803 W. Glendale Ave., Glendale (623) 847-3301 lapiazzaalforno.com

PIZZERIA BIANCO

Photos courtesy of Il Bosco Pizza (left), Del Frisco’s Grille (right)

It is hard to address great pizza without mentioning this world-renowned hot spot.

Authentic as they come, this little place has a big name for bringing fresh ingredients together to compose the greatest tastes and combinations one can consider.

623 E. Adams St., Phoenix (602) 258-8300 pizzeriabianco.com

Del Frisco’s Grille: Upscale Bar & Grille

SITUATED IN THE Esplanade at 24th Street and Camelback Road, this upscale eatery will surprise. It is all new décor from the long-lived Houston’s, whose space it now occupies. The wine room, open bar and roof-top patio are all elegant and comfortable, which adds to the atmosphere of “anything goes.”

Open for lunch and dinner, this well-groomed establishment is more about the great food than anything else. While service is impeccably well managed, the food is reason to return. Fresh ingredients with classic American cuisine at the ready, the dishes are tasty and plentiful. At lunch, the Cheesesteak Eggrolls are a delight not to pass up. Dip in sweet and spicy chili sauce to satisfy the taste buds. On the lighter side, the Seared Asian Tuna Salad is made with shaved Napa cabbage, arugula, mango, chilled noodles, toasted almonds, tomato and avocado tossed in a ginger-sesame dressing. The filet mignon and the salmon are favorites, but pastas and other savory dishes are served up to offer variety to all who dine here — even if it is multiple times per week. The Wedge, Caesar and Grille salads are all great lunch options on the side or as a main dish.

The atmosphere is fun and sophisticated with a well-placed bar and patio setting.

The roof-top patio presents the Summit Bar — great for private events — that is usually filled with a smart crowd and boasts views of Piestewa Peak and the Biltmore area. The main dining room offers both tables and booths with a view of the exhibition kitchen, and is open and airy despite the rich tones and modern art.

Del Frisco’s Grille 2425 E. Camelback Rd., Phoenix (602) 466-2890 delfriscosgrille.com/phoenix Il Bosco Pizza

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Small Business Industry Leaders

TOP

50

Growing Small Business in Arizona

Robert Blaney has served as the district director of the U.S. Small Business Administration for the State of Arizona since 1998. His varied experience includes work as a federal agent, police officer, vicepresident of an insurance brokerage and district director for the late Congressman Jack Kemp. He is a native of western New York and a graduate of the State University College of New York at Buffalo.

The pace of SBA-backed lending remains strong, providing capital to small businesses. More loans and more dollars were loaned in the first half of FY 2013 than the same period a year ago, a year in which SBA recorded the second-highest loan volume in the agency’s history. Overall, lending continues at a solid pre-recession pace; some weeks more, some weeks less.

Lending at the end of the first half of FY 2013 was ahead of the pace at the same point a year ago by more than 13 percent. Loan approvals supported $13.8 billion.

Overall, the pace of SBA loan-making is a healthy sign for the economy and the credit markets and is one of the foundations for ensuring the availability of financing to small businesses trying to establish themselves, grow and create new jobs for Americans.

Military service members are also returning home and many are looking to start a small business after leaving the service. Working with the Arizona Small Business Development Center Network, the SCORE Association and several business owners who are military veterans, the SBA has instituted the Boots to Business Program to provide transitioning service members the knowledge, tools and resources they need to evaluate opportunities and become successful entrepreneurs. Through the Boots to Business initiative, service members will learn the nuts and bolts of how to start and grow a business and learn where to go for the help that they need.

Robert Blaney District Director • U.S. Small Business Administration, Arizona District

Arizona Environment Strong for Start-up and Growth

Rick Murray has a wide and varied background that includes entrepreneurial endeavors and nonprofit association executive experience. Murray has seen tremendous success by using the same formula he has always used: developing relationships with businesses for mutual success and surrounding himself with a team of people who believe in a common goal. Murray is also well-versed in HIPAA compliance issues and healthcare-related businesses.

INBUSINE SSMAG.COM

Arizona’s economy has taken some lethal knockout blows. But because of some very well-timed defensive actions, Arizona appears to be recovering and poised to lead the country out of this recession. “CNN Money” recently reported that people were more likely to launch businesses here than in any other state in the country last year. And that didn’t happen by accident.

Governor Jan Brewer and the legislature have taken gigantic steps over the last four years to not only make it easier to run a business in Arizona, but also to start a business here. Arizona is benefitting from a steady stream of entrepreneurs migrating from less business-friendly states like California. That’s because of new legislation making business and property taxes lower. The state also encourages firms to upgrade employees’ skills, giving grants to those that offer in-house job training.

Add to it the fact that the labor pool is highly educated, thanks to our higher education campuses producing a plentiful source of science and technology grads. That’s important, since tech firms like Intel dominate Arizona’s business landscape. And with renewable energy technology contributing greatly to the new economy along with the software and semiconductor makers, Arizona is once again the place to start and run a business.

About this Guide

Rick Murray CEO • Arizona Small Business Association

The In Business Magazine editorial staff has compiled a list of trusted business services that we strongly recommend to our business readers. Each business is dedicated to serving local small businesses and is a partner in building our business community.

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TOP

50

Small Business Industry Leaders

Accounting & Tax Services BMO Harris Bank, N. A.

Bibby Financial Services

CBIZ and Mayer Hoffman McCann, P.C. CBIZ provides accounting, tax and business valuation and consulting services to real estate, wholesale, not-for-profit, retail and manufacturing entrepreneurial business in the Phoenix marketplace.

Top Executive: Carlos Wagner Local Headquarters: 3101 N. Central Ave., Ste. 300, Phoenix, AZ 85012 Offices (Local / National): 1 / 186 Phone: (602) 277-2371 Website: www.cbiz.com

BMO Harris Bank offers business banking products and services for small and medium-sized businesses: checking and savings accounts, loans and lines of credit, online banking, treasury management and more.

Top Executive: Stephen Johnson Local Headquarters: 1 E. Camelback Rd., Phoenix, AZ 85012 Offices (Local / National): 33 / 300+ Phone: (602) 241-6565 Website: www.mibank.com

Companies in need of working capital solutions turn to Bibby Financial Services. It helps small to mediumsized businesses that are growing quickly, investing in equipment or just in need of improved cash flow.

Top Executive: Edward Irvin Local Headquarters: 3800 N. Central Ave., Ste. 470, Phoenix, AZ 85012 Offices (Local): n/a Phone: (877) 882-4229 / (602) 999-9532 Website: bibbyusa.com

Alterna tive Lending

National Bank of Arizona Alterna tive Lending

FSW Funding

Henry & Horne, L.L.P. Henry & Horne is Arizona’s largest locally owned accounting firm, with a broad base of services to meet clients’ needs. The firm includes estate specialists, international tax experts and a multitude of experts with other areas of expertise.

Top Executive: Chuck Goodmiller Local Headquarters: 2055 E. Warner Rd., Ste. 101, Tempe, AZ 85284 Offices (Local / National): 2 / 3 Phone: (480) 839-4900 Website: www.hhcpa.com

Alternative Funding

Altima Business Solutions Altima provides assistance in raising capital through its affiliations and network of influence in angel/venture, private equity, hedge funds, factoring, equipment leasing and merchant funding.

Top Executive: Andre Wilson Local Headquarters: 1820 E. Ray Rd., Chandler, AZ 85225 Offices (Local): 1 Phone: (602) 773-1488 Website: altimabusinesssolutions.com

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FSW Funding is a privately owned and operated assetbased lending company specializing in the financing needs of small and medium-sized businesses.

Top Executive: Robyn Barrett Local Headquarters: 4530 E. Shea Blvd., Ste. 142, Phoenix, AZ 85028 Offices (Local): 1 Phone: (602) 535-5984 Website: www.factors-southwest.com

National Bank of Arizona provides local expertise and focuses on delivering award-winning service. It is more than just a business bank; it’s expanded to a full-service financial institution offering a suite of products and services tailored to business.

Top Executive: Keith Maio Local Headquarters: 6001 N. 24th St., Phoenix, AZ 85016 Offices (Local / National): 24 / 75 Phone: (602) 235-6000 Website: www.nbarizona.com

Business Banking / SBA Lending

Alliance Bank of Arizona Alliance Bank of Arizona is a “super community” bank, delivering a broader product array and larger credit capacity than a traditional community bank. Its focus is relationship-based, personalized service, with the latest in technology and lending capabilities to meet the needs of virtually any Arizona business.

Top Executive: James H. Lundy Local Headquarters: 1 E. Washington St., Phoenix, AZ 85004 Offices (Local / National): 9 / 17 Phone: (602) 629-1776 Website: www.alliancebankofarizona.com

Wells Fargo & Company Wells Fargo & Company is a diversified financial services company that provides banking, insurance, investments, mortgage, and consumer and commercial finance. For the sixth consecutive year, it is the No. 1 Small Business Administration 7(a) lender in Arizona in amount of dollars loaned.

Top Executive: Pamela Conboy Local Headquarters: 100 W. Washington St., Phoenix, AZ 85004 Offices (Local / National): 167 / 6782 Phone: (602) 378-4644 Website: www.wellsfargo.com CONTINUED ON PAGE 48 »

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Industry Leader: FSW Funding

ative Alternnding Le

ative Alternnding Le

the credit-worthiness of the billed customer. When the bill is paid, the factor remits the balance, minus a transaction (or factoring) fee.

To secure a factor loan, a company will need to provide:

Factor Financing: A Key Tool for Improving Cash Flow Managing cash is critical to the success of any business. Whether you are providing a good or a service, it is important to make sure cash flow allows for day-to-day operations and growth. As a business owner, you never want to find yourself in a position where you can’t meet critical payments for payroll, taxes and key vendors — especially if money is tied up in outstanding invoices that the company is awaiting payment on.

“Unfortunately, while many companies are finding themselves short on cash, lending requirements have become extremely stringent,” explains Robyn Barrett, founder and managing member of FSW Funding. “While factoring has been in use for hundreds of years, it is often misunderstood and many business owners don’t realize it can offer an optimal solution to their company’s cash flow challenges.”

Companies faced with a cash-flow squeeze due to slow-paying customers or the reduction in an equity line may find that pledging invoices or accounts receivable to a factor can provide the cash needed to grow and operate.

“Most of the companies we work with are seeking a good source of capital because they are in a highgrowth or start-up phase,” explains Barrett. “Unlike a bank, we are not concerned with the company’s credit; we are looking at their sales and who they are selling to, so we are able to provide them the money they need.”

Robyn Barrett

In most cases, factor financing can infuse cash into the company within 24 to 48 hours. The factor advances a portion of the invoice amount, usually 70 to 90 percent, after reviewing

• A detailed list of accounts receivable and accounts payable with samples of invoices, • Current and historical financial statements and tax returns for the previous year, and • Business organization documents.

The phrase “Cash is King” has never been more true in business than it is today. “Our goal is not to just provide cash in order to help companies survive, we want to help them thrive and create jobs for others,” adds Barrett.

Founded in 2001, FSW Funding, formerly Factors Southwest LLC, specializes in factor financing for small to mid-sized companies throughout the U.S.

At a Glance Company Name: FSW Funding Main Office Address: 4530 E. Shea Blvd., Suite 142 Phoenix, AZ 85028 Phone: (602) 535-5984 Website: www.fswfunding.com Number of Offices in Metro Phoenix: 1 Number of Staff: 6 City Nationally Headquartered: Phoenix, AZ Top Local Executive: Robyn Barrett, Managing Member No. of Years with Firm: 12 years Year Established Locally: 2001 Specialties: Asset-Based Lending, Financing For Small To Mid-Sized Companies, Flexible and Affordable Factoring

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Business Organizations & Associations West Valley National Bank

SBA Lender

West Valley National Bank is the West Valley’s first locally owned and operated community bank, and it recently expanded to Scottsdale. Founded by local business leaders, the bank is dedicated to looking after business owners and their financial needs.

Top Executive: Candace D. Wiest Local Headquarters: 12725 W. Indian School Rd., Ste. C108, Avondale, AZ 85392 Offices (Local): 3 Phone: (623) 536-9862 Website: www.wvnb.net

Business Marketing Services

SBA Lender

Arizona Small Business Association ASBA is the largest trade association in Arizona, representing 11,000+ member businesses and more than half-a-million employees in all 15 counties. ASBA creates opportunities for Arizona small businesses to make money, save money and achieve results.

Top Executive: Rick Murray Local Headquarters: 4600 E. Washington St., Ste. 340, Phoenix, AZ 85034 Offices (Local): 2 Phone: (602) 306-4000 Website: www.asba.com

Fasturtle Fasturtle is a Web-design firm that specializes in SEO marketing, website design, email marketing and maximizing social media opportunities for companies of all sizes. It focuses on providing detailed planning and technological expertise to small business.

Top Executive: Eric Olsen Local Headquarters: 7575 E. Redfield Rd., Ste. 213, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (480) 348-0467 Website: www.fasturtle.com

Infusionsoft Infusionsoft provides small-business solutions built exclusively to help conquer the chaos through a Webbased system that combines intelligent automation with powerful CRM, email marketing, e-commerce and social media tools.

Top Executive: Clate Mask Local Headquarters: 1260 S. Spectrum Blvd., Chandler, AZ 85 Offices (Local): 1 Phone: (480) 807-0644 Website: www.infusionsoft.com

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Maricopa County Attorney’s Office – Check Enforcement The Maricopa County Attorney’s Office established the Check Enforcement Program to assist victims. The primary responsibility of the program is to recover restitution for victims.

Top Executive: Bill Montgomery Local Headquarters: 301 W. Jefferson St., Phoenix, AZ 85003 Offices (Local): 1 Phone: (602) 372-7300 Website: www.maricopacountyattorney.org

Reliable Background Screening Local First Arizona Local First Arizona is a nonprofit organization working to strengthen communities and local economies through supporting, maintaining and celebrating locally owned businesses throughout the State of Arizona.

Top Executive: Kimber Lanning Local Headquarters: 407 E. Roosevelt St., Phoenix, AZ 85004 Offices (Local): 1 Phone: (602) 956-0909 Website: www.localfirstaz.com

Business Services

Express Digital Express Digital is a leader in data capture, document management and scanning systems, specializing in integrating with existing software and services of businesses.

Top Executive: John Longobardo and John Principale Local Headquarters: 8585 E. Bell Rd., Ste. 103, Scottsdale, AZ 85260 Offices (Local): 1 Phone: (602) 569-8600 Website: www.edsaz.com

Reliable Background Screening has been providing clients a unique and thorough screening service for employers, business owners, franchisers and landlords by offering background checks on new employees, franchisee applicants and new residents and tenants.

Top Executive: Rudy Troisi Local Headquarters: Scottsdale, AZ Offices (Local): 1 Phone: (602) 870-7711 Website: www.reliablebackgroundscreening.com

Stoney-Wilson Business Consulting, L.L.C. Julie Stoney and Bob Wilson bring more that 60 years of business experience to the table. Their background in banking, finance and communications provides the foundation for advising businesses in need of banking and credit, cash management, strategic planning and sales management services.

Top Executive: Julie Stoney and Bob Wilson Local Headquarters: 6501 E. Greenway Pkwy., Ste. 103-583, Scottsdale, AZ 85254 Offices (Local): 1 Phone: (602) 370-1776 Website: www.stoneywilson.com CONTINUED ON PAGE 50 »

INBUSINE SSMAG.COM

Industry Leader: SCF Arizona

ers’ Workm Co p

ers’ Workm Co p

injured on the job, that worker will receive the medical treatment needed in exchange for an agreement not to file a lawsuit against the employer.

Strong, stable workers’ comp company ‘at work for you’ When one of your workers is injured on the job, who are you going to call?

For most Arizona businesses, the answer is SCF Arizona, which provides workers’ compensation insurance coverage for more than 21,000 businesses statewide, ensuring workers the care they need if they are injured on the job.

SCF has been providing workers’ compensation insurance longer

than anyone else in the state.

That’s because in 1925, the Arizona Legislature founded the state compensation fund (SCF Arizona) as part of the Industrial Commission.

Lawmakers allocated $100,000 as start-up capital. But the statute mandated that SCF’s operational and administrative costs be paid solely by premiums. The state was paid back in 1938, two years early. Since that original allocation, SCF has not received any money from the state nor from residents’ taxes.

Today, SCF holds total assets of more than $3.7 billion to protect policyholders and their workers.

SCF’s and Arizona’s past, present and future are tightly intertwined, and the workers’ comp insurer has been recognized as an economic engine in the state throughout the myriad ups and downs of the economy.

Workers’ compensation insurance is a backstop that protects employer and employee. The insurance coverage provides a business owner peace of mind that, should an employee be

This is especially important because, unlike other lines of insurance where a claim can be settled quickly, a workers’ compensation claim can remain in effect for many years. For example, a worker who suffered a disabling injury in 1940 may still be receiving benefits today.

The company became a private, mutual insurance company on Jan. 1, 2013, and, as it has for 88 years, SCF continues to provide state businesses unsurpassed excellence in workers’ compensation.

Living up to its motto — “SCF is at work for you” — the company provides innovative workers’ compensation insurance solutions to businesses that seek the best in workplace safety protection. SCF also strives to make it easy for its customers to do business with it, building trust and loyalty.

At a Glance Company Name: SCF Arizona Main Office Address: 3030 N. 3rd Street Phoenix, AZ 85012 Phone: (602) 631-2000 Website: www.ccfaz.com Number of Staff: 380 City Nationally Headquartered: Phoenix, AZ Top Local Executive: Don Smith, CEO No. of Years with Firm: 13 years Year Established Locally: 1925 Specialties: Worker’s Comp Insurance

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Commercial Real Estate

Employee Benefits / Insurance Delta Dental of Arizona

Cassidy Turley Cassidy Turley is a full-service commercial real estate firm serving metropolitan Phoenix and secondary Arizona cities. A leader in the Phoenix market since 2003, it offers brokerage investment and advisory services in office, industrial, retail, multi-housing and land as well as property management.

Top Executive: Bryon Carney Local Headquarters: 2375 E. Camelback Rd., Ste. 300, Phoenix, AZ 85016 Offices (Local / National): 1 / 60 Phone: (602) 954-9000 Website: www.ctarizona.com

Focus Benefits Group Focus Benefits Group is an independent group employee benefits consulting company that offers a variety of services to help clients receive the greatest amount of benefit coverage for the most cost-effective dollar. It helps clients by looking at ways to reduce healthcare costs, improving the overall benefits they can offer employees.

Top Executive: Bill Weaver Local Headquarters: 4120 N. 20th St., Ste. B, Phoenix, AZ 85016 Offices (Local): 1 Phone: (602) 381-9900 Website: www.focusbenefits.com

CBRE, Inc. CBRE offers strategic advice and execution for property sales and leasing, corporate services, property, facilities and project management, mortgage banking, appraisal and valuation, development services, investment management, and research and consulting.

Top Executive: Craig Henig Local Headquarters: 2514 E. Camelback Rd., Phoenix, AZ 85016 Offices (Local / National): 1 / 166 Phone: (602) 735-5555 Website: www.cbre.com/phoenix

GPE Companies GPE Commercial Advisors and GPE Management Services are leading providers of commercial real estate sales, leasing, property management and consulting solutions for business, office, medical, dental, retail and industrial properties in the Greater Phoenix metropolitan area.

Top Executive: David Genovese Local Headquarters: 2777 E. Camelback Rd., Ste. 230, Phoenix, AZ 85016 Offices (Local): 1 Phone: (480) 994-8155 Website: www.gpe1.com

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Holmes Murphy & Associates Holmes Murphy is a premier independent riskmanagement and insurance brokerage firm. While today’s insurance market sees consolidations and mergers resulting in conglomerates more concerned about the bottom line, Holmes Murphy remains focused on clients’ needs and is committed to accelerating business success.

Top Executive: Daniel Keough Local Headquarters: 14850 N. Scottsdale Rd., Ste. 280, Scottsdale, AZ 85254 Offices (Local / National): 1 / 11 Phone: (480) 951-1776 Website: www.holmesmurphy.com

Healthcare Insurance

Blue Cross Blue Shield of Arizona BCBSAZ offers various health plans for individuals, families, and small and large businesses. BCBSAZ also offers Medicare supplement plans to individuals over age 65.

Top Executive: Rich Boals Local Headquarters: 8220 N. 23rd Ave., Bldg 2, Phoenix, AZ 85021 Offices (Local): n/a Phone: (602) 864-4899 Website: www.azblue.com

Delta Dental is passionate about oral health and its importance to generations of families. It works to improve oral health by emphasizing preventive care and making dental coverage accessible to a wide variety of employers, groups and individuals.

Top Executive: Allan Allford Local Headquarters: 5656 W. Talavi Blvd., Glendale, AZ 85306 Offices (Local): n/a Phone: (602) 938-3131 Website: www.deltadental.com

United Healthcare of Arizona United Healthcare provides a full spectrum of consumer-oriented health benefit plans and services to individuals, public sector employers and businesses of all sizes, including more than half of the Fortune 100 companies.

Top Executive: Jeri Jones Local Headquarters: 1 E. Washington St., Ste. 1700, Phoenix, AZ 85004 Offices (Local): n/a Phone: (800) 985-2356 Website: www.uhc.com

Human Resources / Hiring

DHR International, Inc. DHR is the fifth-largest retained executive search firm in the United States. DHR conducts search assignments at the levels of board director, C-suite and functional vice president. Its consultants are experienced professionals who are retained by Fortune 1000 as well as prominent venture firms and early-stage companies.

Top Executive: David Bruno Local Headquarters: 11811 N. Tatum Blvd., Ste. 3076, Phoenix, AZ 85028 Offices (Local / National): 1 / 51 Phone: (602) 992-7810 Website: dhrinternational.com

INBUSINE SSMAG.COM

Industry Leader: Cassidy Turley

HR Choice For nearly 30 years, HR Choice has been providing professional human resource programs, training and services to small and medium-sized businesses.

It offers outsourced employer solutions and works collaboratively with its clients to support their tactical and strategic human resource management needs.

Top Executive: Susan Williams Local Headquarters: 14175 W. Indian School Rd., Ste. B4, Goodyear, AZ 85395 Offices (Local / National): 1 / 2 Phone: (623) 935-7759 Website: www.hrchoice.com

Maricopa Workforce Connections Maricopa Workforce Connections collaborates with state and community partners to continually identify and develop local talent to meet the needs of local businesses. Services include employee recruitment and training to fill job vacancies by a diverse and broad range of qualified workers at no charge to business owners.

Top Executive: Patricia Wallace Local Headquarters: 234 N. Central Ave., 3rd flr., Phoenix, AZ 85004 Offices (Local): 3 Phone: (602) 506-4888 Website: www.maricopaworkforceconnection.com

Information Technology

Business & Decisions Business & Decision’s 2,500 expert consultants and 10 strategic partners work with clients on a range of initiatives from proof-of-concepts to mission-critical, enterprise-wide, global solution delivery. It also offers full lifecycle support, from consulting to continuous improvement, through hosting and ongoing change management.

Top Executive: Sylvain Thauvette Local Headquarters: 8414 N. 90th St., Ste. 101, Scottsdale, AZ 85258 Offices (Local ): 1 Phone: (602) 244-1200 Website: www.businessdecision.us CONTINUED ON PAGE 52 »

A Leader in Commercial Real Estate Services At Cassidy Turley, we are market leaders, industry leaders and community leaders. Nationwide, we are recognized for our passionate client advocacy as well as for the discipline and precision of our service delivery. We are a trusted partner, delivering client-centric solutions to enhance business performance. In markets across the country, we are respected as a leading provider of commercial real estate services as well as for our community engagement. Our thorough understanding of local business practices and market dynamics, combined with our customer focus and service commitment, give our clients a distinct edge in commercial real estate around the globe.

Cassidy Turley is a leading commercial real estate services provider with more than 3,800 professionals in more than 60 offices nationwide. The company represents a wide range of clients — from small businesses to Fortune 500 companies, from local nonprofits to major institutions. The firm completed transactions valued at $22 billion in 2012; manages 400 million square feet on behalf of institutional, corporate and private clients; and supports more than 23,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services — including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting.

Cassidy Turley provides regional real estate services with local market leader Cassidy Turley Arizona. With every assignment, Cassidy Turley professionals focus on their clients’ real estate needs so they can focus on their business. The firm has completed nearly $10.7 billion in transactions since 2003 and was the No. 1 ranked Commercial Real Estate Brokerage Company in the Phoenix Business Journal’s 2010 and 2012 Book of Lists.

For more information on Cassidy Turley, visit www.cassidyturley.com or call (602) 954-9000.

At a Glance Company Name: Cassidy Turley Main Office Address: 2375 E. Camelback Road, Suite 300 Phoenix, AZ 85016 Phone: (602) 954-9000 Website: www.ctarizona.com Number of Offices in Metro Phoenix: 1 Number of Staff: 110 (70 brokers, 40 staff/manager) City Nationally Headquartered: Washington, D.C. Top Local Executive: Bryon R. Carney, President & Managing Principal No. of Years with Firm: 29 years Year Established Locally: 1973; became Independently owned/operated in 2003 Specialties: Commercial Real Estate Services, including Capital Markets, Tenant Representation, Project Leasing and Property Management

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Janitorial Ryley Carlock & Applewhite

CyberTrails CyberTrails is the leading provider of managed information technology services in Phoenix. With 24/7 customer support and rapid implementation, it helps small to mid-sized businesses manage the right technologies to support their business goals.

Top Executive: Rick Estrada Local Headquarters: 1919 W. Lone Cactus Dr., Phoenix, AZ 85027 Offices (Local) 1 Phone: (623) 434-6079 Website: www.cybertrails.com

IT Partners It Partners is known locally as the “Go To” solution provider in designing and implementing data center technology solutions on time and within budget.

Top Executive: Gary Johnston Local Headquarters: 6939 S. Hart Ave., Tempe, AZ 85283 Offices: (Local) 1 Phone: (602) 667-0100 Website: www.goitpartners.com

OneNeck IT Services Corp.

OneNeck is a leading hosted application management and managed services provider that offers a broad scope of services at mid-market prices which provide customers with tailored and flexible IT solutions.

Top Executive: Charles Vermillion Local Headquarters: 5301 N. Pima Rd., Ste. 100, Scottsdale, AZ 85250 Offices (Local / National): 1 / 11 Phone: (480) 315-3000 Website: www.oneneck.com

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Jani-King Through a network of 200 franchisees, family-owned and -operated Jani-King Southwest provides stateof-the-art commercial cleaning services to hotels, restaurants, surgery centers, schools, financial institutions, manufacturing facilities and municipal buildings from Regional Support Centers in Phoenix and Tucson.

Top Executive: Julie Robinson Local Headquarters: 7250 N. 16th St.,, Ste. 302, Phoenix AZ 85020 Offices (Local): 1 Phone: (602) 433-0550 website: janiking.com/southwest

Ryley Carlock & Applewhite provides legal support to clients in real estate, resort and hospitality, gaming, software and information technology, publishing, accounting, architecture, management consulting, engineering and other professional services, construction management, retail sales, Internet, telecommunications and manufacturing.

Top Executive: Rodolfo Parga Local Headquarters: 1 N. Central Ave., Ste. 1200, Phoenix, AZ 85004 Offices (Local / National): 1 / 6 Phone: (602) 258-7701 Website: www.rcalaw.com

Office Furniture

Law Firms Copenhagen Imports

Lewis and Roca Founded in 1950, Lewis and Roca has nearly 200 attorneys and offices in Phoenix, Tucson, Las Vegas, Albuquerque, Reno and Silicon Valley. The firm serves a diverse base of local, regional, national and international clients, including some of the world’s largest corporations.

Top Executive: Kenneth Van Winkle Jr. Local Headquarters: 40 N. Central Ave., Phoenix, AZ 85004 Offices (Local): 1 Phone: (602) 262-5311 Website: www.lrlaw.com

Polsinelli Shughart, L.L.P. Polsinelli Shughart offers clients the full array of business law services with a local presence and tremendous national and international reach.

Top Executive: Ed Novak Local Headquarters: 1 E. Washington St., Ste. 1200, Phoenix, AZ 85004 Offices (Local / National): 1 / 16 Phone: (602) 650-2000 Website: www.polsinelli.com

Copenhagen is focused on helping clients improve productivity by designing for them the perfect work environment, from executive suites to functional home offices.

Top Executive: Erik Hansen Local Headquarters: 1701 E. Camelback Rd., Phoenix, AZ 85016 Offices (Local / National): 4 / 3 Phone: (602) 266-8060 Website: www.copenhagenliving.com

Goodmans Interior Structures Goodmans represents millions of quality products from manufactures that include Herman Miller, Geiger, Davis, Nemschoff, Nucraft, Fixtures, Global, Hon, National, La-Z-Boy and more than 400 others. Services include planning through installation.

Top Executive: Adam Goodman Local Headquarters: 1400 E. Indian School Rd., Phoenix, AZ 85014 Offices (Local / National): 4 / 1 Phone: (602) 263-1110 Website: www.goodmansinc.com

INBUSINE SSMAG.COM

Industry Leader: West Valley National Bank

Target Commercial Interiors Creating capable spaces for the workplaces in all fields, Target Commercial Interiors services include shopping for products, financing, project management, planning and installation. Ongoing services are asset management, warehousing and more.

Top Executive: Steve Thomas Local Headquarters: 8530 S. Priest Dr., Phoenix, AZ 85284 Offices (Local / National): 1 / 6 Phone: (602) 417-1200 Website: www.targetcommercialinteriors.com

Office Supplies

Wist Office Products Competitive pricing among all product categories allows Wist to achieve success that is shared with clients, team members and communities. When partnering with Wist, clients experience reliable business practices, sound ethics and a commitment to sustaining the environment.

Top Executive: Ian and Robert Wist Local Headquarters: 107 W. Julie Dr., Tempe, AZ 85283 Offices (Local): 1 Phone: (480) 921-2900 Website: www.wist.com

Payroll Services

Human Capital Strategies A partner to small business, Human Capital Strategies is a comprehensive firm that is all about driving business profits through their services, which include payroll, human resources, employee benefits and risk management.

Top Executive: Jason Knight Local Headquarters: 2152 S. Vineyard Ave., Bldg. 6, Ste. 117, Mesa, AZ 85210 Offices (Local): 1 Phone: (480) 962-1580 Website: www.hcscando.com CONTINUED ON PAGE 54 »

SBA r Lende

SBA r Lende

West Valley National Bank’s commitment to serving its clients – like Estrella Ear, Nose & Throat – includes helping them toward their goals and listening to their suggestions

West Valley National Bank, an Arizona Original West Valley National Bank is an Arizona original. Founded in 2006, led by West Valley leaders and capitalized by 159 Arizonans, the Bank serves the metro area with three full-service branches in Scottsdale, Goodyear and Buckeye. Founded on the principle that local businesses are best served by local bankers who are empowered to make decisions locally, we are proud of our history.

Throughout the Great Recession, we have continuously provided capital for local businesses and support for many worthwhile community organizations: Local First Arizona, Arizona Assistance in Healthcare, ARMA, WESTMARC and many more. And we did it without the benefit of any government assistance in the form of TARP money. We came through this recession, Arizona style: We stood tall and weathered the storm. We are also proud of our strong capital base and commitment to regulatory compliance.

to help them acquire their practice.

And when it was time to purchase a building, we helped them with an SBA 504 loan for their beautiful new space.

We are grateful for the relationship we have with them and the opportunity to be their bank of choice. So when our CEO heard there were a few bumps in the process, we asked them to attend our board meeting and tell us how we could improve our client experience.

Then we took their recommendations and made some changes to our process and our communication. We intend to serve Arizonans for a long time to come. And the way we see it, the best way to do it is to keep people like the Wiggenhorns happy.

At a Glance

Today, we have three offices — in Goodyear, Buckeye and Scottsdale.

We proudly serve the small business, and medical and dental professional communities. We excel in developing relationships rather than using a shotgun, one-size-fits-all approach. We listen more than we talk and try to find creative solutions to help your business grow. We offer big-bank products like SBA 7A and 504 loans, remote deposit capture and online banking, but we deliver them WVNB style.

Company Name: West Valley National Bank

Meet our clients Dr. Jonathan and Erica Wiggenhorn. Together, they founded Estrella Ear, Nose & Throat.

We listened and put together a 7A loan

No. of Years with Firm: 7 years

Main Office Address: 12725 W. Indian School Road, Avondale, AZ 85392 Phone: (623) 535-2499 Website: www.wvnb.net Number of Offices in Metro Phoenix: 3 Number of Staff: 15 City Nationally Headquartered: Avondale (moving to Goodyear in Aug. 2013) Top Local Executive: Candace H. Wiest, President and CEO Year Established Locally: 2006 Specialties: SBA Loans, Medical & Dental Professionals, Small Business

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Local Headquarters: 16404 N. Black Canyon Hwy., Ste. 240, Phoenix, AZ 85053 Offices (Local / National): 1 / 101 Phone: (602) 266-3660 Website: www.paychex.com

Pay-Tech Pay-Tech has been family-owned and -operated since 1979, with professionals who are trained and certified to bring clients customized payroll, accounting and HR solutions.

Top Executive: Rene Brofft Local Headquarters: 3420 E. Shea Blvd., Ste. 170, Phoenix, AZ 85028 Offices (Local): 1 Phone: (602) 788-1317 Website: www.pay-tech.com

Paychex, Inc. Paychex is a recognized leader in the payroll, human resource and benefits outsourcing industry.

Top Executive: n/a

Promotional Products

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Brandables

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Brandables.com offers a complete line of marketing products as well as custom promotional products for any type of business, including quality logo reproductions, unique business gifts, corporate trade show materials and branded office supplies, company stationery and business apparel.

Top Executive: Amanda Wigal Local Headquarters: 7707 E. Acoma Dr., Ste. 110 Scottsdale, AZ 85260 Offices (Local): 1 Phone: (480) 951-8882 Website: www.brandables.com

Gear Up Promotions, L.L.C. Gear Up offers logo apparel, corporate gifts and promotional items, with hundreds of items and ideas to choose from and at prices that fit anyone’s budget.

Clients are the No. 1 priority.

Top Executive: Laureen Pugh Local Headquarters: 3999 S. Dobson Rd., Chandler, AZ 85248 Offices: 1 Phone: (480) 326-6251 Website: www.gearuppromotions.com R

Telecommunications / Mobile

AT&T Small Business AT&T Small Business Services offers a comprehensive portfolio of innovative wireless solutions, from email and messaging to industry-specific business applications.

Office Supplies • Breakroom Products • Janitorial Supplies • Office Furniture

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INBUSINE SSMAG.COM

Industry Leader: Brandables

Top Executive: n/a Local Headquarters: 20830 N. Tatum Blvd., Phoenix, AZ 86050 Offices (Local / National): n/a Phone: (480) 515-7000 Website: smallbiz.att.com

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Brandables Treats Clients Like Family

Cox Business Cox Business provides voice, data and video services for more than 275,000 small and regional businesses, including healthcare providers; K-12 and higher education; financial institutions; and federal, state and local government organizations.

Top Executive: Steve Rizley Local Headquarters: 20401 N 29th Ave., Phoenix, AZ 95027 Offices (Local / National): n/a Phone: (623) 594-1000 Website: www.coxbusinessaz.com

Telesphere Telesphere is the leading pure-play provider of unified cloud communications, delivering carrier-grade performance and support for wireline and mobile devices to businesses over its private IP MPLS network, which is one of the largest of its kind in the nation.

Top Executive: Clark Peterson Local Headquarters: 9237 E. Via de Ventura, Scottsdale, AZ 85258 Offices (Local / National): 1 / 4 Phone: (480) 385-7000 Website: www.telesphere.com

Workers Comp Insurance

Workers’ Comp

SCF Arizona SCF Arizona provides workers’ compensation insurance coverage for more than 21,000 businesses statewide, ensuring workers the care they need if they are injured on the job. SCF Arizona has been providing workers’ compensation insurance longer than anyone else in the state.

Top Executive: Don Smith Local Headquarters: 3030 N. 3rd St., Phoenix, AZ 85012 Offices (Local): 1 Phone: (602) 433-0550 Website: www.scfaz.com

INBUSINE SSMAG.COM

Workers’ Comp

Brandables has been in the Scottsdale Airpark area since 1992. We are a woman-owned and family-run business that treats all of our clients and potential customers just like they are part of our family. Brandables offers a showroom where you can come to get new ideas for your next event and meet one-on-one with one of our specialized sales members.

Brandables welcomes new clients with new-order specials and sends current customers a thank-you gift for their kind referrals.

Customers love coming to Brandables because of our low minimums on apparel and our fast turnaround. Brandables will meet or beat your event due date, ensuring one less headache. There is a reason Brandables has been voted Top 25 Promotional Products Distributor in the Valley.

Our website has a search engine to search our offerings of more than 800,000 items we can imprint with a company logo, but we also provide specialized service, with the Brandables team assisting you in finding the perfect product for your next event. Our team likes to get a better understanding by singling out specific elements, like the demographics, target market, and more, about the event and promotion so that we can suggest products that will give you a better ROI for your next purchase from Brandables.

• • •

Just recently, Brandables started offering warehousing and fulfillment services to customers who do not want the headache of storing all of their goods or coordinating the distribution to trade shows, clients, events and other promotions where our products will be used. If you do not want to take advantage of our on-site warehousing, Brandables also offers the advantage of split shipments to various locations.

• • • •

•

Fast turnaround Family-run Woman-owned Long-standing relationship in Arizona Warehousing and fulfillment 800,000+ items Top 25 Promotional Products Distributor Quality guarantee

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At a Glance Company Name: Brandables Main Office Address: 7707 E. Acoma Drive, Suite 110 Scottsdale, AZ 85260 Phone: (480) 951-8882 Website: www.Brandables.com Number of Offices in Metro Phoenix: 1 Number of Staff: 4 City Nationally Headquartered: Scottsdale Top Local Executive: Amanda Wigal Owner & President No. of Years with Firm: 10 years Year Established Locally: 1992 Specialties: On-time orders, customized service, free basic artwork

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Get to know the

BUSINESS SIDE OF COX. Cox Business has built a robust Arizona infrastructure with 23,000 miles of 99.99+% reliable Hybrid Fiber/Coax connecting to a fully redundant national backbone. Cisco-certified technicians on the ground and continuous monitoring from our Regional Operations Center resolve problems before they impact your enterprise. It’s a network designed to exceed business continuity requirements and service designed to exceed expectations. That’s how we do business.

623-594-5238 coxbusinessaz.com

Internet. Data. Phone.

Celebrating 28 years of serving the women business owners of Phoenix

SUMMER 2013 • nawbophx.org

President’s Message About NAWBO

NAWBO®prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners.

NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.

Visit one of our FREE welcome meetings, held the second Wednesday of each month – for all new and prospective members. This casual, informational opportunity highlights both local and national benefits of NAWBO membership. This is a great place to determine if NAWBO is a fit for you and your business.

Take advantage of this great networking opportunity by bringing business cards and making connections.

For more information, please visit NAWBOphx.org.

Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207 Scottsdale, Arizona 85260 480-289-5768 info@NAWBOphx.org

Joining an association like NAWBO is an opportunity to gain a mentoring tool on a big scale. Throughout my life, I have had mentors, mostly informal, who have impacted my ability to build skills, form philosophies and run a successful business. I often joke that I received my MBA at “My Brother’s School of Business Management.” While working for him for 10 years — listening to his informal lectures, watching the way he walks in the world and learing some profound lessons – was invaluable.”

I started my business in April 2009, and, although I had many of the skills needed to run a business, I needed a power boost. NAWBO fit the bill. NAWBO is the engine that drives business owners to greater success. And so… this year’s theme will be:

Jackie Wszalek President, NAWBO Phoenix

Powered by NAWBO

Power, by definition, is the ability to cause or prevent an action to make things happen. Through NAWBO’s powerful events, programming, corporate sponsors and members, I have reaped the benefits of and enjoyed being part of this organization.

The benefits of a NAWBO membership go beyond expanded network and business resources, beyond entrepreneurial education pieces, and beyond strong local/national legislative advocacy.

NAWBO provides a platform to promote economic development and to create innovative changes in the business culture for business owners.

NAWBO events, signature programs and community support provide a strong engine to make things happen.

Powered by NAWBO events include monthly luncheons, happy hours, educational offerings and community involvement, which

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This issue Page 2

Outgoing President Messsage

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Mentoring with a Twist

nawbophx.org

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The Young Entrepreneurs Academy and NAWBO: The Perfect Match

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NAWBO Welcomes 2013-2014 Board of Directors and more...

The Power of Mentorship

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NAWBO NEWS

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serve as opportunities to: • Learn and be motivated by great speakers, • Share a variety of viewpoints on the state of women owned businesses, and • Connect with dynamic members and corporate sponsors.

Powered by NAWBO Signature Programs take it even a step further.

• Our nationally recognized mentoring program offers real-life tools to market, manage, and expand your business quickly and effectively.

Mentors/mentees are matched in a structured program that is free to NAWBO members. Valued at over $2500, but we know it is priceless!

• With the launching of the Yea! Program (Young Entrepreneurs Academy), we are positioned to help high school students recognize the opportunities available to them. They will build a business from idea to launch. Think “Shark Tank,” “American Idol” and “The Apprentice” wrapped into a powerful program for students.

Powered by NAWBO Signature Events celebrate the spirit of NAWBO membership.

• Our annual awards luncheon honors our members for excellence.

• Our December Red Affair celebrates our members and raises money for a nonprofit organization that aligns with our goals.

NAWBO is designed to contribute to the economic power of our future as local businesses to build a better community and world. As leaders in the community, we are proud to be a part of an organization that propels business owners into economic, social and political spheres of power.

You are invited to tap into the Power of NAWBO, by sponsoring or attending any of our events, by meeting our membership and joining this great association.

Wishing you continued success, Jackie Wszalek NAWBO Phoenix Chapter President 2013-2014 www.despinsprinting.com

Outgoing President Messsage As I close my year as the president of The National Association of Women Business Owners – Phoenix, I want express my gratitude for an amazing year and all of the strides we have made as an organization. NAWBO has a unique role in that we understand, promote and provide mentoring to help grow the businesses of our membership.

Effective entrepreneurial mentoring is about asking the right questions, having access to effective business education and tools, building relationships and consistently challenging both mentees and mentors to evaluate their own performance. The NAWBO mentoring program is a peer-to-peer business program, where mentees aided by a mentor achieve purposeful and Lynda Bishop Outgoing President, NAWBO Phoenix measurable results while learning entrepreneurial skills that reach beyond the program time.

Activities include creation, review and revision of business and marketing plans, financial plans, human resources, and operations with a focus on business, professional and personal growth areas for sustainable results. As part of the program, participants meet monthly as a group and each paired mentee/mentor also meet one-on-one as well. As an added benefit, both mentees and mentors also have the opportunity to work with business counselors provided by the Small Business Development Center.

NAWBO understands that to help members break through to real success, business owners need a support system that is proven to work.

A mentor helps by looking at the business in new ways to determine what will take it to the next level and how to focus on those activities — both personally and in business.

Having 9 months of being paired with an established, successful business owner who is focused on the success and growth your newer business has proven to be the most effective catalyst for success for many mentee NAWBO members who have accepted the opportunity and dedicated their time and effort to the mentoring process. Learning from the personal experiences of the most successful women business owners in our community, having access and utilization of both state and federal resources, and introductions to other leading networking groups and professional development opportunity in the Valley are additional benefits to members in the program as well.

At NAWBO, we are focused on supporting the growth of our members and their businesses into healthy, financially strong, sustainable success for a stronger business community and brighter future.

I hope you enjoy the following pages from NAWBO focused on the value and diversity of mentoring!

To your success, Lynda Bishop NAWBO Phoenix Chapter President 2012-2013 lyndabishop.com

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NAWBO NEWS

Mentoring with a Twist

By Nancy Sanders

“Learning from successful entrepreneurs with different perspectives and experiences help you become a more dynamic and agile business owner,” according to Forbes Magazine.

For the past eight years, NAWBO-Phoenix has offered a nationally recognized mentoring program to women business owners across the Valley at no cost.

Nancy Sanders This year NAWBO incorporates today’s latest tools into a convenient high-impact mentoring program that connects the Valley’s leading women business owners with the most innovative business minds in the Valley. Mentees participate in a robust monthly program offering topics critical to business expansion plus one-on-one time getting practical advice and expertise from other women business owners.

The mentoring program launches with a comprehensive review (or creation) of the business plan and then the focus shifts to implementing the plan, growing revenue and making an impact to the Arizona economy.

“We are taking a successful program and stepping it up a notch,” says Nancy Sanders, mentoring director. “We’ve expanded the program to include specific tools and an accountability program to support the

implementation of the business and marketing plans. There is definitely a focus on driving additional revenue for all program participants, including mentees. This year, our graduation celebration will include a business pitch showcase.”

The program is open to all NAWBO members. Mentees should have at least one year in business; mentors should have at least two years in business. Mentees and mentors meet at least once during the month.

Sessions are usually held on the first Wednesday of the month and are open to both mentees and mentors, but mentors are not required to attend all sessions.

The program is supported in part by the Women’s Enterprise Foundation, Orchard Medical Group and the Small Business Development Center.

The program launches Wednesday, September 4, 2013, and applications are due in August. SPACE IS LIMITED. For more information, Nancy Sanders email Nancy Sanders, NAWBO Three Dog Marketing mentoring director, nancy.

Threedogmarketing.com cruikshank@domail.maricopa.edu or Years In NAWBO: 3 call 602.476.4509.

Years In Business: 5

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NAWBO NEWS

The Young Entrepreneurs Academy and NAWBO: The Perfect Match The Young Entrepreneurs Academy (YEA!) is an innovative program that guides high school students through the process of starting their own real business. NAWBO Phoenix is excited to announce the start of the YEA! program at Grand Canyon University this fall.

By the end of the class, students own and operate fully formed and functioning businesses, which can be continued after their graduation from the program. YEA! aims at teaching students at an early age how to make a job, not just take a job. YEA! was developed at the University of Rochester with support from The Kauffman Foundation.

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NAWBO NEWS

“We are excited about the expansion and specifically chose the National Association of Women Business Owners in Phoenix because of its reputation for being a strong community leader and track record of successful project implementation and business mentoring,” says Gayle Jagel, the CEO and founder of the Young Entrepreneurs Academy.

“We are so excited to be able to advance the business education of high school students through the Young Entrepreneurs Academy. Our goal is to eventually provide a unique and challenging experience for all students interested in participating,” says Lynda Bishop, 2012-2013 president of NAWBO Phoenix and the YEA! program manager.

The program requires a nine-month commitment from its young executives. In that time they brainstorm and form their enterprises, make pitches to potential investors, obtain funding, register their companies with governmental agencies, and actually launch their own company or social movement! Business mentors, graphic designers, and local entrepreneurs support the students throughout the program and all of the learning is real and experiential.

“One of the most interesting components of the program is the actual behind-the-scenes knowledge the students are given from local business leaders, who were at one time standing in their shoes!” exclaims Bishop.

“The experience is something they will be able to apply to whatever field they choose to enter, thereby giving them the necessary skills to become future leaders of industry.”

“The entire community is really excited by how well the program has been received from the AZ Department of Education, the school districts,

teachers and our own NAWBO members so far and the potential the program has to strengthen the community,” adds Bishop, “We are urging all local business leaders to become involved with the program and act as mentors to the budding entrepreneurs.” By partnering with YEA!, both large and small companies/businesses volunteer their time and services acting as business mentors, field trip hosts, guest lecturers, graphic designers, Web developers, attorneys, etc. Community support strengthens the program, and the academy strengthens the community About the Young Entrepreneurs Academy & NAWBO Phoenix The Young Entrepreneurs Academy, or YEA!™, is a groundbreaking educational program that takes students in grades nine through twelve through the process of starting and running real businesses over the course of a full academic year. Students work in close cooperation with local leaders of industry, community members, and educators to develop ideas and objectives, write business plans, pitch potential investors, obtain funding, register with governmental agencies, develop their brand identity and much more! By the end of the class, students own and operate fully functioning businesses that can be carried on after graduation. Students learn to make a job – not just take a job! YEA!’s™ direct mission is to help students embrace their passion, energy, creativity and talents, launch a venture, and view entrepreneurship as synonymous with success and freedom. For more information about the Young Entrepreneurs Academy, visit www.yeausa.org This story was provided courtesy of One Community.

Ken Blanchard College of Business | College of Education | College of Nursing | College of Arts & Sciences | College of Fine Arts & Production

Campus • Evening • Online

A R I Z O N A’ S P R I VAT E U N I V E R S I T Y S I N C E 1 9 4 9 Get started today! 855.287.0174 | www.gcu.edu/inbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/ ).

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NAWBO NEWS

The Power of Mentorship

By Martha Knight

Martha Knight

We all need advice. You just became a new parent. What do you? Call your mom. You are training for a big race. What do you do? Hire a personal trainer. You start a new business. What do you do?

Enlist a seasoned business owner for help. The point is, mentorship is everywhere and we need it to better ourselves.

We have enlisted many mentors without even realizing it: • Your accountant is your tax mentor.

• Your financial planner is your investing mentor.

• Your lawyer is your legal mentor.

Most of us have teams of experts who we delegate tasks or ask advice from. Much of this process is done either out of habit or necessity; rarely conscious choice.

Having a mentor can accomplish a number of tasks: • Keeps you from having to re-invent the wheel.

• Keeps you on track, accountable and motivated.

• Decreases your learning curve, saving you time and money.

Some mentors in your life will provide advice at no cost – parents, friends, etc. Professional services like accounting and law will involve fees, but in the spirit of outsourcing, you are technically saving money and time utilizing their experience and education instead of trying to make a go of it yourself and potentially botching the job.

It pays to seek out mentors for different areas of our lives. Here are some examples:

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Business

Whether you are new to a business or a seasoned business owner, having a mentor is extremely beneficial. If you are new, it provides you with the tools to be successful. If you are seasoned, it provides you with a new perspective.

Seek someone who has a successful business now and really aligns with what you are looking to create. As John Maxwell references in the “Law of the Lid” – we can only grow as much as we grow as a leader. So we need to be mentored by someone who has the leadership and entrepreneurial skills that are steps ahead of ours so we can grow our lid.

Scared to reach out? The worst response you can get would be along the lines of “no” – no harm done. But you may also be surprised to discover an open mind and new relationship forming with this business owner. You can share ideas, they will tell you what worked and what didn’t, and you may even open the door to possible business collaborations. Both the mentor and prodigy can easily benefit from the arrangement. At the very least, the mentor will be flattered to be looked upon as an expert and likely give you a few pointers and words of encouragement.

Physical Health

Engaging in mentorship for your physical health is so helpful. For example, hiring a personal trainer will help you keep your exercise routine consistent all while pushing you a little harder than you would push yourself. Or hiring an accountability partner or joining a weight loss group will help you stay accountable and receive support when you are struggling.

Nutritionists, personal trainers, doctors, or even just a friend are all helpful mentors in the physical health realm. Even group fitness classes help you stay accountable. I sign up for my classes the week prior so that I know I have a non-negotiable appointment that I can’t miss – everyone would know I skipped out.

Life

The emergence of life coaches is on the increase. Having somebody who can help you learn to multi-task effectively, cope with change, find a happier career, or even just be a sounding board with some perspective is a very valuable resource to have at your fingertips. Although having a coach can be costly, it is often worth the money spent.

Assess what you are in need of and then find the right coach that specializes in that area.

By looking at all the areas of your life where you can or want to improve, and then finding somebody to help you do it, you will be taking progressive steps toward sharpening your skills, creating a support network, and moving forward in your life. So get out there, find somebody who can teach you something, and watch your life improve!

That’s the power of mentorship and that’s the power of NAWBO. Need a good network?

NAWBO provides you an amazing network of savvy business owners who are there to help you achieve your greatness.

Martha Knight Arbonne International marthaknight.com Years in NAWBO: 2 Years in Business: 5

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NAWBO NEWS

NAWBO PHOENIX Corporate Partners Chairman Corporate Partner Grand Canyon University Presidential Corporate Partners National Bank of Arizona SRP Presidential Media Partner Media88 Executive Corporate Partners Allstate Insurance AZ Tech Finders Border States Electric Kolbe Corp Larry Miller Toyota Prudential Insurance Company of America Newtek Technology Services Snell & Wilmer Southwest Gas Wal-Mart Strategic Media Partners KFNX Radio 1100 AM Gravity Webworks Networking Phoenix.com Executive Media Partners Arizona Capitol Times CITYSunTimes Despins Printing Easel Photography In Business Magazine Money Radio 1510 AM Business Corporate Partners AmTrust Bank APS Auto Glass Experts by The Car Source Bank of Arizona Benjamin Franklin Plumbing E&J’s Designer Shoe Outlet Infiniti HR Orchard Medical Consulting Schmeiser, Olsen & Watts, LLP State Farm

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NAWBO NEWS

Get social with NAWBO Phoenix Utilizing NAWBO’s social media presence not only allows you the opportunity to engage with fellow women entrepreneurs, but also find out what is happening at NAWBO Phoenix.

Through our social media outlets, you can learn about upcoming events, speakers, mentorship opportunities, community service opportunities and more, while being able to engage in forums and other topics with NAWBO members.

Whether you are a NAWBO member or not, you are able to follow us on Facebook and Twitter – for those of you who are not yet members, you may like what you see and want to join us! The benefits of NAWBO membership are abundant. NAWBO is also on LinkedIn, but is a private group for our members providing a place for collaboration and connections in a platform that allows members to connect beyond our events.

You can find links to all of our social media accounts on our website at http://nawbophx.org or go directly to our Facebook account at http://www.facebook.com/NAWBOPhx and Twitter account at https://twitter.com/NAWBOphx.

NAWBO Welcomes 2013-2014 Board of Directors Each year, NAWBO elects a new board to orchestrate the year. This year’s board is made up of diverse, savvy business women ready to continue the mission and vision of NAWBO Phoenix.

Executive Committee

Board of Directors

President Jackie Wszalek Despins Printing & Graphics

Communications/ Media Relations Kristin Slice Three Dog Marketing

President-Elect Dorothy Wolden Gravity WebWorks

Martha Knight Arbonne International

Finance Director Julie Kern, CPA, CFP, Bridge Financial Strategies

Community Alliances Choo Tay Media 88

Secretary Melanie Dunlap Peaceful Spirit Enrichment Center

Community Service Phaedra Earhart Farmers Insurance

Immediate Past President Lynda Bishop Summit Alliance Solutions, LLC

Corporate Sponsors Lynda Bishop Summit Alliance Solutions, LLC

Director of Administration Suzanne Lanctot NAWBO Phoenix Metro

Event Planning Christie Cothrun Baisch and Skinner Carmella Dodge Diamond Vision Events

Membership Melissa Debnar AE3Q Joan Laubach Your Wealth and Health Neighborhood NAWBO Chair Connie Zimmerlich ClickChick Photography YEA! Program Director Lynda Bishop Summit Alliance Solutions, LLC Public Policy Wendy Anderton Kyle Moyer and Company Women’s Enterprise Foundation Julie Heiland J. Heiland Interiors

INDEX Index by Name

Dickie, Jim, 18

Levitt, Theodore, 30

Read, Mike, 16

Avery, Dan, 38

Donovan, Sean, 33

Mackay, Chris, 24

Riesner, Joshua, 16

Barrett, Robyn, 47

Ehrlich, Derinda, 24

Maddock, G. Michael, 30

Sandberg, Scott, 33

Beckett, Justin, 16

Evans, Robert, 32

Marks, Germaine, 20

Sanders, Nancy, 59

Bishop, Lynda, 58, 60

Ferrante-Schepis, Maria, 30

Marsh, Richard M., 20

Saville, Jeff, 12

Blaney, Robert, 45

Fox, James, 16

Morfessis, Ioanna, Ph.D., 24

Schoening, Jeffrey, 16

Bosworth, Keenan, 16

Guerra, MaryAnn, 12

Mottola, Tommy, 30

Smith, Don, 20, 49

Brafman, Ori, 31

Harvey, Bonnie, 36

Murray, Rick, 45

Smith, Rene, 16

Brewer, Jan, Gov., 20

Hebert, Joshua, 16

Neal, Julie, 24

Sterling, Walter, 16

Brewer, Jim, 32

Higuera, Lori, 33

Neffinger, John, 31

Tobin, Andy, Rep., 20

Broome, Barry, 16, 24

Houlihan, Michael, 36

Neighbors, Derek, 12

Trailer, Barry, 18

Campbell, Cullen, 16

Hunter, Shawn, 31

Neuner, Jeremy, 31

Wagner, Don, 66

Carney, Bryon, R., 51

Isenberg, Daniel, Ph.D., 24

Ostermeyer, Michael, 14

Watson, Sandra, 16, 24

Carter, Matt, 16

Jagel, Gayle, 60

Panchanathan, Setheraman, 24

Wiest, Candace H., 53

Clark, Brandon, 24

Johnson, Barry, 33

Peck, Sidnee, 24

Wigal, Amanda, 55

Coonerty, Ryan, 31

Kim, Leezie, 14

Plato, Tommy, 16

Wiggenhorn, Erica, 53

Crow, Michael, 20

Knight, Martha, 62

Pollack, Judah, 31

Wiggenhorn, Jonathan, Dr., 53

Curry, Payton, 16

Kohut, Matthew, 31

Pruitt, Jeffrey, 11

Wszalek, Jackie, 57

Dempsey, Tracy, 16

Lehmann, Richard, 22

Ramos, Otta, 38

Index by Company

Cybertrails, 44

MobiManage, 44

SRP, 21

Ahwatukee Foothills Chamber of Commerce, 34

Del Frisco’s Grille, 42

Napster, 30

Startup Arizona, 24

Alerus Bank & Trust, 13

Dell, 40

State Farm Insurance, 20

Digital Intelligence Systems, 16

National Association of Women Business Owners, 34, 57

Arbonne International, 62 Arizona Chamber Foundation, 20 Arizona Commerce Authority, 4, 5, 16, 24 Arizona Department of Administration, 18 Arizona Department of Insurance, 20 Arizona Diamondbacks, 19 Arizona International Growth Group, 34 Arizona Small Business Association, 34, 35, 45 Arizona State Legislature, 20 Arizona State University, 20, 24 Arizona Technology Council, 34 Avnet, Inc., 24 AZ TechCelerator, 24 Babson College, 24 AT&T, 68 Beckett’s Table, 16 Bibby Financial Services, 10 Biltmore Bank of Arizona, 22 BioAccel, 12, 24 Bloomberg TV, 14 Bootleggers, 16 Brandables, 55 Brat Haus, 16 Buchalter Nemer, 23 Cassidy Turley, 18, 42, 51 Center for Entrepreneurial Innovation, 12 Central Phoenix Women, 34 Chandler Chamber of Commerce, 34 Chandler, City of, 24 Co+Hoots, 24 Cox Communication, 56 Crest, 30 Crudo, 16 CSO Insights, 18 Cushman & Wakefield, 67

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Driver Provider, The, 17

NEC, 40

Stoney-Wilson Business Consulting, 17

East Valley Partnership, 24

North Phoenix Chamber of Commerce, 34

Edson Student Entrepreneurial Initiative, 24

Northcentral University, 15 Octane Raceway, 9

Surprise, City of, 24

Ernst & Young, 33

Office of Knowledge Enterprise Development, 24

Tallwave, 11 Tempe Chamber of Commerce, 33, 35

Omni Hotels & Resorts, 37

Three Dog Marketing, 59

Pearson VUE, 66

Tracy Dempsey Originals, 16

Peoria, City of, 24

U.S. Dept. of Health and Human Services, 20

Estrella Ear, Nose & Throat, 53 Fennemore Craig, P.C., 33 Fidelity National Title Group, 20 Float Mobile Learning, 14 FSW Funding, 47 Gangplank, 12, 24 Gelato Spot, 16 General Motors, 24

Phoenix Children’s Hospital, 16 Phoenix, City of, 16, 24 Pig & Pickle, 16 Pizzeria Bianco, 42

Grand Canyon University, 60, 61

Point B, 38

Greater Phoenix Chamber of Commerce, 34

Posh, 16 Proctor & Gamble, 30

Greater Phoenix Economic Council, 16, 24

Quarles & Brady LLP, 14

Harvard Business School, 30

Regus, 9

Healthcare Trust of America, 2

Review Trackers, 14

House Brasserie, The, 16

Rosetta Stone, 14

Human Capital Strategies, 33

SCF Arizona, 3, 20, 49

Il Bosco Pizza, 42

Scottsdale Area Chamber of Commerce, 34

Innovations Incubator, 24

Scottsdale, City of, 24

IO.INC, 24

Seed Spot, 24

iTunes, 30

SkySong, 24

J&G Steakhouse, 6

Sony, 30

Surprise Regional Chamber of Commerce, 34

U.S. Small Business Administration, 24 U.S. Small Business Administration, Arizona District, 45 United Food Bank, 32 University of Phoenix,7 University of Rochester, 60 Valley Partnership, 24 ViewSonic, 40 West Valley National Bank, 53 West Valley Women, 35 WinCo Foods, 16 Wist, 54 Women of Scottsdale, 35 Zinc Bistro, 16 Bold listings are advertisers supporting this issue of In Business Magazine.

K1 Speed, 6 Kauffman Foundation, The, 24, 60 La Piazza Al Forno, 42 Leukemia & Lymphoma Society, The, 32

Check Out the New

Maddock Douglas, Inc., 30 ManageStaff, 33 Maricopa County Attorney’s Office, 10 Maricopa County Home Shows, 16

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Mastro’s Restaurants, 13 Mesa Chamber of Commerce, 34 Mission, The, 16

It's THE Hub to Building Business J U LY 2013

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A CANDID FORUM

Role-relevant Certification Helps in Recruiting Talent An increased uptake in tailoring assessment and certification tools can help address the national skills crisis

by Don Wagner THE PUBLICATION OF 2012 global jobless figures reveals a deepening of the crisis plaguing employers in every town around the globe. A paradox between numbers of unemployed and difficulty in recruiting talent is here for a generation. And while widespread unemployment and the need to up-skill populations has been widely reported, one vital ingredient is absent from the discussion: rolerelevant assessment and certification.

The context is bleak: The world’s jobless population rose by 4 million in 2012 to 197 million, a figure set to increase by 8.1 million by 2014.

However, last year around half of U.S employers struggled to fill jobs — compared to just 14 percent in 2010 — with skilled trades, engineers and IT staff in short supply.

With so many people available for work but lacking the right skills or experience to perform, governments have been backing various schemes such as vocational training; educators are devising new programs to up-skill the unemployed; and technologists are providing greater innovations with more blended and mobile learning. Yet the solution begins — not ends — with training.

Certification is a professional badge. It offers proof of ability and aptitude. And it needs to become much more commonplace in a highly competitive global economy. Certification achieved through assessment can identify the right candidates during higher education applications; specific skill sets in a given industry; individuals best suited for vacant posts; and, now, even the possibility of knowledge assessment by massive open online courses (MOOCs).

The IT industry offers a model for skills strategies that other professions may emulate. IT certifications have long proved successful, mainly because they are designed to not only assess a specific set of role-relevant skills so employers can be confident in their level of competency, but they also provide a career pathway that allows a candidate to move from junior to high-skilled with validation at every step. IBM’s 2010 white paper found that seven out of ten IT employers felt that certification led to an increase in customer service and team performance.

IT certifications also prove vital tools when hiring. The CompTIA Employer Perception of IT Training and Certification 2011 study found that almost nine out of 10 hiring managers saw IT certifications as a high or medium priority in the candidate evaluation process.

While IT differs from other industries, the principle of validating knowledge and skills and ensuring confidence in ability is the same. There is arguably no more important sector than healthcare, where validation of skills can mean the difference between life and death. Through a survey of 3,000 nurses and managers, the American Board of Nursing Specialties found that certification was highly valued not just by certified nurses, but non-certified nurses, certified managers and non-nursing managers.

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Nurses in the U.S. must first obtain a license to practice but will often seek additional certification in nursing specialties to further showcase their skills. The survey revealed that the driving force for certification wasn’t salary; it was the recognition, respect and confidence in their ability from peers and, crucially, patients. It is these factors which are the ultimate argument for accreditation in the workplace — dispelling the myth that if staff get certified they’re going to leave.

A growing number of employers are leveraging certifications as a way to signal their own organization-wide competencies to customers.

The uptake of psychometric services — essentially, the science and measurement of testing — is ever more critical. Certification testing is not just about coming up with a bunch of questions to create a test; the combination of more assessment and certification with statistically valid tests is what will make the real impact to high-skills needs.

The longer industries wait to develop the right assessment certification program, the increasing difficulty they will have in finding the right qualified talent. It’s not about simply training and certifying people for the sake of it, but tailoring training and certification to help fill specific jobs. To make sure positions are filled by the right people, and for the long-term, we need to provide more opportunities to the low-skilled and those beginning their careers. Test owners have a key role, and also an opportunity to raise standards. By growing their programs, they can partner with employers to develop specific solutions and ongoing certification. They can also become more efficient, reducing the number of non-certified training programs that are not industry recognized.

Pearson VUE pearsonvue.com

Don Wagner is senior vice president of business development for Pearson VUE, the global leader in computer-based testing for information technology, academic, government and professional testing programs around the world.

Pearson VUE provides a full suite of services from test development to data management, and delivers exams through the world’s most comprehensive and secure network of test centers in more than 175 countries.

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