In Business Magazine - December 2010 by InMedia

DEC. 2010

Your Bottom Line: How Customer Feedback will Build Your Business

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How is it affecting our comeback?

This Issue National Association of Women Business Owners

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Connect with us:

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December 2010

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

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

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

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

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

Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 • www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

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

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

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Join us:

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

www.inbusinessmag.com 6

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Phoenix Black Chamber of Commerce www.phoenixblackchamber.com Westmarc www.westmarc.org

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Contents

December 2010

DEC. 2010

Your Bottom Line: How Customer Feedback will Build Your Business

inbusinessmag.com

How is it affecting our comeback?

The Real Estate Crunch: How Is It Affecting Our Comeback? This Issue

ains

National Association of Women Business Owners

Sheep’s

Crossing,

White Mount

What went wrong, where are we now, and how will we get out of it? Alison Stanton talks with industry professionals in real estate, economic consulting and law to explore the impact on and prognosis for your business. Departments

38 Bottom Line

Executives International, introduces the

Jobs Act of 2010.

Rich A. Rector, president of Realty AOT_0

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11 Guest Editor “Real Estate Crunch” issue.

12 Feedback

Top executives Sindi Major-Martinez, Ted Anderson and Deborah J. Gilpin

11/5/10 11:19 AM

PROOFS: Laser

Sue Kern-Fleischer talks with industry professionals for a view of the road ahead and how tourism’s “window” to economic development impacts other businesses.

Fuel Growth: Customer Feedback Will Build Your Business Strategic advisory firms discuss with Sue Kern-Fleischer

approaches to using customer feedback to build customer loyalty.

respond to IBM’s burning business question of the month.

14 Briefs

“Foreclosures Continue to Loom Large in Local Housing Market”; “Ranking Us: The Ups and Downs of Being Polled”; “M & A: Company Finds Opportunity and Strength”; “Home Prices Still Trending Down?”; “Bank of Arizona a Leader in Renewable Energy Funding”; “Making Permanent Impact in New Business Niche”

18 By the Numbers

Light Rail; Key Economic Indicators provide a sense of the health of the local economy.

Employee Empowerment: Engage Them or Lose Them

Employee satisfaction may be as destructive to your work force as salary freezes and benefit cuts. Human Resources specialist Georgette Proestakis shares with RaeAnne Marsh the power of employee engagement.

Enterprise: Risks and Rewards

Paul Krulisky lays the groundwork for Arizona entrepreneurs

44 Nonprofit

Community service and value: Chrysalis and Childhelp

50 Assets

“Power Piece: Bringing Back a Timeless Accessory”; “Sky-High Comfort: Must-Haves for Travel”; “Mobile Detail: TLC for Your Car”

52 Power Lunch

Art is a midday meal at Arcadia Farms Café at the Phoenix Art Museum. Plus: Satellite Office: Let’s Have Drinks

66 Roundtable

A minute with Senator-elect Michele Reagan

Networking

45 On the Agenda

December’s calendar of business events presented by our partners

26 Tech

Special Partner Section

be SOL (Sadly Outta Luck).

55 NAWBO

Search Engine Optimization (SEO): Don’t

Valley pros sound off on the Small Business

28 Trickle Up

National Association of Women Business Owners

Celebrating 25

years of serving

the women business

View from the top looks at how an astute business response to personal health

B uild Relationships,

issues led to founding the successful

Build Your Business

EmpowHER website.

37 Books

T he Marketing Budget —

WINTER ‘10 -

1985

2008-2009

About NAWBO

Founded in 1985, NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power. Twenty-five years later, NAWBO Phoenix is still the only organization in the Valley that solely represents the interest of women entrepreneurs in For more information, all industries. please visit www.nawbophx .org.

• 10.1 million firms are owned by women (50% or more), employing more than 13 million people and generating $1.9 trillion in sales as of 2008. • Three-quarter s of all women-owned businesses are majority-owne d by women (51% or more), for a total of 7.2 million firms employing 7.3 million people and generating $1.1 trillion in sales. • Women-owned firms (50% or more) account for 40% of all privately-held firms.

Businesses Owned

This issue Page 2 Build Relationships

Page 6 Public Relations

Build Business

by Women of Color

• 1.9 million firms are majority-owned (51% or more) by women of color in the U.S. • These firms employ 1.2 million people generate $165 and billion in revenues annually.

Million-dollar Businesses - Where to start

in a Wired World and more...

P ublic Relations in a

‘11 • nawbophx.org

age

Women clearly mean business today. Since the Association of Women’s founding of the National Business Owners women have been (NAWBO) 35 years making their mark ago, in every major Let’s take a look market nationwide. at the overall picture:

2010

Page 4 The Marketing Budget

Where to Start

owners of Phoenix.

President’s Mess

Phoenix Metropolitan Chapter of the National Association of Women Business Owners, 4600 E. Washington St., Suite 300 Phoenix, AZ 85034 602-772-498 5 www.nawbophx .org • info@nawboph

• One in five firms with revenues of $1 million or more woman-owned . is • 3% of all women-owned firms have revenues more compared of $1 million or with 6% of firms owned by men. Center for Women’s

Source of Data:

New releases on Workforce and Human

Wired World

Resources

T he Two Biggest Reasons Successful

x.org

nwabophx.org

Cindy Hynes President, NAWBO Phoenix

Business Research.

Women are taking the lead by starting employ millions and growing businesses of people in the that U.S. Regardless women are innovative, hardworking, collaborative of their industry, owners who work and talented business well with other women. Research relate easily to shows that they the experiences of other women Women who have business owners. created high-performin an inspiration to g businesses can other women while serve as also providing valuable information on how they achieved practical their success. It wasn’t that long ago that access to capital was a achieving success major barrier to in business. But with the progress the past 35 years, we’ve made over more than half of women business for credit — get owners who ask it! The most successful big” from the outset. women business owners “think At NAWBO, we encourage all women potential and soar to the level of their to meet their dreams.

NWABO NEWS

People Are Successful

starting a business to achieve success and avoid risk.

D e c e m b e r 2010

inbusinessmag.com

Over the river and through the woods...

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DECember 2010

Publisher Rick McCartney Editor RaeAnne Marsh

Market Leadership in Action believe in designing and developing projects to a higher set of “We environmental, corporate and community standards. In Phoenix, our leasing team, Cassidy Turley BRE Commercial, shares that same dedication and commitment.

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William Olson, Vice President-Designated Broker, Hines Hines is a privately owned, international real estate firm that has provided the highest level of quality, service and value to its clients and investors for more than 50 years.

Calendar Editor Kerri Metcalf Contributing Writers Gremlyn Bradley-Waddell Don Harris Mike Hunter Sue Kern-Fleischer Kate Nolan Emily Snow Alison Stanton

Photographer-at-large Dan Vermillion Advertising

Operations Louise Ferrari

Trafficking Kerri Metcalf

602.954.9000 | www.brephoenix.com

Art Director Benjamin Little

lferrari@inmediacompany.com kmetcalf@inmediacompany.com

Account Executives Louise Ferrari

lferrari@inmediacompany.com

Scott Mershon

smershon@inmediacompany.com

CAPITAL MARKETS CORPORATE SERVICES

Cami Shore

PROJECT & DEVELOPMENT SERVICES PROJECT LEASING

cshore@inmediacompany.com

PROPERTY MANAGEMENT TENANT REPRESENTATION

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More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of businessrelated events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

President & CEO Rick McCartney Financial Manager Ryan Cope Editorial Director RaeAnne Marsh Senior Art Director Benjamin Little Administration Kerri Metcalf Corporate Offices 6360 E. Thomas Road, Suite 210 Scottsdale, AZ 85251 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 1, No. 2. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to: To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2010 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

inbusinessmag.com

Rich A. Rector, Realty Executives Phoenix

Guest Editor

Embracing Change to Create Opportunity

Rich A. Rector is president of Realty Executives International, one of the fastest-growing real estate franchises in the United States. The Phoenix-based firm has offices in 14 countries.

We are in an era that is certainly changing business for all of us. Today’s dynamic real estate market spotlights how vital it is that we embrace this “new normal” and create from it opportunity. In residential real estate, it has become clear that the successful real estate agents are the individuals who seek this opportunity, particularly now when short sales and REOs have become commonplace. Real estate agents have had to expand their knowledge and adapt their business to the changing times. As a brokerage, we have addressed this “new normal” head-on by making relevant education available to our Executives (real estate agents), as well as investing in a technology initiative that plans out to 2020. We formally launched our initiative at the National Association of REALTORS® Convention in November and it is a game changer for our Executives. This attitude is what we, as Arizonans, are known for and what will be key to our recovery. In this December issue of In Business Magazine, Alison Stanton takes on this “real estate crunch” by looking at the effect that real estate, both residential and commercial, has had on business and our local economy. Her article looks at how we are a business community of innovators. What started out as a financial crisis evolved to real estate, and will effectively build opportunity for businesspeople within the Valley. Sue Kern-Fleischer’s perceptive story on tourism reveals opportunities for businesses in the Valley and throughout Arizona. The effects of SB 1070, the economic downturn and even 9/11 are all factors that are leading us through tough times to bigger and what appears to be a great future for our tourism marketplace. Strong tourism for Arizona helps fund critical programs, such as education, making a positive impact on our state budget and overall economic recovery. In Business Magazine is meant to be a truly hands-on business publication for and about businesspeople here in the Valley. To that end, stories on “Achieve Success and Avoid Risk,” by attorney Paul Krulisky; “Fuel Growth: Customer Feedback Will Build Your Business,” by Kern-Fleischer; and “Employee Empowerment: Engage Them or Lose Them,” by In Business Magazine editor RaeAnne Marsh, offer great insight to those vested in business. We believe in embracing change to find great opportunity. Enjoy this issue.

Rich A. Rector Owner & Executive Chairman Realty Executives Phoenix

Just ‘One Big Real Estate Deal’ During our most recent real estate boom here in Phoenix, I had the pleasure of visiting Dubai. I was struck by the incredible similarities of the two cities. The vegetation is similar, temperatures are around the same degrees and economic development was the industry of the day. Phoenix was winning out in the residential sector and Dubai was doing the same in commercial deals. I remember hearing many people say, “Dubai is nothing

inbusinessmag.com

but one big real estate deal.” Everyone translated that as a great testament to their success at the time. We were pleased to make the comparison to metro Phoenix. How times have changed. Today, real estate values have dropped by more than half, projects have stopped and thousands of workers have lost their jobs. This is what we have in common. Our market may have become one big real estate deal by the end of 2008,

but we will bounce back as Phoenix, unlike Dubai, has so much going for it. With change comes good, and Phoenix and the Valley’s economy will come back if we build industry, support a work force and temper our next boom. Rich Rector and other strong leaders in real estate are working hard to substantively change our future. Here’s to coming out of this real estate “crunch” and never seeing the likes of this again. —Rick McCartney, Publisher

In Business Magazine

Feedback

Valley Business People Sound Off

Executives Answer The downturn in Arizona real estate has had a devastating effect on our local economy. How is your business or industry dealing with this and what good do you see coming from this “crunch”?

Sindi Major-Martinez

President & CEO Sindel Technology Solutions Sector: Information Technology The real estate crunch forced our company to diversify our client base. Many of our real estate-related clients went out of business, and those that remained in business turned to our company to help them increase their efficiencies through technology. The downturn also illuminated the importance of being involved in efforts to bring a greater diversity of businesses to Arizona. As an investor in the Greater Phoenix Economic Council (GPEC), we are helping to attract more businesses in diverse industries to Arizona. It is estimated that Arizona will emerge from this downturn sometime around 2014; however, 1 in 3.5 of those jobs created during the recovery will once again be in construction, retail and real estate. This will keep our state vulnerable to the boom and bust cycles we have seen throughout the years unless we diversify. The good news is that we are seeing efforts to attract more diverse types of businesses — such as the solar industry — to Arizona become a reality. In addition, we are seeing more entrepreneurial activity, which creates innovation and will help us build a more sustainable economy.

Ted Anderson

Principal/Director of Client Services MMA Advertising Sector: Advertising Being in an industry that relies on the potential and success of other businesses, marketing companies are keenly aware of the pitfall of solely focusing on one product category or service. Many companies’ entire portfolios were in the homebuilding/development and construction sector. As such, these businesses have been hurt the hardest by the downturn. As with investments, diversifying is the key to long-term success. The silver lining of these tough times is that it has forced all businesses to refine themselves, become more efficient, and discover alternate uses for their products and services. They have also pushed clients to consider unconventional tactics and new technologies, such as social media, in their marketing plans. Messaging has also changed. Value is an overriding factor in the purchase decision. Smart marketers are communicating the value, but value without diminishing the integrity of their product. While these times have been painful for many, I believe the lessons learned will turn out to have a positive impact on the Valley’s economy in the long run. Being more efficient and finding new sources of economic drivers can only improve the stature of our market on the national stage.

Sindi Major-Martinez co-founded Sindel Technologies, LLC in 1993, growing it to 15 employees. She earned her degrees at the W. P. Carey School of Business at Arizona State University and at Northern Arizona University.

Ted Anderson is owner of MMA Advertising, which was founded in early 2003. Anderson has worked with top advertising agencies including Solomon Friedman, AC&R Advertising and Diener Hauser Bates. He is a graduate of San Diego State University and serves as the immediate past chair of the Phoenix Film Foundation.

Sindel Technology Solutions www.sindel.com

MMA Advertising

Deborah J. Gilpin

President & CEO Children’s Museum of Phoenix Sector: Nonprofit Here in Phoenix, the economic downturn and related unemployment has affected all of us. The U.S. Department of Labor reports that men’s unemployment is generally more sensitive than women’s to economic ups and downs. Men are extremely vulnerable to job loss, especially in cyclical industries such as real estate and construction. At the Children’s Museum of Phoenix, we are seeing more and more young fathers visiting with their children as they find

D e c e m b e r 2010

www.agencymma.com

themselves now filling the role of primary caregiver. Museum visits establish a positive relationship based on learning and exploring together. Dads and their kids are attending Museum parenting and educational programs. Research shows that children whose fathers are a consistent, positive force in their lives do better socially, intellectually, physically and on a broad range of other factors ranging from economic status in childhood to peer relationships in adolescence to productivity as adults. This relationship also brings profound benefits to their fathers as well as their mothers. And this is good for the family and for our community. Deborah Gilpin has been a museum leader for more than two decades. Her science and children’s museums have won national awards for innovation, design, collaboration projects and educational excellence. She most recently led the opening of the Children’s Museum of Phoenix. She serves on the national board of the Association of Children’s Museums. Children’s Museum of Phoenix www.childrensmuseumofphoenix.org

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Briefs Foreclosures Continue to Loom Large in Local Housing Market Quick and to the Point

Nearly two-thirds of October’s residential real estate transactions involved foreclosures — as either a new foreclosure or a resale of a previously foreclosed-on property. This continues to fuel uncertainty in the housing market, with a broader impact as it could affect the availability of title insurance, the willingness of people to buy foreclosed properties, and the public perception and acceptance of the home-financing process. “We’re seeing even more uncertainty in the marketplace than a month ago, including more distrust surrounding the foreclosure process,” says Associate Professor of Real Estate Jay Butler, who authored the recently released report from the W. P. Carey School of Business at Arizona State University. And, although this report was made after tremendous publicity was generated over the widespread flaws in the foreclosure process, Butler notes that the decisions leading to the reported activity in October began well before those revelations. “Then, with foreclosure moratoriums and weak economic and job growth heightening the uncertainty, the road to housing recovery has become rougher.” Butler believes the level of activity and prices could go lower than people generally expected as we wait for the review and resolution of problems associated with the foreclosure process and unemployment. Overall, foreclosures accounted for 42 percent of the resale housing market transactions in October, the lowest percentage recorded since June. However, Butler sees this not as an indication things are improving but rather as just part of an annual pattern. “With children in school and the coming of the holidays, the typical pattern is for sales and foreclosures to slow through the remainder of the year,” he explains. —RaeAnne Marsh W. P. Carey School of Business at ASU

www.wpcarey.asu.edu

Ranking Us: The Ups and Downs of Being Polled Travel + Leisure magazine readers just named Phoenix/Scottsdale as the second best “All-In-One Resorts” city in America (behind Orlando). The Daily Beast ranked Phoenix Sky Harbor as the best American airport of the 27 busiest in the nation. Phoenicians have even been named as the best drivers among major cities in the U.S. by the Allstate America’s Best Drivers Report. Branding cities as a top place to live, work and raise a family can be as much a factor in driving industry as the real estate values and tax incentives. The numbers matter because it shows who we are and how we rank among the other cities in the nation, something Phoenix and Arizona of late are in the news about frequently. However, it is not always good news: The Milken Institute dropped Metro Phoenix from 93rd in 2009 to 117th this year in its annual Best-Performing Cities survey. In November, CQ Press released its ranking of the most dangerous cities in America, on which Phoenix came in 135 out of 400, up from 302 last year — although the same rankings report a 33 percent improvement in the actual score — prompting this rebuttal: “What the polls show is consistently good for Phoenix,” says Mayor Phil Gordon the eve before yet another poll announced one of the Metro Phoenix cities (Scottsdale) as tops for golf. Negative numbers can, however, give Metro Phoenix a bad name, and, in an era that finds us consistently ranked in the top three metropolitan areas for foreclosure rates, it may be best to keep the numbers quiet altogether. —Mike Hunter CQ Press

www.cqpress.com

Milken Institute

www.milkeninstitute.org

Travel + Leisure

www.travelandleisure.com

M & A: Company Finds Opportunity and Strength Prisma Graphic is striking proof that today’s market is opportune for mergers and acquisitions. Expanding its operations, the 30-yearold company announced it has acquired the Arizona division of World Marketing, based in Tempe, Ariz., from Omaha, Neb.-based World Marketing, a privately held company owned by the Omaha World Herald Company, a newspaper, media and communications company established in 1885. “As the economy has gotten bad in the last few years, marketing departments have gotten smaller and smaller. So [companies] are looking for a one-stop source to take care of their programs for them,” says owner Bob Anderson, who sees the acquisition enhancing Prisma Graphic’s strength in manufacturing and customer service with World Marketing’s strength in mailing and fulfillment.

D e c e m b e r 2010

Notwithstanding the spread of viral, online marketing, printed directmail continues to be a growing segment of the company’s business. Anderson says he is seeing a swing back to print especially in such professional industries as financial, healthcare and education. But the company reached out to embrace the Internet rather than fighting it, and the marriage has proved solid. Total integration of marketing supply chain management, from data analytics and email campaigns to printing and mail drops, includes online ordering and on-demand fulfillment of collateral that enables Prisma Graphic to serve the needs of small businesses as well as larger, decentralized operations or companies with multiple locations like client Best Western. —RaeAnne Marsh Prisma Graphic

www.prismagraphic.com

inbusinessmag.com

YO U R M E E T I N G B U D G E T H A S R O O M F O R

A FEW PLEASANT SURPRISES.

192-seat Lecture Hall

Executive Board Room

“IBM held its Smarter Cities Phoenix event at the Executive Conference Center – Downtown Phoenix. The customers and attendees were very impressed with the state-of-the-art facility, the customer service and the attention to detail. Every aspect of a major conference was anticipated — and addressed well ahead of time.” Joseph (Jay) Ennesser, Jr. — IBM Sales & Distribution, Industrial Sector, Vice President Global Alliances Solutions, Phoenix Location

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

FOR MORE INFORMATION OR A TOUR, CONTACT KEVIN HILL. 602-262-6225 | PHXECC.COM FA M I LY O F V E N U E S Phoenix Convention Center | Executive Conference Center | Symphony Hall | Orpheum Theatre

Briefs Home Prices Still Trending Down? Quick and to the Point

A report released in November from the W. P. Carey School of Business at Arizona State University reveals a year-over-year decline in home prices for the second month in a row. After a year of relative stability, this is not good news for Valley homeowners. But it may not be clear until figures are in for next month as to whether or not it is the start of yet another downward trend. The volatility of the housing market makes it hard to judge, explains Professor Karl Guntermann, the Fred E. Taylor Professor of Real Estate, who authored the report with Research Associate Adam Nowak, but he’s not optimistic. “Continuing weakness in the Phoenix economy, the flow of foreclosures into the market and the seasonal slowdown that occurs in housing toward the end of the year are reasons to be pessimistic about house prices.” One of the stronger segments of the housing market, foreclosure homes finally showed a year-over-year decrease this past August, and the slowdown increased the following month with a 6 percent average price decline from the previous year. In that same September-toSeptember period, non-foreclosure homes dropped 9 percent. Guntermann points to a couple of good signs in the market, saying, “Positives are the strong presence of investors who are showing confidence in the long-term potential of the Phoenix area and the major price declines that have already occurred, which dropped prices back to levels not seen since the end of 2001. It could be argued that the price adjustments that have already occurred and improved housing affordability will make large future price declines less likely.” —RaeAnne Marsh W. P. Carey School of Business at ASU

www.wpcarey.asu.edu

National Bank of Arizona a Leader in Renewable Energy Funding National Bank of Arizona’s innovative entry into the realm of renewable energy has been taken as a model by parent company Zions Bancorporation for its subsidiaries in other states. Craig Robb, a leading force in establishing National Bank of Arizona’s renewable energy loan program as the Arizona bank’s CFO, now heads the specially created Zions Energy Link to oversee and coordinate those efforts. Recognizing the benefits of renewable energy from economic and sustainability standpoints, Robb says he explored, “What can we do as an organization?” National Bank of Arizona financed Davis-Monthan Air Force Base’s 3.4-megawatt solar installation. And about a year ago, it kicked off Solar Phoenix in collaboration with APS, Solar City and the City of Phoenix, enabling Phoenicians to lease a solar installation for their home that can allow them to reduce their energy bill more than enough to cover the cost of the lease. “There are other banks that provide leasing options,” says Robb, “but this is a more holistic, collaborative effort.” The Industrial

D e c e m b e r 2010

Development Authority provided a $250,000 loan guarantee fund. APS, which was already offering renewable energy credits, assisted with marketing, as did Solar City, the installation contractor chosen in part for the strength of its position in the industry. “Banks need to help provide the missing link that allows for residences to implement solar energy,” says Robb, echoing Mayor Phil Gordon. Through another collaborative effort with APS, National Bank of Arizona will soon offer a loan to commercial businesses and public entities to allow them to pursue solar options and other energy efficiency improvements. “The combination can have a material impact on operating costs,” Robb says, offering as evidence the 35 percent reduction in power National Bank of Arizona achieved by installing a new chiller, energy controls and solar panels to serve its 130,000-square-foot office building. —RaeAnne Marsh APS

Delete Tattoo Removal

Making Permanent Impact in New Business Niche Business inspiration can come at odd times. For Marci Zimmerman, it was at a Spring Training game she attended with co-workers. As the day warmed up and shirts came off, she says, “I saw a lot of bad tattoos out there.” Her entrepreneurial instinct led her to research that showed a sizable 16 percent to 18 percent of those with tattoos regretted having them — sometimes even immediately after getting the tattoo. To serve those unhappy with their tatoos, Zimmerman opened Delete Tattoo Removal & Laser Salon in November. Aging Baby Boomers were one anticipated market, and Zimmerman says her research indicated 29- to 39-yearolds would be another, but she’s found even younger people are looking to have their dermal adornment deleted. Self-financing her enterprise, Zimmerman invested in an advanced laser that has the capacity to respond to the multiple pigment colors the tattoo artists inject into the skin, and selected a location that could be conveniently accessed from all compass directions via the 202, 10 and 51 freeways. Staff includes licensed doctors. While her goal is to fill Delete’s schedule with tattoo removal appointments, Zimmerman considered, “What else can we provide as a convenience?” and has included facials, dermabrasion and age-spot removal on her menu of services. —RaeAnne Marsh

www.aps.com

City of Phoenix

www.phoenix.gov

National Bank of Arizona Solar Phoenix

www.nbarizona.com

Delete Tattoo Removal & Laser Salon www.deleteitnow.com

www.solarphoenix.org

inbusinessmag.com

C E L E B R A T E

DECEMBER 10–12, 2010

I N

ScottsdalePublicArt.org

S O L E R I S C O T T S D A L E

BRIDGE DEDICATION MUSEUM EXHIBITION TOURS and LECTURES

SO L E R I B R I D G E A N D P L A Z A S C O T T S D A L E WAT E R F R O N T

Rendering by Clifton Greyeyes, June 2009

s c o ttsda le m use um of con t e m po rary ar t

B R IDGES : SP A NNI NG T HE I DE A S O F

PAOLO SOLERI exhi bition on vi e w t h ro u gh J A NU A R Y 2 3 , 2 0 1 1

Photo by Claire Warden

A collaborative exhibition organized by SMoCA, Scottsdale Public Art and the Cosanti Foundation.

FREE LECTURE & PANEL DISCUSSION

SATURDAY, DEC 11 2:30 & 3:30 PM @ STAGE 2 THEATER

inside the Scottsdale Center for the Performing Arts

Tours and Lecture tickets 480.994.ARTS (2787) ext. 2 Exhibition sponsored by:

7374 east second street

DON’T MISS

scottsdale az 85251 smoca.org

Salt River Project and Modern Phoenix

S O L E R I B R I D G E A N D P L A Z A F R E E P U B L I C D E D I C AT I O N S C O T T S D A L E WAT E R F R O N T D E C . 1 1 , 2 0 1 0 1 1 a m − 2 p m

The Soleri Bridge and Plaza is a joint City of Scottsdale Capital Improvement Project and Scottsdale Public Art commission funded in part by Starwood Capital Group and Golub & Company, Ground Up Development Services and Salt River Project.

By the numbers

Metrics & Measurements

Valley Businesses Getting on Board with Light Rail Little by little, folks are getting on board — literally and figuratively — with the Valley’s METRO Light Rail system. Not only has ridership been increasing since the December 2008 grand opening, according to Valley Metro Rail Inc., but business owners who weren’t taken with the project at the outset seem satisfied, if not pleased, with the results and other businesses are recovering from the punishing construction challenges. Plus, new businesses have been springing up in spite of the dreary economy. Notes Hillary Foose, a Valley Metro Rail spokesperson, “Since 2004, we’ve seen $7.4 billion in public and private investments made along the line.” As for how some of the established business owners along the line are doing, many would likely agree with Steve Goumas. The owner of Tempe’s Irish-themed pub Rúla Búla says he initially had mixed feelings about light rail. But, while he still thinks improvements are needed, he’s now a fan. “I would say that, overall, we love the light rail because we’re always the first stop,” he says, referring to departing rail passengers who, particularly on weekends, make a beeline for the pub just steps from the Mill Avenue and Third Street station. And he’s

Key Indicators

seen a spike in weekend patronage, although it hasn’t been enough to bring in extra staff. Meanwhile, over at Christown Animal Hospital in Phoenix, office manager Tina Sandhu says she and her husband — the practice’s chief veterinarian — are just grateful the line is completed. For a year and a half, construction work blocked access to their office. “It totally affected our business,” she says, noting the new station at 19th Avenue and Camelback Road is literally outside their door. “[Clients] did avoid us because you had to go all the way down the street and a make a U-turn.” They pulled through the tough times, Sandhu says, and since then the city has been trying to make up for the inconvenience. In fact, the hospital recently was featured in METRO Max Rewards, a package of incentives and discounts offered to rail users via e-mail. —Gremlyn Bradley-Waddell

In Phoenix

13.34 miles

In Tempe

5.5 miles

In Mesa

.97 miles

Number of Stations Station Length Number of Train Cars

28 300 feet 50

Length per Car

92 feet

Weight per Car

102,000 lbs.

N umber of Driver Cabs per Car System Passenger Capacity

20 miles

Number

YOY %Change

Unemployment (Oct. 2010)

8.7%

1.5

Job Growth (July 2010) in thousands

1691

-.03

585

-18.1

Consumer Confidence (Q2 2010)

55.7%

1.1

Consumer Price Index* (July 2010)

218.4

1.1

Housing Permits (July 2010)

Eller Business Research

Retail Sales Retail Sales (in thousands)

August 2010

YOY %Change

3,793,968

Retail

2,355,746

-1.7

Food

590,428

10.3

Restaurants & Bars

473,160

5.2

Rúla Búla www.rulabula.com

Gasoline

374,634

5.5

Christown Animal Hospital

Contracting

451,750

-20

Valley Metro Light Rail www.valleymetro.org/metro_light_rail

www.christownanimalhospital.com

Number of Free Lot Parking Spaces Total Travel Time of Route Cost to Build Federal New Starts Grant Congestion Mitigation & Air Quality Grant Number of Decibels from Train Bell

Real Estate Commercial: Office Vacancy Rate

3,500 65 minutes $1.4 billion $587 million $59 million 50

October 2010 Ridership Total Riders

1,165,737

Average Weekday

43,425

Train Car Capacity

66 (seated)

Average Saturday

30,039

Train Car Capacity

175 (comfort capacity)

Average Sunday/Holiday

20,722

Park-and-Ride Lots

Source: Valley Metro Rail, Inc.

1.5

Eller Business Research

12,000 people p/hr

D e c e m b e r 2010

Economic Indicators

Total Sales

Light Rail By the Numbers Length of Light Rail

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

Net Absorption Rental Rates (Class A)

Commercial: Indust. Vacancy Rate Net Absorption Rental Rates (Class A)

Residential Total Sales Volume

Q3 2010

Q3 2009

27.9%

26.3%

(86,775)

(79,838)

$25.09

$26.29

Q3 2010

Q3 2009

14.4%

15.2%

2,157,929

(1,193,860)

$0.50

$0.54

Oct. 2010

Oct. 2009

6,245

8,166

Total Median Sale Price

$129,900

$140,000

New Build Sales Volume

424

761

New Median Sale Price

$226,323

$203,909

5,821

7,405

$123,000

$130,200

Resale Sales Volume Resale Median Sale Price

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

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SE C TOR

Industry Updates & Deals

Tourism: Will Arizona Overcome the Challenges? by Sue Kern-Fleischer

Toroweap, Grand

Canyon Nation

al Park

“When you come to a fork in the road … take it.” —Yogi Berra Much like a long, uncomfortable road trip filled with too many detours, Arizona’s tourism industry faces a challenging fork in the road when it comes to getting back on track. Are more detours ahead or can we finally rev up the engine and move forward — fast? Thanks to a cohesive group of dedicated industry professionals and civic leaders, it appears Arizona is heading in the right direction. The Arizona Governor’s Task Force on Tourism and Economic Vitality is already moving forward with plans to improve Arizona’s image after the state’s SB 1070 immigration law backlash. The task force is comprised of members from the Arizona Office of Tourism (AOT), the Arizona Department of Commerce and the Arizona-

history.” She likens 2009 to a perfect storm. “The recession was in full force, people were scared to travel because of the Swine Flu, and the ‘AIG effect’ hit us hard.” Four out of the five AIG national stories originated in Arizona, and, because Arizona was perceived as a luxury destination, meeting planners balked. “It was devastating,” Jarnagin says. “Companies paid $60,000 in cancellation fees and then paid more money to go elsewhere because they did not want to hold their meetings at a ‘resort.’” But even in Arizona’s worst economic year, tourism taxes contributed $2.4 billion to local, state and federal coffers. This equated to more than $1,000 per Arizona household. Additionally, tourism employed more than 157,000 Arizona residents. “People don’t understand the implications of tourism and how it impacts them. Not only do taxes help fund critical programs like education, tourism lowers your taxes. For every tourism dollar spent, you get a minimum of $2 and up to $8 back in tax revenues,” Jarnagin points out. Optimistic about 2011 and hopeful that Arizona’s business community will reach out to industry leaders and work together to leverage Arizona’s unique tourism product, Jarnagin says, “We have a great opportunity to bring in billions of dollars, but we are competing against other states that have 10 times our marketing budget.” Rebuilding Tourism

Rachel Sacco, president and CEO of the Scottsdale Convention & Visitors Bureau, views 2011 as a year of rebuilding. The SCVB

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Mexico Commission, as well as the Arizona Hotel and Lodging Association and the Arizona Tourism Alliance. But just how bad was the backlash? Kristen Jarnagin, vice president of communications for the Arizona Hotel & Lodging Association, says it is almost impossible to know. “After the bill was signed, we launched our “Don’t Boycott Arizona” Facebook fan page and got incredible feedback on both sides of the issue,” she says. “We asked our members to let us know if they were receiving cancellations because of the boycotts, but it was voluntary, so it was not a formal study.” From April to July, at least 40 meetings were cancelled due to boycotts, and future bookings by meeting planners were down 40 percent. Those 40 meetings could have pumped $15 million into Arizona’s economy. “That $15 million is specifically related to hotel contracts. That does not include ancillary spending on rental cars, at restaurants and at stores,” she says. “Meeting planners book two to three years in advance, so we don’t know how many meetings may be out of rotation over the next few years because of the controversy.” While the verdict is still out on the effects of SB 1070, Arizona continues to try to recover from the Great Recession. Arizona’s last peak tourism year was in 2007, with 35.2 million people spending $19.3 billion throughout the state. Last year, 35 million people spent $16.6 billion throughout the state. “[The year] 2009 was dismal,” Jarnagin says. “Arizona lost 30,000 tourism jobs and $167 million just in tax revenues. It was worse than after 9/11. It was the worst year in our industry’s

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state on either a personal or business trip to see what the state has to offer.” Henry is confident that Arizona can overcome the challenges it has faced over the past few years. Last month, the AOT launched a $3 million advertising campaign, “In One Word — Arizona,” in which the state’s exhilarating scenery takes center stage. The campaign targets leisure travelers and will run through May 2011, appearing primarily in the Chicago and Los Angeles markets. AOT’s research determined that these cities are proven to be among Arizona’s major feeder markets for prospective visitors. “It is imperative that we tell the Arizona story,” Henry says. “Arizona is still the same world-class destination that we have always been, and we continue to welcome visitors, business travelers, family reunions,

www.azcommerce.com Arizona Hotel and Lodging Association www.azhla.com Arizona-Mexico Commission Arizona Office of Tourism

www.azmc.org

www.arizonaguide.com

Arizona Tourism Alliance www.aztourismalliance.org Scottsdale Convention & Visitors Bureau

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inbusinessmag.com

Arizona Department of Commerce

www.scottsdalecvb.com

Commercial Success

The Governor’s Tourism and Economic Vitality Task Force was created to address more than just political issues and involved more than just the tourism industry. Emphasizing this point Sherry Henry, director of the Arizona Office of Tourism, notes, “Commerce was also involved with this task force.” Because tourism and economic development are intertwined, the need to market Arizona as a destination is more critical now than ever. Says Henry, “We like to think of tourism as the ‘window’ to economic development. Through this window, visitors can find out all about what Arizona has to offer as an incredible place to live, work and visit. And — nobody relocates their family or business to Arizona without first visiting the

international trekkers, sports fans and every other type of guest to our beautiful and hospitable state with smiles and pictureperfect experiences certain to create lifelong memories.” With passionate advocates like Henry, Sacco and Jarnagin working to attract tourists to our Grand Canyon State, the road to recovery may not seem so long after all.

Havasu

recently launched a new advertising campaign targeting U.S. and Canadian meeting planners. And she notes, “In my 32 years in this industry, there is one thing that never changes. There is no substitute for face-to-face meetings.” Corporate meetings account for an estimated 60 to 70 percent of Scottsdale’s resorts’ business. A 2009 poll of corporate decision-makers showed that, while there is a decline in planned meetings over the next three years, these same decision-makers viewed Scottsdale’s facilities and amenities as excellent. Sacco attributes the decline to the economy and some backlash from the SB 1070 controversy. “After the backlash, we stood tall and held our heads high,” she says. “We in the travel industry can’t control legislation, but we are in control of providing the best experience to our tourists.” The real story, according to Sacco, is that people are traveling again. “Our research this year shows that 84 percent of all people who received information from our office came to visit Scottsdale within a year,” she says. “We’re also seeing an uptick of new business interest, with 52 percent of new leads that have not been in our database for at least two years.” And while Scottsdale is poised for a strong comeback, the SCVB is working hard to avoid missed opportunities. “We can do the best marketing and advertising, but the real magic happens when tourists are here,” Sacco says. “We’ve stepped up our efforts to educate and motivate our local business community to make sure they are ‘visitor ready’ and provide exceptional customer service.”

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In Business Magazine

Market Share

Building Business

g closer to customers

Fuel Growth:

Customer Feedback Will Build Your Business by Sue Kern-Fleischer You value your customers. Your firm has earned a great reputation for delivering superior quality products and exceptional services. So much so that, if our firm does business with yours, you’re going to exceed our expectations and provide plenty of reasons for us to remain loyal to you. Really? “A lot of companies pay lip service to their clients and potential clients,” Evan Klein, founder and president of Scottsdale-based Satrix Solutions, LLC, says. “Their websites and marketing collateral tell us how much they value us, but the reality is that there are

D e c e m b e r 2010

very few organizations that practice what they preach. The companies that do, really stand apart from the rest.” Satrix Solutions is a strategic advisory firm that helps companies turn customers into loyal advocates. Using a systematic approach to capture data and respond to customer needs, Satrix helps its clients improve customer retention, share-of-wallet and new sales. The firm’s portfolio of services includes customer satisfaction surveys, Net Promoter Score® (NPS) analysis, customer advisory boards, customer perception audits, reference programs, defection analysis and new business win/loss analysis.

Research shows that it costs up to six times more to attract a new customer than to keep an existing customer and that companies can boost profits from 25 percent to 125 percent by retaining 5 percent more of their existing customers. “Now, more than ever, businesses need to develop strong bonds with their customers,” Klein says. “In a weak economy, new business is harder to come by and sales cycles are longer. If you are going to achieve your financial goals, you need to understand your clients’ needs, expectations and perceptions and respond appropriately. This will help create loyal advocates — or promoters — who are more likely to purchase additional products and services and resist the advances of competitors.” Covario, Inc., a digital marketing solutions firm whose clients include Forbes Global 2000 and Fortune 500 companies, has been working with Satrix Solutions since March to gauge customer loyalty. Based in San Diego, Covario provides software and creative services for paid search advertising (PPC), organic search engine optimization (SEO), display advertising and social media programs. “We want all of our clients to be promoters of Covario’s products and services, and the only way we can achieve that is by meeting and exceeding their expectations,” says Paul Borselli, Covario’s director of marketing. “We instituted a Net Promoter program so we know exactly how our clients feel about the service they receive from Covario and, equally important, what steps we need to take in order to continually improve the service experience.” An alternative to traditional customer satisfaction surveys, Net Promoter® is both a loyalty metric and a discipline for using customer feedback to fuel profitable growth. Developed by Satmetrix, Bain & Company and Fred Reichheld, the concept was first popularized through Reichheld’s book, The Ultimate Question, and has since been embraced by leading companies worldwide as the standard for measuring and improving customer loyalty. Prior to working with Satrix Solutions, Covario’s customer satisfaction surveys yielded limited success. Borselli credits Satrix with helping Covario better align its process with a best-practices approach and notes the company also began taking steps to create a truly customer-centric culture through effective communication, recognition and incentives

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Market Share around customer loyalty. “Our survey response rates jumped from the low 20s to the high 70s and our Net Promoter Score® increased from +11 percent to +31 percent,” he says. Covario’s experience working with Satrix Solutions has been very positive, and they are now using Satrix to help them with win/loss analyses for both new business pitches and renewal contracts.

Customer Loyalty Bob Shaff, president of Customers for Life Consulting, states it all boils down to relationships. “Loyalty is pretty much a thing of the past. There is no such thing as being on the same baseball team for an entire

career. There are no more lifetime pensions. People often switch insurance companies and frequently choose a company to do business with based upon price. Successful companies are bucking that trend by focusing on the customer and building relationships and trust.” A Phoenix native, Shaff spent 26 years working for IBM Corporation’s marketing department before launching his Tucson-based consulting firm in 1992. He works with local and national clients, helping them to earn both customer and employee loyalty. In addition, he frequently delivers keynote presentations on loyalty to industry groups and corporations. Shaff has found that many consumercentric companies think they can adequately

CEOs Predict What Customers Will Expect Better understanding of needs

82%

New or different services

70%

More collaboration, information sharing

20%

61%

New or different channels

22%

51%

Increased focus on social responsibility

Stronger focus on price-value equation To a large/very large extent

20%

69%

New or different products

46%

45%

To some extent

12%

10%

11%

17%

25%

24%

30%

24%

31%

Not at all/to a limited extent

CEO Top Focus Areas — Next Five Years Getting closer to customers

86%

People skills

81%

Insight and intelligence

76%

Enterprise model changes

57%

Risk management

Industry model changes

55%

retain customers by offering loyalty cards or loyalty discount programs. But that’s not the whole picture. “Loyalty cards and programs can motivate customers to come back, which is good, but they don’t replace solid relationships with customers,” he says. “On average, companies lose 20 percent of their customers each year, and 65 percent of them leave because they encounter rude or indifferent employees.” That’s worth stopping to think about, considering that studies show a dissatisfied consumer will tell between 9 and 15 people about their experience. And some 13 percent of dissatisfied customers tell more than 20 people. “In today’s world, everything is timecrunched,” Shaff says. “The highly valued currency is time. Customers are looking for ways to save time, and companies are shortstaffed, often resulting in surly, indifferent customer service.” The key to retaining customers is to look for opportunities to “Wow” them; go out of your way to make it easy for them to do business with you, and provide service that they value and sometimes don’t expect. Be remarkable in their eyes, hearts and wallets. “The companies that are successful in doing this are hiring for attitude and training for skills.” Employee training should be done in small increments, much like watering plants in a desert landscape. Explains Shaff, “Drip irrigation works better than flooding. So many companies think they can train their employees with a three-day seminar, but it is more effective to train them consistently, a little bit at a time, providing daily feedback and then rewarding positive customer service.” Shaff advises companies to engage their customers in innovative conversations that add value for the customer. “Go out of your way to connect with customers by having dialogues with them. And then aggressively collect customer and employee feedback and act on it.” Borselli also emphasizes that acting on customer feedback is critical. “It is very important to act on the feedback you receive, or you run the risk of damaging your relationship and reputation with your clients,” he said.

54%

Covario, Inc. Revenue model changes

51%

www.covario.com

Customers for Life Consulting www.cflconsulting.com

Source: IBM Global CEO Study (1,541 CEOs, general managers and senior public sector leaders interviews in Q4 2009)

D e c e m b e r 2010

Satrix Solutions, LLC

www.satrixsolutions.com

inbusinessmag.com

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Tech

Innovations for Business

Search Engine Optimization (SEO): Don’t be SOL (Sadly Outta Luck) by Don Harris SEO, an acronym that stands for Search Engine Optimization, is the key to nabbing a high ranking on Google, Yahoo! or Bing, and in turn may be the key to business success. It generally comes down to the key words used to describe your business. Indeed, key words are key to driving traffic to your website. The one thing that a company or its SEO consultant should not do is try to outsmart

a search engine’s computer program that determines the organic, unpaid rankings. Experts say that sooner or later you’ll get caught, labeled a black hat, and perhaps be barred from listing on any search engine. And that could be devastating to your business, especially if you rely on Internet sales. Eric Olsen, president of Fasturtle Interactive, a Scottsdale-based provider of

Myths and Misconceptions Regarding Search Engine Optimization MYTH

TRUTH

Eric Olsen, President of Fasturtle Interactive, LLC If I have a website I will automatically be listed on Google.

It doesn’t happen, not quickly anyway. It might happen in 30 to 60 days.

There is a silver bullet on how to get ranked.

No. It takes time. When done correctly, you’ll stay in a high ranking for a long time, but it needs to be actively managed. Monthly management is key. Everyone is vying for different positions. The myth is: I can submit one time and then I’ll be there. That’s not true at all.

Dara Schulenberg, Manager of Digital Strategy, Canyon Communications, Inc. There is a best practice for SEO.

By the time anyone gets ranked, the search engine has already changed its algorithm. The complexity leads to all sorts of myths.

Small businesses are too small and SEO is unapproachable to them.

Actually, SEO is very accessible for a website and company of any size, and it does not necessarily require an enormous capital investment.

You can fool a search engine.

Search engines are far too sophisticated.

Some consultants are able to guarantee they can get you a first-page listing immediately.

It doesn’t happen that way, or it’s not a sustainable model. You might get there one day, and then get blacklisted indefinitely. Be very suspect of get-richquick or first-page-quick schemes.

Elaine Ralls, CEO, AIR Marketing All I need to grow my business is SEO.

D e c e m b e r 2010

To some extent, using SEO as your only strategy is a myth. SEO won’t build your business by itself. That’s definitely a myth.

website marketing solutions, points out the importance of considering how individuals or businesses looking for the services or products your company provides will be able to find you. If you’re in a service professional field such as law, financial planning or insurance, for example, you might want to optimize the search by narrowing it for potential clients by adding a city, state or region. Someone in Boston may not be able to use a real estate agent in Scottsdale, unless of course they’re planning to buy or sell property in Scottsdale. “So you want to be ranked high in Scottsdale or Phoenix,” Olsen says. “That’s typically how people search. Search engine optimization makes sure we get our clients ranked high by using key words. Key words are key — absolutely.” Search engines have different systems, or algorithms, for ranking websites. Using computer technology, they look at “title tags,” which appear in the top bar of a browser when a webpage is viewed and are considered among the most important aspects of being ranked. But algorithms are highly classified and strictly confidential. “They don’t tell you how they do it,” Olsen says. There is a lot of competition for various common search terms, says Dara Schulenberg, manager of digital strategy for Canyon Communications in Mesa. “By modifying words into key phrases that more accurately define your content, you can appear much higher in the search engine results,” she says. Ranking adds credibility to your business. “Part of where your company appears on the list is based on credibility, such as how long you’ve had a website, how valid your key words are to the content that exists on your page, how many visits your site receives, and how much time they spend. They all combine into a proprietary algorithm that each search engine manages.” It’s largely done through technology, using automated bots called spiders that crawl sites looking for key words and descriptions. But if certain key words appear too often — referred to as word stuffing — that’s a red flag

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indicating someone is trying to manipulate the ranking system. That could get your company the designation of black hat SEO. Word gets around, and your company could be banned from all search engines. “Google has gotten very diligent in applying best practices to their algorithm,” Schulenberg says. “You can get blacklisted from any of the search engines. That could potentially cripple your business, particularly if you’re an online retailer.” Elaine Ralls, CEO of Phoenix-based AIR Marketing, says SEO is changing almost daily. “There are so many ways a company can impact their optimization in the electronic world of today’s market. The best recommendation is to look at a company holistically, and where are they going to get highest rating or link love.” She explains the term “link love” as it pertains to B2B operations: “It’s where companies connect with each other. The more linkings you have, the more that impacts your optimization. Positioning companies to have more link love is a good thing.” But Ralls cautions against relying completely on search engine optimization to grow a business. “All CEOs want to get the highest return on investment for their available resources,” she says. “It’s their responsibility, along with their marketing partners, to identify what is the best use of resources and how does search engine optimization work into that formula.” With so many electronic media options available today, Ralls identifies a key goal: “Every CEO wants to get positioned so when potential clients are looking for them, they show up. Search engine optimization is a terrific way to accomplish that goal.” Says Schulenberg, “As with any form of media, it’s about refining your message so you’re delivering valuable content to the right audience at the right time.” Looking ahead, Olsen notes that Google purchased YouTube, and he predicts that within a year or two, video will become more prevalent on search results. “Google is constantly looking for fresh content, updated content,” Olsen says. “The best way is to do a blog once a week on your service. Remember, content is king.” AIR Marketing

www.airmarketing.com

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Trickle Up

A View from the Top

Making the Web Human: A Healthy Sense of Business by Gremlyn Bradley-Waddell If anyone knows about silver linings, it’s Michelle King Robson. The vivacious entrepreneur is founder, chairperson and CEO of EmpowHER, a health media company for women. But it was less than a decade ago that this dynamo was physically ill enough to have moments so dark that she considered taking her own life. Still, she wouldn’t change the past. “I am so happy now that I got sick,” says Robson, 51, “I’m so glad this happened to me because I would not be where I am today without it. Out of something bad always comes something good.” Indeed, EmpowHER has certainly been something good. The Scottsdale-based firm boasts 18 full-time employees, five full-time contractors, 35 writers who create most of the content presented on the website, six guides who respond to online inquiries from visitors who range in age from 20s to 70s, and both a medical and business advisory board. Robson’s passion has even inspired her daughter to become involved as an intern. The company’s website was launched in November 2008 and reaches 187 countries. In 2009, nearly 3 million visitors accessed the site, and 2010 is nearing four times that number. As for the “something bad,” that started when Robson was in her late 30s. She had trouble sleeping and her hormone levels were declining, which often occurs at that stage of life, but she says no doctor picked up on that. Eventually, the Phoenix resident and philanthropist was advised to undergo a complete hysterectomy. She did, and soon began experiencing new incapacitating ailments. She suffered alone — as women tend to do, she says — and no one knew anything was wrong. More than once, she contemplated taking her own life. Although she continued to seek help from doctors and did her own research, she came up empty. Finding answers on the Internet also proved fruitless. “All I wanted was someone to validate what I was feeling,” she recalls of her online searches. “There’s no humanness on the Web. What I found was that I was giving information; I just wasn’t getting anything back.” Robson finally found the solution to her problems — which were hormone related — in a book written by a medical doctor. She sought treatment from that same doctor, who Robson says had her on the road to recovery in a matter of days. Once she was well, Robson says, she knew she had to help other women who might be experiencing the same challenges she had. Like any astute entrepreneur, she had found a need and felt the call to fulfill it. And she knew her customer: someone like her. So she focused on the idea of empowering women, of giving them information about health options and choices as well as people with whom they could discuss that information. Even though she had no background in computers or online media, she zeroed in on the Internet because she recognized its ability to connect people. She also picked mentors, including an accomplished businessperson she admired — and to whom she never imagined she would have access. She was wrong. “Shoot for the stars!” urges Robson, whose husband, Ed, is founder and chairman of Robson Communities. “People are more than willing to help you if you ask for it.” One of her next moves was to hire guides, who respond to the online

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requests. This was a component lacking from so many websites she had searched when sick. EmpowHER’s site’s guides have backgrounds in the journalism and healthcare industries, or have been or are currently active bloggers, health-andwellness practitioners and have a background in healthcare education. Not only are the guides intelligent and caring, Robson notes they are also empathetic — many of them, who work from home around the country, have health concerns that prohibit them from working in a traditional workplace. “Women trust each Michelle other, more than we trust a doctor,” King Robson she notes. “And it’s cathartic to be able to share, and that’s what I didn’t know.” Perhaps the best part of all, though, is the “24 Hour Promise” that EmpowHER makes to users. Robson insists on all health-related inquiries getting a response from someone at the website within a full day. She knows, after all, what it’s like to e-mail a website in the middle of the night when you’re feeling sick and scared. “We give women what I call ‘a virtual hug,’” Robson says. “It’s a commitment we’ve made to women, and I think it has helped lead us to where we are today.” EmpowHER

www.empowher.com

Michelle King Robson’s prescription for entrepreneurial success: ind a mentor … and aim high. “I never thought we could F have an attorney like Thomas Curzon [of Osborn Maledon in Phoenix] — we’re a small company. But the worst-case scenario is, he (or she) says ‘no.’ And he said, ‘Yes.’ ” The customer is Queen … or King. “You have to be all about your customer. In our company, it’s ‘HER.’ What’s in it for HER? It’s all about HER … She’s at top-of-mind in our company.” It’s cliché, but do what you love and you’ll love what you do. “[EmpowHER] was my dream, and it is my passion. It shouldn’t feel like work to you. If it feels like work to you, you’re in the wrong business.”

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D e c e m b e r 2010

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What went wrong? Where are we now? How will we get out of it? by Alison Stanton

pend just a couple of hours driving around the Phoenix area, and you will, literally, see plenty of signs that the entire real estate market has been hit hard by the recession. Commercial office buildings across the Valley are advertising spaces for lease; retail properties are standing vacant with “For Rent” signs in the windows; and thousands of homes are empty, with “Short Sale” or “Foreclosure” tags swinging in the breeze. So what happened? How and why did the real estate crunch happen, and what, if anything, can we do to get out of it? And perhaps even more importantly, how is it affecting our comeback? Is there light at the end of this economic tunnel?

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In Business Magazine

Cover Story: The Real Estate Crunch

Empty Downtown Phoenix office space

Phoenix Housing: Too Much of a Good Thing There seems to be many factors that have caused the crunch we are currently in, with real estate values plummeting, financing for businesses scarce and employment at nearrecord highs. This crunch is unique; we have been in recession before, but never with so many factors coming together to create such uncertainty. At the root of this problem lies what was once our golden goose — real estate values. According to Elliott D. Pollack, chief executive officer of Elliott D. Pollack & Company, a real estate and economic consulting firm in Scottsdale, there are numerous factors that led to the current state of business and commercial real estate affairs. Part of the story, he says, began on the residential side. “What happened is that we got wildly over-built in single family housing. The reason

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housing prices went up is that people caught on,” Pollack says of escalating values. Because values were inching up rapidly, many felt this was the time to “upgrade” to a new home — bigger and in a more desirable area. “It didn’t take long for Mom and Dad to say ‘let’s build a new house in the suburbs, and this house we are in now will go up in value by the time the new house is delivered, and we have plenty of time to sell,’” Pollack says of the market. “‘So we can get an 1,800-square-foot house instead of this 1,400-square-foot one.’” As prices went up, it became more and more difficult for people to buy, so this began to halt the escalation. “In 2005, we had something like 63,500 permits, instead of a realistic amount. We were overbuilding, and this led in part to the real estate crunch.” “The market is continuing to decline,” says Gayle Henderson, a residential Realtor® with RE/MAX Excalibur in Scottsdale. “Any single month’s residential closings demonstrate about

30 percent are short sales, non-distressed sales represent 30 percent, and 40 percent are foreclosures. Seventy percent of the residential sales per month are distressed properties.” In October of this year, 44 percent of closings in Arizona were foreclosures. Additionally, the average sale price dropped again. Currently, the average is around $130,000, with the previous month approximately $135,000. Year-overyear, these numbers “reflect a 20 percent reduction from October 2009 to October 2010,” Henderson notes.

The Financial Crisis The number of questionable loans that were issued during the boom of 2005 to 2007 didn’t help the situation. Banks were lending at rates unseen before and restrictions on loans seemed so lax that anyone could purchase a home. Institutions certainly didn’t have a crystal ball to tell them when the market

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would slow or decline, but history tells us that it was inevitable. Banks and other financial professionals were essentially gambling away our futures as they approved loans that were originated out of inflamed values to begin with. “We had things called ‘liar loans’ and ‘cheater loans,’ and anyone could qualify,” says Pollack. “But then they needed to qualify again, and people couldn’t do it. Then there was a loss in the stock market and a loss of equity and a huge swing of demographics.” In the blink of an eye, it seemed, we went from “something like 35,000 to 40,000 housing units a year down to 10,000 to 12,000,” Pollack notes. Jeffrey S. Pitcher, a real estate attorney with Ballard Spahr LLP in Phoenix, says that a lot of loans were poorly written. They were short-term loans and limited recourse loans. “Loans were so high between 2005 and 2008 that they didn’t approach reality,” says Pitcher. “Now values have dropped, properties have been taken back and have been reset to lower values.” This “take back” or high number of foreclosed properties within Metro Phoenix has changed the way we look at our market and has resulted in higher rents and certainly has had a strong effect on values. Pitcher says that he has, as a result, seen evidence of a phenomenon in the loan world known as “extend and pretend.” “Some lenders are limited by the FDIC as to how many distressed properties they can have on the books, so a lot will ‘extend and pretend’ or, as I call it, ‘kick the can down the road.’” These loans get extended with the hopes that the economy will get better and the borrower can pay the loan off down the road. The effect is that they don’t have to realize the loss now that they would if they do a foreclosure. The commercial sector, historically, follows what is happening with residential. “Retail follows rooftops,” says Henderson. “If the change in values impacts residential real estate, commercial will be impacted next.” While this is true historically, commercial is not without its financial crunch as well. Bob Mulhern, managing director of Colliers International – Phoenix, states that the way some business loans were set up ended up affecting the entire commercial real estate market. “When you have money available for lending, people tend to pursue opportunities that don’t always make sense,” says Mulhern. As the market flourished,

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lenders were seeing opportunities to sell their loans to investors and further gain financially. “They were defining a ‘good loan’ as one they could sell, and almost all of them were selling. Developers were defining a viable project as a project they could get a loan on,” says Mulhern. “Artificial loans were making their way to building projects.” Some were not building with any business sense. “Just because they got a loan, it was not necessarily a good loan. That has created a lot of factors that has led to a lot of empty space now and rents being down.”

Where is Business in All of This? Pollack says the real estate crunch has affected businesses by what he calls “the ripple effect.” In short, he says, “people were not moving here anymore, and home prices plummeted. Then, because of the problems with the economy, we had a huge decline in employees. We needed less office space and less retail space and less industrial space.” The recession has helped to show how much Phoenix has relied on population and “in-migration” to grow. “When people

South Phoenix

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Cover Story: The Real Estate Crunch stop showing up, you don’t need that extra guy at Dillard’s,” Pollack insists. In addition, this ripple effect ultimately has an effect on the job market, retail numbers and manufacturing. “We need fewer guys selling Chevrolets and the Chevrolets are not selling; and we need fewer people who clean office space; and then there are the people who paint the office space and do the window coverings, and the accountants and the lawyers who work there.” The ripple effect, Pollack notes, is impacted by a significant multiplication factor. “It’s not just the one job of the construction worker that is affected, it’s also the spending of that worker, and also the people who supply the site who are no longer doing things like going to ballgames or getting Slurpees, and so we end up needing less people selling the Slurpees.” Heavy hit by this “ripple effect” now is the commercial real estate market, as companies are realizing that they are overspending on space. Business owners, who are looking at every dime, realize their lease agreements are

Tempe Town Lake Rio Salado Project

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devalued in this market. “The problem is that they had this excessive space, and business was down, and people might have had to let go of their workforce, and then we observed all the bad things happening with businesses,” says Mulhern. “If you look at the industrial vacancies in Metro Phoenix at the end of the third quarter, we have 43 million square feet available of industrial building space. This is a hard number to grasp, but if you think that a place like Biltmore Fashion Park is about one million square feet, we have about 43 of those. That’s a lot of space,” Mulhern explains. Construction, which has in recent years taken the biggest hit in employment and was one of the strongest industries in Arizona, accounts for perhaps the largest ripple. “The construction markets imploded and we’re only building 8,000 housing units this year. Eightyfive to 86 percent went away, and so the jobs went away, too. And it’s the same with offices. We’ve gone from building five to six million square feet down to zero,” states Pollack.

Where There is Light, There is a Comeback What does the economic future of business look like? Pollack and the others are in accord that time will help heal a lot of the economic wounds inflicted by the real estate crunch but that it will take more than a couple of years to really see improvement in both the residential and commercial sides and, ultimately, in business overall. “So how long does it take? The answer is years,” Pollack says. “For single-family homes, we basically have [approximately] 50,000 to 60,000 units. And given the lack of in-migration right now, we have very little absorption with no one coming in to buy them. There has been no net change in absorption, so we are not in any better shape now than we were a year ago.” Predictions are iffy, even for Pollack, who is truly vested in understanding our market and local economics. “Two-thousand-ten is not better than 2009, and 2011 will not be better,” Pollack says. “It will be resolved slowly over time as jobs are created, but we are in for the long haul. I believe it will be 2014 before we have our supply and demand back in balance and we are building again for new people who are showing up.” Mulhern also sees a lot of hard work ahead of us, but believes that as the national economy improves, Arizona will, too. “As the United States employment rate goes down, Arizona’s goes down faster, and as the United States employment rate goes up, Arizona’s goes up faster, too,” Mulhern notes. “So as the market turns, the hope for Phoenix is that as the United States economy rebounds, Phoenix will rebound faster.” There are solutions other than time that will make a difference in pulling us out of this crunch. “People have to gain confidence in Arizona again, and retire in Michigan and California and move here,” Pollack states. We will need to rely on an in-migration of people and businesses to get through this over-supply of homes and office space. “It is all likely to happen, just not overnight.” The credit markets are beginning to come back to normal, which is a good sign and a boost for the residential market and even for business. Single-family loans are still somewhat difficult to get, but Pollack predicts that they will normalize to the 1980s and the

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1990s norms. “The year 2005 was not normal,” Pollack notes. “Now, if you need a loan, you come in and you need a major source of retainment and a meticulous credit record and even then it’s still hard; you have to have W-2 information, and if you’re self-employed it is hard to get money.” Gayle Henderson sees evidence of the real estate crunch every day as she works with short sales and foreclosures. She says the key to improving the residential side of the equation is bringing jobs back to our state. “Experts repeatedly point to the high unemployment as a roadblock in the recovery. And reduction of unemployment through job growth will certainly ease the logjam in the housing inventory as more buyers come back into the marketplace.” While there are many who see opportunity in this current real estate market, Henderson believes, “We can’t just rely on the investor purchases to solve the housing crisis. State legislators are also in a position to stimulate job growth.” Henderson, who was the first in Arizona to earn the Certified Distressed Property Expert designation back in late 2008, notes, “There is a lot of heavy competition in the active inventory, and pricing is key. Pricing has always been an important factor, but it is now, more than ever, the determining factor in getting your home sold.” In looking for solutions in the residential real estate market, Henderson observes that “three years ago, 78 percent of homeowners who were foreclosed on never reached out for any help. They didn’t seek loan modifications or any of the other options. This was a shocking statistic to me.” Pointing to all of the national attention on the issue, and all the work financial institutions are reportedly doing to better the foreclosure epidemic, Henderson says she is amazed that “here we are three years later with all of the information that we hear and see, and this statistic has not changed.” Henderson insists an effective solution to the foreclosure problem is to better inform homeowners about ways to get help. “Seventyeight percent of people who go into foreclosure never reached out for help. That tells me we are not doing a good enough job of getting the word out that there is hope.” She believes it’s a mistake to continue to spend all of our time and effort over-analyzing the cause of our current economic condition; rather, we should focus on the solution and inform homeowners

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owntown Phoenix residential D and commercial high-rises

that there are other options for borrowers in financial crisis. “We must do this if we hope to stabilize the housing market at levels above future foreclosure. “Besides loan modifications to help homeowners stay in their homes, the next best solution is a short sale,” Henderson states. FHA, VA, Fannie Mae, Freddie Mac and numerous private investors are participating in short sales. The emergence of the Home Affordable Foreclosure Alternatives program with government incentives to the participants, including a $3,000 moving assistance credit to the seller at a successful HAFA short sale close of escrow, should give borrowers a sense of hope that there are options that make sense. “The support of lenders in these programs and in the short sale concept where banks approve the sale of a home for less than what is owed — a “short pay-off ” — makes short sales truly the most dignified solution to the borrower’s financial crisis and an opportunity for a homeowner’s second chance.” Commercial is also looking to more jobs as a solution. Mulhern notes that, although the jobs have started to come back to the Valley,

the recovery is currently going very slowly. To him, it’s a glimmer of hope of more positive things to come. “Since August of 2007, in Metro Phoenix we have lost 230,000 jobs. Starting in September 2009, we have added back 22,000. So, using August of 2007 as a baseline, only 10 percent of the jobs that have been lost have been replaced.” The jobs market in Metro Phoenix is slowly inching back and is estimated to continue at that moderate escalation. “But the good news is that we have quit shedding jobs. We are not going down anymore and we are now going up, even if it’s at a slow pace,” Mulhern points out. “People come to Phoenix for four things: affordable housing, and it’s affordable again; affordable commercial and industrial space, and it’s affordable again; an educated workforce, which we have; and our climate. We now have all four things going for us again.” Ballard Spahr LLP

www.ballardspahr.com

Colliers International – Phoenix www.colliersmn.com Elliott D. Pollack & Company Gayle Henderson Group

www.edpco.com

www.azmovingplan.com

In Business Magazine

People Are Key

Employee Empowerment: Engage Them or Lose Them by RaeAnne Marsh Job satisfaction may be losing you your best employees. This surprising alert from human resources specialist Georgette Proestakis may seem inconsequential in an economy dominated by news of high unemployment but, she notes, “As the economy improves, employees who are not engaged will be the first to leave an organization.” And it may be the more productive employees who leave first, she says, referring to studies by The Emmerich Group and drawing from 17 years’ experience in a

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variety of industries that include oil and gas, financial services, distribution and education. There is a critical difference between satisfaction and engagement, Proestakis explains. A satisfied employee isn’t, necessarily; he or she may be just putting in the minimum required to collect a paycheck. An engaged employee is one who is involved, who feels like part of the organization. It is the employee’s level of engagement, then, that is the key factor in employee retention. Engagement also has a direct correlation to customer satisfaction

and customer loyalty. “It comes across to customers, whether B2B, B2C or to students,” says Proestakis. It’s important for employees to see how they and their roles fit into the goals of the company and for their goals to be aligned with those of the company. Organizations have their mission statement, their values, their vision statement. What they do with those elements of corporate culture is crucial, Proestakis says. “When all employees are aligned with them, it impacts the

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Books corporate culture positively.” Hiring to the core values and incorporating them into performance evaluations, continually putting them in the forefront, will help evolve the culture among the employees. The corporate culture can foster engagement by empowering the employee with some autonomy and some level of decision-making, letting the employees do their jobs. “If management dictates in detail, it leads to disengagement,” Proestakis warns. And throw in a little fun. That, too, is an important component of corporate culture. “The work environment has to be enjoyable.” A few simple activities Proestakis suggests: Provide informal recognitions, host a weekly contest, turn “casual Friday” into a “Wear a Hawaiian Shirt Day” with a prize for the craziest shirt, encourage the employees to wear their favorite Arizona Cardinals jersey or at least the team colors. These activities will help foster a more inclusive corporate culture and raise the level of employee engagement, she says, and points out another opportunity: “Get the employees involved in the creation of the activities.” Open communication is also necessary. Just as employees need to understand how their jobs fit into the structure of the company, they need to also understand the challenges that the company faces. According to Abraham Maslow’s famous “hierarchy of needs,” it’s important that employees feel comfortable that their basic needs will be met, and, with the present economy forcing companies to tighten their belts, it may be tempting for them to keep information about the situation away from their employees. This may backfire. Explains Proestakis, “When a company is struggling and doesn’t communicate, the employees can read it in the actions [of the executives] — their behavior and what they say. It creates a rumor mill, and this creates greater uncertainty.” Uncertainty subverts engagement. Proestakis warns that employees who feel they’re not engaged will be the “hot commodities” when the economy gets back on track and the employment scene normalizes. And companies need to hire in alignment with their core values in the first place to set the stage for employee engagement; those who don’t will have a higher turnover. The cost of losing an employee includes the cost of recruiting and what it takes to train a new employee. Plus the loss of productivity involved in the ramp-up time for this new employee. The actual loss to the company can be determined by formula: the sum of 25 percent of the employee’s annual salary plus the cost of his or her benefits. Replacing an employee whose salary is $50,000 could cost a company $15,000 — and a high rate of turnover, of course, compounds that cost many times over. “Job satisfaction” has been the buzzword in the past, but the bar is higher for today’s business owners and HR executives, who may find it to their advantage to empower their employees by gaining their engagement.

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Workforce Resources Faster Cheaper Better: The 9 Levers for Transforming How Work Gets Done Hammer was working on his first draft of a new book on transforming business when he passed away in 2008. Hershman, CEO of Hammer and Company, finished the book. The book’s focus is on transforming business in a time of intense competition by rethinking “change” in the process of how we work effectively. She identifies and defines elements like “who does the work” and “where the work is done” to streamline effectiveness in companies today. Lisa W. Hershman and Michael Hammer $27.50 • Crown Publishing • December 2010

Investing in People: Financial Impact of Human Resource Initiatives Cascio and Boudreau show exactly how to choose, implement and use metrics to improve decisionmaking, optimize organizational effectiveness and maximize the value of HR investments. They introduce foundational principles such as risk, return and economies of scale — and use them to evaluate investments objectively in everything from work/life programs to training. Wayne F. Cascio and John W. Boudreau $44.99 • FT Press • December 2010

The Talent Masters: Why Smart Leaders Put People Before Numbers During a 40-year career at General Electric, Bill Conaty worked closely with CEOs Jack Welch and Jeff Immelt to build that company’s world-renowned talent machine. Ram Charan is the legendary advisor to companies around the world. Together, they use their unparalleled experience and insight to write the definitive book on talent — a breakthrough in how to take a business to the next level. Bill Conaty and Ram Charan $27.50 • Crown Publishing • November 2010 $20.00 • Books on Tape, Inc. • November 2010

Personality Poker: The Playing Card Tool for Driving High-Performance Teamwork and Innovation An entertaining, if slightly wacky, personalitytype game designed to improve performance in the workplace by Fortune 500 company adviser Shapiro, the game helps players identify and understand their “innovation styles”: how they uniquely contribute to the success of a team and its chief goals. Stephen M. Shapiro $25.95 • Penguin • On shelves and online

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Bottom line

The Buck Stops with You

Small Business Jobs Act of 2010: Valley Pros Sound Off by Kate Nolan In September, President Obama signed the Small Business Jobs Act of 2010. The new law delivers billions of dollars in resources and tax write-offs geared to helping small businesses spark economic recovery and create jobs — more than 70 percent of jobs come from small businesses. The law offers $14 billion in lending support plus tax advantages potentially worth $12 billion, in addition to other boosts, such as allowing the self-employed to fully deduct health insurance costs. Considerable benefits are available to those willing to use new higher caps on low-cost SBA loans and to reap the tax advantages of increased limits on expensing and new rules on depreciation. The new law also makes

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it much easier for small businesses to win federal contracts. In Arizona, where unemployment approaches 10 percent, it’s not yet clear whether the Act will ride to the rescue or if small business owners will lack confidence to spend the money or take on new debt. Because of that, assessing the law’s potential impact on Arizona’s small business sector remains a little sketchy. Candace Wiest, president and CEO of West Valley National Bank, says the impact of the new law’s loan advantages can’t yet be seen. Unlike what happened with TARP, this money comes with conditions regarding its use. Since the new rules are still being finalized, businesses haven’t been able to plan around the loans.

Wiest sees as a great benefit the capital that community banks will be getting for small business lending, which will bring relief to the strained lending atmosphere. “If banks have problem loans and they’re not making money, capital is shrinking,” Wiest explains. The law provides smaller banks with low-cost capital to increase their lending levels. Wiest also likes the Act’s increased loan limits and the opportunity it offers businesses to refinance debt. “There are a lot of companies out there that have the opportunity to move their businesses to profitability if they can just restructure some of the debt hangover that’s out there,” she says. But for some businesses, loans aren’t even on the table, says Donna Davis, chief executive officer of Arizona Small Business Association. “Many businesses have what I called ‘lender fatigue.’ Their lending request was denied by multiple banks, so they have just stopped seeking funding. Many businesses are hunkered down, building up their cash reserves, cutting expenses and not hiring,” says Davis, whose association has not taken a position on the law. Taxwise, the law offers an array of incentives for small businesses to spend more. “I doubt it’s a silver bullet, but it certainly helps,” says Joshua Hayes, tax partner at Eide Bailly in Phoenix. The new law offers the highest small business expensing limit ever — $500,000, plus depreciation of purchases in the first year, zero capital gains taxes for those who invest in small businesses, increased deductions for start-ups and limits on penalties for tax reporting errors that disproportionately affect small businesses. Deducting and depreciating cell phones has become much easier under the new law. Business is slowly improving and many small firms are sitting on extensive cash reserves, “but they are hoarding it. The new law was created to turn the spigot on,” Hayes notes. Hayes is enthusiastic about a component of the Act called the “38C turn-off.” It refers to tax credits available for research and development, which covers training expenses, some new equipment and other items. Until now, technicalities kept small firms from qualifying for the credits. The new law makes it easier. Elizabeth Kane, a tax manager at LarsonAllen in Scottsdale, believes the new law’s tax incentives may not be enough to coax owners to start spending and hiring. “I

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Arizona Small Business Association www.asba.com Eide Bailly LLP LarsonAllen LLP

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Small Business Jobs Act of 2010 That’s A Wrap

Wishes and Wonder

NOV. 2010

don’t see that coming from a tax incentive. We’re a little harder hit than a lot of places. I don’t see anything in the new law that is going to make someone go out and buy a $200,000 piece of equipment. “Everyone is looking to cut costs,” Kane says. “But there are a lot of little kernels in the new tax law, so it pays to consult with a tax professional to find them.” More concrete help may arrive in the law’s changes to federal contracting procedures. It restricts bundling of contracts and fosters a pilot program uniting small businesses to bid jointly on contracts. The new law is stricter on certifying that bidders are actually small enough to qualify for a small business contract in addition to other “door-opening” changes, such as streamlining the process for small contractors in 11 industries where they excel, including construction, landscaping and pest control. The new law also makes large contractors accountable for hiring and paying the small-business subcontractors they included in the bid. Most agree that recovery depends on the consumer dollar loosening up. At least one Phoenix small business is planning improvements and expansion partly fueled by tax advantages of the Small Business Jobs Act. With plans for expansion, That’s a Wrap, a fast casual-dining restaurant, is using the new law’s cell phone deduction and the accelerated depreciation allowance to upgrade its point of sale (POS) system. It will allow customers to place regular and catering orders online, according to manager Sia Trujillo. The restaurant also has relied on HIRE, a federal program that gives tax breaks to employers who hire the long-term unemployed. “To do something solely for the tax implications leads to unsound business decisions. But we believe the financial upheavals of the past few years have shaken out many of the weaker businesses. It’s actually less risky to invest and spend on a business venture now. The new tax benefits make it that much easier,” says Trujillo.

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In Business Magazine

Enterprise

Risks & Rewards

Achieve Success and Avoid Risk

Considerations for Arizona entrepreneurs starting a business by Paul Krulisky

Starting a business is a particularly exciting and hectic time for an entrepreneur. In the early stages, many entrepreneurs are narrowly focused on generating revenue through sales or attracting investors. While revenue and other capital are critical to the success of the business, this narrow focus may cause the entrepreneur to lose sight of what is going on in other parts of the business and impair his or her ability to head off or prevent potential problems. In these situations, the entrepreneur is in a position of reacting to issues as they arise instead of proactively avoiding or mitigating potential problems or risks. Having to react to issues as they arise, especially between founders of a business,

D e c e m b e r 2010

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Some planning at the outset of the venture can be very valuable in minimizing the downside risks in the event issues arise.

can be a painful and costly experience for an entrepreneur. Some planning at the outset of the venture can be very valuable in minimizing the downside risks in the event issues arise.

Setting Up Your Organization For entrepreneurs starting a business, three common structures for the organization are the

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limited liability company (LLC), Subchapter C corporation, and Subchapter S corporation. The LLC is a flexible structure that is commonly recommended for small businesses. LLCs combine the limited personal liability protection of a corporation with the tax advantages of a partnership. LLCs are owned by their members, and management of the LLC can be vested in its members or in appointed managers. Members of the LLC are not personally liable for the debts or obligations of the LLC. Profits and losses can flow through to the members of the LLC (no entity-level tax) or it may choose to be taxed as a corporation. The ownership interests of the members of the LLC can be established and defined in an operating agreement. The operating agreement may also address other important matters such as required capital contributions, distributions to members, consent requirements of the members before the entity can undertake certain actions, buy/sell provisions, transfer restrictions on the ownership interests, and other provisions. Subchapter C corporations are owned by their shareholders. The shareholders elect a board of directors that is charged with overseeing the strategic direction of the corporation and its major policies and decisions. The board of directors appoints officers who manage the day-to-day operations of the corporation. Shareholders are not personally liable for the debts or obligations of the corporation unless corporate formalities have not been observed. Adherence to corporate formalities is evidence that the corporation is separate and distinct from its shareholders, and should be followed. Subchapter C corporations are taxed as separate entities and pay tax on their income. When profits are distributed to shareholders as dividends, the dividends are subject to tax at the shareholder level (double taxation). A Subchapter S corporation has shareholders, directors and officers as does

the Subchapter C corporation. However, in a Subchapter S corporation, tax benefits and losses are passed through to the shareholders and the double taxation mechanism is avoided. In order to maintain Subchapter S corporation status, the corporation must meet requirements pertaining to the number and type of shareholders and have only one class of stock. The restrictions on the type of shareholders effectively prohibit venture capital firms from investing directly in Subchapter S corporations. Each of the three structures has its own pros and cons and should be evaluated in connection with the anticipated needs of the entity, including the need for outside financing.

Maintaining Corporate Protections and Looking Ahead Although shareholders of a company are not personally liable for the companyâ&#x20AC;&#x2122;s obligations, this protection may be lost if those involved are not careful. To maintain the protection, the entity must act like a corporation that is separate from its shareholders. This can be done in a variety of ways, including conducting board meetings, maintaining corporate minute books setting out the actions of the board, and keeping individual finances separate from the companyâ&#x20AC;&#x2122;s finances. A separate corporate checking account is a must. The clearer the distinction between the shareholders and the company, the more likely the protections from personal liability will be available to the shareholders. It may be tempting to not comply with these corporate formalities when only a few people are involved with the company, but maintaining the separateness of the company and its shareholders can help avoid headaches down the road. When a small number of individuals start a new company, they often plan on being in business with each other and not with a third party they may or may not know. Regardless of the form of entity, consideration should

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Enterprise be given to a buy/sell agreement. These agreements prevent an owner from selling his or her interest in the company to an outsider without the consent of the other owners. These agreements describe how interests in the company may be sold and set out the procedure for valuing the interests. In addition, buy/sell agreements can provide for what will happen when an owner dies, becomes disabled, goes bankrupt or gets divorced.

Since intellectual property may be the startup company’s most valuable asset, it is critical that the company take appropriate steps to ensure it is protected. Any discrepancy with respect to the company’s ownership of the intellectual property, or any issues with respect to adequate protection of the intellectual property, may impair the company’s value and its ability to attract investment capital.

Intellectual Property

Entrepreneurs must pay careful attention to the provisions of contracts they enter into so as to mitigate risks they are taking on. Provisions such as the scope of duties to be performed, payment, termination, cure periods in the event of a breach of the contract, representations and warranties to be provided, liquidated damages and indemnification provisions should each be considered, among others. Many times, an entrepreneur can mitigate risks of a worst-case scenario by favorably negotiating these critical rights and

For many start-up companies, the most valuable assets consist of intellectual property. Regardless of the form, it is critical that entrepreneurs take steps to secure their rights in intellectual property and protect it from misappropriation by others. Entrepreneurs often work with independent contractors when developing products or technologies for a new or existing business. Sometimes, employees of the start-up company may take part

Contract Provisions Matter

To avoid discrepancies and clarify ownership of intellectual property, the entrepreneur should execute agreements with independent contractors, employees, founders and other parties that assign intellectual property rights to the start-up company. in developing such new products or technologies. In either case, the company will not automatically own the related intellectual property. To avoid discrepancies and clarify ownership of intellectual property, the entrepreneur should execute agreements with independent contractors, employees, founders and other parties that assign intellectual property rights to the start-up company. These agreements should also cover any intellectual property developed during their relationship with the company. In addition, the company should execute non-disclosure agreements with all who have access to the intellectual property to prevent disclosure of confidential information and misappropriation of intellectual property.

D e c e m b e r 2010

obligations at the beginning of the relationship. As the company grows, it should attempt to negotiate terms more favorable to it and set up its own forms of contracts. Entrepreneurs should also pay attention to personal guarantees included in contracts that may obligate the business owner to repay the company’s debt. In many instances, contracts are in the wrong name or the contracts are not executed by the other party. The company’s contracts with customers and others define its rights and obligations with respect to such parties. The company should ensure that its contracts are in the name of the company and that they are signed by all parties. This will prevent discrepancies with respect to the company’s rights and obligations down the road. Further,

proper documentation of the company’s contracts will be important if the company is seeking financing or outside investment, or is going to engage in merger or acquisition activity.

Proper Insurance is Crucial Get insurance to cover the company. If you are running a home-based business, do not assume that your homeowners insurance will cover losses related to your business. Homeowners insurance does not generally cover home-based business losses. Insurance available to entrepreneurs ranges from worker’s compensation insurance, which is required by just about every state, to product liability insurance and malpractice insurance, among others. Having the proper insurance in place can protect against the unexpected, and potentially spare the company from sizeable losses.

Maintaining Financial Controls Entrepreneurs would be wise to establish and maintain financial controls that monitor the finances of the new company. Analyzing the company’s financial reports aids in determining how well the company is performing and what steps need to be taken to improve its financial viability. Financial controls range from very basic measures such as requiring dual signatures on checks to thorough annual audits by an outside auditor. Financial controls can help prevent the company from being a victim of financial fraud. Dishonest employees can misappropriate company funds by creating false invoices paid to a friend or relative or by submitting false expense reports. Even if employees are honest, financial controls can prevent employees from overspending. Without guidelines for spending and oversight of spending, employees may not be concerned how their spending impacts the bottom line. Now, more than ever, Arizona needs its entrepreneurs. And, while establishing a company can be a bit intimidating, knowing which type of entity to establish, understanding intellectual property rights and how to protect oneself through good contracting and insurance are foundational elements for a successful start-up. Fennemore Craig

www.fclaw.com

Paul Krulisky is a director at the Fennemore Craig law firm and practices in the areas of securities, mergers and acquisitions, and corporate law.

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you are invited

to a very fashionable morning in celebration of Oscar® Season 2011

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THE RED CARPET EVENT Benefiting the Arthritis Foundation

FRIDAY, JANUARY 21, 2011 8 am -10 am EVENT CO-CHAIRS MARYGLENN BOALS & LINDA “MAC” PERLICH Hosted by InterContinental Montelucia Resort & Spa

Honoring Michelle King Robson Founder & CEO, EmpowHER Bistro Breakfast & Hollywood Designers with

Fashion by Robert Black Models by FORD/Robert Black Agency

For tickets & more information call 602.212.9911 or visit www.onaphoenix.com

NonProfit

Investing in Community

Chrysalis: Refuge and Treatment for Domestic Violence Offering haven in her own home to domestic violence victims, “a woman” (who remains unnamed in all of the organization’s public announcements) began Chrysalis in Phoenix in 1982 as a grass-roots response to the need for shelters. Since then, Chrysalis has served 1,400 adults and children with an impact that reaches beyond the 50 adults and children it can house at any one time, serving those in need regardless of gender, sexual orientation or background. The organization’s goal is to work with the community to find broad-based solutions to domestic abuse, and its programs support not only the abused spouse and children but include such non-resident services as counseling for the abuser. November saw the opening of a long-awaited new shelter. Its design recognizes that there are male victims of abuse, and incorporates private suites that allow men to be housed as well as women. Individual and corporate donations are the biggest component of Chrysalis’ income, augmented by grants and now-shrinking funds from the Arizona Department of Economic Security and Magellan, part of the state’s behavioral health resources. All funds go into its programs. Chrysalis also relies on the strong volunteer support it receives from individuals, civic organizations and businesses that encourage volunteerism. Chrysalis

www.noabuse.org

E VENT: PlayDate with Chrysalis, featuring the Childsplay performance of Go, Dog. Go!, will be held on Jan. 30 at Tempe Center for the Arts as one of the major fundraisers for the year. D inner and fundraiser Chrysalis Honors . . . the Family, honoring two Arizona families chosen for their commitment and support of organizations that strive to prevent and protect families from abuse, will be held March 25 at the Arizona Biltmore. C hrysalis Shelter, with 40 beds and 10 cribs, can house up to 50 people at one time. C hrysalis is the only organization in Maricopa County providing both victim and offender services. A ll monies raised go into programs. I n-kind donations of clothing, household items, cleaning products and paper goods help with the needs of individuals and families in Chrysalis’ residential programs as well as providing for the needs of the shelter.

Childhelp: Countering Abuse with Treatment and Love Childhelp’s origins lie half a world away from its North Scottsdale headquarters, and more than half a century ago. Founders Sara O’Meara and Yvonne Fedderson were part of a good-will tour to troops in Japan in 1959 and, leaving their rooms one night, were shaken to find a huddle of 11 children trying to keep warm without shoes or coats in the aftermath of a typhoon. In their attempts to help the children, O’Meara and Fedderson discovered they had been turned out of a Japanese orphanage because they were part American and that American services were not available to them because they were part Japanese. With overwhelming support from the servicemen and -women, they built the first of many International Orphanages, Inc. facilities. In the late ’70s, Nancy Reagan approached them about using their expertise to address the problem of child abuse in America. Childhelp now has residential EVENT: The Drive the Dream Gala — Cowboys, Cars & Stars will be held Jan. 15 treatment centers across the country that specialize in at WestWorld of Scottsdale, in conjunction with the Barrett-Jackson Collector child abuse and to date has helped more than 6 million Car Event. children. With the opening of the first U.S. “village,” calls Funding comes primarily from grants and individual and corporate donations. were so heavy they opened the National Child Abuse Childhelp operates a toll-free hotline,1-800-4-A-CHILD, established in 1982. Hotline. This year, Childhelp also became an adoption In 2006, Childhelp initiated legislation to authorize the establishment of a agency. “Five children die every day from child abuse,” national registry to follow child abusers from state to state, which was enacted says O’Meara, adding that in down economies, the the same year by President George W. Bush under the Adam Walsh Child incidence of abuse increases. Protection and Safety Act. hildhelp operations include residential treatment centers, group homes, foster C family agencies and a homelessness prevention program.

Childhelp

www.childhelp.org

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

D e c e m b e r 2010

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December 2010

O n t h e Ag e n g a

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

Notable Dates This Month

Legislative Breakfast Reception East Valley Chamber of Commerce Alliance

Wed., Dec 1 Hahukkah Begins at Sunset Tues., Dec. 7 Pearl Harbor Day Fri., Dec. 10 Human Rights Day

Fri., Dec. 17 — 8:00a to 9:30a

Tues., Dec. 21 First Day of Winter Sat., Dec. 25 Christmas Day Sun., Dec. 26 Kwanzaa Begins Fri., Dec. 31 New Year’s Eve

The East Valley Chamber of Commerce Alliance, made up of the Ahwatukee Foothills, Apache Junction, Chandler, Gilbert, Mesa, Queen Creek, Scottsdale and Tempe chambers of commerce, hosts the Legislative Breakfast at the Arizona Grant Resort. Meet your East Valley representatives and hear about the first regular session of the upcoming 50th Arizona State Legislature. Arizona lawmakers have a very tough session ahead of them with issues concerning our state budget, immigration law and education. New committees have been created in both the House and the Senate, nearly doubling the number of committees from last session. Results of the midterm elections in Arizona have resulted in a veto-proof legislature. The Republican leaders have announced that they are preparing a “wish list” of business tax cuts to help attract jobs. Registration is required. There is no charge for this event. The reception will be held at the Arizona Grand Resort, located at 8000 S. Arizona Avenue in Phoenix. Special guests are to be announced. Please contact the Ahwatukee Foothills Chamber of Commerce for more information. Ahwatukee Foothills Chamber

www.ahwatukeechamber.com

Creating the Ultimate Customer Service Experience Tues., Dec. 14 — Multiple times and locations The Scottsdale Convention & Visitors Bureau invites you to join them for an inspiring, free program featuring Scott Deming, a leading authority on customer service. Deming will take attendees on a fast-paced, high-energy journey through the critical steps to creating the ultimate customer experience. Customer Service didn’t die a sudden, unexpected death. It has been dying a slow, very painful death for a very long time. Why? Simply put, people stopped caring. Service today is typical and transactional. People look at customers as an opportunity for a sale, rather than an opportunity for a meaningful

relationship that will turn that customer into a loyal evangelist for life. Customer service is dying because people simply stopped looking at other people as fellow human beings. But all is not lost! It’s not over just yet! Scott Deming is on a mission — to bring emotion, sincerity, caring and humanity back into customer service. Scott Deming is on a mission — to impact as many people and as many organizations as possible with a simple message and a tried-and-true process. Scott Deming is on a mission — to teach executives, management and staff that everyone is in this together. RSVP@scottsdalecvb.com or call (480) 429-2259.

This program is being offered at three locations and times: 7:30a — 9:30a Hotel Valley Ho 6850 E. Main Street, Scottsdale 10:30a — 12:30p Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch 7500 E. Doubletree Ranch Road, Scottsdale 3:00p — 5:00p The Boulders Resort, The Waldorf Astoria Collection 34631 N. Tom Darlington Drive, Carefree Scottsdale Convention & Visitors Bureau www.scottsdalecvb.com

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Ag e n d a AHWATUKEE CHAMBER OF COMMERCE Chamber Professionals Networking Group

Mondays throughout the month 12noon — 1:00p

Ahwatukee Chamber Offices www.ahwatukeechamber.com

Financial & Executive Resource Group

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

Ahwatukee Chamber Offices www.ahwatukeechamber.com

LeadzSmart Networking Group Wednesdays throughout the month 8:00a — 9:00a

Ahwatukee Chamber Offices www.ahwatukeechamber.com

Get to Know Your Chamber Thurs., Dec. 2 8:00a — 9:00a

Cupz N Crepes 4232 E. Chandler Blvd., Phoenix (480) 753-7676

Business Builders Leads Group Tues., Dec. 7 12noon — 1:00p

Ahwatukee Chamber Offices www.ahwatukeechamber.com

Networking Dinner Club Tues., Dec. 7 5:30p — 7:00p

Va Bene 4647 E. Chandler Blvd., Phoenix www.ahwatukeechamber.com

S.C.O.R.E. Counseling Thurs., Dec. 9 9:00a — 12noon

Ahwatukee Chamber Offices (480) 753-76769; RSVP for your appointment

Member Marketing Think Tank Thurs., Dec. 9 12noon — 1pm

This member think tank group, lead by Christine Marek of Phoenix Bushido Marketing, meets to brainstorm marketing ideas for chamber members. The group meets the second Thursday of each month. Ahwatukee Chamber Offices www.ahwatukeechamber.com

Red, White & Boom Committee Meeting Fri., Dec. 10 8:30a — 9:30a

Public Welcome Ahwatukee Chamber Offices www.ahwatukeechamber.com

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

Making More Money

Tues., Dec. 14 8:00a — 9:15a

ASBA HR Exchange

Chamber Holiday Open House

The HR Exchange group is comprised of those with HR responsibilities in Arizona businesses, as well as vendors whose companies serve HR needs. Facilitated by Ginny McMinn of McMinn HR. Members: free; non-members: $25.00 ASBA’s Business Education Center www.asba.com/events

Learn how to take your desire, your drive, and the Phoenix Business Journal to get those sales. Learn how to meet more people, do more business, and make more money today. Free ASBA’s Business Education Center www.asba.com/events

Wake Up Ahwatukee Morning Mixer Members: $5; guests: $15 Dunkin Donuts 4923 E. Chandler Blvd., Phoenix www.ahwatukeechamber.com

Wed., Dec 15 5:30p — 7:00p

Come and enjoy good food, friends old and new and let the Chamber Staff say “Thank You” for your support throughout the year. Ahwatukee Chamber Offices www.ahwatukeechamber.com

Legislative Breakfast Reception Fri., Dec. 17 8:00a — 9:30a

The East Valley Chamber of Commerce Alliance hosts this breakfast reception to discuss the upcoming session. Free Arizona Grand Resort 8000 S. Arizona Grand Parkway, Phoenix www.ahwatukeechamber.com

Business Builders Leads Group Tues., Dec. 21 12noon — 1:00p

Ahwatukee Chamber Offices www.ahwatukeechamber.com

ARIZONA CHAMBER OF COMMERCE & INDUSTRY Mix @ The MIM Thur., Dec. 16 5:00p — 7:00p

Join us for this joint holiday mixer with the Arizona Small Business Association. Mix and mingle while enjoying the amazing atmosphere of the new Musical Instrument Museum. Members: free; non-members: $10.00 Musical Instrument Museum 4725 E. Mayo Blvd., Phoenix www.arizonachamber.com

ARIZONA SMALL BUSINESS ASSOCIATION ASBA Sales Exchange — Mastering Your Little Voice™ Wed., Dec.1 8:30a — 10:00a

This interactive and engaging series provides the clarity, techniques and skills you need to identify situations in which your internal dialogue (Little Voice™) is controlling you. Presenter: Jessica Johnson, SalesPartners World Wide. Facilitated by Mike Leeds, Pro Sales Coaching. Members: free; non-members: $25.00

Thur., Dec. 2 11:30a — 1:30p

ASBA Fast & Curious Speed Networking™- Central Tues., Dec. 14 3:00p — 4:30p

Referral Success 101 Fri., Dec. 3 8:30a — 11:00a

In this workshop, you will learn: How to develop a strategic referral network — who should be in it, how to find the right people, and how to motivate those people to refer business to you. Members: $25; non-members: $49 ASBA’s Business Education Center www.asba.com/events

Quickbooks Training – Just the Basics Thur., Dec. 9 8:30a — 10:00a

This is a “ready-set-go” style of networking that allows members to meet other members in 3-minute intervals, maximizing participants’ time and gaining them many valuable contacts in 90 minutes. Bring your business cards and brush up on your 30-second commercial. Members: Free; non-members: $10 ASBA’s Business Education Center www.asba.com/events

ASBA New Member Orientation

If you are new to using QuickBooks, this is the place to start! This class will cover creating a new company, generating invoices, bank register and reconciliation of checking accounts and much more! Presented by: Lucinda Lintz, Advanced Certified QuickBooksPro Advisor and an Intuit Solution Provider. Members: $39; non-members: $59 ASBA’s Business Education Center www.asba.com/events

Thur., Dec. 16 8:30a — 10a

Join us to network with other members, meet your Member Services Team and learn all about the resources available to you as an asba member. Renewing members, and anyone who needs an “asba refresher,” are also welcome and encouraged to attend. Free ASBA’s Business Education Center www.asba.com/events

Creating Your Effective Networking Commercial

Quickbooks Training – Beginner Level

Thur., Dec. 16 10:00a — 11:00a

Thur., Dec.9 10:30a — 12:00p

Attendees of this class should have a general knowledge of QuickBooks and be comfortable navigating within the software. Presented by: Lucinda Lintz, Advanced Certified QuickBooksPro Advisor and an Intuit Solution Provider. Members: $39; non-members: $59 ASBA’s Business Education Center www.asba.com/events

ASBA Entrepreneurial Development Exchange Tues., Dec. 14 9:00a — 10:30a

Tues., Dec. 14 10:30a — 11:30a

Get tips to develop an effective 30-second networking commercial in this handson workshop. After some pointers, we’ll work on creating your specific message. This is a great opportunity to craft a unique and attention-grabbing commercial for networking events and when meeting prospective customers for the first time. Facilitated by Mike Leeds of Pro Sales Coaching. Free ASBA’s Business Education Center www.asba.com/events

Mix @ The MIM

Join other micro-businesses from home-based sole proprietors up to three employees to discuss the latest opportunities to grow out a business from the grassroots level and problem solve, share best practices and ideas to successfully run a micro-business. Members: free; non-members: $25.00 ASBA’s Business Education Center www.asba.com/events

Thur., Dec. 16 5:00p — 7:00p

Join us for this joint holiday mixer with the Arizona Chamber of Commerce and Industry! Mix and mingle while enjoying the amazing atmosphere of the new Musical Instrument Museum. Members: free; non-members: $10.00 Musical Instrument Museum 4725 E. Mayo Blvd., Phoenix www.asba.com/events

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

D e c e m b e r 2010

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Ag e n d a ARIZONA TECHNOLOGY COUNCIL Council Connect: Is Your 401(k) Limiting Your Retirement? Wed., Dec. 1 7:30a — 9:30a

A specialist reveals secrets to designing a plan personalized for you. Sponsored by the Phoenix Business Journal. Members: $10 advanced registration, $15 at the door; non-members: $20 advanced registration, $25 at the door John Driscoll & Co. Inc. 5050 N. 40th Street, Suite 350, Phoenix www.aztechcouncil.org

Women in the Workforce Committee: Holiday Mixer Wed., Dec. 1 4:00p — 6:00p

A social way to get committee members involved and introduce prospective members to the group. Members: $30; non-members: $45; student members: $25 Morton’s The Steakhouse 2501 E. Camelback Road, Phoenix www.aztechcouncil.org

BUSINESS PROFESSIONALS Business Professionals Breakfast Social Thur., Dec. 9 8:30a — 10:00a

This networking event is open to business professionals and is a great way to connect and share ideas surrounded by inspiring technology. Each month, a guest speaker will present on an informative topic. A light breakfast and Starbucks coffee will be served. Free Microsoft Store 7014 E. Camelback Road, Scottsdale (480) 308-0800

CENTRAL PHOENIX WOMEN Central Phoenix Women Holiday Luncheon Mon., Dec. 6 11:30a — 1:00p

$75.00 per person The Ritz Carlton, Phoenix 2401 E. Camelback Road, Phoenix www.centralphoenixwomen.org

CHANDLER CHAMBER OF COMMERCE Networking @ 9 Fri., Dec. 3

Featuring Stuart Preston with MyBusiness Advisors, Inc. Topic is “I know What I’m Supposed to Do, But…”

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Free; must register Western International University 55 N. Arizona Place, Chandler www.events.chandlerchamber.com

S.C.O.R.E. consultant. Glendale Chamber of Commerce www.glendaleazchamber.org

Ambassadors Committee

Sunshine Club — Wednesday Edition

The Ambassadors serve as hosts for the Chamber events. This select group of individuals is the liaison between the Chamber and the business community. If you have been a member of the Chamber for more than three months and are interested in joining, please RSVP. Chandler Chamber of Commerce (480) 963-4571

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

Mon., Dec. 6 12:00noon — 1:00p

Women’s Council — Holiday Charity Drive Tues., Dec. 7 8:00a — 9:30a

To benefit My Sister’s Place Domestic Violence Shelter. Suggested donations: canned food, toiletries, diapers, baby wipes and formula. Courtyard by Marriot/Fairfield Inn & Suites 1100 S. Price Road, Chandler www.events.chandlerchamber.com

Wake Up Chandler Wed., Dec. 8 7:30a — 9:00a

Start off the morning by networking with other businesses and check out the newly remodeled Chandler Center for the Arts. Sponsored by Wells Fargo Bank and East Valley Tribune. Sam’s Club 1375 S. Arizona Avenue, Chandler www.events.chandlerchamber.com

Business After Hours Thurs., Dec. 16 5:00p — 7:00p

Business After Hours annual Holiday Party. Bring business cards and network with holiday cheer. Members: $5; non-members: $15 Crowne Plaza San Marcos Resort One San Marcos Place, Chandler www.events.chandlerchamber.com

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

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

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

2010 SRP “Power Lunch” Thurs., Dec. 2 11:30a — 1:00p

Good Morning East Valley Fri., Dec. 10 6:30a — 9:00a

Team-building excercises with Jerry Eisen, “Certified Laugh Leader.” Members: $20 pre-paid, $25 pay at door Mesa Country Club 660 W. Fairway Dr., Mesa www.mesachamber.org

Women’s Business Wed., Dec. 15 11:30a — 1:00p

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

Annual Red Affair

Thurs., Dec. 9 5:00p — 7:00p

Meet and network with other members in a social atmosphere. Members: Free, non-members: $25 Embassy Suites Phoenix North 2577 W. Greenway Road, Phoenix www.glendaleazchamber.org

MARICOPA WORKFORCE CONNECTIONS

Bring employment opportunities directly to returning military, veterans and their job-seeking immediate family members! Gratis exhibit space is available to Arizona businesses interested in marketing their career opportunities directly to our transitioning military, veterans and their immediate family members. Free Phoenix Convention Center www.maricopaworkforceconnection. com

S.C.O.R.E. Appointments

No-host breakfast Paradise Bakery & Café 3426 E. Baseline Road, Mesa www.mesaschamber.com

Monthly Blender

“The Global Reach” Presentation

GLENDALE CHAMBER OF COMMERCE

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

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS

Job Fair

Free Kierland Business Center 7047 E. Greenway Pkwy., Ste. 250, Scottsdale (480) 272-9351

Wednesdays in Paradise

Guest speaker: Duane Woods, chairman of the Fiesta Bowl Committee. Find out the latest with both the Fiesta Bowl & the BCS Championship Game. $30 Fleming’s Steak House & Wine Bar 9712 W. Northern Ave., Peoria (623) 937-4754

DENOVO BUSINESS ENTHUSIASTS Tue., Dec. 7 Time TBD

MESA CHAMBER OF COMMERCE

Sat., Dec. 11 10:00a — 4:00p

Scottsdale Happy Hour Thurs., Dec. 2 4:30p — 6:30p

Javino’s Wine Bar & Restaurant 14795 N. Northsight Blvd., Scottsdale www.nawbophx.org Wed., Dec. 8 11:00a — 1:00p

2901 N. 7th Street, Phoenix www.nawbophx.org

NAWBO Toy Drive Benefiting My Sister My Friend Wed., Dec. 8 11:00a — 1:00p

NAWBO Red Affair Luncheon Please bring children’s toys for age 0-16. 2901 N. 7th Street, Phoenix www.nawbophx.org

Scottsdale NAWBO Thur., Dec. 16 11:30a — 12:30p

The Grapevine Restaurant 4013 N. Brown Avenue, Scottsdale www.nawbophx.org

North Central/Desert Ridge NAWBO Fri., Dec. 17 11:30a — 1:00p

Rock Bottom Restaurant 21001 N. Tatum Blvd. Phoenix www.nawbophx.org

Mondays throughout the month 9:00a — 12noon

Free consulting sessions with a

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Ag e n d a East Valley NAWBO Tue., Dec. 28 7:30a — 9:00a

Dobson Ranch Golf Club 2155 S. Dobson Road, Mesa www.nawbophx.org

West Valley NAWBO

Members: $15; non-members: $25 Rochelli’s Pizza House 21043 N. Cave Creek Road, Phoenix www.northphoenixchamber.com

NORTH SCOTTSDALE CHAMBER OF COMMERCE

Wed., Dec 29 11:30a — 1:00p

NSCC Breakfast

Central Phoenix NAWBO

Breakfast with a purpose. Learn how to recruit, hire, utilize and retain interns in your business. Guest speaker. Members: $15; non-members: $25 The Breakfast Joynt 14891 N. Northsight Blvd. Scottsdale www.northscottsdalechamber.org

Marie Callendar’s 4930 W. Bell Road, Glendale www.nawbophx.org

Thur., Dec. 30 11:30a — 1:00p

The Eggery 50 E. Camelback Road, Phoenix www.nawbophx.org

NORTH PHOENIX CHAMBER OF COMMERCE BIZ TALK for the INNER CIRCLE Wednesdays throughout the month 7:30a — 8:30a

Round table discussion focused on business owner issues. Members: $15; non-members: $25 Rustic Café 20811 N. Cave Creek Road, Phoenix www.northphoenixchamber.com

Monday Networking

Mondays throughout the month 12noon — 1:00p

Generate leads by building relationships. Members: $15; non-members: $25 Rock Bottom Brewery Desert Ridge www.northphoenixchamber.com

Wednesday Networking

Wednesdays throughout the month 12noon — 1:00p

Generate leads by building relationships. Members: $15; non-members: $25 Catch 22 Sports Bar 18725 N. 32nd Street, Phoenix www.northphoenixchamber.com

Networking Luncheon Tues., Dec. 7 12noon — 1:00p

Increase your business by networking at different Chamber members restaurants each month. Members: $15; non-members: $25 Rochelli’s Pizza House 21043 N. Cave Creek Road, Phoenix www.northphoenixchamber.com

Networking Luncheon Tues., Dec. 21 12noon — 1:00p

Increase your business by networking at different Chamber members’ restaurants each month.

Wed., Dec. 1 7:30a — 9:00a

Business Resource Lunch Wed., Dec. 8 11:30a — 1:00p

Create MORE exposure for your individual business. Members: $15; non-members: $25 The Compound Grill 7000 E. Mayo Blvd., Phoenix www.northscottsdalechamber.org

St. Mary’s Food Bank Volunteer Effort Sat., Dec. 11 12:00noon — 3:00p

The Phoenix Philanthropists and the North Scottsdale Chamber of Commerce would like to invite all to attend our second Saturday volunteer events at St. Mary’s Food Bank. Free St. Mary’s Food Bank 2831 N. 31st Avenue, Phoenix www.northscottsdalechamber.org

Free Customer Service Program Tues., Dec. 14

The Scottsdale Convention & Visitors Bureau invites you to join us for an inspiring, free program featuring Scott Deming, a leading authority on customer service. 7:30a — 9:30a

Hotel Valley Ho 6850 E. Main Street, Scottsdale Check-in begins at 7:30a; program will start promptly at 8:00a 10:30a — 12:30p

Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch 7500 E. Doubletree Ranch Road, Scottsdale Check-in begins at 10:30a; program will start promptly at 11a 3:00p — 5:00p

The Boulders Resort, The Waldorf Astoria Collection 34631 N. Tom Darlington Drive, Carefree Check-in begins at 3:00p; program will start promptly at 3:30p www.northscottsdalechamber.org

Philanthropic Committee Meeting

PEORIA CHAMBER OF COMMERCE

Philanthropic Committee members participate in rewarding and worthwhile projects that benefit those who are less fortunate in our community. Free Paradise Bakery 14884 N. Pima Road, Scottsdale (480) 458-2626

Chamber Workshop

Tues., Dec. 14 7:30a — 8:30a

Wed., Dec. 1 7:30a — 9:00a

Topic: Maricopa County Small Business Development Center. City Point of View Room 9875 N. 85th Avenue, Peoria www.peoriachamber.com

Network Group

Meet & Mingle

Tues., Dec. 7 7:30a — 8:30a

Wed., Dec. 15 5:00p — 7:30p

Held third Wednesday of the month at different member businesses. Members: free; non-members: $25 Earl’s Restaurant 15784 N. Pima Road, Scottsdale www.northscottsdalechamber.org

Networking among members to learn more about each other’s business. $4 fee for continental breakfast Firebirds Wood Fired Grill 16067 N. Arrowhead Fountain Center, Peoria www.peoriachamber.com

Networking and 9 Golf Event

December Membership Luncheon

2:00p – 2:30p networking and optional practice time on the driving range, followed by a Shotgun start promptly at 3:30p. Any ability level is welcomed. Members: $35; non-members: $40; Preregistration required Tonto Verde Golf Club 18402 El Circulo Drive, Rio Verde www.northscottsdalechamber.org

$25 Rio Vista Recreation Center 8866-A W. Thunderbird Road, Peoria www.peoriachamber.com

Fri., Dec. 17 2:00p start

Holiday Food Drive Gala Event Fri., Dec. 17 6:00p

To benefit St. Mary’s Food Bank. Sponsored by the NSCC and the Mercado Merchant’s Association. Come celebrate the Holidays for a good cause. Live band, food & drink and $25,000 in Auction Prizes! Free The Mercado at Scottsdale Ranch 10155 E. Via Linda, Scottsdale www.northscottsdalechamber.org

Public Relations Committee Meeting

Connecting the Chamber & Community Wine Tasting Thur., Dec. 9 5:30p – 6:30p

Valuable business opportunity to meet new business leaders, socialize with other professionals and increase your business opportunities. $5 The Tasting Room 28465 N. Vistancia Blvd. #103, Peoria www.peoriachamber.com

New Member Orientation Mon., Dec. 13 12noon — 1:00p

Peoria Chamber of Commerce www.peoriachamber.com

Wed., Dec. 22 1:00p — 2:00p

No-host luncheon Maggiano’s Little Italy 16405 N. Scottsdale Road, Scottsdale www.northscottsdalechamber.org

Ambassadors Committee Meeting Tues., Dec. 28 7:30a — 8:30a

Wed., Dec. 8 11:00a — 1:00p

Ambassadors are actively involved in all aspects of our events and play a key role in North Scottsdale Chamber of Commerce’s continued growth. Our Ambassadors are the welcoming arm of our Chamber and community. Free The Breakfast Joynt 14891 N. Northsight, Scottsdale www.northscottsdalechamber.org

Business Development Meeting Tues., Dec. 14 4:00p — 5:00p

Peoria Chamber of Commerce APS Conference Room www.peoriachamber.com

Store More! Mixer Wed., Dec. 15 5:00p — 7:00p

Free to members

Store More! Self Storage 8580 N. 91st Avenue, Peoria www.peoriachamber.com

Network Group Tues., Dec. 21 7:30a — 8:30a

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

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

D e c e m b e r 2010

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Ag e n d a Firebirds Wood Fired Grill 16067 N. Arrowhead Fountain Center, Peoria www.peoriachamber.com

Business After Hours “Celebrate the Season” Mixer Mon., Dec. 6 5:00p — 7:00p

APS 400 North 5th Street, Phoenix www.phoenixblackchamber.com

Join us for a festive evening with good friends, great food and lots of holiday cheer! The Chamber is proud to support Police Officers of Scottsdale Association and St. Mary’s Food Bank this holiday season and will accept donations to these amazing nonprofits in lieu of an admittance fee! Firesky Resort & Spa 4925 N. Scottsdale Road, Scottsdale www.scottsdalechamber.com

SCOTTSDALE AREA CHAMBER OF COMMERCE

TEMPE CHAMBER OF COMMERCE

Member Orientation

Networking @ Noon

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

Learn the art of relationship building, enjoy a fantastic lunch and have fun promoting your services at this “speed dating for business” event. Employing effective networking techniques is the most powerful way to promote your business, make strong connections and outperform your competition. Members: $25 in advance, $30 day of; general public: $35 Four Points by Sheraton Tempe 1333 S. Rural Road, Tempe www.tempechamber.org

PHOENIX BLACK CHAMBER OF COMMERCE “GPBCC: Meet our President” Evening Networking Reception Thursday, December 16, 2010 5:00p — 7:00p

Wed., Dec. 1 7:30a — 9:00a

Champions Breakfast: 30-Second Claim to Fame Thurs., Dec. 2 7:15a —9:00a

First impressions matter and everyone needs a 30-second “elevator speech.” Build relationships, generate leads and create buzz! Members: Free; guests: $20 Microsoft Store, Scottsdale Fashion Square 7014 E. Camelback Road, Scottsdale www.scottsdalechamber.com

Thur., Dec. 9 11:30a — 1:00p

Business After Hours: Holiday mixer Tue., Dec. 14 5:30p — 7:00p

Join your colleagues for an evening of great food, fun and networking. This informal mixer provides a welcoming and casual atmosphere where you can meet and mingle with other members of the business community. Members: free; general public: $10 ASU Art Museum 51 E. 10th Street at Mill Avenue, Tempe www.tempechamber.org

First Friday Airpark Breakfast: Delivering Exceptional Customer Service

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Thur., Dec. 16 11:30a — 1:00p

Each month we host a special luncheon event where the community can hear dynamic, engaging speakers lead educational and inspirational presentations pertaining to “hot” business topics. On Dec. 16, Sherry Henry, executive director of the Arizona Office of Tourism, and Mark McMinn, director of sales for the Tempe Tourism Office, will give a joint presentation on the state of Arizona’s tourism industry post SB1070, what is being done to boost tourism and what the future of the industry looks like. Past speakers have included Tempe Mayor Hugh Hallman, Dave Sherman and Kimber Lanning and addressed photo radar, real estate, the economy, health care reform and more. Members: $25 in advance, $30 day of; general public: $35 Tempe History Museum 809 E. Southern Avenue, Tempe www.tempechamber.org

Business Before Hours Fri., Dec. 17 7:30a — 8:30a

Join us for a morning of food and networking. Bring brochures and business cards and be ready to give a 30-second commercial about yourself or your business. This is a wonderful way to start the day and meet with other Chamber members and the business community. A light breakfast is provided. Members: free; general public: $7 Onsite Design 1769 W. University Drive, #177, Tempe www.tempechamber.org

WEST VALLEY WOMEN West Valley Women Holiday Luncheon

Fri., Dec. 3 7:15a — 9:00a

Join us for a dynamic and informative panel discussion on the importance of including customer service as part of your overall marketing strategy and implementing a comprehensive customer service training program for your employees. Members: $15 advance registration, $20 day of event; guests: $25 advance registration, $30 day of event Sassi 10455 E. Pinnacle Peak Pkwy., Scottsdale www.scottsdalechamber.com

11:30a — 1:00p

Hot Topics & Lunch – The state of Arizona’s tourism industry post SB1070

$35.00 per person SKYE Fine Dining 16844 N. Arrowhead Ftn Ctr. Drive, Peoria www.westvalleywomen.org

WOMEN IN BUSINESS Monthly Networking Tue., Dec. 28 8:30a — 10:00a

This valuable networking event occurs monthly and is a great opportunity for professional women to come together to connect and share ideas in a unique and technically inspiring venue. Each month, there is an informative guest speaker and attendees can enjoy a cup of Starbucks coffee and breakfast goodies while mixing and mingling with other local professionals. Free Microsoft Store 7014 E. Camelback Road, Scottsdale www.microsoftstore.com

WOMEN OF SCOTTSDALE Women of Scottsdale Holiday Luncheon Fri., Dec. 17 11:30 — 1:00p

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

WORLDWIDE EMPLOYEE BENEFITS NETWORK — PHOENIX Holiday Luncheon Thurs., Dec 9 11:00a — 1:00p

Charity Luncheon for The Wellness Community of Arizona, providing emotional and educational programs free of charge in a home-like environment to support anyone affected by cancer. Phoenix Country Club 2901 N. 7th Street, Phoenix (623) 203-5177

Tue., Dec. 7

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

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ASSETS

We Value What We Own by Emily Snow Hyde Park Jewelers Audemars Piguet Royal Oak Offshore Diver Mens Wristwatch $15,100

Power Piece: Bringing Back a Timeless Accessory In a dark movie theater or concert hall, faces and seats are lit by dozens of cell phones and other like gadgets. Whether working in the office or walking down a busy street, people are constantly connected. Every moment of their day is planned down to the second. Without a doubt, cell phones have replaced traditional time pieces; that is, at least as far as function goes. With this increasing dependence on digital technology, watches have become more about status than ever before. Like any fashion accessory, they are an expression and extension of personal success and style. Flashing a Chanel women’s black ceramic watch tells clients and co-workers of the wearer’s brilliancy — without the need for words. An Audemars Piguet watch for men will do just the same with its steel, powerful quality. So put those cell phones to rest for a moment and let your new watch do all the talking.. Hyde Park Jewelers at Biltmore Fashion Park

www.hydeparkjewelers.com

Sky-High Comfort: Must-Haves for Travel

Mobile Detail: TLC for Your Car

Business travel can be an exhausting affair, but it certainly does not have to be. With the right items, the calm and comfort of home can just as easily be found on a plane.

Time is in the details, but it need not be a burden on your time. When your car is an extension of your professional impression but you can’t fit a visit to the car wash into your schedule, let the detailer come to you. These local detailers will give your car the spiff-up it deserves and provide you with the luxury and ease of mobile or shuttle service.

For some much-needed rest before your important business meeting, indulge in QuietComfort “noise cancelling” headphones by Bose. Wearers can drown out the world and choose a soothing sound of their own.

McKlein LaSalle $280.00

The short time spent at the security check point can be the most stressful part of a trip. The McKlein Business Case is certified “checkpoint friendly” and allows for easy access to plane tickets, I.D. and a laptop.

Bose QuietComfort $349.95

Advance Auto Detail comes straight to your door, offering the works at bargain prices! Mobile Service • (623) 776-2070

The Windows 7 Phone allows you to stay relaxed and yet entirely connected at the same time. Different styles offer a variety of customizable features, from a hands-free kickstand for multitasking to applications for sharing multimedia files. Best Buy in Phoenix

www.bestbuy.com

Bose Showcase Store at Kierland Commons Macy’s at Biltmore Fashion Park www.microsoft.com

D e c e m b e r 2010

For those busy days on the job, European Detail can bring you to their shop or bring their shop to you with their shuttles and off-site detailing. 2002 E. Indian School Road, Phoenix • (602) 956-6464 Tanner Collision caters to client needs; conveying customers to the office and back again is just one of their many services. 4124 N. 22nd Drive, Phoenix • (602) 279-5533

www.bose.com

www.macys.com

The Microsoft Store at Scottsdale Fashion Square HTC Surround w/ Windows 7 No Commitment: $499.99 AT&T 2-year contract: $199.99

Among The Auto Shop’s fine, fancy services is free transportation to and from work. 901 N. Central Avenue, Phoenix • (602) 256-6164

Audi North Scottsdale gives your car the star treatment no matter what its make! Enjoy access to a luxury sedan shuttle or reserve your own loaner car. 18088 N. Scottsdale Road, Phoenix • (866) 515-0798

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Power Lunch

Meals that Matter

Satellite Office: Let’s Have Drinks As the phrase goes, “let’s have drinks” can mean any number of things. However, in business it can be the beginning of a client relationship or the close of that big deal. Certainly, there is the celebratory drink to congratulate staff, clients or oneself. Here are some great “satellite offices” to take that drink.

Durant’s

They say that most of modern Phoenix was built at the bar (or certainly in it). According to Jack Durant, founder of this Phoenix standard, “Great friends, great steaks and the best booze are the necessities of life.” All these many years later, that still holds true. Find them in this classic 1950s steak house. Oh, and have the martini. You’ll be glad you did. 2611 N. Central Avenue, Phoenix (602) 264-5967

Ocean Prime

Art is a Midday Meal Arcadia Farms menu adds culinary masterpieces to the Phoenix Art Museum by Gremlyn Bradley-Waddell

Photo: Arcada Farms Café

Imagine a midday meeting amidst the works of Monet, O’Keefe or Remington. This is the ambience of Arcadia Farms Café at the Phoenix Art Museum. Downtown Scottsdale’s famous eatery, renowned for its to-die-for Strawberry Chicken Salad, offers much the same menu at its museum site — in a location ideally situated for power lunches and casual business meetings. Large and small groups are easily accommodated, and the gadget-friendly environment and bonus of free Wi-Fi allows diners to work on their iPads, Smartphones and laptops. During pleasant weather, the Dorrance Sculpture Garden patio is a serene and classy spot to meet the boss or clients. If you are only dining at the café, there’s no need to pay museum admission; just use the entrance in the Hall of Mirrors on the building’s north side. The restaurant also offers catering and is available for private use in the evening. While you won’t find Remington’s sculptures and Monet and O’Keefe’s paintings in the restaurant itself — yes, one needs to pay admission to see those and the museum’s other fabulous offerings — just wait till you encounter the culinary artistry, which incorporates organic, local and pesticide-free ingredients. Along with that legendary salad, there’s a wild mushroom tart, an herb-roasted chicken sandwich, a roasted turkey and brie sandwich on walnut bread, a Mediterranean melt on ciabatta and more. Turns out masterpieces are easy to come by at Arcadia Farms Café. Arcadia Farms Café at Phoenix Art Museum www.arcadiafarmscafe.com 1625 N. Central Avenue, Phoenix (602) 257-2191

Nestled at the end of East High Street in City North, this may be a bit out of the way for that quick meeting, but impress your clients and colleagues with the ambience and “supper club” appeal. The music is the right touch and they just won the “2011 Best Spirit Program” award from the Cheers Beverage Excellence Awards. For drinks, you cannot go wrong. 5455 E. High Street, Phoenix (480) 347-1313

Ritz-Carlton Club Bar

Specializing in those signature Ritz drinks, the Club Bar is the right place to take that client who really wants to talk over drinks. Elegant, impressive with great service; you’ll save that special meeting for this “exclusive” location adjacent to the lobby and valet parking. 2401 E. Camelback Road, Phoenix (602) 468-0700

Tommy Bahama

This Kierland spot has even got its own brand of rum. An outdoor bar and two levels to choose from, the Tommy Bahama experience will add explorer to your resumé. Tropical drinks aside, this is a casual, quaint place to make that business-meeting-overdrinks matter. Try old standards or choose from a lineup of Caribbean favorites. 15205 N. Kierland Blvd., Scottsdale (480) 607-3388

Open Wed. 10 a.m. to 8:30 p.m.; Thurs. – Sun. 10 a.m. to 4 p.m.; Every First Friday, 10 a.m. to 9 p.m.

D e c e m b e r 2010

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Mandatory labor law changes effective January 1, 2011

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Arizona minimum wage is increasing January 1, 2011. To be in full compliance, all businesses must post current (2011) Federal and State labor law posters. Save time, space and peace of mind by purchasing asba's all-in-one Arizona + Federal Labor Law Poster!

To order, visit www.asba.com/store or call 602.306.4000. Use promo code “laborlaw2011” Approx. poster size: 26" x 38"

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capture your best side

itâ&#x20AC;&#x2122;s simple at vermillion photo

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D e c e m b e r 2010

ver mi lli on photo www.ver mi lli on photo. c om 60 2.253.60 0 5

3/18/10 11:16:55 AM

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Celebrating 25 years of serving the women business owners of Phoenix.

Winter ‘10 - ‘11 • nawbophx.org

President’s Message 1985

2010

Women clearly mean business today. Since the founding of the National Association of Women’s Business Owners (NAWBO) 35 years ago, women have been making their mark in every major market nationwide. Let’s take a look at the overall picture:

2008-2009

About NAWBO Founded in 1985, NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power. Twenty-five years later, NAWBO Phoenix is still the only organization in the Valley that solely represents the interest of women entrepreneurs in all industries. For more information, please visit www.nawbophx.org.

This issue Page 2 Build Relationships, Build Your Business Page 4 The Marketing Budget - Where to Start Page 6 Public Relations in a Wired World and more...

Phoenix Metropolitan Chapter of the National Association of Women Business Owners, 4600 E. Washington St., Suite 300 Phoenix, AZ 85034 602-772-4985 www.nawbophx.org • info@nawbophx.org

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• 1 0.1 million firms are owned by women (50% or more), employing more than 13 million people and generating $1.9 trillion in sales as of 2008. • Three-quarters of all women-owned businesses are majority-owned by women (51% or more), for a total of 7.2 million firms employing 7.3 million people and generating $1.1 trillion in sales. • Women-owned firms (50% or more) account for 40% of all privately-held firms.

Businesses Owned by Women of Color • 1 .9 million firms are majority-owned (51% or more) by women of color in the U.S. • These firms employ 1.2 million people and generate $165 billion in revenues annually.

Million-dollar Businesses

Cindy Hynes President, NAWBO Phoenix

• O ne in five firms with revenues of $1 million or more is woman-owned. • 3% of all women-owned firms have revenues of $1 million or more compared with 6% of firms owned by men. Source of Data: Center for Women’s Business Research.

Women are taking the lead by starting and growing businesses that employ millions of people in the U.S. Regardless of their industry, women are innovative, hardworking, collaborative and talented business owners who work well with other women. Research shows that they relate easily to the experiences of other women business owners. Women who have created high-performing businesses can serve as an inspiration to other women while also providing valuable practical information on how they achieved their success. It wasn’t that long ago that access to capital was a major barrier to achieving success in business. But with the progress we’ve made over the past 35 years, more than half of women business owners who ask for credit — get it! The most successful women business owners “think big” from the outset. At NAWBO, we encourage all women to meet their potential and soar to the level of their dreams.

NWABO NEWS

Build Relationships, Build Your Business The Beatles were right when they sang that money canâ&#x20AC;&#x2122;t buy love. The same can be said about securing customers. Marketing investments are important, but they can carry you only so far. The key to a successful business is to develop strong and enduring relationships with your customers and clients.

D e c e m b e r 2010

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ou can’t build these relationships through one-shot contacts at networking events. You need to nurture each contact for it to grow. And, like all good gardens, this takes planning and care. Fortunately, this isn’t as difficult as you might think. Here are five helpful tips:

1. Grow your network—This is your sales pipeline. It should include business colleagues, professional acquaintances, partners, suppliers, contractors, association members, as well as family, friends and people you meet at school, your kids’ sporting events and within your community. But how do you transform all of these useful contacts into customers? If you expect to be remembered by a contact you met six months ago at a networking event, you will be sorely disappointed. Relationship-building is a long-term investment that requires ongoing face time. 2. Communicate like your business’s life depends on it (because it does)—Communication is a contact sport, so it’s essential to do it early and often. When you make a connection at a networking event, solidify it immediately by sending a “nice to meet you” email or inform them you’re adding them to your e-newsletter subscription list and then send them the latest copy. Be sure to reiterate who you are, how you met, and the nature and benefits of your products or services. You rarely meet people at the exact moment in time in which they need your specific product or service. When that time comes, will they think of you? Only if you stay top-of-mind. It’s easier to keep a connection warm than to warm up a cold one. So take the time to turn your network of connections into educated prospects. 3. Email marketing and blogs are an economical way to keep relationships strong— Build your reputation as an expert by freely sharing examples of your advice and insights. You have interesting things to say! You can demonstrate this for potential clients by distributing an e-newsletter or posting a blog that provides examples of your expertise and leaves your prospects wanting more. Unlike printed materials, e-newsletters and blogs are viral phenomena. Contacts and clients who value this information will forward it to others; the online equivalent of word-of-mouth marketing. Post your blog on popular social networking sites and your reach and impact will be even greater. Blogging has the added benefit of being interactive. People who share your interests or need your expertise will begin an ongoing dialog with you. This is the surest way to begin developing a long-term relationship. 4. Reward loyal customers and they’ll reward you—According to consulting firm Bain and Co., a 5 percent increase in client retention yields profit increases of 25 to 100 percent. The firm also reports that repeat customers spend 67 percent more than new customers. So, if repeat customers are the most profitable, shouldn’t you be doing everything possible to secure their loyalty? Of course you should. The good news is that this doesn’t require a lot of time, effort or dollars. Simply contact your customers on a regular basis and offer something of value that expresses your appreciation for their time, attention and business. This doesn’t have to be anything extravagant. Send them a coupon, a gift card, some helpful insight or a piece of advice. If you don’t reach out to your customers, you can be certain that your competitors will. 5. Loyal customers are your best salespeople— Happy clients will often be willing to serve as reference accounts or provide an invaluable source of leads. Through their personal and professional networks, they will encounter people looking for your products or services and encourage them to contact you. When you provide high-quality products and outstanding service, you are effectively recruiting an expanding team of highly motivated sales people who want to see you achieve your goals. If real estate is all about location, location, location, then small business success is all about relationships, relationships, relationships. If you focus on forging them, nurturing them and then maintaining them over time, you will see your small business grow and your sales revenue soar to new heights.

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The Marketing Budget –

Where to Start

By: Dorothy Wolden Communications Director for NAWBO Phoenix 2010/2011

Dorothy Wolden

There are no simple rules for determining what you should spend on marketing your business. However, here are some guidelines for developing your annual marketing budget.

What Goes into Your Budget? Before any budgets can be created, there has to be a marketing plan in place. The cost in time and energy to create the marketing plan will pay for itself. Hiring a marketing professional to help develop a plan is something you may want to consider. Too many times small businesses work without a plan and needlessly spend money on “marketing” efforts that have absolutely no return on investment. You need to have a clear vision of what your marketing strategy is and a set of marketing activities that will raise visibility and generate demand. Sales Tools Another area of your marketing efforts that would need to be budgeted for includes your sales tools. Examples of sales tools are your Web site, business cards, letterhead, brochures, flyers and other collateral materials needed to fulfill your sales goals. The most cost-effective thing to do is work with a design professional to create a branding package. Service packages will help you manage your budget by knowing upfront exactly what everything will cost. If your company has the need for many sales tools, then a way to control costs is to create components as you go, but it is advisable that you not cut corners on the design or quality of the tools. Cutting corners on sales tools creates an image of being small and unprofessional to your prospects. After your logo has been created, then start with business cards, then your Web site and a brochure. Most businesses can benefit from a highly professional, quality Web site. Be sure you understand the importance of your Web site to your business and the impact it can have on your revenue before you determine the budget. If your primary marketing effort is Internet marketing, you really should consider putting a few more dollars into your Web site and have it developed professionally. This rule also holds true for your other marketing materials. I heard a quote once from marketing professional that may be harsh but is 100 percent true. “The only way to keep your brochure out of the trash is to have it professionally designed.” Just take a moment to think about that. How many times have you gotten some kind of marketing piece and threw it out because it was not visually appealing, not well written or looked like it came off of an inkjet printer? You formed an opinion about that company in two seconds and decided it was unworthy of your business. You don’t want to be that company. Working with a design professional can actually save you money. Industry professionals have many contacts for printing, hosting, PR and other services and often can negotiate better pricing because they represent many clients to one vendor. Also, if having a brochure, Web site, ad, postcard, etc., actually entices people to call and do business with you then the investment is well worth it.

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Branding If you are a new business or even an established business wanting to make 2011 your most successful year, you will likely need to put effort towards creating your company brand. Developing your brand image is more than just getting a logo to call your own. However a well-designed logo will be the centerpiece for your branding efforts. Your brand images will be the key components of your marketing efforts, so be sure you work with a design professional to create something that you can use for many years to come. This is not something that changes monthly or as often as the whim strikes. Marketing Programs After deciding on corporate branding issues, determining the appropriate sales or marketing support tools, the next step is to determine what programs you are going to execute. All promotional activities fall within the seven categories: Events • Direct Marketing • Internet Marketing • Advertising • Public Relations • Word of Mouth • Strategic Partnerships To identify what programs are the best for your business, you might want to begin by seeing what others—in your industry, as well

as outside your industry—are doing. However, don’t get caught up in “copycat marketing.” What others do may not be right for you, and part of why you put a marketing plan together is to differentiate yourself from others, but it is a good start to look at their activities for guidance on where you should invest your dollars. Once you have established your plan keep in mind that you don’t need to do all the activities at once. Plan them out over the year so you can budget for them and measure their effectiveness. If you have too many things going on at once, you won’t be able to keep track and measure. Understanding the return on investment on a marketing activity enables you to determine whether to keep it running or stop it and try something else. Summary Establishing an annual marketing budget helps you identify the money your business has to invest in its marketing activities. Managed properly, your marketing budget is the best investment you can make in your company. If you wisely invest your marketing dollars, you can get a profitable return on your investment.

NAWBO Board of Directors Executive Committee

Board of Directors

President Cindy Hynes Hynes Benefits Consulting, LLC

Ambassador Norma McCormick Clean ‘N Fresh Cleaning Service, LLC

Secretary Marnee Weber Meaningful Methods, LLC Finance Director Barbara Appenzeller Barbara Appenzeller CPA, P.C Immediate Past President (Past President Chair) Loretta Love Huff Emerald Harvest Consulting, LLC Executive Director NAWBO Office Deanna Anderson Organized Management Solutions, LLC Membership & Meeting Assistant NAWBO Office Megan Williams Membership & Events Administrator

Awards Chair Becky Winterscheidt Snell & Wilmer Communications Chair Dorothy Wolden Creative Intuition Community Alliances/ Diversity Chair Ania Kubicki Angles Public Relations Community Service Director Choo Tay Media88, Inc. Corporate & Economic Development Chair Amy Bruske Kolbe Corp Honorary Advisory Council Kim Marie Branch-Pettit LeTip International Marketing Services Director Joan Risdon Smart Image Media

Membership Services Lynda Bishop Summit Alliance Solutions, LLC Media Relations Ilisa Keith Keith Block Communications, Inc. Mentor Program Barbara Baderman Life-Long Learning Solutions Neighborhood NAWBOs Connie Zimmerlich ClickChick Photography Programs/ NAWBO University Colleen O’Shaughnessy MetLife Public Policy Chair Ginger Lamb Arizona Capitol Times Red Affair Chair Erin Finn Finn Property & Development Women’s Enterprise Foundation (ex-officio) Adell Heinemann Juve Facial Rejuvenation

Annual Annual

Red Affair Luncheion Luncheion

Wednesday, Wednesday,December December8,8,2010 2010 11am 11amtoto1:30pm 1:30pm

Champagne ChampagneReception, Reception,Silent SilentAuction, Auction,Luncheon, Luncheon, Entertainment Entertainment&&Raffle RafflePrizes Prizes Phoenix PhoenixCountry CountryClub Club 2901 2901N.N.7th 7thStreet Street Phoenix, Phoenix,AZAZ85012 85012

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Public Relations in a Wired World By Ilisa Keith Media Director for NAWBO Phoenix 2010/2011

Ilisa Keith

Once upon a time, journalists were the gatekeepers for businesses seeking coverage of their products or services. To succeed, you had to convince a reporter to tell your story.

Today, there’s been a major paradigm shift. The Internet has leveled the playing field for businesses like yours, allowing you to tell your story directly to the general public. Instead of

The Women’s Enterprise Foundation WEF is a 501(c)3 charitable organization that supports and inspires emerging women business owners within the greater Phoenix area who have a demonstrated business development need or who would benefit from specialized educational training and development opportunities. To learn more or to make a donation visit www.WEFPHX.org

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“pushing” out your marketing messages with traditional PR and other outbound marketing programs, you can now use inbound marketing methods like blogs, search engine marketing and social media to “pull” prospects to you across the Web. Even in a wired world, however, traditional PR still plays an essential role in the marketing mix. A story on the front page of The Arizona Republic or The New York Times can still make or break a business. And securing that coverage still requires good relationships with reporters, along with strong writing and positioning skills. The key to success in today’s semi-virtual new world is achieving a balance between traditional and online public relations. But whether you opt for inbound or outbound marketing, one fundamental rule still remains: To get noticed, your story must be newsworthy, timely and relevant. One of the most effective ways to maximize your story’s news value is to piggyback off current events. If you’re a healthcare company, link your news to a recent healthcare discovery or research report. If you’re a financial firm, tie your message to news of the economy and market trends. But remember that you must always frame your story in a way that is interesting and beneficial to your target audience. Today, the only gatekeepers to achieving marketing success are the limitations imposed by your own imagination. Applied with some creativity and common sense, your outbound and inbound PR will attract the customers your business needs to live happily ever after.

The Two Biggest Reasons Successful People Are Successful Lynda Bishop, Membership Director for NAWBO Phoenix 2010/11 There is a saying I printed and posted near my desk. It has been there for the last ten years. It reads: “It takes 20 years to make an overnight success.” Wow, I’m almost there! Lynda Bishop All kidding aside, it is no secret that creating and sustaining success does not happen quickly or easily. So what do you need to make it happen? For the sake of simplification, I have narrowed this down to the two biggest reasons that successful people are successful. It isn’t money, time or opportunity. It isn’t intelligence, creativity or connections. The two biggest reasons can be boiled down to this: Focus and Follow-Through. Is your future success in true focus? Get clear on where you really want to be. Break down the path to your goals into smaller steps that you can begin today. Then, follow through. When one step is complete,

focus on the next one and follow it through again (celebrating success along the way). No tool, program, training or expert will make you successful without consistent Focus and Follow-Through. Not good at this? Partner with a mentor, coach or accountability group. Here’s to your success!

NAWBO Phoenix is on the move!

NAWBO Phoenix Metro Chapter celebrates 25 years of serving as the voice and

1985

2010

vision of the women business owners of Phoenix. Recognized by Arizona Woman Magazine as The number 1 place to network in the Valley and by The Business Journal as one of the top 5 influential organizations in the Valley, NAWBO Phoenix is on the move.

Be part of the movement. Visit our web site today for membership information. 6 0 2 -772 - 49 8 5

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NAWBO PHOENIX Corporate Partners Presidential Corporate Partners National Bank of Arizona Salt River Project State Farm Insurance Executive Corporate Partners Kolbe Corp Southwest Gas Snell & Wilmer, LLP Business Corporate Partners Anderson Security Agency, Ltd. Arizona Public Service Bank of Arizona

Top 5 Reason to Join NAWBO 5 Where you can rub elbows with some of the most influential women business owners in Arizona.

4 You can get all the resources you need to build, strengthen and transform your business.

Border States Electric Estate Plan Store Price Kong, CPA The Car Source Everyday Automotive Presidential Media Partners

3 What other business meeting can you go to and get compliments on your fabulous new shoes?

2 Walk into a room full of strangers and feel right at home?

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1 Because networking at NAWBO is nourishing but not fattening.

Strategic Media Partners Creative Intuition NetworkingPhoenix.com Executive Media Partners AZ Capitol Times CITY Sun Times Easel Photography In Business Magazine

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Get social with NAWBO Phoenix It’s a great way to stay informed about NAWBO Phoenix and expand your online network. And once you’ve connected, don’t forget to spread the word to everyone you know about how great it is to be a NAWBO Phoenix member.

INDE X Index By Name Anderson, Bob, 14 Anderson, Ted, 12 Borselli, Paul, 22 Butler, Jay, 14 Davis, Donna, 38 Denning, Scott , 45 Fedderson, Yvonne, 44 Foose, Hillary, 18 Gilpin, Deborah J., 12 Gordon, Mayor Phil, 14

Index by Company Advance Auto Detail, 50 Ahwatukee Chamber of Commerce, 46 AIR Marketing, 26 Alerus Bank & Trust, 51 APS, 16 Arcadia Farms Café at the Phoenix Art Museum, 51 Arizona Biltmore, 39 Arizona Chamber of Commerce & Industry, 46 Arizona Department of Commerce, 20 Arizona Department of Economic Security, 44 Arizona Governor’s Task Force on Tourism and Economic Vitality, 20 Arizona Hotel and Lodging Association, 20 Arizona House of Representatives, 66 Arizona Office of Tourism, 20 Arizona Small Business Association , 38, 46, 53 Arizona State Credit Union, 63 Arizona Technology Council, 47 Arizona Tourism Alliance, 20 Arizona-Mexico Commission, 20 Argosy University, 27 Arthritis Foundation, 43 A.T. Still University, 53 AT&T, 3 Audi North Scottsdale, 50 Auto Shop, The, 50 Bain & Company, 22 Ballard Spahr LLP, 30 Banner MD Anderson Cancer Center, 5 Best Buy, 50 Biltmore Fashion Park, 30 Blue Cross Blue Shield of Arizona, 68 Bose Showcase Store, 50 Buchalter Nemer, 29 Business Professionals, 47

D e c e m b e r 2010

Goumas, Steve, 18

Nowack, Adam, 16

Reichheld, Fred , 22

Guntermann, Karl, 16

O’Meara, Sara , 44

Robb, Craig, 16

Hayes, Joshua, 38

Obama, President Barack, 38

Robson, Ed, 28

Henderson, Gayle , 30

Olsen, Eric, 26

Robson, Michelle King, 28

Henry, Sherry , 20

Pitcher, Jeffrey S. , 30

Sacco, Rachel , 20

Jarnagin, Kristen, 20

Pollack, Elliot D. , 30

Sandhu, Tina, 18

Kane, Elizabeth , 38

Proestakis, Georgette, 36

Schulenberg, Dara, 26

Klein, Evan, 22

Ralls, Elaine, 26

Shaff, Bob , 22

Krulisky, Paul , 40

Reagan, Michele , 66

Trujillo, Sia , 39

Major-Martinez, Sindi, 12

Reagan, Nancy, 44

Wiest, Candace , 38

Mulhern, Bob, 31

Rector, Richard, 11

Zimmerman, Marci, 16

Canyon Communications, 26

Maricopa Workforce

Sindel Technology Solutions, 12

Cassidy Turley BRE Commercial, 10

Connections, 23, 47

Small Business Jobs Act of 2010, 38

Macy’s, 50

Solar City, 16

Central Phoenix Women, 47

Mayo Clinic, 67

Solar Phoenix, 16

Center for Services Leadership, 25

Mesa Chamber of Commerce, 47

Southwest Airlines, 22

Chandler Chamber of Commerce, 47

Microsoft Store, The, 50

Tanner Collision, 50

Childhelp, 44

MMA Advertising, 12

Tempe Chamber of Commerce, 49

Children’s Museum of Phoenix, 12

National Association of Women

That’s A Wrap, 38

Christown Animal Hospital, 18

Business Owners, 47

Tommy Bahama, 51

Chrysalis, 40

National Bank of Arizona, 4, 16

University of Arizona, 39

City of Phoenix, 16

National Child Abuse Hotline, 44

Valley Metro Rail, Inc., 18

Colliers International – Phoenix , 30

Nordstrom, 22

Vermillion Photo, 54

Covario, Inc., 22

North Phoenix Chamber of Commerce,

Veteran’s Administration (VA), 30

Customers for Life Consulting, 22 Delete Tattoo Removal & Laser Salon, 16

48 North Scottsdale Chamber of Commerce, 48

W. P. Carey School of Business, 14, 16, 23 Waste Management, 13

Denovo Business Enthusiasts, 47

Ocean Prime, 51

Wells Fargo, 7

Durant’s, 51

Omaha World Herald Company, 14

West Valley National Bank, 38

East Valley Chamber of Commerce

Peoria Chamber of Commerce, 48

West Valley Women, 49

Phoenix Art Museum, 51, 65

Women in Business, 49

Phoenix Convention Center, 15

Women of Scottsdale, 49

Phoenix Black Chamber

World Marketing, 14

Alliance, 45 Economic Development and Job Creation Committee, 66 Eide Bailly LLP, 38

of Commerce, 49

Worldwide Employee Benefits

Eller College of Management, 6

Phoenix Sky Harbor, 14

Elliot D. Pollack & Company, 30

Prisma Graphic, 14

Zappos.com, 22

EmpowHER, 28

RE/MAX Excalibur, 30

Zions Bancorporation, 16

European Detail, 50

Realty Executives Phoenix, 11

Fannie Mae, 30

Reliable Background

Fasturtle Interactive, 26

Screening, 27

Fennemore Craig, 40

Ritz-Carlton Club Bar, 51

FHA, 30

Robson Communities, 28

Freddie Mac, 30

Rúla Búla, 18

Glendale Chamber of Commerce, 47

Satmetrix, 22

GPEC, 12

Satrix Solutions, LLC, 22

Grand Canyon University, 29

SCF Arizona, 2

Holmes Murphy, 10

Schumacher European, 9

Home Affordable Foreclosure

Scottsdale Area Chamber of

Alternatives, 30 Hyde Parke Jewelers, 50 IBM Corporation, 22

Commerce, 49 Scottsdale Convention & Visitors Bureau, 20, 45

Industrial Development Authority, 16

Scottsdale Healthcare, 19

Lamb Creative, 54

Scottsdale Museum of

LarsonAllen LLP, 38 Magellan, 44

Contemporary Art, 17 Scottsdale Public Art, 17

Network – Phoenix, 49

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Yes, there is culture in Phoenix

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Roundtable

A Candid Forum

A Minute with Michele Reagan by RaeAnne Marsh

Senator-elect Michele Reagan, chairman of the Commerce Committee in the Arizona House of Representatives, will chair the newly created Economic Development and Job Creation Committee in the Arizona Senate. “I think that’s where most of the focus should be this year — creating job opportunities for Arizonans who are out of work and getting new companies here and existing businesses to want to grow and expand.” She shares with In Business Magazine her views on how to improve the state’s economy.

1991 — Moved to Arizona from Rockford, Ill. 2002 — Elected to Arizona House of Representatives, District 8 2004 — Appointed Chair of House Commerce Committee 2010 — Appointed to Governor’s Arizona Economic Resources Organization 2010 — Elected to Arizona State Senate, District 8 Member — Greater Phoenix Tea Party Patriots

D e c e m b e r 2010

In Business Magazine: The Economic Development and Job Creation Committee is new this year; its functions used to be part of the Commerce and Economic Development Committee. Why the split? Michele Reagan: Commerce does a lot of things that are more housekeeping issues: workman’s comp issues, interstate trucking laws, alcohol permit regulation laws, bills on the plumbing code. Economic development could get pushed aside from all the things Commerce needs to get accomplished through the year. But economic development is so important — and that’s why it was split. IBM: You plan to introduce an Enterprise Zone bill. How will that help our economy? Reagan: It will turn the entire state into an enterprise zone. Current enterprise zones are set up in a depressed area of town where they want to create business, and businesses will receive certain tax breaks. The philosophy of the new bill is that enterprise zones shouldn’t be location-driven; they should be driven by what that company is willing to put into our economy in infrastructure, in jobs, in wages — a lot like the way the Renewable Energy Jobs Bill was written: If you invest “x” amount in infrastructure, if you pay your employees 150 percent above the average living wage, and if you provide them with full benefits so they don’t go on our [state healthcare] system, then you’re eligible for the tax credit that we’re going to be providing for you.

IBM: What benefit do you expect from the Regulatory Reform Bill? Reagan: The biggest thing [in our economic development] is keeping our regulatory environment really low in terms of compliance. Yes, there has to be some regulation, but to over-regulate and overlicense is driving companies to states where they don’t have to focus on the government as much. Agencies have a threshold where they can create rules rather than going through the legislature. For instance, the Department of Liquor Licensing and Control wanted to require that people who serve liquor attend a class to be able to identify who’s had too much to drink. It’s a great idea, right? But who’s going to pay for the class? Who’s going to monitor if the employees have taken it? Is that going to require a special license? The Regulatory Reform Bill seeks to put moratorium on rule-making by government agencies. IBM: You’re a proponent of lowering the corporate income tax rate. How can we afford that? And isn’t this bad timing now, when we have no money? Reagan: It doesn’t have to go into effect right away. What we’re seeing is a lot of people fleeing California and going to Texas, because the corporate income tax is so much lower in Texas. If we could bump it … to the number we’re thinking of, we would be the 7th best in the nation, and that is a huge component of wanting to draw businesses here. To afford it, some people are proposing a delayed effective date. I prefer a trigger system based on certain economic formulas that we need to put together and watch — saying: “When the economy reaches a particular level based on GDP and our amount of debt, et cetera, then this kicks in.” So we make sure we’re financially healthy before the corporate income tax reduction kicks in. There are people who will question why we’re giving money to corporations when schools don’t have enough money and we’re cutting all these social service programs. The way I view it is, we’re not going to have money for any of that until we get more corporations here. That’s the bottom line. Rep. Michele Reagan www.azleg.gov

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