Executive Lifestyle Executive Lifestyle Legal Matters Legal Matters Legal Matters Matters Legal
UTAH’S BUSINESS JOURNAL www.slenterprise.com
THIS WEEK Logan lost highest percentage of construction jobs in U.S. See page 5.
• Industry Briefs • Begin on page 6.
• Calendar • See page 12.
Nov. 7-13, 2011
Volume 41, Number 15
Phoenix firm to bring 100-vehicle fleet of taxi cabs to Salt Lake
Ogden-based minerals manufacturer sold for $21 million
StaffingMatters Matters Legal Kelatron Corp., an Ogdenbased manufacturer of bioactive mineral nutrients, has been sold to Cranbury, N.J.-based Innophos Holdings Inc. for $21 million. Innophos, a producer of specialty phosphate products for the food, beverage, pharmaceutical, oral care and industrial end markets, is traded on NASDAQ. Dave Johnson, vice president of sales and business development for Kelatron, said the 70-employee company will retain its name and remain in roughly 40,000 square feet at 1675 W. 2750 S. For more than 30 years, Kelatron has been a key supplier of specialty minerals and custom blends to manufacturers
See page 9.
of nutritional and dietary supplements. Recent investments by Kelatron in upgrading manufacturing facilities and introducing a new line of premium minerals have positioned the company for future growth. The combination of Kelatron’s micronutrient range of products with the macronutrients of calcium, magnesium, potassium and phosphorus currently manufactured by Innophos is expected to significantly strengthen Innophos’ offering to its food, beverage and dietary supplement customers. see KELATRON page 2
Real Estate Matters Legal Matters
Discount Cab’s hybrid Prius taxis make up 81 percent of the company’s current fleet — the largest Prius fleet in North America. Discount Cab, a Phoenix- is challenging the fairness of the based operator of a nearly 800 airport’s bidding process. On Oct. taxis, is scouting for sites in the 28, a Third District Court judge Salt Lake City area to support ordered a temporary restraining a 100-car fleet that will serve order delaying the implementation not only the Salt Lake City of new taxi services at Salt Lake International Airport but the entire City International Airport until legal challenges can be heard. city. “We respect the legal process The firm’s parent company, Total Transit, is one of two firms and are prepared to work through selected by the Salt Lake City any delays,” said Mike Pinckard, Department of Airports to begin president of total Transit. We look providing taxi cab services at forward to working with all parties the Salt Lake City International concerned to reach an appropriate Airport. Discount’s services in resolution. Due to the pending Utah were to have debuted this legal proceedings, we have yet to month, but have been halted by secure a permanent facility.” However, Pinckard said, a lawsuit filed by Yellow Cab, which was unable to renew its consee CAB page 2 tract with the airport. Yellow Cab
HR Matters Legal Matters
HR Matters
$1.44
Customizable sandwich shop chain coming to Utah
25-acre sports facility to include 28,000 square foot 'bubble' By Barbara Rattle The Enterprise A 25-acres athletics training and competition facility featuring an approximately 28,000 square foot playing field enclosed by a dome is scheduled to open in December at 437 S. 3670 W. Riverton. Utah Sports Lodge LLC, headed by longtime Utah soccer coach Rob Horn and backed by a group of investors from Taiwan, will serve training and competition needs of various school teams and adult leagues in sports such as soccer, la crosse and football. The enclosed dome, to stay in place during the more inclement months of October through March, will feature long-style synthetic turf
that allows for regular size cleats or indoor shoes, and has an infill of rubber pellets and sand to simulate real grass. The dome will also be heated. According to Jill Beard, office manager for Utah Sports Lodge, a building that will house restrooms, a concession stand, training and meeting rooms and the offices of Utah Sports Lodge is under construction and should be complete in time for an early December opening of the dome. Outdoor fields will be available as weather permits. Utah Sports Lodge will be open Monday through Saturday. Renting a quarter of a field will cost $45 per hour. Half a field will see SPORTS page 2
Which Wich customers can create more than 50 varieties of sandwich by utilizing an unusual ordering concept. By Barbara Rattle The Enterprise Which Wich Inc., a Dallasbased chain of more than 100 sandwich shops that allow customers to create over 50 varieties of customizable “wiches,” is slated to enter the Utah market in late December or early January. Lindon resident Cory Judd and his father, Steven Judd, have inked an agreement to open three units in Utah, the first of which is slated to launch at the University Mall in Orem in late December or early January. Judd is preparing to leave his position at Utah Valley University Athletics in order to pursue the new franchise. The
Orem store will measure 1,670 square feet. “I was doing my master’s degree at the University of New Mexico in Albuquerque and on a daily basis I would walk across the street to this little sandwich shop that everyone was going to that I was not familiar with,” Judd said. “And it was delicious. I introduced it to my wife and when we had family come into town we’d definitely take them over the Which Wich. Everybody was as crazy about it as we were. We left Albuquerque after I graduated and I’ve been working at UVU for two years and in the back of my see WICH page 2
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Nov. 7-13, 2011
The Enterprise
WICH from page 1
head this whole time I’ve thought, ‘Utah’s gotta have Which Wich.’ About a year ago we started the initial franchisee process and here we are about to have one open.” Which Wich was founded in 2003 by Jeff Sinelli, founder and former CEO of Genghis Grill, who was frustrated by the lack of quality sandwiches available in quick-service restaurants. The eatery offers more than 50 varieties of customizable “wiches.” Its signature sandwich is the Wicked, which consists of turkey, ham, roast beef, pepperoni and bacon plus three cheeses. Which Wich is perhaps best known for its unusual ordering system. Guests use Sharpies to mark up pre-printed menus on sandwich bags. They select a sandwich from one of 10 categories, then choose the type of bread, size, cheese, spreads and vegetables. The sandwiches are prepared to specifications and delivered to patrons in the bag they marked up. Customers are then encouraged to embellish their bags and hang their “artwork” on a community wall. Judd said the average cost of a Which Wich is a little over $5. With chips, a drink and a cookie, the total average tab is $7-$8. The Which Wich stores in Utah will be open seven days a week, from 10 a.m. to 9 p.m. Store No. 2 will open in the next seven months in the American Fork/Lehi area, while a location for store No. 3 is not yet being sought, according to Judd, who has completed a two-week training course at Which Wich
headquarters in Texas. “We have a marketing campaign. Which Wich has a very up-to-date and highly involved marketing team that is going to work with us in getting our name out there, making sure we’re utilizing all social media outlets and social networking outlets,” he said. “I feel like I’m as ready as I can be, but I’m certain I’m going to learn a whole bunch the day that store opens.” Which Wich franchisees need to have $150,000 in liquid assets and a net worth of $500,000. The estimated initial investment to open a store is about $189,000 to $422,000. The franchise fee is $30,000 for the first store, $25,000 for subsequent stores. Which Wich collects a six percent royalty and 4 percent for an advertising fund.
KELATRON from page 1
“The acquisition of Kelatron represents a perfect fit with our strategy of targeting high quality bolton acquisitions that add specialty ingredient product technologies to complement our current product offering,” said Randy Gress, chairman and CEO of Innophos. “Kelatron has a strong position in an attractive, growing, nutraceutical market and has significant manufacturing and technical capability. The combination of Innophos’ strong worldwide customer relationships within the food, beverage and pharmaceutical industries and Kelatron’s expertise in the high value, high growth rate, mineral fortification market is expected to bring significant benefits to both companies.”
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from page 1 “we have engaged the services of local real estate firm, a number of properties are under consideration and we are prepared to secure a permanent facility as soon as the court rules and the contract is allowed to move forward.” Total Transit CEO Craig Hughes said the firm is “anxious to bring the citizens of Salt Lake City a level of service and convenience not seen before. We see this new contract as not just an expansion of our services, but an opportunity to become an asset to the Salt Lake City community. In doing so, we’ll contract and employ more people than are currently engaged in the industry while providing a service level that currently doesn’t exist in the Salt Lake City market.” Pinckard said Discount Cab is in the process of contracting with more than 200 drivers to fill
SPORTS from page 1
cost $90 per hour and the full field will cost $150 an hour. Six-week indoor league play, including referee fees, will be $400 for individuals nine and younger and $600 for those 10 and up. Horn, who has coached hundreds of youth in the sport of soccer, said nearly 200 teams have already pre-registered to play at the new facility. Hailing from communities from Park City to Springville, the teams are faced with a lack of indoor facilities, he said. A former soccer course instructor at the University of Utah, Horn is also director of the ice Breaker Soccer Tournament, now in its sixth year. Held in St. George, it draws as many as 8,000 people annually from various western states, Horn said.
THE ENTERPRISE [USPS 891-300] Published weekly by Enterprise Newspaper Group Inc. 825 N. 300 W., Suite C309, Salt Lake City, UT 84103 Telephone: (801) 533-0556 Fax: (801) 533-0684 Website: www.slenterprise.com. For advertising inquiries, e-mail david@slenterprise.com. To contact the newsroom, e-mail barbara@slenterprise.com. Subscriptions are $55 per year for online only, $65 per year for print only and $75 per year for both the print and online versions. or $1.25 per copy. Opinions expressed by columnists are not necessarily the opinion or policy of The Enterprise Copyright 2011 Enterprise Newspaper Group Inc. All rights reserved Periodicals postage paid at Salt Lake City, UT 84199. POSTMASTER: Send address corrections to P.O. Box 11778, Downtown Station Salt Lake City, UT 84147
the shifts needed to satisfy the projected demand for services. “We will consider all qualified candidates, including those who may have worked for other cab companies,” he said, “and will be selecting only those who meet our standards.” Despite variability from state to state in laws governing driver screening, Total Transit has driver requirements that go above and beyond, he said. All drivers must pass a 10-panel drug screening test as well as a sex offender registry check; have no DUIs; and complete a three-day training that includes classroom, on-theroad and sensitivity tests. Total Transit also certifies its drivers to provide mobility/wheelchairaccommodating transportation for those with disabilities. Total Transit won the 2009 Large Fleet Operator of the Year Award, presented by the Taxicab, Limousine & Paratransit Association. While Total Transit’s/ Discount Cab’s hybrid Prius taxis
make up 81 percent of the company’s current fleet — the largest Prius fleet in North America — the fleet deployed in Salt Lake City will also be mostly comprised of hybrid Prius taxis. With its Prius fleet, Total Transit says is saves an estimated two million gallons of fuel per year. The Toyota Prius also has an EPA Greenhouse Gas Score of 10, the highest possible rating. “We will take the same steps we took in the Arizona marketplace to create an average of 10,000 trips dispatched daily,” according to Hughes. “As well, we’ll support Utah in the same way we’ve supported Arizona through the Total Transit Foundation. In 2011, the Foundation has donated over $300,000 to Arizona charities, and we’ll look to support Utah charities just as fully in 2012 and beyond.” Founded in 1984, Discount Cab currently serves Phoenix and Tucson.
Vivint Solar raises $75 million for solar installations in four states Provo-based Vivint Solar, a sister company to Vivint Inc. (formerly APX Alarm), has received a commitment of renewable energy tax equity from a subsidiary of U.S. Bancorp to support the financing of $75 million in residential solar energy systems in the United States. The fund will finance a projected pipeline of 2,400 residential solar installations in New Jersey, Utah, Hawaii and New York. “With Vivint’s existing product lines and customer service platform, we are confident this solar energy offering will be a success,” said Dan Siegel, assistant vice president of Renewable Energy Investments for U.S. Bancorp. Vivint Solar installs and maintains residential solar panels. Homeowners agree to purchase the power generated by the solar
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panels for a lower rate than they typically pay their utility. The agreement also enables customers to lock in lower monthly rates for 20 years. In return, Vivint Solar takes care of installation, monitoring and maintenance of the panels. Vivint Solar works with the leading solar vendors in the industry, including microinverter provider Enphase Energy, and mounting system supplier Zep Solar.
Goldenwest CU to get new president on January 1 Goldenwest Credit Union president Shelley Clarke will retire as president/CEO on Dec. 31, 2011. She started her Goldenwest career serving members behind the teller line in 1974. During her 37 years at Goldenwest, Clarke held or managed almost every position in the credit union. During her tenure as president/ CEO, Goldenwest’s assets grew from $190 million to $775 million membership more than doubled from 41,000 to 83,000 and branches expanded from nine offices in Weber and Davis counties into Morgan, Salt Lake, Utah and Washington counties The Goldenwest board has named current executive vice president Kerry H. Wahlen as Clarke’s successor. He has more than 33 years of financial industry experience. His Goldenwest career began in 1986, serving first as credit manager before transitioning to senior management and then executive vice president.
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Nov. 7-13, 2011
Report: Many areas of Utah commercial real estate show signs of recovery New reports from Commerce Real Estate Solutions confirm some of the reasons why Utah has fared better than the rest of the nation in the last year. Many indicators within the four real estate sectors — office, industrial, retail and investment — are positive signs the recovery is strengthening in the greater Salt Lake Area. Key Indicators from Greater Salt Lake Office Market Absorption. Direct net absorption was a positive 147,276 rentable square feet for the third quarter of 2011, bringing the total year-to-date to a positive 581,480 rentable square feet. Ninety-two percent of this absorption occurred in the suburban market. Larger blocks of quality suburban office space are becoming scarce, resulting in several developers planning construction on multi-tenant spec buildings. Vacancy. The overall direct vacancy decreased to a two-year low in the third quarter, declining to 14.73 percent. Sublease vacancy also decreased, ending the quarter at 0.99 percent, and decreasing the overall vacancy rate to 15.72 percent. The Southeast and Northwest quadrants had significant vacancy decreases of 3.2 percent and 1.9 percent respectively, while the South West and Central
West quadrants saw a small rise in vacancy. Lease Rates. Direct full service lease rates decreased by 1.5 percent during the third quarter. The pendulum continues to swing slowly away from landlord concessions, although the tenant remains in the driver’s seat on most transactions. The overall average full service market rental rate currently stands at $20.12 rentable square feet per year. Key Indicators from Greater Salt Lake Industrial Market The increase in overall market activity alongside a slower negative direct net absorption indicates market conditions are flattening from the previous declines. Leasing continues to improve, however lease rates have not stabilized. New construction showed improvement in the third quarter, with five new starts, including two speculative buildings, as opposed to no new starts in the second quarter. Another glimmer of optimism comes from the increase in sales of owner/user properties which has not been seen since the fourth quarter of 2010. Vacancy. The overall vacancy rate has decreased slightly from 8.59 percent to 8.53 percent last quarter as market activity continues to capture some companies
Arrow Mayflower expands size of Salt Lake area footprint
downsizing and giving up space while others are adding space. This is a slowing decline this quarter from mid-year numbers. Key Indicators from Greater Salt Lake Retail Market Lack of available financing and landlord wariness continue to hamper retail tenant leasing, especially for smaller start-ups and local operators. Despite all of this, 2011 has been the strongest year for retail since the downturn, and activity levels continue to improve. Overall vacancy in the Salt Lake retail market continues to remain around 9 percent while lease rates continue to steadily increase over second quarter 2011. Value-oriented retail will remain a strong sector on both the national and local front for the foreseeable future. Key Indicators from Greater Salt Lake Investment Market Third quarter 2011 has had increasing activity and Commerce Real Estate Solutions expects this to exceed last year’s investment volume. While the total is still one third of 2008 levels, this current growth is a sign that money is becoming more available. Lenders are demanding quality projects and underwriting standards that are higher than in the recent past. Eighty percent of the transactions that were closed this quarter were on a cash basis, indicating a dramatic variance from pre-recession times. Investment Activity. Investment activity is increasing according to third quarter yearover-year results, in both dollar
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more efficient for them to get the move taken place by professionals so that the employee doesn’t have a lot of downtime and they can get to work faster, start generating revenue.” Imani said Arrow Mayflower is “definitely doing a lot of hiring. We’re always looking for employees. We have sales, operations, the crews, CDL drivers. We’re in heavy need of some CDL [commercial drivers license] drivers right now. The CDL driving industry is almost like a dying breed; this new generation is not as much into driving and long haul like back in the day.” In addition to the Salt Lake Valley, Arrow Mayflower has operations in Colorado Springs, San Antonio, Oklahoma City and Cheyenne. The firm purchased its new building, and sold its old one, with the assistance of Wick Udy of NAI West.
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Formerly located in 15,000 square feet, Arrow Mayflower, a moving firm, purchased a 38,000 square foot building. Arrow Mayflower, a Utahbased moving company, has more than doubled the size of its Salt Lake City area operations. Previously located in about 15,000 square feet a 2537 S. 3270 W., the firm has purchased and moved into an approximately 38,000 square foot structure at 3960 S. 300 W., said Trevor Imani, marketing director and sales manager. “We definitely outgrew our old facility,” he said. “We don’t only work in the household goods section. We do a lot of government and whatnot and a lot of military. There are a lot of aspects that have contributed to the growth. During the recession times yeah, it’s tough, but again we work a lot with relocation contracts with businesses. A lot of organizations still offer relocation to their employees because they realize that even though it’s a pricey aspect, it’s a lot better than having a lot of down time. It’s
amount and number of transactions completed. Transactions. Eighty percent of the completed transactions were cash deals in 2011 This statistic suggests capital is restricted for Main Street businesses and investors seeking affordable debt from lenders. Outlook. Bifurcation appears to be the status of the marketplace for the near term. The investment market looks a little more promis-
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Nov. 7-13, 2011
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Nov. 7-13, 2011
Utah part of a three-state population boom corridor, according to University of Utah research
Logan lost highest percentage of construction jobs
While much of the nation is trying to figure out how to recover from an economic downturn — and at the same time work into the equation that workers are fleeing their states — Utah, Nevada and Arizona have the opposite population trend to consider. In fact, these three states are in a new growth corridor, according to a study of census data by the Bureau of Economic and Business Research (BEBR), an applied research center in the David Eccles School of Business at the University of Utah. Utah gained more than half a million people in the last decade, increasing from 2,233,169 in 2000 to 2,763,885 in 2010. This 23.8 percent increase was the thirdfastest in the nation, as Utah was outpaced by Arizona and Nevada, which added 24.6 percent (1,261,385) and 35.1 percent (702,294) respectively. Nationally, only 12 other states added more population over the decade than did Utah. “The numbers point to the development of a new western corridor for population growth that runs up and down the west side of the Rocky Mountains,” says Pam Perlich, BEBR senior research economist. “The reasons for this increase in this three-state region are many, but the result is a population shift that regional and state planners, politicians and public service providers must now consider when making plans for job creation, education, housing, transportation and even water use.” In Utah, the natural increase of births minus deaths contrib-
Construction employment declined in 153 out of 337 metropolitan areas between September 2010 and September 2011, increased in 145 and stayed level in 39, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials noted that declines in publicly funded construction projects continue to offset modest improvements in the private sector market. Logan had the dubious distinction of having lost the largest percentage of construction jobs in the country, down 22 percent, or 700 positions. Provo/Orem lost 4 percent, or 400 jobs, while Clearfield/Ogden lost 2 percent or 200 jobs and Salt Lake City lost 3 percent of 1,100 jobs. St. George was down 5 percent, or 200 jobs. “Despite the fact the industry added 26,000 new jobs in September, industry employment continues to fall in far too many metro areas,” said Ken Simonson, the association’s chief economist. “Construction demand in many parts of the country seems to be ranging somewhere between tepid and non-existent.”
Utah gained more than half a million people in the last decade, becoming the third-fastest growing state in the U.S. uted 381,181, or 72 percent, of the over the decade, which has not increase, while net in-migration always been the case. Along with the rest of the or gross in-migration minus gross out-migration contributed the nation, the region is becomother 149,535 or 28 percent. Total ing more ethnically and racially population growth was 20,397 diverse, with much of this divergreater than the increase of the sity resulting from recent immi1990s, but the rate of growth grants and their children. In the has decelerated somewhat. Even 2010 Census, over one-third of the so, Utah’s third-place ranking in nation’s population is classified population growth rate has major as minority, while Utah’s share reached one-fifth. ramifications. Nationally, the adult popula The relative numeric growth was enough to qualify Utah for tion is 33 percent minority while another seat in Congress. The youth are nearly “minority major10-year growth rate from 2000 ity,” with a 47 percent share. In to 2010 continues the trend that Utah, minorities are 17.4 percent prevailed for most of the 20th of the adult population and nearly century: population growth in the one-fourth of youth. Nationally, West and South outpaced that of 92 percent of the population growth from 2000 to 2010 came the Northeast and Midwest. Urban areas in the West are from an increase in the minority getting larger, with Salt Lake population, while the contribution County surpassing 1 million, in Utah was 40 percent. Utah retains many of its sigreaching 1.03 million people and contributing one-fourth of the nature demographics, but its constate’s population increase from nections to the outside world and 2000 to 2010. Even so, all coun- its status as a net in-migration ties in Utah gained population state mean that it will continue to trend toward the nation. For Sales of previously owned homes in SL County example, Utah still has the youngreaches highest point in four years est median age among all states, Sales of previously owned In the first nine months of but the median age is increasing, single-family homes in Salt 2011 there were 7,028 single- as it is nationally. Similarly, the Lake County in the third quarter family homes sold, a 6 percent minority share of the Utah popureached its highest point in four increase compared to 6,616 sales lation is lower than that of the years, according to the Salt Lake in the January through September nation, but also increasing. Board of Realtors. The number of single-family homes sold in Salt Lake County in the July-August-September period totaled 2,603, the highest number of homes sold in a third quarter since 2007, when 2,693 homes were sold. The most recent quarter showed a 33 percent increase in home sales compared to 1,953 sales in last year’s third quarter. At 226 single-family home sales, more people purchased single-family homes in the Kearns/ Taylorsville area (ZIP code 84118) in the third quarter than any other area along the Wasatch Front. Lehi (84043) ranked No. 2 in the most single-family homes sold at 207 sales. Farr West (Weber County) ranked No. 3 with 173 sales.
period last year. The median single-family home price in Salt Lake County fell to $196,000 in the third quarter, down 15 percent compared to $230,000 in last year’s third quarter and down 23 percent from a third-quarter median high of $256,000 in 2007. Despite an overall drop in home prices county-wide, there were six cities (ZIP codes) in Salt Lake County where home prices increased. They included: Riverton (84065) up 6 percent; West Jordan (84088) up 5 percent; Avenues (84103) up 19 percent; Sugar House (84105) up 1 percent; Emigration/Federal Heights (84108) up 2 percent; and South Salt Lake (84115) up 8 percent.
Association officials said that in addition to passing longdelayed highway, transit and airport investment legislation, elected officials should act quickly to establish a self-funded Water Trust Fund to address an estimate $600 billion in clean water infrastructure needs during the next 20 years. They also called on the Senate and Obama administration to support legislation expected to pass in the House that repeals the 3 percent tax withholding mandate that another recent survey found would devastate the construction industry. The new federal 3 percent tax withholding rule will force all large municipalities, all states and all federal agencies to withhold 3 percent of every payment to every contractor until contractors finalize their tax returns for the year. According to a nationwide construction industry survey the association conducted, 55 percent of construction firms report that public projects accounted for 51 percent of more of their revenue in 2010. Meanwhile 63 percent of firms report that their average profit margin for public projects was less than 3 percent. NAVITIMER
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ARTS/ENTERTAINMENT
• Wells Fargo executive David Golden and Emmy Awardwinning composer Kurt Bestor have joined forces to launch 2961 “Friends of the UPAC,” a group of arts organizations, patrons Lake City, UT and business leaders designed to support the creation of the Utah Performing Arts Center, a proposed new cultural facility for downtown Salt Lake City. Construction of the UPAC will expand the local economy by almost $500 million and create more than 4,000 jobs,” according to Golden. For more information,
• Industry Briefs •
visit www.utahperformingartscenter.org.
nesses involved in extending credit and carrying accounts receivable and inventory. Financing is intended solely for working capital BANKING • Celtic Bank, Salt Lake purposes, or to refinance an eligiCity, is now able to process work- ble working capital line of credit. ing capital lines of credit up The lines are self-liquidating and Ad Size: X 10”the collection of to $5 million for SBA Working are3.875” paid through Capital CAPLines (fka Standard receivables and sale of inventory. Section: ENTERTAINMENT Asset-Based CAPLines) under the Lenders are considered for PLP Preferred Lender Program (PLP). status based on their record with Asset-based CAPLines are partic- SBA, and must have demonstrated ularly helpful for early stage, high a proficiency in processing and growth, turnaround or seasonal servicing SBA-guaranteed loans. businesses. The SBA Working Celtic Bank received its CAPLines Capital CAPLines Program is a PLP lender status Oct. 1. revolving credit facility for busi• Bank of American Fork is being recognized as one of the first banks in the country to offer a suite of product features to help protect seniors against becoming victims of financial abuse. The package, called AccountSmart Tools for Seniors, provides a number of tools for those 55 and older, including third-party monitoring, automatic transfers that can then be set up from the senior’s primary checking account to the second checking account, limiting the amount of money to which the helper has access, power of attorney, automatic bill pay and a free copy of the book Navigating Your Rights: The Utah Legal Guide for Those 55 and Over. • Mountain America Credit Union presented a check for $5,000 to the Utah Jump$tart Coalition to continue its work in training Utah teachers about financial education for youth. The check was presented at Jump$tart’s annual $martStart Teacher Summit which
FELD ENTERTAINMENT
was held for the first time in Moab.
COMMUNICATIONS
• TriTel Networks Inc., Murray, has extended its product offering to include desktop-todesktop videoconferencing solutions, which enable users to conduct face-to-face meetings without leaving their desk. Multiple parties can collaborate with one another on various projects, increasing office productivity.
COMPUTERS/ SOFTWARE
• In its most recent “State of the Internet” report, Akamai Technologies ranked Utah at No. 4 in the nation, above coastal western neighbors California (No. 6) and Washington (No. 9). The report is a quarterly comparison of average Internet speeds of states across the U.S. Utah was the only inland western state to be highly ranked.
CONSTRUCTION
• Zachary P. Christopulos has joined BHB Engineers, Salt Lake City, as a project engineer. He has his bachelor of science in civil engineering from the University of Utah and is completing his Ph.D. in civil engineering from the University of Utah as well. • Sunworks Energy, Spanish Fork, is offering homeowners a discount on residential solar thermal hot water systems of more than 50 percent on a
complete package. The sale will run through Nov. 27 and does not include government credits and rebates that could add to the savings by as much as $2,800. Sunworks Energy sells solar thermal products at deep discounts directly to homeowners, contractors and home builders. The current market value of solar thermal systems is $7,000 to $9,000 versus Sunworks Energy prices at $3,666 along with credits/rebates that give back as much as $2,800 of that amount which increases the savings for the homeowner. For more information, visit http://sunworkssolarenergyinc.webs.com. • Tempe, Ariz.-based environmental planning and landscape architecture firm Logan Simpson Design Inc. has acquired Bear West Co., Bountiful, the oldest continuously operating planning firm in Utah. Bear West provides community planning, environmental analysis, public involvement and policy development services to public and private clients. Bear West was founded by land-use attorney and current Salt Lake City Mayor Ralph Becker. The acquisition will expand LSD’s ability to provide planning and public involvement services throughout the Intermountain West, generating significant new business and revenue opportunities.
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EDUCATION/TRAINING
• The Utah Educational Savings Plan (UESP), Utah’s official nonprofit 529 college savings program, is recognized nationally as a “Top” 529 college savings plan by Morningstar Inc., a leading provider of investment research. UESP is one of only six 529 plans to receive this ranking. Morningstar reviewed 58 of the largest 529 college savings plans.
FINANCE
• Galileo Processing Inc., Holladay, a provider of prepaid, credit, debit and alternative financial services technologies, has
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Nov. 7-13, 2011 hired Steve Boyer as executive vice president of business development. Boyer, who has nearly three decades of experience in payments automation, will be primarily responsible for assisting existing and future partners leverage Galileo’s platform to create advanced payment solutions for their customers. In 1993 Boyer co-founded the concept of a declining balance closed-loop card for merchants, which later became known as the gift card. After the idea picked up speed with merchants and consumers, it was converted into a business – ValueLink, which still prospers in the gift card business today. In 2010 it is estimated that retail merchants issued in excess of a hundred billion dollars in closedloop gift cards in North America. More recently, Boyer was chief revenue officer for HOPS, a SaaSbased business intelligence and data processing software firm. • RBC Wealth Management has made in additional $5,000 donation to Christmas Box House, a Salt Lake City organization that provides emergency residential shelter and resources for children in state custody because of alleged abuse or neglect. In total, RBC Wealth Management made monetary contributions of $32,500 toward a Christmas Box House addition, called the RBC Activity Atrium Center.
HOSPITALITY • The Holiday Inn Hotel and
Suites Salt Lake City Airport has received InterContinental Hotels Group’s 2011 Torchbearer Award, the company’s most prestigious award. The hotel is one of only 116 properties within the Americas chosen from the IHG system of more than 4,400 hotels for achieving the highest levels of excellence in all aspects of operation — from quality to customer satisfaction.
INSURANCE • The Buckner Co., Salt
Lake City was recently ranked as the 16th fastest-growing privately held insurance agency in the nation in Hales and Co.’s 2011 annual report. What began as a modest one-man agency in Ogden in 1936 has gone on to become one of the largest and fastest-growing insurance brokerage firms in the United States. Terry Buckner, the grandson of the founder, E.R. Buckner, is currently the president and CEO. Under his watch, the firm has more than quadrupled its employee count and opened a second and third location. Buckner has plans up his sleeve to continue opening satellite offices throughout the Intermountain West.
LAW
• Attorneys Dusten L. Heugly and Daniel W. McKay of the Utah law firm of Heideman, McKay, Heugly and Olsen (HMHO Law) recently obtained a favorable result in a complex commercial arbitration proceeding held in Miami involving gold and precious metal mining claims located on the Henry Mountains in Southeastern Utah. HMHO Law’s clients, the Martinique Mining Co. and its controlling shareholders, engaged HMHO Law in 2010 when Henry Mountain Mining and Exploration Co. LLC (HMME), which was funded by a multinational corporation with principal offices in South Africa, and domestic headquarters in Miami, refused to pay them as agreed or return their mining claims, water rights and other assets. The award obtained by HMHO Law for Martinique Mining came as a result of the arbitration panel finding that HMME committed fraud and breached the agreement between the parties. HMME was ordered to pay HMHO Law’s clients approximately $2.5 million cash and to inject $8 million to $10 million in capital to fund further exploration of the mining claims and to restore the principals of Martinique to their proper shareholders status in HMME. • Jeffrey M. Sanchez and Elizabeth L. Silvestrini have joined the Salt Lake City law firm of Parsons Behle & Latimer. Sanchez is a member of the litigation department and focuses his practice on commercial and business litigation, intellectual property law and health care law. He graduated with a J.D. degree in 2011 from Brigham Young University. Silvestrini is a member of the litigation and corporate and tax departments. She concentrates her practice on commercial litigation, corporate law, mergers/ acquisitions and natural resources. She graduated with a J.D. degree in 2011 from the University of Utah. • Parsons Behle & Latimer has merged the practice of Boisebased intellectual property and litigation law firm Zarian Midgley & Johnson, adding 14 lawyers (including 12 registered patent attorneys) and establishing a major new office in Boise. Zarian Midgley & Johnson’s attorneys specialize in intellectual property law matters, including patent prosecution, trademarks and copyright law as well as complex litigation. The firm’s lawyers hold degrees in electrical engineering, computer engineering, physics, chemical engineering, microbiology, genetics, molecular and cellular biology, aeronautical engineering, mechanical engineering, civil engineering, manufacturing
engineering and computer science. • Mark Durrant has joined the Salt Lake City law firm of Ray Quinney & Nebeker. Previously, he was of counsel at Ballard Spahr LLP in Salt Lake City. Durrant’s practice involves real property transactions, including the acquisition, development, financing, and sale of office buildings, apartment buildings, condominiums, condominium hotels, timeshares, and shopping centers; development of commercial and resort properties; development of planned communities; private residence clubs; golf courses; community structuring; real estate foreclosures; commercial office, retail and industrial leasing; and zoning and entitlement matters. • Best Lawyers has named Durham Jones & Pinegar shareholder N. Todd Leishman as 2012 Salt Lake City Securities/ Capital Markets Law Lawyer of the Year. Best Lawyers chooses one lawyer from each community and in each practice area to be honored as Lawyer of the Year. Leishman’s practice focuses on business and finance law with an emphasis on mergers and acquisitions, corporate financing, corporate governance and securities compliance. He also works closely with D|J|P’s litigation group in handling corporate governance disputes and control contests.
MANUFACTURING • The Chinese Patent
7
Scott A. Newman Business Skills Program Director LDS Business College
Reexamination Board (PRB) has found that all of the claims continued on page 9
support
what you
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Real Estate Matters Legal Matters
Nov. 7-13, 2011
The Enterprise
HR Matters Legal Matters The top 10 mistakes that business owners do (or don't do) that could devastate their business By Steve Hubbard Working with businesses that span across all industries, we at ESG have noticed some common mistakes which business owners have made — some more detrimental (and frequently made) than others. Unfortunately, ignorance of the law is NOT an accepted alibi. Please consider your individual business practices as you read through these mistakes and decide for yourself if you have room for improvement. Mistake No. 1: failure to do your due diligence. Failing to conduct adequate background checks, check references and calling former employers can likely lead to hiring the wrong person for the job. Although they may be tedious tasks, you can learn a lot about an applicant’s integrity and have fair expectations about his or her abilities. Mistake No. 2: asking inappropriate interview questions. Asking inappropriate questions
during the job interview can be a real minefield. You want to be thorough in your hiring process, but you also should be careful about what questions you ask. You do not want to allude to anything that may be deemed inappropriate and/ or discriminatory. Be particularly cautious of the mindless chatter that happens before and after the structured questions. Employers are responsible for every piece of information they acquire that helps them make the hiring decision. Keep questions business-related. Have a solid business reason for hiring one candidate over another. Mistake No. 3: inconsistency. Inconsistency is actually a problem both in the pre-hire selection as well as the employment realm. When employers don’t ask the same questions across the board in the job interview — or neglect to apply policies consistently — it looks to a juror like they may be illegally discriminating. Any employer that does not
treat each applicant the same or inconsistently applies its policies will risk discrimination claims. Mistake No. 4: failing to train appropriately. Failing to train employees and supervisors on relevant policies is the fourth mistake. Assuming that employees should have known a policy simply because “that’s the way we do it” will not demonstrate a good faith effort in educating your employees. Nor will it protect you from a lawsuit or an unemployment claim when asked to demonstrate that the employee had “knowledge” of the policy. A wellwritten employee handbook can be a great asset. Mistake No. 5: failing to warn. Employers should promptly warn an employee in writing of any performance or discipline issue that could result in termination. The purpose of warning, beyond covering your own liabilities, is to help the employee’s performance improve. Not providing corrective
action, however, can automatically qualify a former employee for unemployment benefits because you never allowed a chance for that employee to improve. Mistake No. 6: misclassifying an employee as an independent contractor. Frequently, employers mistakenly pay workers as independent contractors because they’ve seen business associates do the same — whether or not they’ve investigated to see if that worker was being paid legally. Warning: the government is cracking down on violators — both innocent and guilty. If in doubt, the worker is likely an employee. If it’s a legitimate independent contractor, be sure to get a workers’ comp certificate and business credentials from the worker to demonstrate coverage in the event of an accident. Mistake No. 7: misclassifying employees as exempt when they should be nonexempt. Exempt and nonexempt employ-
ees are legal terms that designate who is and isn’t exempt from being paid overtime, per the Fair Labor Standards Act (or FLSA). One common misconception is the belief that paying an employee a salary (in contrast to an hourly wage) makes him or her exempt. Each individual employee must qualify for one of the specific exemptions provided by the statute to warrant “exempt” status. Mistake No. 8: failing to keep up with ever-changing laws. Claiming that you were unaware of a law change won’t protect you from noncompliance penalties. There are a host of key law changes that occurred within the past year, with a number of HR law proposals on the table currently at both the federal and state levels. Each has its attendant fines and penalties for adherence to both the new law changes, as well as overseeing compliance to see MISTAKES next page
from page 7
in Clearfield-based Lifetime Products’ Chinese patent no. 03807208.4 are valid. In April, Lifetime took action to enforce its trademark rights by instituting litigation against Zhejiang Bestem Furniture Co. Ltd., Zhejiang Bestem Machinery Co. Ltd. (previously called Hanghzou Dali Tools Packing Co. Ltd.), and Hangzhou Bestem Furniture Co. Ltd. in Shanghai. In that litigation, Lifetime alleged that Bestem’s products infringe three of Lifetime’s Chinese patents. In response, Bestem commenced a separate invalidation proceeding before the PRB with respect to each patent. On Oct. 11 the PRB issued a decision concerning Lifetime’s patent number 03807208.4, finding all claims to be valid, thus reinforcing the strength of Lifetime’s Chinese patent portfolio. Lifetime is the world’s largest manufacturer of blow-molded polyethylene folding tables and chairs and holds a portfolio of patents protecting these products. • Tahitian Noni International opened registration for its 2012 International Leadership Conference on Nov. 1 and sold out in only 35 minutes. The upcoming conference is going to be held April 18 – 22, at the Salt Palace Convention Center in Salt Lake City. Tahitian Noni markets noni plant-based bioactive products, including nutritional supplements, beauty and weight loss lines.
MEDIA/MARKETING • Sinclair Broadcast Group
Inc. has named Kent Crawford general manager of KUTV-TV (CBS) in Salt Lake City and
MISTAKES from previous page
existing laws. In regard to compliance, ignorance is not happiness. Mistake No. 9: failing to quickly discharge – or firing too rapidly. When you keep an employee on board for a prolonged period of time despite his or her terrible track record of subpar performance (with multiple warnings) and/or poor attendance, you’re asking for trouble. These employees are the most likely to sue once they are discharged. The longer they’ve been employed by your company (despite poor performance history), the more difficult it is to justify termination. On the other hand, it’s rarely a good idea to fire an employee on the spot. Precipitous terminations are influenced by emotion, not reason. Make sure your case is solid for discharging an employee. A court will want to know, “Why did you
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Nov. 7-13, 2011 KMYU-TV (MNT) in St. George market. Crawford will be responsible for oversight of the stations, which are programmed by Sinclair under a time brokerage agreement. Crawford joined KUTV in 1982 and most recently served as director of sales. Based in Baltimore, Sinclair Broadcast Group, one of the largest and most diversified television broadcasting companies, owns and operates, programs or provides sales services to 65 television stations in 39 markets. • MediaOne of Utah announced an increase in readership in the flagship newspapers that it prints, The Salt Lake Tribune and Deseret News. Detailed in a report released by the Audit Bureau of Circulation, both newspapers reported an unduplicated readership increase of 2.6 percent in the primary market area. When combining the newspapers, the report details a surge in Sunday circulation by 9.7 percent and a weekly online readership surge of 7.3 percent. The Deseret News reported growth in both daily and Sunday editions. The Deseret News Sunday circulation surged 24.4 percent, which included that publication’s national reach. The report also details a 21 percent increase in the News’ 30-day online. The newspaper’s daily, Monday through Friday circulation, experienced a modest increase of 0.7 percent. Separately, The Salt Lake Tribune also showed circulation growth on its Sunday edition of 0.7 percent. The Tribune’s online readership grew 4 percent in readers accessing online content in a sevenday period and over 10 percent increase in average daily readership, according to the report.
• Utah’s outstanding philanthropists and volunteer leaders were honored Nov. 2 at the 2011 Utah Philanthropy Day luncheon. The 2011 awardees were Philanthropic Leadership Award – Mark and Kathie Miller, Foundation Spirit of Giving Award – Lawrence T. and Janet T. Dee Foundation, Corporate Spirit of Giving Award – Myriad Genetics Inc. Outstanding Nonprofit Executive Award – Anne Burkholder. Outstanding Young Volunteer Award – Teah Caine. Norma Matheson Outstanding Volunteer Award – Jesselie Anderson.
RETAIL • Salt Lake City-based O.co
(also known as Overstock.com) will offer a free 60-day trial for Club O, its customer rewards program. The free trial includes free shipping on all products, 5 percent back in Club O Rewards Dollars for every purchase and access to exclusive shopping events. Anytime during the 60-day trial customers can choose to opt out of the membership. If free trial customers do not opt out after 60 days they will be charged $19.95 for a yearlong membership. To learn more visit www.o.co/clubo. • IKEA, the world’s leading home furnishings retailer, plans to install solar energy panels at its Draper location. Pending governmental permits, rooftop installation of the panels will begin next year and be completed in spring 2012. The Draper store, opened in 2007, consists of 310,000 square feet on 22.5 acres. The solar pan-
els would cover 127,000 square feet result in the equivalent of reducing 1,130 tons of CO2. IKEA has contracted with REC Solar, one of the largest U.S. solar electric installers with more than 7,000 systems built nationwide, to install the panels.
SPORTS • Miller Motorsports Park,
Tooele, has entered into a multiyear marketing partnership agreement with Ford Motor Co. that extends and builds on the existing agreement. The partnership designates Ford as the Official Car and Light Truck of Miller Motorsports Park. Under the terms of the new agreement, Ford Motor Co. extends its naming rights to the Ford Racing High Performance Driving School and augments that with the new Ford Racing Boss Track Attack program.
TRANSPORTATION • Salt Lake City’s investments
in bicycle infrastructure, including
approximately 50 lane miles of new on-road bikeways and locally designed “green shared lanes” in the downtown area, are paying off with a one-year 27 percent increase in the number of bicyclists, according to the City’s second annualbicycle count. The count, which uses volunteers to collect data, surveyed 16 locations during the second week of September. The 27 percent increase was calculated by comparing the 12 locations that were included in both the 2010 and 2011 counts. The weather was similarly sunny and seasonably warm for both years’ counts. The top locations for bicycling were near the University of Utah and in the heart of downtown. The area with the biggest jump in number of bicyclists — a 109 percent increase — was on 1700 South at 900 West. Most of the 1700 South corridor from 1700 East to Redwood Road received new or redesigned bikeways in 2011 in conjunction with a resurfacing project.
PHILANTHROPY
fire this employee on that day?” A termination should NEVER be a surprise. Remember to present a final warning and follow through. Mistake No. 10: making inappropriate comments about former employees. We all like to be part of the “in” crowd and chat about how great things have been since you-know-who got canned, but doing so can constitute defamation. Be careful when giving references to other employers who are interviewing your former employees. Confirm the basic facts but don’t offer opinions. Steve Hubbard has an MBA (emphasis in human resources management) with more than 22 years of HR experience. He is a human resources consultant for Employer Solutions Group (ESG), a PEO that provides human resources consulting, payroll and administrative services, creative benefit offerings and employer liability reduction to its client companies. For more information, visit ESG online at www.esghr.com.
EVEN THE BIGGEST BUMPS ARE JUST PART OF THE ROAD. Over the years, we’ve helped countless businesses get the cash flow they need to keep moving, and we can do the same for you. Learn how at tabbank.com or by calling 801.624.4415.
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The Enterprise
What are you really asking of 'your people'?
Business etiquette — just the beginning
“I want my people to be account- • responsible for their attitude able.” • responsible for their sales “I want our people to be MORE skills accountable.” • responsible for their results “Our main issue this year is Your acceptance and respect as a ‘accountability.’” leader will ensure positive growth. Sound familiar? Accountability If a salesperson takes responsiis the number one recurring theme bility for his or her knowledge, pipethroughout sales leadership in the line, customers, sales, income and United States. Sales leaders want their success, your job as a leader shifts salespeople to be more accountable from a paranoid accountability manfor their actions, activity, numbers,\ ager to an encouraging, supportive and (of course) sales. leader. And it’s TOTALLY What’s the difference? WRONG, TOTALLY • Accountability sends the BACKWARD, TOTALLY wrong message. It implies INSULTING and TOTALLY forced leadership and microANTI-SALES. managing. It has at its base How’s that for an opin“you are” and “you must” as ion? a process. It’s childish. REALITY: NO • Responsibility sends SALESPERSON WANTS the right message. It’s indiTO BE ACCOUNTABLE. vidualized and team-oriented. Jeffrey They got into sales so they It’s “I am” and “I will” as a Gitomer WOULDN’T have to be process. It’s adult. accountable. • If I’m accountable, it’s less But sales leadership, even in likely that I’ll ever do my best or be their current CYA situation, has no my best. Rather, I’ll do what’s necesconcept of “field reality.” Rather, they sary, and report at the deadline – or implement some form of accountabil- just after. ity through CRM (customer relation- • I’m responsible has a chance ship management) and wonder why to include character-building and NO ONE uses it, much less keeps it pride in my achievement and work. up to date. • I’m accountable lowers CRM is an advanced form of morale and creates disdain on the database that helps salespeople keep part of salespeople. track of customers. On the surface it Here is the most telling differseems like a great tool. But it’s com- ence: plex, cumbersome and requires addi- “You’re accountable” indicates a tional work. Leadership, who bought corporate directive and an order. CRM for the wrong reason, expects “I’m responsible” indicates all salespeople to document every- a personal decision and a success thing. But salespeople don’t. opportunity. CRM programs are the most- As negative as accountability purchased, least-used software in the is, there is one place it fits. You are history of the computer. Why? accountable to yourself. You face the The reality is: CRM doesn’t help accountability mirror of truth every salespeople make sales. morning and every evening – in Which brings me to today’s sub- your bathroom. You are accountable ject: accountability versus responsi- to yourself for your attitude, your bility. actions, your results. Sales leaders who want their And in the end, accountability people to be accountable are passing will still be “on message” and erroneoff their leadership duties to someone ously rule the sales airwaves, even else, and then blaming them for fail- though what I have written is truth ure. Wrong approach. and reason. Leadership and accountability What’s your take on responare at the opposite ends of the spec- sibility versus accountability? Post trum, especially the sales spectrum. your views at facebook.com/jeffrey THINK ABOUT IT THIS WAY: gitomer, or tweet them @gitomer. You’re accountable to me. (Not good.) I’m responsible for you. (Much better.) And responsibility has a much Jeffrey Gitomer is the author of The Sales Bible, Customer Satisfaction more inclusive meaning. is Worthless Customer Loyalty is As a leader, you’re responsible Priceless, The Little Red Book of for your actions, responsible for your Selling, The Little Red Book of Sales people, responsible for your attitude, Answers, The Little Black Book of responsible for your leadership skills Connections, The Little Gold Book and certainly responsible for your of YES! Attitude, The Little Green results. Book of Getting Your Way, The Little As a leader, the only person Platinum Book of Cha-Ching, The Little Teal Book of Trust, The Little Book of you’re accountable to is yourself. And if you pass on the same Leadership, and Social BOOM! His strategy and philosophy to your peo- website, www.gitomer.com, will lead you to more information about training ple, that THEY are … and seminars, or e-mail him person • responsible for their actions ally at salesman@gitomer.com. • responsible for their customers © 2011 All Rights Reserved
Nov. 7-13, 2011
What is business etiquette and why you down their information on a piece of paper. Now should be concerned about it? there’s a show-stopper for you. How profes First of all, business etiquette is a very broad sional is that? term, encompassing multiple aspects of business Or there’s the v-card professional who interactions. These include business manners, expects everyone to know that v-cards are in and business attire, business communications, busi- business cards passé. So how does that make ness dining, client entertaining, business culture, their new prospect feel? cross-cultural differences, international protocol, Not like doing business with them. basic workplace etiquette, netiquette and more. Business cards perform a basic utility, but Business etiquette, in my opinion, is a they are also accessories that say a lot about philosophy of building and fostering business you, signals that promote or detract from your relations based on trust, integrity, best practices company or personal brand. Whether you’re self and cultural and regional sensitivities. Business employed or an employee, in good economic etiquette is not a “business behavior code” — it times or bad, business cards are like oxygen for can be defined only as “guiding principles for your ability to do better business. success in business.” That’s why I’d like to share The meaning of “social etiquette” a list of business card best practices, (a term derived mainly from the manemphasizing elegance, etiquette and dated practices of the French King Louis practicality. If you adopt these best XIV), has been widely misunderstood practices in your organization or selfand poorly interpreted. For centuries, it employed life, I guarantee you will has been associated with the elite social experience more meaningful introducetiquette of “royals” and those of the tions and deeper ongoing relation“upper crust.” Therefore, even today, Ellen Reddick ships: when you ask a regular person what Readily available. Keep busi“etiquette” is, you can expect to hear vague and ness cards with you, always within reach. These snickering references to the proper use of uten- days, with few exceptions, not having business sils — fork, knife and spoon. cards makes you look unprepared and unprofes I often say that etiquette is “not about sional. Simply, business cards will not benefit fork and knife” — it’s about consideration and you if you do not have them. respect toward the people around us. Knowing Presentation. Keep your business cards which fork to use at a dinner table is good, but neat. Worse than not having business cards is knowing how to avoid offending your fellow having poorly kept business cards. Always have diners is about etiquette and manners. an easily accessible business card holder. Invest Likewise, business etiquette is about how in a high quality, dedicated card holder, made of our business relationships reflect thoughtful polished metal or high-quality leather. consideration of the interests and well-being of Two places to find excellent business card others; and they are also deeply connected to holders: our own business goals and aspirations. Mutual http://www.Bosca.com trust and communication will develop based http://www.acmestudio.com/ on your personal qualities — integrity, respect, Each site offers wonderful business accesresponsiveness — eventually leading to business sories and gifts. growth, prosperity, and ultimate success. Every Grace. Present and accept business cards aspect of proper business etiquette will showcase with grace. I’ve always been horrified by people your best business manners, thereby securing who celebrate valuable introductions by flingcrucial partnerships for rewarding business out- ing their cards across conference room tables, comes. often requiring fallen cards to be fished from the Knowledge of business etiquette is, of floor. course, not all it will take to ring your cash reg- Conversely, I’ve long admired how the ister, but it will minimize any misunderstandings Japanese handle the business card (or meishi) or business blunders that can ultimately kill a exchange. The presenter holds the card out with deal in progress. The presence or lack of busi- both hands and introduces himself by affiliation, ness manners might not be immediately apparent position and name. The card is held at the bottom or visible, but will certainly impact your bank two corners using both hands, face up and turned account. so that it can be read by the person receiving the Following are a few tips to start you on card. The receiver holds it at the top two corners your way toward a more masterful and profes- using both hands, avoiding the placement of sional you. one’s fingers over the name or other informaBusiness Card Etiquette tion. Upon receiving the card, one is expected to Many people say business cards are becom- read the card over, noting name and rank, then ing obsolete in the age of Google, LinkedIn, thank the presenter with a bow. A receiver should Facebook, v-cards and smart phones. The oppo- not write on or place the card in a pocket; the site is actually true. proper procedure is to file the card at the rear of Business cards represent the identity of a leather case. organizations and individuals, and they create While most Westerners are not fluent in many first physical impressions. this ritual, adopting even a few of its elements The business card exchange is one of the will dramatically increase the quality of any most important, galvanizing rituals between two business-card exchange. or more people who are likely to engage in some Know and understand the importance of greater social or business interaction. The busi- “connecting moments” when you move a business card not only is a tangible artifact that cre- ness relationship to the next step. Your clients ates first impressions, it reinforces second and will remember how you made them feel. third impressions when a recipient refers to it for Personal Space future reference or contact data entry. Personal space is just that — very per I am often with people who are asked for sonal. their business card, who with a wave of their You may be an expertly trained salesperhand say, “I don’t do business cards,” acting son, but if you violate basic rules of dealing with as if the person asking is a complete idiot and people, all of the training in the world will not dismissing them. Then they go about writing see ETIQUETTE page 12
Nov. 7-13, 2011
Better, but ... U.S. economic growth improved tion rising at a 2.4 percent rate. Such during 2011’s July-September quarter, growth rose at a miniscule 0.7 percent especially when compared to the abso- pace in the prior quarter. lutely anemic economic performance It would be nice if such spending during the year’s first half. Similar to acceleration was tied to rising conslightly softer economic growth seems sumer incomes. Instead, it was tied to on tap in coming quarters, with plenty a less aggressive savings pace, with of obstacles to be dodged along the “the savings rate” growing at only a way. 4.1 percent annual rate, the lowest in U.S. GDP, the most inclusive of nearly four years. all measures of economic activity takBusinesses ing place on U.S. soil, grew at a 2.5 American businesses also stepped percent real (after inflation) annual up their spending pace during the third rate during the third quarter, match- quarter, with investment in equipment ing the consensus view of forecasting and software rising at a 17.4 percent economists. The 2.5 perannual rate, the strongest pace cent growth pace greatly in a year. However, a move to exceeded the 1.3 percent qualify for attractive tax incenreal annual growth pace tives with calendar year 2011 of the second quarter and purchases likely accounted for the truly pathetic 0.4 permuch of the rise. cent growth pace during Peak Reach the January-March 2011 One other piece of economic quarter. trivia, although an important The new data has, for Jeff Thredgold one, was found in the data. The the moment, dampened American economy finally the worst-case forecasts of exceeded the real pre-recession those economic prognosticators call- peak of total economic output during ing for an imminent return to reces- 2007’s final quarter. It took 15 quarters sion. One particular economic bear to offset the 5.1 percent decline in outwho suggested a few months ago that put during the Great Recession. This “another recession was 99 percent was three times the average number of certain” may wish such a forecast was quarters needed to reach the prior peak never made. Even as economic growth in other post-World War II recessions. improved, it still lags the 3-4 percent Down the Road real annual growth pace needed to The Great Recession was a masbring the nation’s unemployment rate sive hit to the American economy, as down from the 9 percent average well as to economies around the globe. of the past three years. Given the Here’s hoping we can skate through obstacles (or headwinds) faced within the European debt crisis and our own the economy, including the painful deficit spending crisis without another reductions of recent years in home major economic hit. prices, anxiety about the European debt crisis, distaste for higher taxes for those who invest and create jobs and Jeff Thredgold is the only economist our domestic frustration about gov- in the world to have ever earned the ernment spending out of control, such CSP (Certified Speaking Professional) stronger growth seems only a dream at international designation, the highest earned designation in professional the moment. speaking. He is the author of econAConsumers The American consumer spent merica, released by major publisher money more aggressively during the Wiley & Sons, and serves as economic third quarter, with personal consump- consultant to Zions Bank.
The Enterprise
11
Selling is a process, not an event For it spread through the neighboring city; Several years ago I learned a very imporA fence may be useful or not, it is true, tant sales principle. The knowledge and applicaBut each heart became brimful of pity tion of this principle has made a huge improvement in my ability to complete a sale. I’m going For those who slipped over the dangerous cliff; And the dwellers in highway and alley to share this principle with you in hopes that it Gave pounds or gave pence, not to put up a will have the same effect on your sales. fence, As a young and inexperienced salesperBut an ambulance down in the valley. son, I believed that selling was simply telling someone about your product or service and then “For the cliff is all right, if you’re careful,” working really hard to persuade them to buy. In they said, other words, I was hoping that something would “And if folks even slip and are dropping, happen at the end of my sales pitch that would It isn’t the slipping that hurts them so much, persuade the prospect to buy. There were two As the shock down below when they’re stoppossible “hoped for” results to my activity: First, ping.” I was hoping that some unknown thing So day after day, as these mishaps would happen and second, the prospect occurred, would occasionally agree to buy. The Quick forth would these rescuers sally buy-in, or decision to purchase, was a To pick up the victims who fell off of separate event or a post activity to all the cliff, that had happened previously. I would With the ambulance down in the valmake my presentation and then decide ley. which one of 99 closing techniques I Tim Huffaker would apply to close the sale. Then an old sage remarked: “It’s a I’m happy to say, those days are marvel to me over. Selling has never been more enjoyable and That people give far more attention successful. This is what I learned. Selling is a process. From the time you first make a contact To repairing results than to stopping the cause, When they’d much better aim at prevention. with someone who has a potential need for your product or service, you are following a process Let us stop at its source all this mischief,” cried he, that will eventually lead to a sale. There is no “Come, neighbors and friends, let us rally; separate phase where you apply the strong-arm If the cliff we will fence we might almost disof “closing the sale.” Closing the sale begins at pense the beginning. It begins with the fact that someWith the ambulance down in the valley.” one is willing to invite you into their personal time and space. Closing the sale is integrated Oh, he’s a fanatic,” the others rejoined, into your sales process, not something that is “Dispense with the ambulance? Never! added at the end of a sales pitch. He’d dispense with all charities, too, if he From the very beginning you want to estabcould; lish a need for your product or service. If there is No! No! We’ll support them forever. no need, either staring you in the face, or hidden Aren’t we picking up folks just as fast as they to their understanding, then you should politely fall? pack up your things and leave. Never attempt to And shall this man dictate to us? Shall he? sell someone something they don’t need! Once Why should people of sense stop to put up a you have identified the need, everything that fence, you say and do should be directed toward meetWhile the ambulance works in the valley?” ing the needs of the prospect. Making the sale part of a process that But a sensible few, who are practical too, begins from the very first time you meet with a prospect, instead of a separate event at the end Will not bear with such nonsense much longer; of a presentation, reminds me of a popular poem They believe that prevention is better than cure, And their party will soon be the stronger. written by Joseph Malins entitled, “A Fence Or Encourage them then, with your purse, voice, An Ambulance.” It talks about the prevention and pen, that should come at the beginning of a process, And while other philanthropists dally, compared to the rescue that comes at the end. In They will scorn all pretense and put up a stout this analogy to the proper sales process, Malins fence offers a poetic reminder that it is much better to On the cliff that hangs over the valley. solve a problem at the beginning than to effec tively deal with the result at the end. Enjoy the poem and remember that the best way to close Better guide well the young than reclaim them when old, a sale is to present a solution to the prospect’s For the voice of true wisdom is calling, need at the beginning and throughout the entire “To rescue the fallen is good, but ‘tis best process — not by treating the closing of a sale To prevent other people from falling.” as a separate isolated event at the end. Better close up the source of temptation and “A Fence or an Ambulance” crime by Joseph Malins Than deliver from dungeon or galley; ‘Twas a dangerous cliff, as they freely conBetter put a strong fence round the top of the fessed, cliff Though to walk near its edge was so pleasant; Than an ambulance down in the valley. But over its terrible edge there had slipped A duke and full many a peasant. So the people said something would have to be Tim Huffaker is the president of The Business done, Performance Group, a sales training and coachBut their projects did not at all tally; ing firm headquartered in Salt Lake City. The Some said, “Put a fence around the edge of the company teaches core sales principles and cliff,” skills, allowing clients to double their sales. Some, “An ambulance down in the valley.” Huffaker is the author of hundreds of sales articles and can be contacted at (801) 557-4571 But the cry for the ambulance carried the day, or tim@bpgutah.com.
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Nov. 7-13, 2011
The Enterprise
• Calendar •
• Nov. 8, 8 a.m.-1:30 p.m.: Women In International Business Conference — “Critical Tools for Success in the International Marketplace.” Keynote speaker will be Carine Clark, chief marketing officer and senior vice president and Symantec Corp. Participants will receive up-todate key information regarding issues businesswomen encounter in international markets. This “how-to” conference focuses on economic, political and educational factors important in providing a framework for success. Topics for discussion include security, negotiation skills, cultural factors and relationship management. During individual presentations and panel
discussions, women in international leadership positions will share their experience. Regional presentations will include the Americas, Asia, Europe, Middle East and North Africa, South Asia and SubSaharan Africa. Location is the Salt Lake Community College, Miller Campus, Karen Gail Miller Conference Center, 9750 S. 300 W., Sandy. Cost is $20, which includes lunch. Seating is limited. Register at www.wiib.org. • Nov. 8, 7:15-9 a.m.: Association for Corporate Growth Utah Breakfast Program. Keynote speaker will be Robert Pedersen II, co-founder, president, CEO and chairman of ZAGG Inc., which is now Utah’s
fastest-growing public company. Location is the Little America Hotel, 500 S. Main St., Salt Lake City. Free for ACG members, nonmembers pay $30. Register at http://www.acg.org/utah. • Nov. 9, 6 p.m.: First Annual America Recycles Day Zero Waste Awards and Film Screening, sponsored by the Utah Recycling Alliance, Momentum Recycling and Salt Lake City Corp. At the event, local businesses, nonprofits and government agencies that have set standards for zero waste in the Salt Lake Valley will be honored. Following an awards ceremony, attendees will be invited to a screening of “Bag It” followed by a panel discussion.
Location is Brewvies Cinema Pub, 677 S. 200 W., Salt Lake City. Cost is $5 and includes a free drink ticket at Uinta Brewing Co. Those who wear a costume made only of recycled materials will gain entrance at a discounted rate. An award will be presented for the best costume. Become a member of URA and receive free entrance ($25 annual membership fee). • Nov. 9, 8-9:30 a.m.: “Ethics First; Profitability Second,” sponsored by the Utah Technology Council. Brad Agle, a George W. Romney endowed professor at BYU, will be the featured speaker. His work in leadership and ethics has been featured in media outlets including the Wall Street
Journal, Washington Post, USA Today and CNN. Agle will talk to Utah executives about the case for putting ethics first, and will give examples (including stories drawn from Utah-based companies) of the value and importance of strong business ethics, and how putting ethics first has allowed stronger profitability to follow. Location is the Rose Room at Thanksgiving Point, 3003 N. Thanksgiving Way, Lehi. Cost is $25 for UTC members, $50 for nonmembers. Register at www.utahtech.org. • Nov. 9, 8 a.m.-4 p.m.: Business Valuation Conference, hosted by the Utah Association of Certified Public Accountants. see CALENDAR next page
ETIQUETTE
close enough to do so. Space can also vary depending on the amount of trust in a relationship. A general rule is: The greater the distance, the lower the level of trust. We also make assumptions about relationships based on zones. If we see two people talking at a distance of around two feet from each other, we assume they are engaged in the kind of conversation only possible between those who know and trust each other. So, their spatial relationship becomes part of what is being communicated. Gender plays an important role too. Men who don’t know each other well tend to keep a greater distance between them than women who have just met. This difference in interpersonal distance as determined by gender is even true in Web 2.0’s virtual online worlds (like Second Life) where many of the rules that govern personal space in the physical world can be found in the virtual world. And, of course, the comfortable distance between participants varies with culture. Most business relationships begin in the social zone. As the relationships develop and trust is formed, both parties may subconsciously decrease the distance to more personal zones. But if one of the parties moves too close too soon, it can result in a communication breakdown. Those who feel powerful and confident will usually control more physical space, extending their arms and legs and generally taking up more room. In doing so, they may unknowingly infringe on another person’s territory. Someone may also purposefully stand too close in order to make the other person feel self-conscious or insecure. Police interrogators often use the strategy of sitting close and crowding a suspect. This theory of interrogation assumes that invasion of the suspect’s personal space (with no
chance for defense) will give the officer a psychological advantage. I’ve also seen managers standing uncomfortably close to employees in order to emphasize their status in the organization. Not a good idea. Scientists agree that people’s territorial responses are primitive and powerful. And a mistake here can trigger a truly deep-seated response. When someone comes too close in an undesirable way, it triggers a physiological reaction in the other person — heart rate and galvanic skin responses increase. The other person then tries to restore the “proper” distance by looking away, stepping behind a barrier (desk, chair, table,) crossing their arms to create a barrier, pulling back to create space or tucking in their chins as an instinctive move of protection. They may even rub their neck so that an elbow protrudes sharply toward the invader. Getting too close is an especially improper business move in circumstances where workers, colleagues or clients are in danger of feeling emotionally or physically threatened by the invasion of their personal space. Anyone who oversteps space boundaries is perceived as rude, aggressive or socially clueless. So keep your distance. Respecting another person’s space can help you build rapport with your colleagues and close sales with your clients. Name Badges I attended a meeting recently with a good cross section of people — city government, state government, downtown businesspeople as well as other interested parties. Over 40 percent of the attendees were wearing their name badges on their left shoulders. This is a very basic etiquette and protocol faux pas that a recent graduate should know and a seasoned professional shouldn’t even have to think about.
The name tag/badge is always worn on the right, about four inches from the top of the shoulder. A name tag is for the person shaking your right hand. The natural flow of the eye is from your hand, to your should and then your face and eyes. Company logos are worn/ embroidered on the left. In today’s economy, it is great to have a defined skill set and know how to use the latest technology, but a polished and professional presence and knowledge of business protocol will do more to land and keep a job. Speakerphones The most requested etiquette tip I receive from my public seminar attendees is the request for a weekly tip about speakerphone etiquette — or lack of speakerphone etiquette: “Please write an etiquette tip about speakerphones so my boss will read it and quit making and answering every call on their speakerphone,” “tell people speakerphones should not be used in cubicle areas,” “ask people to close their office door when on speakerphone calls,” “please let people know how rude it is to answer a call on a speakerphone. It is poor business etiquette and it is intimidating to everyone,” “no, we all do not want to listen to you dial your voicemail and listen to each and every voicemail message you have received.” Simply put, use speakerphones in a conference room with the door closed only after you have asked the person you have called for their permission to place them on the speakerphone while telling them about each person that is in the room. Any one of these statements/ requests could have come from someone in your office, someone you manage or one of your customers. If employees are not work-
ing and making calls because you are on your speakerphone and the entire office can hear you, you are costing your company productivity and MONEY. Understand the importance of proper communications etiquette. Learn what not to do and do not do it, do not let others do it and reevaluate your office communication culture. Establish a standard and raise the professional level of your entire office by being aware and customer oriented. Think about the importance of the customer and employee experience. This is a big one! Manners are Powerful. Whether you are in the lunchroom or the boardroom, manners give you an enormous advantage: you feel good about yourself, respect others and put them at ease. You know what you are doing — and you know that you are doing it right. By learning etiquette you gain the confidence to relate to clients and business associates with kindness, firmness and sensitivity. Manners are essential skills that will last a lifetime.
from page 10
replace poor people skills. One of the easiest mistakes to make during a business encounter with someone is to misjudge how much space the other person needs. The anthropologist Edward Hall coined the word “proxemics” to describe phenomena like territoriality among office workers. And it was he who first noted the five zones in which people feel most comfortable dealing with one another. (It’s as if we’re standing inside an invisible bubble that expands or contracts depending on our relationships.) • The intimate zone (0-18 inches) is reserved for family and loved ones. Within this zone we embrace, touch or whisper. This close contact is appropriate only for very personal relationships. • The close personal zone (1.5-2 feet) is the “bubble” most people in the United States like to keep around us. This zone is used for interactions among friends or familiar and trusted business partners. • A far personal zone (2-4 feet) is for interactions we prefer to conduct “at arms length.” In this zone we can communicate interest without the commitment of touching. • The social zone (4-12 feet) is most appropriate for the majority of most daily business interactions. It is where we interact with new business acquaintances or at more formal social affairs. • The public zone (over 12 feet) is mostly used for public speaking. The amount of space required to feel comfortable varies from individual to individual. People who don’t like being touched will tend to keep their distance from others. People who touch others while talking will want to get
Ellen Reddick is principal and managing partner of Impact Factory Utah, which assists clients in achieving their performance and revenue objectives through leadership development, process improvement, teamwork and customer focus. As the national director of process planning and improvement for Lucent Technologies, she managed development of quality and process improvement , led major customer focused teams and functioned as an internal and external consultant and resource professional. In addition to consulting and writing, Reddick’s qualifications include expertise with facilitation, process and quality improvements, the International Institute for Facilitation and Best Practices for Emotional Intelligence. She can be reached at 801-581-0369 or ellen@impactfactoryutah.com.
CALENDAR from previous page
Howard Lewis, executive director of the Institute of Business Appraisers, will speak about “When the IRS Challenges Your Business Valuation: Now What?” Lewis’ presentation will be part of UACPA’s all-day Business Valuation Conference. Location is the UACPA Education Center, 220 E. Morris Ave. Suite 300, Salt Lake City. Cost is $260 for UACAP members, $320 for nonmembers. Register at www. uacpa.org. • Nov. 10, 11:30 a.m.: Building Owners and Managers Association (BOMA Utah) Monthly Luncheon. The event will be BOMA’s annual social. Location is the Little America Hotel, 500 S. Main St., Salt Lake City. Free for BOMA members, nonmembers pay $45. Register at www.BOMAUtah.org. • Nov. 10, 8-9:30 a.m.: “Ethics in Leadership: How Putting People First Produces Profitability Best,” sponsored by the Utah Technology Council UTC CEO David Williams, CEO of Fishbowl, and Mary Scott, president of Fishbowl, will share the lessons learned from their recent company buyback that show how integrity in leadership actually pushes companies farther in
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The Enterprise
Nov. 7-13, 2011 meeting their profitability goals. They will provide specific help companies can use to become more successful, both this year and beyond. Location is the Rose Room at Thanksgiving Point, 3003 N. Thanksgiving Way, Lehi. Cost is $25 for UTC members, $50 for nonmembers. Register at www. utahtech.org. • Nov. 10, 10 a.m.-2 p.m.: “How Safety Can Save Your Business Money,” presented by Alliance Community Services. Guest speaker will be Francisco Banavides, Ph.D., general manager-health, safety and environment for Rio Tinto Copper Projects. He will discuss what accidents may be costing your company and your employees, the major components of a successful safety program, the role of management/ leadership in safety, steps you can take to improve safety in your company and available resources that can help. Location is the Salt Lake Marriott City Center, 220 S. State St., Amethyst 2 Ballroom, second floor. Cost is $25 and includes lunch and educational materials. Register with angela@ alliance-community.org or (801) 265-1111. • Nov. 15, 8:30-9:30 a.m.: “Are You Ready? Important Bankruptcy Changes Take Effect Dec. 1,” presented by the law firm of Snell & Wilmer. On December
1, amendments to Rules 3001 and 3002 of the Federal Rules of Bankruptcy Procedure – the rules that govern the preparation and filing of proofs of claim in bankruptcy cases – will take effect. New forms will accompany these changes. The rule changes will affect virtually every lender that has a claim against a debtor in a bankruptcy case, especially lenders who hold liens against collateral secured with the “debtor’s personal residence.” The new rules also create penalties for lenders who fail to comply, including a possible “award of other appropriate relief, including reasonable expenses and attorney’s fees caused by the failure.” Snell & Wilmer partner David Leta and other members of the firm’s bankruptcy group will speak. The program is designed for lenders who review, approve, prepare and file proofs of claim in bankruptcy cases. Location is the offices of Snell & Wilmer, 15 W. South Temple, Suite 1200, Salt Lake City. Free. Breakfast will be served. Register by Nov. 9 with Jennifer Nielsen at rsvp@swlaw. com or (801) 257-1994. • Nov. 15, noon-2 p.m.: “The Impact of Corporate Preparedness on the Bottom Line,” a webinar hosted by Agility Recovery Solutions and the U.S. Small Business Administration. Agility president and CEO Bob
Boyd will review the far-reaching financial impact of having a plan in place to recover after a disaster. A question and answer session will follow the presentation. Free. Register at https:// www1.gotomeeting.com/register/446675577. • Nov. 16, 8 a.m.-1 p.m.: Northern Utah Business & Economic Summit (NUBES,) hosted by the Davis Chamber of Commerce. This year’s theme is “Thriving in a Rebounding Economy” and will have various breakout sessions. Featured speaker will be Utah Lt. Gov. Greg Bell. Location is the Davis campus of Weber State University, 2750 N. University Park Blvd., Layton. Cost is $59 for one ticket, $99 for two. Register at www.davischamberofcommerce.com/nubes. • Nov. 15, 7 p.m.: “Climate Capitalism: The Business Case for Sustainability,” presented by Westminster College and the Utah Council for Citizen Diplomacy. The lecture will be presented by L. Hunter Lovins with sustainability expert Dr. Boyd Cohen. They will tell the stories of inventors, major corporations, communities and Main Street businesses that are cutting their costs, driving innovation, inspiring their employees and building prosperity by investing in energy efficiency and renewable resources. Trained as
a sociologist and lawyer, Lovins is also professor of business at Bainbridge Graduate Institute and the chief insurgent of the Madrone Project. Recipient of such honors as the Right Livelihood Award, Lindbergh Award, and Leadership in Business, she was named Time magazine 2000 Hero of the Planet and in 2009, and Newsweek dubbed her a “Green Business Icon.” Lovins has consulted for scores of industries and governments worldwide. Location is the Vieve Gore Concert Hall in the Emma Eccles Jones Conservatory at Westminster College, 1840 S. 1300 E., Salt Lake City. Free.
Freedom’s Promise Tue., Nov. 8, 7PM What’s happening with student activism today? KUED’s Nancy Green looks at how young people in Utah are making their voices heard on issues from immigration and the environment to sexual orientation.
kued.org
KUED The University of Utah
14
Speaking for that '1 percent' Lauded by the Washington efficient transportation, educated press corps for his “courage” and workers and myriad other public “honesty” in confronting federal services. deficits and the national debt, Rep. Paying for those services is a Paul Ryan, R-Wis., wrote a budget responsibility that must be broadly that almost sank the Republican shared, she said, and the rich who Party — and may still damage have benefited most from governits prospects — because ment in so many ways he proposed to dismantle should now pay their Medicare. Yet his party fair share of its budgets still relies upon Ryan to and debts. speak on behalf of its most “You built a facimportant constituency, tory out there? Good for now known in America you,” she explained in and across the world as videotaped remarks that “the 1 percent.” lit up the Internet not Addressing the right- Joe Conason long ago. “But I want wing Heritage Foundation to be clear. You moved recently, Ryan sought to your goods to market discredit Elizabeth Warren — the on the roads the rest of us paid Massachusetts Democratic sena- for. You hired workers the rest of torial candidate, Harvard faculty us paid to educate. You were safe member, creator of the Consumer in your factory because of police Finance Protection Agency and forces and fire forces that the rest enemy No. 1 of Wall Street cheat- of us paid for. You didn’t have to ers — for daring to utter an obvi- worry that marauding bands would ous truth. come and seize everything at your While praising the creativity factory — and hire someone to and industriousness of entrepre- protect against this — because of neurs, Warren recently pointed out the work the rest of us did. that business cannot thrive without “Now look, you built a facfunctional government providing tory and it turned into something police and fire protection, safe and terrific, or a great idea. God bless
Nov. 7-13, 2011
The Enterprise
— keep a big hunk of it. But part of the underlying social contract is, you take a hunk of that and pay forward for the next kid who comes along.” That simple, plainly factual statement obviously rankled Ryan, a philosophical acolyte of the extreme libertarianism of the late Ayn Rand, whose spirit he channeled in excoriating Warren for supposedly elevating government over “the individual, the family, the entrepreneur,” which he called “completely, inherently backwards.” Nothing that Warren actually said indicates the primacy of government over the individual and the family, or even the private sector — and Ryan is certainly intelligent enough to understand what she meant. Did he misinterpret her words intentionally? The telltale evidence lies in his own remarks about government’s role in society. “No one is suggesting that we don’t need good schools and roads and infrastructure as a basis for a free society and a free enterprise system,” he told the Heritage audience. But Ryan’s own budget,
with its enormous tax cuts for the wealthy and its required cuts in spending, would cripple government’s capacity to provide those services. Under a Ryan budget, infrastructure and education would not only continue to languish, but starve. He also nodded toward “our safety net system,” calling it “necessary, I believe, to help people who can’t themselves, to help people who are down on their luck get back onto their feet,” without acknowledging that his budget would decimate that system entirely, depriving seniors of the benefits that have raised millions from poverty over the past half-century. The gist of Ryan’s speech was to scold President Obama for allegedly promoting “class warfare” and for incivility toward his political opponents. (Such complaints might be taken more seriously from a politician who had spoken up at some point against the racially divisive “birther” propaganda in his own party.) Understandably, Ryan isn’t eager to discuss the issues of wealth and
income distribution, preferring to focus on “upward mobility.” But between Ryan and Warren, who is the better exemplar of the American Dream? Ryan is a figure from the privileged class he defends, scion of a Midwestern construction empire created two generations ago that enabled him to pursue an expensive education and a political career without worrying about the cost. Growing up middle-class in Oklahoma City, Warren had to struggle for her own advancement from the age of 12, after her father’s heart attack and medical bills almost ruined her family. She has worked all her life, starting as a waitress, and put herself through law school. Before Ryan delivers another lecture on the “fatal conceit of liberalism,” he ought to examine his own silly conceit: that he and others like him represent the hardworking majority, when he was merely born at the top. Joe Conason is the editor in chief of NationalMemo.com. Copyright 2001 Creators.com.
Nov. 7-13, 2011
Democracy versus mob rule In various cities across the schools. country, mobs of mostly young, Sloppy words and sloppy mostly incoherent, often noisy and thinking often go together, both sometimes violent demonstrators in the mobs and in the media that are making themselves a major are covering them. It is common, nuisance. for example, to hear in the media Meanwhile, many in the how some “protesters” were media are practically arrested. But anyone gushing over these “prowho reads this column testers,” giving them the regularly knows that I free publicity they crave protest against all sorts for themselves and their of things — and don’t cause — whatever that is, get arrested. beyond venting their emo The difference is tions on television. that I don’t block traffic, Thomas Members of the join mobs sleeping overSowell mobs apparently believe night in parks or urinate in that other people, who are the street. If the media working while they are out trash- cannot distinguish between proing the streets, should be forced to testing and disturbing the peace, subsidize their college education then their education may also have — and apparently the President of wasted a lot of taxpayers’ money. the United States thinks so too. Among the favorite sloppy But if these loud mouths’ words used by the shrill mobs in inability to put together a coherent the streets is “Wall Street greed.” line of thought is any indication But even if you think people in of their education, the taxpayers Wall Street, or anywhere else, are should demand their money back making more money than they for having that money wasted deserve, “greed” is no explanation on them for years in the public
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The Enterprise
whatever. “Greed” says how much you want. But you can become the greediest person on earth and that will not increase your pay in the slightest. It is what other people pay you that increases your income. If the government has been sending too much of the taxpayers’ money to people in Wall Street — or anywhere else — then the irresponsibility or corruption of politicians is the problem. “Occupy Wall Street” hooligans should be occupying Pennsylvania Avenue in Washington. Maybe some of the bankers or financiers should have turned down the millions and billions that politicians were offering them. But sainthood is no more common in Wall Street than on Pennsylvania Avenue — or in the media or academia, for that matter. Actually, some banks did try to refuse the government bailout money, to avoid the interference with their business that they knew
would come with it. But the feds insisted — and federal regulators’ power to create big financial problems for banks made it hard to say no. The feds made them an offer they couldn’t refuse. People who cannot distinguish between democracy and mob rule may fall for the idea that the hooligans in the street represent the 99 percent who are protesting about the “greed” of the 1 percent. But these hooligans are less than one percent and they are grossly violating the rights of vastly larger numbers of people who have to put up with their trashing of the streets by day and their noise that keeps working people awake at night. As for the “top 1 percent” in income that attract so much attention, angst and denunciation, there is always going to be a top 1 percent, unless everybody has the same income. That top one percent has no more monopoly on sainthood or villainy than people in any other bracket.
Moreover, that top 1 percent does not consist of the “millionaires and billionaires” that Barack Obama talks about. You don’t even have to make half a million dollars to be in the top 1 percent. Moreover, this is not an enduring class of people. Nor are people in other income brackets. Most of the people in the top 1 percent at any given time are there for only one year. Anyone who sells an average home in San Francisco can get into the top 1 percent in income — for that year. Other one-time spikes in income account for most of the people in that top 1 percent. But such plain facts carry little weight amid the heady rhetoric and mindless emotions of the mob and the media. Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305. Copyright 2011 Creators.com
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