Contributors

Trends June 17-30, 2021 The Business Times Page 21 Contributors

COMING ATTRACTIONS n The Business Incubator Center in Grand Junction has scheduled events offering Opinion Curiosity did all that Business Briefsinformation about valuations and startups. A free business valuation presentation is set for 2 to 3:30 p.m. June 29 at the center, You’ve likely heard curiosity killed the cat, but there’s thing you know that I don’t know about (fill in the blank)? Research reveals benefits of promoting curiosity in workplace 2591 Legacy Way. The presentation will cover more to the story. Francesa Gino, a Harvard Business What is one thing I can do to make things better for you Business Peoplelisting prices, acquisition financing and selling within an industry. Upcoming business startup workshops are scheduled for 1 to 3:30 p.m. July 7 and School professor and researcher, found a treasure trove of benefits organizations enjoy when leaders promote curiosity in the workplace. Among them, we find such gems Almanac and our customers? What is one thing we should pursue or do differently to remain relevant? Then listen. Show you listened by incorporating answers in follow-up communications. Credit team 9 to 11:30 a.m. July 20. The workshops as: members’ suggestions for any related initiatives. will cover the business planning process, n Better decision-making. Curiosity Operationalize the process of asking “why is that?” five including financing options, licensing helps us avoid default explanations times in a row to get beyond surface explanations for an requirements and legal structures. Admission confirming what we already believe as issue and uncover the root cause. is $55, which also includes admission to Fast well as conclusion-jumping based on n Hire curious people. It’s reasonable to believe hiring for

Trac classes at the center. stereotypes. experience guarantees future performance. A recent analysis of For more information about upcoming n More creativity and innovation. 81 independent studies published in Personnel Psychology events, services and programs offered at the From artists on Etsy to workers showed there’s virtually no relationship between pre-hire center, call 243-5242 or visit the website at in a call center, people who score experience and performance or turnover. Just because someone https://gjincubator.org. n A free six-week online course will Rebecca high on measures of curiosity also score high on measures of creativity has spent years doing a particular job doesn’t guarantee they’ve done it well. It’s equally possible they’ve developed bad habits, offer information about starting a child care Weitzel and customer service. In addition, lost enthusiasm or failed to upgrade their skills to keep pace business. curiosity relates to better overall with evolving industry standards. The Leading Edge course is scheduled performance as determined by supervisors. Hire for curiosity instead. The ability to learn is the metafor 6:30 to 8:30 p.m. Tuesdays June 22 to n Less conflict. Curiosity fosters empathy and interest skill of our time. And curiosity precedes learning. To screen

July 27. The course is designed to help in others. This paves the way for better interactions and for curiosity, pay as much attention to the types of questions entrepreneurs in the child care industry gain fewer conflicts between people in a group or team. candidates ask as the answers they give. Ask candidates an understanding of business fundamentals, n Improved team performance. Curiosity improves what excites them about the future of their job or industry. including legal structures, accounting and communication and active listening among team members, Use validated curiosity assessments. Post the job with a bit marketing. Business consultants will offer which contributes to improved results. of obscure trivia that might pique the interest of the curious. continued training and support. To benefit from this bounty, leaders must first recognize n Promote learning goals. Just as setting a goal to The course is limited to 20 participants. that while most say they want team members to ask reduce consumption of Pepsi works better for weight loss

To register or obtain more information, contact questions and discover new territory, most organizations are than setting a goal to lose 10 pounds. A body of research the North Metro Denver Small Business structured in ways that discourage such actions. shows that in the workplace, such learning goals as building

Develipment Center through the website at Two things strangle curiosity in the workplace: fear skills, increasing competence or committing to new https://northmetrosbdc.com. and our tendency to overvalue efficiency. practices lead to better results than results-focused goals. n The Grand Junction Area Chamber of Fear is typically shaped as a belief that curious team Consider rewarding learning behaviors as much as results.

Commerce has scheduled its next quarterly members are more difficult to manage, cause conflict and Hold supervisors accountable for helping team members membership luncheon for noon June 17 at the increase costs. This belief causes leaders to impulsively develop learning goals. Invest in coaching for key team

Bookcliff Country Club, 2730 G Road. reject new ideas — even good ones — and remain tethered members. Hire subject matter experts to train your team.

The event will include a presentation by Shane to a past where businesses wither and die. If you’re uncertain whether acting on these suggestions

Kinkennon on business leadership. Efficiency might have reigned supreme in the industrial will yield results, start with one: get curious. Although Admission is $20 for chamber members, age by helping factories reduce costs and increase profits. you’ve heard curiosity killed the cat, you might not know $25 for others. Now, however, overvaluing efficiency blinds us to new trends satisfaction brought it back. Perhaps satisfying your To register for or obtain more information and solutions that, if explored and acted upon, could propel curiosity can bring back your organization, too. about chamber events, call 242-3214 or visit us into the future. Over time, the pressure organizations exert https://gjchamber.org. on people to work fast and hit short-term targets crowds out Rebecca Weitzel is president and co-founder of Good Life n The Fruita Area Chamber of Commerce time and energy for thinking and innovating. Wellness Solutions, which provides workplace well-being has scheduled its annual banquet for 5:30 To overcome these challenges and cultivate curiosity, programs and an online wellness platform tailored to small to 10 p.m. July 31 at the Fruita Community leaders should ask more questions, hire curious people and businesses. She also serves as director of people operations

Center, 324 N. Coulson St. Individual tickets promote learning goals. at Hilltop Community Resources. With a master’s degree in for chamber members sell for $50. Sponsored Consider the following suggestions: organizational psychology and training in behavior design, tables for eight sell for $500. n Ask more questions. Eric Schmidt, former chief she helps people and organizations thrive. Contact To register for or obtain more information executive officer of Google, once said, “We run this Weitzel at rebecca@goodlifewellnesssolutions.com about chamber events, call 858-3894 or visit company on questions, not answers.” or rebeccaw@htop.org or visit the website located at https://fruitachamber.org. Rather than show up to team meetings with a www.GoodLifeWellnessSolutions.com. PowerPoint or pre-baked ideas, ask questions. What is one F Colorado Cattlemen’s Association convention coming to Grand Junction

The Colorado Cattlemen’s Association has scheduled policy discussions, a trade show and symposium as part of its upcoming convention in Grand Junction.

The convention is set for June 21 to 23 at the Double Tree by Hilton Hotel at 743 Horizon Drive.

The event will open June 21 with grassroots policy development through 10 steering committees. Participants will share their perspectives on policies affecting the association and industry.

The event will continue June 22 with networking defeat the Colorado Treatment of Animals Initiative on the 2022 election ballot.

Activities on June 23 will include a current issues and awards breakfast followed by the business session.

The convention also will include a reception and banquet with live music and dancing.

The Colorado Cattlemen’s Association serves as an advocate for a growing and profitable beef industry in the state.

FOR YOUR INFORMATION

To register for obtain more information about the Colorado Cattlemen’s Association 2021 convention, call (303) 431-6422 or log on to www.coloradocattle.org.

June 17-30, 2021

Does resistance to change limit your success?

If your business has stalled or is failing, your health in order. This situation is common in the business world, is declining or your relationships are unfulfilling, you can and it becomes more damaging the longer it’s allowed to use your awareness of these situations to face the reality continue. your resistance to change diminishes your happiness and Business owners and managers typically avoid success more and more each day. personnel changes because of the time, effort and money A primary reason many people involved in hiring and training a new person. There’re resist change is because they must reluctant to face the tough talk or confrontation that can change themselves. Others resist accompany letting someone go. They fear retribution, change because they focus on how unemployment claims and being bad mouthed. hard they believe the change will As you turn your attention from what at first appears be, the possible negative outcomes to be the overwhelming effort involved in making changes and fear of the unknown. Moreover, and focus instead on the benefits, you’ll take on change we can become comfortable with the with an energy that makes the process seem a lot less status quo, even if it doesn’t produce Getting really honest with yourself will help you reach daunting. In other words, a major barrier to change is happiness and success. this threshold sooner, saving precious time and resources eliminated when you focus on how it will improve you

Marcus In focusing on the difficulties of change rather than the benefits, in creating a reality you do find pleasing and rewarding. If, during your honest self-appraisal, you find you’re and the situation. Change is much easier when we choose to see it

Straub we prevent ourselves from exploring not pleased with the way things are going in your business in a positive light. As we embrace change, we alter our opportunities and taking action. or life, change how you perceive change. You’ll better perception of it from a bad thing to a positive thing filled Basically, we avoid change because we only focus on what position yourself to take actions to improve your situation with potentiality and opportunity. we perceive as the downside. and enhance your feelings of happiness and success. Human beings are amazing, and they can accomplish We must embrace a more balanced perspective of In my coaching and consulting work, I show people great feats once they open their minds to possibility and change to experience increased happiness and success how their thought and behavior patterns work against then take action. both personally and professionally. what they want — how they’re actually working against

Change is a reality in business, whether we want it or themselves and the happiness and success they desire. We not. Business environments change. Economies change. then develop new thoughts and behaviors that allow them Team dymanics change. Technolgy changes rapidly. to change their realities in positive ways. We focus on the

Life in general is about change. If we habitually resist reasons for making changes, the process of change and the change, we limit the potential of all that’s available to us benefits for doing so. personally and professionally. One example of this would be to let go a team

Honest self-appraisal is essential in making a change. member who possesses the skills to do the job, but whose As you become conscious of the negative feelings and attitude and behavior damages corporate culture, customer undesirable results of your choice to resist change, you relations and the bottom line. If you walk into your can use that discomfort to propel yourself forward. Most business and feel an aversion to certain team members of us reach a point where we “can’t take it anymore.” because of their negativity, then a change of some sort is

As you turn your attention from what at first appears to be the overwhelming effort involved in making changes and focus instead on the benefits, you’ll take on change with an energy that makes the process seem a lot less daunting.

Marcus Straub owns Life is Great Coaching in Grand Junction. His personalized coaching and consulting services help individuals, business owners, executives and companies build teams, organizations and lives filled with happiness and success. Straub is winner of the International Coach of the Year Award and author of “Is It Fun Being You?” He’s available for free consultations regarding coaching, speaking and trainings. Reach Straub at 208-3150, marcus@ligcoaching.com or through the website located at www.ligcoaching.com. F

The Business Times What’s your business worth?

Business valuation mixes art and science in considering a number of factors that go into determining what a business is worth.

Why do you need a business valuation? There are many reasons, but the most common include: n Set a fair market value for sale. n Set a fair market value for a loan. n Determine the value of a business interest as part of a buy-sell agreement n Determine the value of a business interest for estate tax or other tax purposes. This column will focus on business valuations for buy-sell agreements. If you’re establishing a buy-sell agreement, you probably need some way to fund each owner’s financial obligation. Before any owner commits to buying another owner’s interest, you must have a mutually agreed upon value for the business or a method to calculate the value.

What goes into determining the value of a business? What methods are used to calculate business value?

Here are some of the typical factors that enter into a business (non-farm/non-ranch) valuation calculation as expanded from https://fitsmallbusiness.com/business-valuation-calculator: n How long the business has been in continuous operation with essentially the same mix of products, services and markets. n Net profit, generally over a three- to five-year period. n Trends for revenues, profits, markets and other factors. n Website traffic. n Online and offline sales network. n The type of business model the company uses and how that compares with other companies with similar profiles; experiences; and markets, products and services. n If the company serves a niche market, how dominant the company is in that market and the stability of the market. n Main competitors and whether or not one of them could become a potential purchaser of the business. n Cash, real estate and other tangible and intangible assets.

One of the simplest ways to calculate the approximate value of your business is through seller’s discretionary earning (SDE). You basically calculate what a buyer would see from the business when you add back to your earnings, other perks, tax payments and many of the items you took as business deductions and then apply a multiplier. Think of this earnings as the amount a potential buyer gets if he or she doesn’t spend revenue on non-essentials in the same way you do.

Some of these “add-backs” might include:

n Owner or owners salaries. n Perks for personal travel reimbursement or vehicle payments. n Personnel in non-essential positions. n Such non-cash expenses as depreciation and amortization. n Leisure activities, club memberships and gifts. n Charitable donations. n Personal expenses — such as the purchase of a personal vehicle or medical expense reimbursement — included on the business tax return. n Such non-essential travel expenses as attending conferences, continuing education seminars and trade shows or exhibiting at these events. n One-time expenses unlikely to reoccur.

Such expenses as rent, salaries for necessary staff and taxes aren’t included in the SDE calculation.

The SDE multiplier is typically between one and four times the result of the amount of SDE. This factor is industry driven, but also into account such difficult to value or quantify considerations as company size, geographic location, good will, industry, market risk and the tangible and intangible assets of the business.

According to BizBuySell (www.bizbuysell.com), the biggest factors influencing the SDE multiple are usually owner risk and industry outlook. If a business is highly dependent on you or another owner, it can’t be easily transferred to new ownership and the valuation will suffer. If you’re selling a business in an industry or area expected to grow in the near future, the SDE multiple will be higher.

Business valuation worksheets are available online. These make a good starting point, so you only include what’s normal in the SDE and don’t overlook anything.

Always consult an appropriately credentialed valuation professional as well as licensed insurance, legal and tax advisors when seeking a viable business valuation.

Janet Arrowood

If a business is highly dependent on you or another owner, it can’t be easily transferred to new ownership and the valuation will suffer.

Janet Arrowood is founder and managing director of the Write Source, a Grand Junction-based firm that offers a range of services, including grant and proposal writing, instruction and technical writing. Reach her at janet.arrowood@thewritesourceinc.com. For more information, visit www.TheWriteSourceInc.com. F RentaSpace.DiegoCorp.com

The Business Times Pay transparency law survives challenge

The Equal Pay for Equal Work Act (EPEW) went into EPEW also requires employers to make reasonable efforts effect in Colorado at the beginning of the year, prohibiting wage to post promotional opportunities with the applicable pay and discrimination because of sex and creating new obligations for benefits to all employees at the same time, not only to employees employers to promote pay transparency. who qualify for the promotion. A promotional opportunity broadly On May 27, EPEW survived its first legal exists any time an employer has or anticipates a vacancy in an challenge in a decision by Judge William existing or new position that could be considered a promotion for Martinez in the federal court for the District one or more employees in terms of compensation, benefits, status, of Colorado. duties or access to further advancement. I still receive inquiries from employers In the case of Rocky Mountain Association of Recruiters v. Scott unfamiliar with EPEW, so it’s worth going Moss, a non-profit trade organization whose membership consists over the basics. of recruitment and executive search firms asserted the second EPEW is split into two parts. The first part of EPEW and its regulations violated the U.S. Constitution part prohibits employers from paying different by compelling speech and enacting legislation affecting interstate wages on the basis of sex or sex plus another commerce. The trade organization requested injunctive relief Dean Harris protected status to employees who perform “substantially similar” work. Wages may differ between employees performing substantially preventing enforcement of EPEW while the civil action wound through litigation. The court found the Rocky Mountain Association of Recruiters didn’t demonstrate a likelihood of success on the similar work if the disparity is justified by one merits and denied the request for an injunction, leaving EPEW or more of the following factors: intact for now and likely after the litigation is resolved. n Seniority or merit systems. So, what steps should employers take to comply with EPEW? n A system that measures earnings by quantity or quality of n Check job postings to make sure proper information production. is included. Every day I see incomplete job postings that don’t n The geographic location where work is performed. comply with EPEW. n Education, training or experience to the extent they’re n Write job descriptions for all positions and appropriate pay reasonably related to the work in question. ranges. This is critical to avoid pay disparities for organizations that n Travel if the travel is a regular and necessary condition of might have previously relied on candidates’ salary history to set the work performed. wages in a new position.

The key here is the factor must entirely explain the disparity. n Examine application and interview processes. Eliminate An employer with a seniority system that includes raises at certain any inquiries on salaries paid by previous employers. anniversaries for all employees complies with EPEW. Asserting EPEW provides a “good faith” defense limiting damages to only that Bob the Builder has been with the company longer than employers who conduct a pay equity analysis. Employers should: Caitlyn the Carpenter won’t justify the disparity. n Gather raw compensation data.

The second part of EPEW prohibits employers from: n Break the work force into smaller groups for comparison. n Seeking the wage rate histories of prospective employees. n Conduct a reasonable comparison of jobs and job groups n Relying on prior wage rates to determine wage rates. (EPEW requires employers with 50 or more employees to run a n Discriminating or retaliating against prospective employees regression analysis). for failing to disclose their wage rate histories. n Review disparities to see if they’re explained by one of the n Retaliating against or interfering with employees who six allowable factors. disclose, compare or discuss employee wage rates. n Make equity adjustments for any pay disparities not

The second part of EPEW also imposes new requirements on explained by an allowable factor. employers to promote pay transparency, including posting and The Employers Council offers pay equity analyses. For promotion requirements. EPEW requires every job posting to include: employers that wish to strike out on their own, the Employers n The hourly rate or salary compensation (or range thereof) Council provides resources on conducting pay equity analyses. the employer offers for the position. A final reminder: Employers Council members and non-members n A general description of any bonuses, commissions or still have time to register for the Employment Law Update set for other forms of compensation offered for the job. June 17 and 18. The update will address employment topics and n A general description of all employment benefits the recent developments in employment law. To register or obtain more employer offers for the position, including health care benefits, information, visit https://info.employerscouncil.org/elu-2021. retirement benefits and any benefits permitting paid days off.

The law is silent on whether an employer can list benefits on a single webpage rather than repeating them in every online job posting. The Colorado Department of Labor and Employement takes the position that an employer may do so only if the reader may access the benefit description with a single click without exiting the general postings. Dean Harris is an attorney and Western Slope Area Manager for the Employers Council. The Employers Council counsels, represents and trains member employers in all phases of employment relationships. Contact Harris at 852-0190 or dharris@employerscouncil.org. F

Submissions due June 25 for SBA competition

Submissions will be accepted through June 25 for a competition designed to promote organizations supporting entrepreneurs.

The U.S. Small Business Administration will award a total of more than $5 million in cash prizes through its Growth Accelerator Fund Competition and Small Business Innovation Research (SBIR) Catalyst Program.

“The Growth Accelerator and SBIR Catalyst programs are important parts of our efforts to support high-tech, deep-tech startups by developing a network that targets the unique needs of pre-revenue, R&D-focused businesses,” said SBA Administrator Isabella Casillas Guzman.

The Growth Accelerator Fund Competition will award prizes of $50,000 to accelerators, incubators and other programs proposing assistance to entrepreneurs involved in science, technology, engineering and math research and development. Successful applicants will focus their efforts on women and minority entrepreneurs and those developing technology to address policy issues.

Seven additional prizes of $150,000 will be awarded through the Small Business Innovation Research Catalyst Program to partnerships and collaborations that support small businesses involved in technology transfer.

Applicants must submit a 12-slide presentation addressing the relevant elements of their proposals and a video narrative of no more than 90 seconds. Competition rules, requirements and additional information are available online at www.sbir.gov/accelerators. F

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Many factors make Grand Valley attractive

We’re all ready to put the COVID-19 pandemic in our collective rearview mirror. Many businesses have closed — some permanently. A fragmented work force and degraded academic system are among just a few of the other aftermaths.

The pandemic also has given us some time to reflect on our lives — a search for value that’s caused an upheaval like no other. With the ability to telecommute, many people look for communities that bring that value to their lives. The migration has been apparent in Grand Junction. We see more and more out-of-state license plates and engage in more and more conversations with new neighbors. The resounding message: People are moving to Grand Junction to get away from the crime, pollution, traffic and other baggage that comes with big city life.

Increased liquity constitutes another driving metric. According to the U.S. Census Bureau, 20 percent of Americans put their stimulus checks into savings and more than 50 percent paid down debt. Credit card debt is down 12 percent to 15 percent from a year ago, according to CreditCards.com. Each round of stimulus checks was allocated differently between expenses, debt payoff and savings. Habits also varied among social classes. In most cases, however, the additional money provided increases in income, savings and spending. While the deployment of this liquidity takes many forms, money is being pumped into our economies at an astounding rate.

For communities like Grand Junction, the bang for the buck on housing remains attractive for outsiders looking in. In the same search for value, investors look at places like Grand Junction as new hot spots for deploying capital.

First it was toilet paper, now it’s jobs. America faces a labor shortage. The retail and service sectors suffer the most. There are myriad reasons why someone might not to return to work. Many make this choice for financially rational reasons: unemployment benefits, low wages, lack of affordable childcare and sufficient savings to take time off or retire. Other notable reasons include health concerns, a continued desire to work from home and dissatisfaction with their most recent employment.

How are employers enticing employees to return to work? Many employers have increased minimum wages. Starbucks has plans for $15 an hour. Chipotle, McDonald’s, Target and Walmart are already there. There’s also talk of increasing the minimum wage for federal contractors to $15 an hour.

When wages aren’t enough of an incentive, employers offer referral and signining bonuses. The Colorado Jumpstart program promises $1,200 to unemployment benefit recipients who return to work and stay on the job at least eight weeks.

Some employers also see the benefits of moving their work forces to communities that offer better lifestyles. This element seems to have an intrinsic value that exceeds the compensation conversation from the past. When employees have the outdoor experience Western Colorado has to offer in their back yards, that tends to draw a different value association into the conversation. Maybe everything isn’t about money, but rather the lives we lead.

Issues with construction and manufacturing supply chains constitute yet another topic of conversation. These disruptions have direct ties to the pandemic and labor shortages. Of course, geopolitical factors and natural disasters also played roles. Such commodities as agricultural products, lumber, semiconductors and steel are in short supply,

In turn, prices are rising — in some cases dramtically. By one estimate, lumber prices have increased about 250 percent. This being said, slowing in commodities futures trading indicates there’s less confidence prices will continue to increase at such rates.

An evening out will play a positive role in the continued growth of the Grand Valley, which still has a price point that’s a fraction of what many are used to in large cities or mountain towns.

What does this all mean for Grand Junction? It feels as though we’re in a perfect storm. With large tech employers looking to move sizable work forces, the liquidity in the market, the affordability of our community and all the lifestyle amenities, many likely will make Western Colorado their new home.

Brian Bray

Brian Bray is managing broker of Bray Commercial in Grand Junction. For more information, call 241-2909 or visit www.braycommercial.com. F

Vaccination best defense against COVID-19 variant

Many counties and states across the country have experienced declines in COVID-19 cases, hospitalizations and deaths — including Colorado as a whole. Mesa County doesn’t follow that trend, however. Driven by multiple highly infectious variants and a relatively low vaccination rate, Mesa County had the second-highest one-week COVID-19 incidence (infection) rate and highest one-week COVID-19 related hospitalization rate in the state. Colorado had the third-highest one-week COVID-19 incidence rate in the country, though most counties

Jeff Kuhr are seeing improvement. We’re the exception. The COVID-19 variant I’m most concerned about in our community is the delta variant, formally known as the India (B.1.617.2) variant. This variant is more contagious and transmissible, particularly among children and young adults age 12 to 20. A recent study in India found the variant was 50 percent more contagious than other COVID-19 strains. Studies also indicate that variant strains pose a higher risk of hospitalization in unvaccinated individuals.

Mesa County was the first location in Colorado where the delta variant was detected. The variant now accounts for more than 6 percent of all infections in the United States, according to the Centers for Disease Control and Prevention (CDC).

Since it was first detected in our county a little more than a month ago, this highly transmissible variant has spread rapidly. There are now 125 identified cases of the delta variant in Mesa County residents. Not all positive cases are sequenced for variants, meaning the actual number of infections is much higher. The best defense against COVID-19 and associated variant strains continues to be vaccination. Our local data shows vaccination effectively fights variants, including the delta variant. Mesa County Public Health wants to make it as easy as possible for those in the business community to get vaccinated. The department offers on-site vaccination clinics. Employers of any size can request a vaccination event free of charge. All staffing, logistics and vaccine supplies are provided. The enrolling employer will just need to advertise the free, on-site vaccination opportunity to their employees or members. In addition to free on-site vaccine clinics, guidance on vaccine promotion for employees is available. Contact us at covidvaccination@mesacounty.us or 248-6900 for more information.

Getting the COVID-19 vaccine is considered a personal decision, but I strongly encourage you not to look at it that way. Instead, consider it a caring, selfless decision. Think of it as a way to protect our neighbors and our most vulnerable, like children who can’t get vaccinated yet and people advised to wait on getting the vaccine due to health reasons. The only way out of the pandemic is together.

Jeff Kuhr is executive director of Mesa County Public Health. Connect with the health department through social media on Facebook at www.facebook.com/ MesaCountyPublicHealth and Twitter @WeAreHealthyMC. F