Small Business Insight of Hampton Roads

Improve your marketing strategy this summer

p.42

High on the Hog

From Harleys to surfboards, the leisure business is a smooth ride in Hampton Roads

p.14

Also inside

When does a Roth conversion make sense? p. 12

SBI 900 Commonwealth Place, Ste. 215 Virginia Beach, VA 23455

PRESORTED STANDARD US POSTAGE PAID RICHMOND VA PERMIT 930

2 Small Business Insight | July 2010

Has your business hit the mark?

Hitting $1 million for the first time is a big deal, and we want to celebrate with you!

F

rom start up to maturity, companies pass through several developmental phases. We start with the classic napkin-on-the-kitchen -table phase where we hatch the entrepreneurial idea, to the company reaching maturity with a fully staffed professional management team in place.

First, we enter the start-up phase were we initially fund the project and recruit our first clients. Shortly after that, if our concept is gaining traction, we begin to add employees. This adds to our ability to bring in additional work because of a gain in manpower and sometimes additional expertise.

The company is growing, but it is still being driven by the abilities of the owner. The employees are mainly helping the owner do more, but not to operate independently. Traditionally, the business grows to the point of the owner’s span of control and then growth slows or stops.

The business is on the door step of being what is called a Stage Two business. A Stage Two business is when that is bigger than what one person can manage, but is not big enough to support a fully functioning management team.

The Edward Lowe Foundation reports on a study done by Eric Flamholtz and Yvonne Randle that indicate to a CEO that second stage is at hand when: 1. Many people are not aware of what others are doing.

2. People lack an understanding of the firm’s ultimate goals.

3. A precipitous drop in product quality occurs for unknown reasons.

4. Turnover increases sharply, just when the company needs more personnel.

5. You wake up worrying about operational tasks that someone else ought to be handling.

6. All your customers want to meet with you, but finding the time to do so seems impossible.

This stage begins for most businesses when they build revenue to about $1 million and continue till revenue passes $50 million. At that point, the business enters the third phase of its life as a professionally managed mature company.

Helping businesses to reach Stage Two and growing through to maturity is a major initiative of SBI. The reason is that the majority of job growth happens within stage two businesses leading not only strong companies, but strong communities and a healthier economy for all.

To accomplish this we have started two membership organizations, The SBI Owners Council and the SBI Emerging Businesses. The Owners Council vision is two help owners of stage two businesses develop their companies to maturity The Emerging Businesses is to help businesses reach stage two for they can have rapid growth and impact the community.

Source: Growing Pains: Transitioning from an Entrepreneurship to a Professionally Managed Firm,

by Eric Flamholtz and Yvonne Randle, revised ed.

(Jossey-Bass, 2000), 9-10, 33. This paper makes heavy use of Chapter 2 of Growing Pains. Flamholtz and Randle identify seven stages: New venture, expansion, professionalization, consolidation, diversification, integration, and decline and revitalization. Here we compress their stages 2 and 3 into a single second stage, and treat their stages 4-7 as a single third stage.

If your business has hit $1 million in gross revenue for the first time, SBI magazine would like to recognize you in Million Dollar Milestone: It’s Just the Beginning.

To be recognized in the class of 2010, simply submit a signed letter by your CPA stating that you’ve earned at least $1 million for the first time in at least three years no later than February 1.

You and your company will be acknowledged in the magazine and on our website.

The Million Dollar Milestone is sponsored by the following companies:

For sponsorship information, contact info@ smallbusinessinsight.com

smallbusinessinsight.com

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Calendar of Events July

20 — SBI Magazine Networking Event Come meet the SBI staff and readers and enjoy light hors d’oeurves. 4-6 p.m.

Tripps Restaurant, Virginia Beach. $6 online at sbivbjuly.eventbrite.com or $10 at the door. Open to the public.

4 11 18 25

5 12 19 26

6 13 20 27

7 14 21 28

1 8 15 22 29

2 9 16 23 30

3 10 17 24 31

August

17 — SBI Owners Council Luncheon*

Come meet fellow OC members on the Southside. CPA from Cherry, Bekaert & Holland will speak about new healthcare law’s effect on small businesses. 11:30 a.m.-1 p.m. Tripps Restaurant, Virginia Beach. RSVP to info@smallbusinessinsight.com.

17 — SBI Magazine Networking Event Come meet the SBI staff and readers and enjoy light hors d’oeurves. 4-6 p.m.

Tripps Restaurant, Virginia Beach $6 online at sbivbaug.eventbrite.com or $10 at the door. Open to the public.

19 — SBI Appreciation Luncheon Businesses featured in the magazine will

September 21 — SBI Owners Council Luncheon* Come meet fellow OC members on the Southside. Speaker TBA. 11:30 a.m.-1 p.m. Tripps Restaurant, Virginia Beach.

RSVP to info@smallbusinessinsight.com.

21— SBI Magazine Networking Event Come meet the SBI staff and readers and enjoy light hors d’oeurves. 4-6 p.m.

Tripps Restaurant, Virginia Beach $6 online at sbivbsept.eventbrite.com or $10 at the door. Open to the public.

20 — SBI Owners Council Luncheon*

Schlesinger’s Chop House, Newport News. RSVP to info@smallbusinessinsight.com.

27 — SBI Magazine Networking Event Come meet the SBI staff and readers on the Peninsula. 4-6 p.m. The Pub, Hampton. $6 online at sbipeninsulajuly. eventbrite.com or $10 at the door. Open to the public.

28 — SBI Owners Council Golf Outing* Bring your clubs and come play a round with other members of the Owners Council. Lunch begins at noon, tee off at 1 p.m. $60. RSVP to info@smallbusinessinsight.com.

enjoy lunch and meet other featured companies. 11:30-1 p.m. Tripps Restaurant, Virginia Beach. Invitation only.

24 — SBI Owners Council Luncheon* Come meet fellow OC members on the Peninsula. CPA from Cherry, Bekaert & Holland will speak about new healthcare law’s effect on small businesses. 11:30 a.m.-1 p.m. Schlesinger’s Chop House, Newport News. RSVP to info@smallbusinessinsight.com.

24 — SBI Magazine Networking Event Come meet the SBI staff and readers on the Peninsula. 4-6 p.m. The Pub, Hampton. $6 online at sbipeninsulaaug. eventbrite.com or $10 at the door. Open to the public.

25 — SBI Owners Council Golf Outing* Bring your clubs and come play a round with other members of the Owners Council. Lunch begins at noon, tee off at 1 p.m. $60. RSVP to info@smallbusinessinsight.com.

23 —

on the peninsula. 4-6 p.m. The Pub, Hampton $6 online at sbipeninsulasept. eventbrite.com or $10 at the door. Open to the public.

29 — SBI Owners Council Golf Outing* Bring your clubs and come play a round with other members of the Owners Council. Lunch begins at noon, tee off at 1 p.m. $60. RSVP to info@smallbusinessinsight.com.

Come meet fellow OC members on the Southside and learn about social media in business strategy. 11:30 a.m.-1 p.m.

Tripps Restaurant, Virginia Beach. RSVP to info@smallbusinessinsight.com.

22 — SBI Appreciation Luncheon Businesses featured in the magazine will enjoy lunch and meet other featured companies. 11:30 a.m.-1 p.m. Tripps Restaurant, Virginia Beach. Invitation only.

27 — SBI Owners Council Luncheon* Come meet fellow OC members on the Peninsula and learn about social media in business strategy. 11:30 a.m.-1 p.m.

SBI Appreciation Luncheon Businesses featured in the magazine will enjoy lunch and meet other featured companies. 11:30-1 p.m. Tripps Restaurant, Virginia Beach. Invitation only.

28 — SBI Owners Council Luncheon* Come meet fellow OC members on the Peninsula. Speaker TBA. 11:30 a.m.-1 p.m. Schlesinger’s Chop House, Newport News. RSVP to info@smallbusinessinsight.com.

28 — SBI Magazine Networking Event Come meet the SBI staff and readers

1

8 15 22 29

2

9 16 23 30

3

10 17 24 31

4

11 18 25

5

12 19 26

6

13 20 27

7

14 21 28

* Guests who qualify for membership of the Owners Council can attend a Council event once for the member price of the event.

4 Small Business Insight | July 2010

CONTENTS

July 2010

INSIGHT

The Business of Having Fun Lifestyle and leisure is a big-time industry in Hampton Roads, bringing in millions of dollars a year. SBI takes a look at small businesses that play a key role in these efforts.

On the cover

From left, VP and general manager Ray Perry, President and COO Kevin Johnson, owner Maurice Slaughter of Bayside Harley-Davidson show off bikes in the showroom.

Photo by Paul Chin, Jr.

p. 14

Photo by Surf Hatteras

Featured Businesses include:

Astro Entertainment v Bayside Harley-Davidson Cinema Cafe v East Coast Leisure v Final Kick Sports FTP Fitness v Hampton Roads Priahnas Soccer Jan’s Gym v Q-Master Billiards v Surf Hatteras Tasteful Treasures v Town Center Fitness Whalebone Surf Shop smallbusinessinsight.com

5

CONTENTS

COLUMNS

9 10

Downstream systems

If your business revolves around online sales, you need to make sure the right hand is talking to the left hand.

In other words, learn how to integrate your shopping carts with other systems for optimum productivity.

Should you convert your Roth IRA?

Before making any major decisions about your Roth, there are a few topics you’ll need to cover with your financial planner.

STRATEGY

SUMMER SIZZLE

COMMUNITY

33 34

Find a sweet suite.

Learn what tips to use to help market your business, even in the dog days of summer.

40

College Park Executive Suites owner provides solutions for businesses looking for office space.

Realign your perspective.

Chiropractor David Packer relfects on his strategies on how to incorporate good business practices with the niche business of chiropractic medicine.

u HUNT AND PECK | Old typewriters adorn the shelves at Powers Business Machines: a reminder of how this business has evolved from older machines to the latest high-tech office equipment for the past 40 years.

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6 Small Business Insight | July 2010

Contributors Since serving his country as a naval officer and a graduate of the U.S. Naval Academy, T.J. Prieur has worked as a financial planner for the last nine years.

Because of his keen interest in small business, he has developed a speciality in working with those businesses and their owners. T.J. focuses in three main areas: helping business owners attract and retain needed employees, assisting them to develop strategies for transferring their business and wealth, and providing access to exit planning. His goal is to inspire clients to make informed decisions through communication, education, and service that exceeds their expectations. CRN 200911-2036747

900 Commonwealth Place, Suite 212 Virginia Beach, VA 23464 757-742-3233 | smallbusinessinsight.com e-mail: info@smallbusinessinsight.com

PUBLISHER Art Radtke

editor

Jessica O. Swink

Blake W. Dozier is a commercial real estate sales and leasing agent in the Norfolk office of CB Richard Ellis. He focuses on representation and advisory services for tenants, landlords, buyers, sellers, and investors of commercial real estate in Southeastern Virginia and anywhere clients have needs. He leverages the global power and network of the world’s largest commercial real estate brokerage firm with local market knowledge and experience to help his clients make informed decisions. Blake is a Virginia Beach native and graduate of Hampden-Sydney College.

consulting editor Karen Miller

Copy Editor

Caroline Dozier

Art Director Paul Chin, Jr.

Contributing Writers

Eric Brown Blake Dozier Caroline Dozier John Heenehan Karen Miller Al Moore T.J. Prieur Art. Radtke Jessica O. Swink

Contact Us Please e-mail info@smallbusinessinsight.com for information regarding: Advertising SBI Emerging Businesses Letters to the Editor SBI Owners Council Subscriptions

Eric Brown, CEO of Mobile One Courier & Logistics, started his company 14 years ago as a same-day courier service. Today in Hampton Roads, Mobile One has a staff of more than 60 people.

Diversified in providing total logistics solutions for businesses, Eric’s company specializes in providing distribution, warehousing and fulfillment solutions. Eric hopes to help businesses grow more efficiently by leveraging their time through outsourcing. This can ultimately help companies grow their top line and focus on their core business rather than their “backroom.”

Leon Garber is the President of Gaither, Garber & Associates, a boutique Mergers & Acquisitions firm based in Hampton Roads that advises business owners on how to sell, buy, and finance their smaller middle-market companies, while also serving as the intermediary in M&A transactions. Exit strategy planning and family-business consulting are also growing focuses of the firm, as most business owners have not thought through their exit plan and are often struggling to resolve the interrelations between family members and the business.

Al Moore, President of Marathon Consulting, LLC, launched the company in 2006 when he recognized how difficult it was for Hampton Roads businesses to acquire world-class information technology services. Marathon has provided IT solutions to more than 70 clients and currently employs more than 20 professionals. Services include custom software development, packaged software selection, website design and construction, search engine optimization (SEO), and IT advisory services. Al is a Norfolk native and graduate of Old Dominion University.

smallbusinessinsight.com

7

Sick of free networking events with the same crowd?

As a small business owner, you don’t have time to waste when it comes to making connections that matter.

SBI Emerging Businesses is a new organization focused on networking businesses with an annual gross revenue of less than $1 million in the last fiscal year.

Here, you can meet other business owners and entrepreneurs, as well as participate in educational forums, planning retreats and peer advisory.

To qualify, applicants must own 10 percent or more of a privately held business with an annual gross revenue between $200,000 and $1 million in the last fiscal year.

All businesses are welcome to join.

We serve a broad range of companies: financial, legal industrial, and more.

EB members must also display a willing and active interest in promoting small business growth throughout Hampton Roads as well as a desire to push their company’s performance to a higher level of excellence.

The annual fee is $250, plus a one-time $100 registration fee. For more information, e-mail info@smallbusinessinsight.com or call 757-560-4640.

Editor’s Desk

New Kid on the Block

Hi. My name is Jessica and this is my first official issue of SBI as the new editor.

Phew.

As you may already know, Small Business Insight is the brainchild of Art Radtke and one of our contributors, T.J. Prieur. What Hampton Roads needed was a place for businesses owners to share resources, building up not only the business community, but the community as a whole.

Big project, right?

Trust me, these guys know what they are doing.

While the magazine is a great tool to reach business owners, I don’t think I need to explain why the magazine can’t stand by itself to do what we hope to accomplish. This is why SBI provides Owners Council and Emerging Businesses to connect business owners with other business owners.

That’s what Art, T.J. and the rest of the team are great at doing. What they realized, though, is this magazine needs someone with a little experience in journalism (there’s not a lot of that going around, by the way), so that’s where I came into the picture.

So far, each day is better than the one before it.

There are quite a bit of challenges ahead of me, as there would be with any newbies at the reins of a brand new magazine, but I’m ready to continue taking this magazine to the next level each month. A few things on my to-do list include giving our magazine an updated look, building out our online presence and increasing our number of strategy and how-to articles for the magazine.

I’ll be honest: I need all the help I can get.

Making each issue relevant and fun to read is something I will try my best in accomplishing, I promise. However, I would love feedback, including letters to the editor. Any ideas you have for business you’d like us to feature, stories you would find relevant, what we could do better, or if you’d just like to talk Auburn football, I would love hear what you have to say.

That being said, this issue has been a blast to put together. How many business magazines are out there that have an entire issue dedicated to the business of having fun, featuring surfing, shooting pool, DJs, throwing parties, and riding Harleys?

Not enough, I assure you.

Be sure to check out the community section too, where we feature a great office machine business celebrating its 40-year anniversary. These stories are some of my favorites as it shows business owners that are not only passionate about what they do, but have done whatever it takes to keep up with their industries, regardless of what changes come their way.

Courier Services. Warehousing.

Fulfillment. Distribution.

TM

Courier Services z On-Demand Delivery z Scheduled & Routed Solutions

Warehousing z Receiving & Storage z Inventory Management

Fulfillment z Pick, Pack & Ship z Kitting z Shopping Cart Integration

Distribution z Mission Critical Delivery 24/7 z Same-Day Routed & Supply Chain z Overnight & Ground Shipping

For more information, contact: Eric Brown Mobile: 757.449.5013 | Office: 757.622.9500 Email: eric.brown@mobileonecourier.com

w w w. m o b i l e o n e c o u r i e r. c o m smallbusinessinsight.com

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10 Small Business Insight | July 2010

Columns | How to shop for shopping carts AL MOORE MARATHON CONSULTING

M

Downstream Systems in E-Commerce y last article, “Website and Storefront Considerations,” addressed the various factors that affect the selection and implementation of a successful e-commerce application.

This article addresses the e-comm storefront’s need to share data with other business systems.

For the business owner who is about to launch a new e-commerce store, a major IT challenge may be in store — ­ sharing e-comm data among the other systems used to run the business. These systems, referred to as “downstream” or “back-office” systems, will include both internal systems and systems needed to share data with trading partners. Systems such as inventory management, financial and cost accounting, logistics, order fulfillment, supply chain, EDI, and others may require batch or real-time data loads in order to process e-comm sales.

This data is not limited to elements that flow out of the e-comm application.

There is usually a need to load data into the e-comm app in order to provide pricing data, on-hand and available-to-promise inventory quantities, product images, etc. The higher the number of items for sale online, the more automation will be required. If you are selling thousands of SKUs, manual updates to the shopping cart will not be practical.

This is one area where a startup enterprise has an advantage over a long term, brick-and-mortar player launching their first e-comm store.

The startup has the advantage of implementing new software to meet the company’s back-office needs. Modern systems are not only more capable of

sharing data with other systems; they are often configured to meet the basic needs of the new firm with one package: inventory, purchasing, logistics, and accounting. This enables the implementation team to limit their efforts to one database with uniform table structures, and consistent processing timetables. This reduces the time, cost, and risks of the implementation.

On the other hand, established firms may have adopted a best-of-breed system strategy under which each need is met by a different software system, or with several “home-grown” systems. This imposes the need for careful analysis of the interface requirements and can easily extend the e-comm implementation for months.

Meeting this challenge requires just a few simple steps. Assuming that you have selected an e-comm (shopping cart) solution that meets your sales needs, undertake the following steps:

1. Determine the e-comm application’s

ability to perform any tasks the downstream systems usually perform. a. If so, is reliance on the e-comm system a viable solution?

2. Determine how the items sold online will be replenished and what system will notify the buyer.

3. Identify the systems that must receive sales data from the e-comm application.

4. Understand and document the format and frequency of the data that must be received by each system. a. How will product numbers be managed and coordinated among the systems?

5. Define the e-comm application’s ability to export sales data. a. What data is included? b. Is data in detail or summary format? c. Frequency of the export? d. How does the system track which data has or has not been exported? e. Can the data be exported on a realtime basis, or is it a batch process?

6. Understand and document all of the data that must be imported by the ecomm application. a. What data? b. What source? c. Frequency?

As in all other information technology projects, the key to success is the definition of requirements for the new system. By understanding the full scope of an e-commerce launch, and the tasks required to support all of the company’s information needs, the behind-the-scenes technology will not be an impediment to success. smallbusinessinsight.com

11

Columns | Investment Planning T.J. PRIEUR SAGEMARK CONSULTING

Y

Is a Roth Conversion In Your Near Future? ou’ve likely heard a lot about Roth IRA conversions in the last few months. If you don’t act soon you may miss your chance to take advantage of this opportunity. In 2010, the mandated income limits that preclude high earners from converting their traditional IRA accounts to the Roth are temporarily suspended.

So now that we’re in 2010, you can make the switch anytime, but should you? The advantage is that the funds you’ve converted to the Roth will accumulate tax-free from that day on. That’s a great benefit, of course, but it means you’ll have to pay taxes on the assets at the time you make the switch. Of course, you may have smaller plan assets today than you did a year ago — meaning you’ll pay less income tax.

Your financial planner can help you determine whether the conversion makes sense. Some issues you’ll likely discuss are: Your income. In 2009, you could have converted to a Roth only if you had modified adjusted gross income (MAGI) of less than $100,000 (the limit is the same for single and married filers). But in 2010, the income limit for conversions was eliminated, so additional individuals may convert. (You still must meet income-based eligibility requirements to make contributions to the Roth account.)

The tax bill. When you convert a traditional 401(k) or IRA to a Roth, you must pay income taxes on the amount you have converted (less the after-tax contributions) from non IRA funds to make this strategy work. If you don’t have the funds on hand to pay that bill, you may want to consider taking a pass on making the switch. Taking money out of your IRA to pay the taxes doesn’t make sense since the withdrawal for tax purposes will itself be taxed, and generally will incur a 10 percent early-withdrawal penalty if you’re younger than 59½. You will also have fewer

12 Small Business Insight | July 2010

assets invested than when you started the conversion.

Special rules in effect for 2010 provide some flexibility that may help you pay conversion taxes. For this year’s conversions only, you can elect to recognize the income (50 percent each year) on your 2011 and 2012 tax returns, rather than taking the hit all at once.

Of course, if you expect to be in a substantially lower tax bracket when you begin withdrawing the funds, it will not make sense to pay the taxes now. You might be better off sticking with your current tax-deferred account.

Your timeline. In general, the longer you have until you need to withdraw the funds, the more you may benefit from a Roth’s tax-free growth potential. That makes younger savers with a few decades before retirement prime candidates for the conversion. You have to hold a Roth IRA for five years and be at least age 59½ for earnings withdrawals to be tax-free. Early withdrawals may be subject to penalties.

Conversely, you may decide not to convert if you expect to draw on your funds in the next few years. Your account is likely larger at that point, and you may be better off paying taxes on your withdrawals spread out over your retirement years than you would be taking a large tax hit all at once.

Estate planning. Unlike traditional IRAs and 401(k)s, Roth IRAs do not come saddled with required

minimum distributions (RMDs) once you hit a certain age. The lack of RMDs means you can leave assets in the plan as long as you wish, potentially helping accumulate wealth, income tax-free, for your heirs. However, upon your death your beneficiaries will be required to take RMDs. Tax diversification. Although no one knows what tax rates will be in the future, conventional wisdom suggests they may be going higher – a point in favor of making the conversion now. Holding both taxable and nontaxable accounts can help you prepare for any scenario.

T.J. Prieur is a registered representative of Lincoln Financial Advisors Corp., a broker/dealer, member SIPC, and offers investment advisory service through Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor, One Columbus Center, Suite 800, Virginia Beach, VA 23462. (757) 777-3137. TJ.Prieur@LFG. com . Insurance offered through Lincoln affiliates and other fine companies. This information should not be construed as legal or tax advice.

You may want to consult a tax advisor regarding this information as it relates to your personal circumstances. The content of this material was provided to you by Lincoln Financial Advisors for its representatives and their clients.

CRN200911-2036424

What do you think tax rates will be in the future?

Source: Historical Federal Tax Rates 2009. U.S. Department of Treasury, Internal Revenue Service, Statistics of Income, Individual Income Tax Returns (2009). smallbusinessinsight.com

13

Work Hard.

Play Harder.

14 Small Business Insight | July 2010

Flawack.

Flawack.

Flawack.

generated in visitor spending, supporting 210,620 jobs in the tourism industry.

The sounds of filp-flops chirping in the sand are becoming a more common noise as summer officially sets in.

Fortunately for visitors and residents alike, plenty of businesses exist in Hampton Roads dedicated to the weekend warriors, family vacations, and dayto-day activities that add fun to the work day.

Since April, people have been flocking to the beaches, firing up the grills and slathering on the sunscreen. Even after summer is long gone, the brave will don scarves, earmuffs and heavy jackets on the beach, just to show their dedication to enjoying themselves, despite the elements.

If the residents of Hampton Roads know how to do anything right, it’s how to have a good time. Airshows, beaches, water and theme parks, and national parks are always teaming with people who like to play hard.

It’s not just fun and games, though. It’s a big business.

According to Bureau of Labor Statistics data, the leisure and hospitality industry in Hampton Roads employed more than 83,800 people in 2009.

Statewide, $19.2 billion was

This month, SBI takes a look at a handful of those businesses in this issue to give insight into what makes the passion for having fun profitable.

Index 16 Q-Master Billiards 17 East Coast Leisure 18 Surf Hatteras 20 Tasteful Treasures

22 Whalebone Surf Shop 24 Cinema Cafe 26 Astro Entertainment

28 Bayside Harley-Davidson 31 Hampton Roads Pirahnas Soccer 33 FTP Fitness 33 Town Center Fitness 34 Final Kick Sports 34 Jan’s Gym

smallbusinessinsight.com

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P’s and Cues

BY T.J. PRIEUR PHOTOS BY PAUL CHIN, JR

Barry Behrman has been running the table for 39 years.

He was just 25 when he opened his first pool hall in 1971. Today, Behrman owns QMaster Billiards in Virginia Beach, billed as the nation’s largest billiards room.

It draws 1,200 die-hard league players who play on its 72 tables every week. But it’s not because there are few places in the area to shoot pool.

“There are pool tables in every bar in Hampton Roads,” he says. “Our customers come here because this is a real pool room, billiard room ­— whatever you want to call it — and caters to real pool players.”

“No other pool hall in the world has its tables that far apart,” he says. “Most are four or four-and-a-half feet apart. The cue stick is five feet. We don’t want you to have to worry about someone at the next table bumping you.”

Respect is a big part of the game at QMaster Billiards. There are a number of ways you can scratch your way out the door.

“We don’t allow profanity,” Behrman says. “We have a dress code. If you wear a baseball cap, you can’t wear it backwards or sideways — only facing forward. I’m Jewish but I don’t allow religious headwear, including yarmulkes. And we have a tipping policy. If you don’t tip, you leave.”

To reinforce that last message, he put up

16 Small Business Insight | July 2010

a sign in the facility’s restaurant that reads: “Tipping is a part of life. My staff works very hard for you. They appreciate you and I hope you appreciate them.”

“I have strict rules and I am packed every night,” he observes.

Behrman is such a pool fan that he created the U.S. Open 9-Ball Championship in 1976. He hails it as pool’s longest running major tournament ever. The championship, limited to 256 players, will mark its 35th anniversary when it is held at the Chesapeake Conference Center this fall.

“This tournament is the place to be if you want to see the best players in the world,” he said. Behrman is so proud of the tournament in fact, he had “U.S. Open Founder” tattooed on his ankle. It’s his only tattoo.

Behrman says he fell in love with pool when he was 19 and saw professional pool player Wimpy Lassiter play. “I got real good, real fast,” he says. “I played pool every day ­— and

I mean every day — for six years, until I opened up my own place.”

The game has changed during the intervening years, especially the side bets between players.

“I went into business in 1971,” Behrman recalls. “In the first 10 years, 90 percent of my customers were gamblers. Today, 90 percent of my customers are league players and only 10 percent are gamblers. That’s the way the game is these days. The leagues have grown enormously popular over the last 20 years.”

Not everyone who comes to QMaster Billiards every day is flush with talent, Behrman acknowledges.

But they bring something else to the table.

“Some people come in here every week and are passionate about the game,” he says. “They can make only two, three or four balls in a row because that’s as far as their skills can go. But they know that. They’re doing their best and they love the game.”

t RACK ‘EM UP Owner Barry Behrman poses with customers shooting pool.

Insight | Lifestyle & Leisure

Year-Round Summer

East Coast Leisure makes a splash year round through diversification

BY T.J. PRIEUR PHOTOS BY PAUL CHIN, JR

Competing on price is important in many businesses, no matter the industry.

Pool and spa company, East Coast Leisure, has found a way to offer competitive prices like a large chain store while retaining its local character.

East Coast Leisure has grouped together with 15 other pool stores to form a purchasing cooperative. The stores are located in several states, including South Carolina, Missouri, Pennsylvania, Ohio and several in New York.

“That’s really one of the big keys to our success,” says Todd Glaser. “I don’t know about other industries, but in the pool business being large enough to buy direct from the manufacturer really helps with price, and you have to be large enough to do that.”

East Coast Leisure opened its doors in the Virginia Beach area in 1984 when Glaser’s father moved here from Florida.

“He started in the pool business in New York when he was in college and working for his uncle,” explains Glaser. Then he moved to Florida and then he decided to come here.”

The company has expanded to four stores in the past 10 years, with two in Virginia Beach, one Chesapeake and one in Newport News, as well as a warehouse located in Virginia Beach.

The store’s connection to the buying cooperative go back to the 1960s and his uncle’s store in New York. “Most of the members are in upstate New York: Albany, Rochester, Buffalo. They were each just far enough away to be outside the other’s territory, but they were close enough that they could buy together, and if someone ran out of something they could easily go get it or have it freighted

MIX IT UP | While swimming pools are big ticket items, East Coast Leisure owner Todd Glaser keeps an array of non-seasonal products to keep customers coming year round. over,” he explains. “When my dad opened his store in Florida he asked to join.”

Glaser says there it is a “balancing act” between having enough businesses involved to obtain good purchase discounts while not having so many “chiefs” that it is difficult to make decisions.

“With too many people, particularly when they are all business owners, you can have a lot of clashes. Everybody’s got to agree to buy the exact same thing or it doesn’t work,” he explains.

The 15 members own a total of about 35 stores. “That makes us pretty close to chain size. And even if we were a chain we would still need to have a hub and a warehouse to ship things out of.”

The purchasing cooperative has been one important part in the success of East Coast Leisure. The second ingredient, according to Glaser, is diversification.

The store carries billiard tables, spas, and patio furniture and accessories as well as selling pools and pool supplies.

Billiard tables are a popular item from September through November, while spa sales are year round. The pool season kicks off in February with a President’s Day sale, and in the past few years, even in a slow economy, sales of patio furniture and accessories have been good. “When people decide they can’t take a vacation they spend a little more money on their home,” he says.

“The pool business is a few months of the year. We have 25 full-time employees and they do receive benefits. We want to keep them working throughout the year,” he says.

Finding complementary products that keep customers coming to the store even when the weather is cold is the key. smallbusinessinsight.com

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Insight | Lifestyle & Leisure

Surfing:

BY T.J. PRIEUR PHOTOS CONTRIBUTED BY SURF HATTERAS

18 Small Business Insight | July 2010

The business where Casual Friday is everyday.

“Do what you love and the money will follow.”

It’s an old truism, but for Ross Byrd, founder of Surf Hatteras, there is truth in the truism. Byrd, an avid life-long surfer grew up in Virginia Beach and graduated from the University of Virginia. After graduation he took a job working with homeless people in the Charlottesville area.

“My work was so intense, weird, dangerous, and it was my first year of marriage. We were both really stressed out,” he says about himself and his wife, Hannah. So when a friend from home came up with the idea of developing a summer surfing camp for teens, Byrd was ready.

“I had the summer free, so I’d be the director on site. That’s how the plan started. I ended up basically designing the camp, and then suddenly he backed out.”

By coincidence, Byrd ran into another friend a few days later, and after telling him about the camp idea, he asked Byrd how much money it would take to get the camp up and running. “I said $56,000 and he lent me money. That’s all it took,” he says.

The first year, he adds, they “squeaked by and broke even” with about 30 kids in the program. But each year since they have done better.

This year, by late April they had already filled 110 of the 120 available openings for the eight sessions which begin the week of June 13. They take a maximum of 15 students per week and have a staff of 10 people. The two to one ratio not only insures safety and individual surfing instruction, it also helps to insure that each camper has a special experience, learning about himself, his peers and nature, explains Byrd.

The week-long sleepover camps are open to both

t FAR LEFT Campers pose for a group shot last summer.

LEFT Friendships made a Surf Hatteras last long after camp ends. pp LEFT | Surf instructors get rowdy in front of a favorite surf spot in Rodanthe, NC. MIDDLE | Campers paddle out to the lineup. RIGHT | Surf Hatteras founder Ross Byrd looks out at the surf. boys and girls ages 12 to 18. Campers live in a large house a few steps from the beach at Rodanthe, North Carolina. All surfing skill levels are welcome.

It is always a temptation for a business to get bigger, but Byrd wants to resist.

“We never want to have more than 15 kids in a week,” he says. However, he has thought about other ways to expand, such as spring break surfing trips to Costa Rica or other surfing spots or opening other camps with the same model in other locations.

Byrd credits Internet advertising with much of the success of his camp. “The first year we had a print brochure because I thought every camp should have a brochure,” he says. But they also opened a website and it didn’t take long to notice that while the print brochures were bringing in almost no customers, the website and Google ads were bringing in most of the business.”

“Our marketing strategy has been to dabble and see what works,” Byrd explains. He has

“It’s a week of their lives where they get to know each other and us and share the joy of surfing.”

taken classes and has read as much as possible about internet advertising. He works to refine his keyword searches to get the biggest bang for the least amount of bucks. His website has attracted campers from almost every state in the country as well as from Germany, Hong Kong, and France. That’s not bad, considering his current advertising budget is still only about $4,000 a year.

Byrd was the director of high school ministries for Galilee Church in Virginia Beach for three years, and now during the winter months he serves in the same capacity at Christ Episcopal Church in Charlottesville. He sees his work with Surf Hatteras as an extension of his ministry.

“It’s our vision and purpose; it’s a ministry and always will be, but not in the overt or even covert Christian sense. We aren’t going to get you here and make you do Bible studies. We aren’t outwardly religious at all,” he says.

“We’re about loving kids where they are at and helping them to be in an atmosphere where they can experience relationships, fun and beauty in a way they never have before. It’s a week of their lives where get to know each other and us and share the joy of surfing.”

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Insight | Lifestyle & Leisure

Girls Just Want to Have Fun

Tasteful Treasures Owner Keeps it Businesslike and Ladylike

BY T.J. PRIEUR PHOTOS BY PAUL CHIN, JR

“I want our business and our girls to be seen just like Mary Kay or Tupperware. We’re no different except for the products we sell,”

Y

says Kim Williamson, founder and president of Tasteful Treasures.

es, Williamson’s “girls,” as she calls her sales representatives, have the same goals as women who open a networking marketing business such as Mary Kay. They want the freedom that comes with being their own boss, the ability to set their own hours and make as much money as they can based on their own hard work – not be stuck with a salary that only grows at the whim of a supervisor.

They enjoy travel opportunities that come with conventions and seminars and they want the benefit of an insurance and retirement plan.

So what’s the difference? Tasteful Treasures sales representatives are “Romance Enhancement Specialists” and their products range from lingerie to other “romantic enhancements.”

“People want to put us in the wrong category. The misconceptions about our business are always tough.

Everyone wants to put us with pornographic materials, but we never step over that line,” says Williamson. “We never sell anything that would stop and make someone say, ‘Whoa!’ We are never x-rated.

Everything we do is businesslike and ladylike.”

20 Small Business Insight | July 2010

In fact, after 15 years in the business, Williamson is hoping that in the next 10 years or so her daughter, who recently graduated from college, will become interested in taking over Tasteful Treasures.

“She’s not interested yet, and that’s good. I want her to have experience with other companies before she decides if she wants to work here,” says Williamson. And, she admits, as a certified workaholic, stepping back from the business will be difficult when the time comes.

“I think I’m just like my dad,” she says. Her father, an architect, still has not retired from his business.

In fact, her dad is her role model in more than just “workaholic ways.”

“My dad was a good role model. He started his own business when we were young and I saw his work ethic.” In fact, they still meet at least monthly for lunch to discuss their respective businesses. “It’s kind of nice to have someone to talk to who understands, who can relate to the same problems,” she says.

She discussed her idea for her business with her father before she started it. “He wasn’t sure about it at first; not about my going into business, but about the nature of the business. He was kind of embar-

FAMILY INFLUENCE | Tasteful Treasures owner Kim Williamson attributes her work ethic to her father, and hopes to one day pass her business along to her daughter. rassed, but now he holds his head up high and tells all his friends about it,” she says.

Williamson’s current goal for her business is to expand and grow. She currently has representatives in Canada and is working to set things up for two representatives to begin selling her products in Germany.

Her advice to new and prospective business owners is to be prepared to work 24 hours a day and not to expect the money to “come rolling in right away.”

But over the years, she says, the advantages of being a business owner have far outweighed the disadvantages: “I’m always doing different things and meeting new people. I’ve gotten to go places I never would have without the business.” But best of all, she says, is knowing that her work is helping other women to own their own businesses and enjoy the same advantages also.

Tasteful Treasures is teaming up with Go Red For Women to help promote the awareness of heart disease, which is the number-one killer for women nationwide.

Financial support for Go Red For Women not only helps raise awareness, but contributes to the American Heart Association to help women take action by improving their diets, making doctors appointments and following regular exercise routines.

Visit www.goredforwomen.org for more information.

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SURFBOARD HEAVEN | Since 1975, Jim Vaughn has turned his passions into profits through selling surf gear.

22 Small Business Insight | July 2010

Insight | Lifestyle & Leisure

Not Your Typical Board Meeting

BY AL MOORE PHOTOS BY PAUL CHIN, JR Whalebone Surf Shop is known for having one of the coolest logos on the beach: the Jolly Roger with an appropriately threatening skull and two crossed surfboards where the bones usually reside. It is also well known for having one of the nicest owners in the business.

Mention the name Jim Vaughn to any surfer who knows him and the reply is always, “Jim Vaughn? Yeah, I know him. Jim’s a great guy.”

V

aughn found his calling a long while back, stuck with it, and now owns and operates two of the most popular surf shops on the Outer Banks and in Virginia Beach.

Vaughn founded his first shop on the Outer Banks in 1975. Asked to comment on his business success, Vaughn replied, “Summer sales were good.” Asked about winter sales, Vaughn replied, “Summer sales were good.”

Building on a strong reputation for quality goods and customer service, Vaughn consistently sought a location that would provide a strong sales foundation.

In the 26 years between 1975 and 2001, Vaughn moved the shop or opened a secondary location four dif-

ferent times. Locations bounced between Nags Head and Kitty Hawk, and even included a spot in the Outer Banks Mall.

Vaughn’s quest was suspended when he opened a store in the Hilltop area of Virginia Beach in 2001.

This location, while not identical to the one in Nags Head, does share two important qualities. First, both stores are very attractive, well organized, and well stocked.

Second, both stores provide a very high level of customer service.

Vaughn, still an active surfer, commented, “In this business, it’s all about treating the customers like they want to be treated. If your sales staff is not knowledgeable and eager to please, you will fail.” Vaughn likes to talk about service because this is an area to which he dedicates significant time and energy.

Vaughn is also proud of the products offered in his stores. He takes no shortcuts here, selling only the best-known brands of equipment and apparel. During peak season, over 200 surfboards, all from well known shapers, can be found in his store.

Whalebone also offers rentals for the first time surfer or visitor, along with a full range of surf and skateboard accessories. The apparel lines cover the full range of the latest offerings by the best designers and manufacturers in the world.

Vaughn’s longevity and reputation has enabled him to maintain close personal relationships with all of the leaders in the surf industry.

One of Vaughn’s new priorities is participation in the on-line sales market. His wife and partner, April, handles all of the systems and technical issues and is overseeing the revitalization of the shop’s website.

Vaughn is committed to learning more about it, saying, “I just started using Google a little while ago, and I see the enormous potential.”

Vaughn smoothes out his round-the-clock dedication to his family and business by maintaining a voracious reading appetite. He consumes books on contemporary public affairs, politics, and recent history, enjoying discussions of public policy. He can immediately recite a well thought out reading list for anyone who might be interested.

With the Nags Head location continuing to do well and the Virginia Beach store providing a solid yearround foundation, the future looks very bright for Whalebone. smallbusinessinsight.com

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An Eye on Tasty Profits Cinema Cafe Owner Discusses Growth, Challenges

BY T.J. PRIEUR PHOTOS BY PAUL CHIN, JR

24 Small Business Insight | July 2010

W

hen John Walker left his job selling commercial and residential real estate in the mid 1980s at Walker Realty, he assumed the departure would be a temporary one – “one to two years tops,” he says. Four Cinema Cafes and 23 years later, Walker has found himself still firmly fixed in the movie theater business.

t DINNER AND A MOVIE Cinema Cafe owner John Walker owns four locations of this popular movie theater across Hampton Roads.

Fond memories of dates to the Cinema Draft House in college prompted Walker and his wife to bring the Atlanta-born franchise home to Virginia Beach. They transformed a small two-screen theater into a new hybrid — a place where people could get dinner and watch a movie. Originally part of a Florida-based franchise, the Walkers bought out the franchise when it went out of business.

Since that time, the Walkers continue to mingle passion for their product and customers with an attitude of excellence, making Cinema Cafe a hometown favorite among local movie-goers. “It’s a fun business,” says Walker, “and I’ve always been customer service oriented, so it seemed like a good fit.”

Now with 50 full-time staff members, four locations, in Hampton, Chesapeake, Cinema Cafe Pembroke Meadows, and Kemps River, and up to 400 employees in peak season, Cinema Cafe has proven to be more than just a “good fit” for its owner. Competitive pricing on tickets, food, and beverage make the cafe one-stop shopping for a lengthy roster of loyal patrons.

With such success however, Walker knows that “you also have a lot of failure; and when that happens you can’t let it tear you down.” Construction and financing were a few of the biggest challenges for Cinema Cafe early in the game. Starting off as a mom and pop and then growing into multiple locations has been a difficult, but rewarding strategy. “We’ve always envisioned growing, though,” says Walker, and this path has actually helped to create “better systems and processes” for the business.

Walker describes his Cafe as a “niche market” with one simple philosophy: “The customer always has to leave happy.”

“And we really try to accomplish that,” says Walker. “I know you hear that a lot but we actually have systems in place to accomplish it ... And if we goof up, we admit it quickly and try to make it up to our customer before they leave. I think that’s important in all business.”

Walker values his customers’ feedback and trains his staff to do the same. “It’s important to see how the customer perceives our business,” he says. Simple surveys and incentives programs on bottom of Cinema Cafe receipts are just one example of this commitment to customer mutuality and service.

Walker’s story should be an inspirational one for those waiting for the breakout moment to begin a business we truly enjoy. His advice to fellow business owners just starting out: “Keep trying! A lot of people will have a good idea, but they don’t go out and push to make it happen ... and you’ve got to push if you really want it! Even if you have to change your plans a little bit to get there ... there’s always a way, you’ve just got to find it.” smallbusinessinsight.com

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Insight | Lifestyle & Leisure

King of the Party Steve Weddel rocks Hampton Roads, one celebration at a time.

BY T.J. PRIEUR PHOTO BY PAUL CHIN, JR

“Las Vegas may be known for its weddings, but Virginia Beach is the Mecca of wedding receptions,” concedes Steve Weddel, president and

general manager of Astro Entertainment.

Weddel should know.

Astro Entertainment, the top DJ and party service in the greater Hampton Roads area, provides the entertainment for about 1,000 weddings and receptions a year.

“I believe Virginia Beach is probably the largest resort city, and holds the most weddings and receptions each year per capita of any place around,” Weddel says.

Astro Entertainment, which earns $2 million a year, is involved in far more that just weddings and receptions. You can find its DJs and other entertainers performing at venues ranging from bowling alleys to bar mitzvahs, and from casinos to conventions. You can even find them making music at sea.

“We do 300 cruises a year aboard the Spirit of Norfolk — on two decks,” says Weddel. “We have four guys working full time as DJs just aboard the Spirit of Norfolk.”

While Astro Entertainment is in the business of partying, Weddel is quick to note that it is still a competitive — even cutthroat — business.

“Someone will come in, and we will train them and put them to work,” he says. “In six months they might leave and become a competitor. We understand that.”

Astro Entertainment, in fact, has found its way in a business to the top of the charts since it was founded in 1987 by Greg Chappell.

“A lot of us started as local radio announcers and gravitated to disc jockeys,” Chappell recalls. “Back in the early 1980s, I saw how the radio industry was changing and what was coming.

And I was right. The only ones making money in radio today are the owners, not the on-air personalities.”

Astro Entertainment began by providing DJs for school events, weddings and other functions.

26 Small Business Insight | July 2010

u HEY MR. DJ | Steve Weddel knows how to throw a good party. His $2 million business is a result thousands of events each year.

SOMETHING NEAT | This guy does neat stuff like all the time. Don’t take my word for it. Read on.

“We grew with some talented people,” Chappell continues. “Steve came on in 1991 with his insights and vision.

We became more than just a disc jockey company by developing casino and videography divisions. We stayed on the cutting edge of technology.”

Weddel, who started with Astro Entertainment as a regular DJ, developed an interest in the business side and soon moved into and up in management. In 2003, he took over as president.

“Astro Entertainment had a pretty good reputation when I started,” Weddel says. “We had about 20 to 30 DJs — but it wasn’t a place for a career. I wanted people to see Astro Entertainment as a career opportunity.”

The DJs, who originally earned a percentage of each job, soon became salaried employees. Today, Astro Entertainment has about 100 employees, including 40 full-timers.

Some have worked for the company for 20 years.

Weddel also worked to build and expand the client base. job for a night-time business.”

“To go to the next level, you have to build up the clientele Their weekends are really midweek because the volume of that have multiple events,” he says. their business is on everyone else’s “For instance, we worked with the “Astro Entertainment had a weekend. many military bases in the area and “On Saturdays, we might have 75 they now book us directly for all their pretty good reputation when events — 50 wedding receptions and weddings.”

I started ... but it wasn’t a 25 bars,” Weddel says. “The weddings Astro Entertainment also began to place for a career. I wanted are very important to our customers successfully target other large clients, — this is their day. We want to make people to see Astro such as the Virginia Beach Confersure it’s a memorable day.”

Entertainment as a career ence Center and its many convenHaving so many events means contions. stantly seeking and developing new opportunity.”

As Weddel and Chappell grew oldtalent in bowling alleys and local bars — what they call their farm system. er, their perspective evolved.

“In our 20s and 30s, we worked long hours to build the busi“We went to a hole-in-the-wall bar just the other night,” Wedness,” Weddel says. “Now that we are grown and have children, del says. “It took us back to our roots.”

It was music to their ears. we have been able to trim our workloads. We’ve created a 9-5 smallbusinessinsight.com

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Insight | Lifestyle & Leisure

Let’s Get Ready

To Rumble.

BY T.J. PRIEUR PHOTOS BY PAUL CHIN, JR 28 Small Business Insight | July 2010

HOG HEAVEN | General manager Ray Perry of Bayside Harley-Davidson shows off some sweet rides of the showroom.

smallbusinessinsight.com

29

Insight | Lifestyle & Leisure

M

aurice Slaughter began his career as a Burger King franchisee before shifting gears to run a Toyota dealership, then a Harley-Davidson dealership.

His daughter encapsulated his career in a quip: “Daddy’s been in the grease business all his life.”

That may be, but since opening Bayside Harley-Davidson in Portsmouth, Slaughter is letting it ride.

“I used to have to wear suits every day,” says Slaughter, who owns the dealership with his wife, Cynthia. “Now I relax in a Harley-Davidson shirt and jeans. I go riding with my customers. This fits my lifestyle.”

Speaking of his customers, they could write the book on brand loyalty.

“You know your customers are passionate when they tattoo the company’s name on their arm,” he says.

Slaughter clearly knows these people: “Our customers’ average age is 43 years and their household income is $85,000. They run across all demographics, white and blue collar — everybody.”

Not exactly Marlon Brando’s young and rebellious character in “The Wild One.” What’s more, 23 percent of his customers are women — twice the average rate for other dealers, Slaughter says.

“When a couple walks into a dealership, the salesperson will often talk just to the man,” Slaughter says. “We don’t do that here. We make certain to show equal respect.”

The dealership has a glass window so customers can watch their motorcycles being serviced.

“Women feel more comfortable with us when they bring their investment in for service,” he says.

And then there’s ladies night or what Slaughter calls a “garage party.”

“It’s for women only,” he explains, “and it’s an opportunity for them to learn about their motorcycle. They ask questions about how to change the oil or, if it lays over, how to get the bike back up by themselves.”

A photographer takes free photos of them on

p

BIKERS RUN THE SHOW | From left, VP and general manager Ray Perry, president and COO Kevin Johnson, owner Maurice Slaughter in the showroom office. their bikes, a hair stylist will do their hair, and there’s someone giving massages.

“We add a lot of fun and pizzazz,” Slaughter says, “but we also teach the women a lot about their motorcycles.”

If Harley-Davidson’s customers have changed, so has Harley-Davidson.

“Historically, a lot of people grew up the business,” Slaughter says.

“Their father might have had a garage and they became a dealer. As the business became more sophisticated, Harley started to look for a new breed of dealers. That’s why they got in touch with me.”

Slaughter has a solid business background. He earned an MBA in finance just before buying a Burger King franchise. When it came time to sell his Toyota dealership in Pensacola, Florida, he knew the importance of staff training, business planning and minimizing risk.

“Running a Harley dealership is a lot like running a car dealership except, in addition to the parts, sales and service departments, Harley-Davidson also offers clothing lines for infants, children and women, as well as business casual

“You know your customers are passionate when they tattoo the company’s name on their arm.”

30 Small Business Insight | July 2010

wear and jewelry,” Slaughter says.

When Slaughter opened Bayside Harley-Davidson, it was more than just another dealership. The interior of the 36,000-square-foot mega facility is designed to replicate an aircraft carrier’s flight deck — as a tribute to the area’s large U.S. naval presence.

There is also a seven-story motorcycle display tower — making it the world’s tallest Harley-Davidson dealership.

“The lifeboat is where our sales office is,” Slaughter says. “We have nautical names on the doors, such as morale lounge and captain’s quarters. All my senior management people, except my CFO, are retired Navy. Being at Hampton Roads gave me the opportunity to hire great management talent.”

The dealership’s eight-acre lot is used for safety riding courses. “Even if you rode 10 years ago and you’re getting back — you need to break some bad habits that could cause an accident,” Slaughter says.

To Slaughter, it is a ride worth taking.

“When you’re riding, you can smell freshly cut grass and feel the temperature change when crossing a bridge.

You don’t notice those things riding in a car. And it’s social. You and 12 other guys can get on your bikes and ride. You can’t do that with 12 guys in a car.”

Insight | Lifestyle & Leisure

Picture Perfect Opportunity

BY T.J. PRIEUR PHOTO BY PAUL CHIN, JR

“The bottom line is still the bottom line,” says Marcie Laumann; but

other than that, running a sports franchise is very different from most other businesses. Marcie is the owner and general manager of the Hampton Roads Piranhas Soccer franchise, which includes both a men’s PDL (Premier Development League), professional and amateur athletes, and women’s team.

L

aumann never expected to own a sports franchise. Although she was active in sports in high school and played soccer at Old Dominion in college, she felt that 25 years ago, there were no opportunities for female athletes once their college careers were over.

“I’d planned to become a lawyer, but after my first year in law school I came home and told my husband that I was bored. I wanted to open my own business instead of becoming a lawyer.”

As Laumann looked around for possible business opportunities she considered her two passions: sports and photography.

She opened a photography studio and specialized in sports photos. “One Hour Photo was just getting big at the time. We owned two of them. We had a staff of photographers who specialized in weddings and baby photos, but I wasn’t interested in that. I liked the sports photos.”

When the Hampton Roads Hurricanes, the first professional men’s soccer franchise in the area, came along, Laumann won the bid to become the official photographer for the men. One evening, while taking team photos, she heard some staff members discussing the USL’s (United

Soccer League) plans to open a women’s league.

“I went straight home, called the league and asked for information on starting a franchise,” she says. That was 16 years ago and Laumann has never once regretted her decision. While at first she divided her time between her photography business and the franchise, within a few years it became clear that the photography business was changing. “You had to either go digital or get out of the business,” she explains. Laumann decided to get out and focused full time on the Piranhas, which soon included both a women’s and a men’s team.

“Some people think that because the league has games for only three months of the year that I have a three-month job.

But the reality is that those three months are the easy part of the year for me,” says Laumann.

The rest of the year is spent working to market and brand the team, set up sponsorships, and practice what she calls creative bartering. “You have to figure out how to stretch a dollar, work with people, and come up with creative solutions to problems,” she says.

For example, while on the road Laumann noticed how much time was lost and

money was spent stopping for after-game meals. She got together with several other teams and arranged for a food barter.

When a team is on the road the host team will arrange for a meal to be delivered to their bus so that it can be eaten while they are driving back home. To arrange the meals, Laumann barters a team sponsorship package in exchange for the food.

The restaurant gets publicity for sponsoring the team while paying in food, which often costs them less than paying in dollars. Both teams save money on meals.

“That can add up to three or four thousand dollars a season,” she notes.

In a business where franchises come and go so quickly they often are barely noticed by the public, the Piranhas’ 16year history is a real success story. So what’s the secret? “You can’t run a franchise with your heart. It is still a business,” she says.

That means recognizing that you need to get the community behind you to make it a success. “We spend a lot of time organizing the next sports clinic and signing up the next school sponsorship. We know that the community doesn’t owe us anything. We owe the community.”

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Insight | Lifestyle & Leisure

Discovering Your Peak Potential

BY T.J. PRIEUR PHOTOS BY PAUL CHIN, JR

F

or many people, summer is a time to get back in shape. Warm weather beckons us to shake off the dust of winter and become more active. Bikes come out of the shed, Frisbees and racquets are pulled out of closets, and the unavoidable bathing suit season reminds us of just how little we may have exercised over the cold months. The confinement of the cubicle can also become unbearable. Temperatures go up outdoors while productivity and energy seem to go down in the office. Many of us are left pondering how to combat the corporate summertime blues.

After sitting down with four of the area’s top fitness specialists, SBI discovered that one of the best ways to maintain peak performance in the workplace this summer is by pushing your body to a higher level of physical fitness. Countless studies show us that people who focus more time on their personal health and wellness can lead happier, healthier, and more productive lives. Success physically can translate into your business. Owners of local small businesses Jan’s Gym, Town Center Kick Sports, FTP2010 Fitness show us how important it is to apply your workout to the workplace.

32Fitness, SmallFinal Business Insight and | July

FTP Fitness, 2312 Virginia Beach Blvd., Virginia Beach The adage “no pain, no gain” is just as true in the gym as it is in the workplace. Just ask Billy Yancey, former professional body builder and football player for the U.S. Naval Academy. Yancey explains that one of the biggest challenges for men and women when it comes to working out is that getting in the gym forces you to get up close and personal with yourself. “It’s not like team sports, this is one on one.” Working out forces you to learn your limits, set goals, push yourself to achieve.

“And in order to reach a goal, you have to get out of your comfort zone,” says Yancey, “That’s what I do on a daily basis, I disturb comfort zones.” The translation to workplace here is obvious, “Sometimes you’ve got to face the pain in your business,” says Yancey.

Yancey knows better than most anyone how growth in the gym will translate into the rest of your life. Having a son with cerebral palsy (who weighed 1 lb., 14 oz. at birth and was only given three days to live) definitely forces Yancey to face the pain on a daily basis. Now, nearly four years since his birth, Yancey’s son is defying the odds with the aid of his family’s encouragement, exercise and physical therapy. Such a struggle has empowered Yancey to inspire his clients. Today, the gym owner measures success by how many lives he can change.

Town Center Fitness, 205 Town Center Dr., Virginia Beach Tom Purcell has a passion for helping local executives bring the peak performance they strive for in his gym back into the office. Through 13 years in the business, Purcell has dealt with a lot of men and women who all seem to have the same excuse: “I don’t have time.” While this seems like a valid excuse, the truth is the busier you get, the more you need to make time for fitness. Purcell reminds us that while rest is essential, having energy is the best way to create more energy. He explains it like this, “Think about a 10-hour car drive. How do you usually feel when you’re finished driving?

Exhausted!” Purcell recommends exercising no more than an hour a day, four to six days a week. Purcell explains, “incorporate a workout into your business day (and) you’ll find healthier employees, better relationships, and more endurance to do work. For every dollar you spend on health and wellness, you get three back.”

Purcell’s recommendation for boosting morale, productivity, and consistency in the office is to try is Healthy Heart Program, which allows business owners to pay for whole or half of their employees’ gym membership fee, contingent on mandatory biweekly attendance. Purcell has found a 33-35 percent increase in productivity and gym attendance when businesses offer this program to their employees. “There’s got to be incentives to get people to actually go and twice a week is a doable goal ... 35 percent more productivity and health in your business is a great return! The last thing you want are clock watchers who just collect a paycheck.” smallbusinessinsight.com

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Final Kick Sports 2865 Lynnhaven Dr., Virginia Beach If you haven’t gotten the itch to lace up your running shoes, you may need to stop by Jim Golden’s triathlon store in Virginia Beach for further inspiration. Final Kick Sports is the only one-stop-shop triathlon store “from Richmond to Raleigh,” says Golden. Since taking over the store from Jerry and Amy Frostick (current owners of J&A Racing and operators of the Shamrock Marathon), Golden has continued to make Final Kick an essential key for the Hampton Roads community of athletes.

Looking for accountability to stay active and boost your productivity at work? Consider training for a marathon or triathlon. “You build a business plan the same way build a marathon plan,” says Golden. Everything gravitates out from the core. Having a strong core is what makes the whole thing work.” At Final Kick, the core principles are to promote “life-time fitness and to keep you moving,” says Golden. Using that fit philosophy, Final Kick shares the message of how important it is to stay healthy as part of the workforce. “Health insurance costs are high ... and the cost of a smoking employee is over $7,000 a year, factoring in loss of productivity and illness ... Two out of three Americans are overwhelmed and stressed and a greater number of diseases are taking a toll on the workforce and families.” To the CEOs who want higher productivity and team building, Golden says, “Inspire your team to get involved by purchasing 10 slots in a 10K.” The benefits of a team-building environment where exercise is a priority can almost always help overcome the issues plaguing the workforce today.

Jan’s Gym 2865 Lynnhaven Dr., Virginia Beach Try talking with Olympian and seasoned personal trainer Jan Trombley for five minutes without feeling inspired. The former national champion basketball player for Old Dominion University exudes energy and positivity in everything she does — undoubtedly the reason for her loyal client base. Though Trombley describes herself as being “born with the Olympian mindset,” two decades after competing in the Los Angeles Summer Games, she still wants her body to run like she’s 20 years old. “So that’s how I train everyday,” she says.

In light of the nation’s economic downturn, local small training facilities like Jan’s Gym have taken a hit. Despite these conditions, Trombley hasn’t lost a single client.

She shares a story of a client who decided to cancel his membership due to a struggling business. A month later, he was back in the gym, explaining that by not managing his stress level through exercise, he knew he wouldn’t be able to withstand any of the challenges he was facing in his business.

Long hours, skipped lunches, and lack of sleep and exercise add up. Performing your best in the office means taking care of your body. As Trombley explains, “If a maintenance light goes off in your car, you pull over and fix it. By the time a light goes off in your body, you’re probably already 50 percent diseased and you still don’t pull over! What are you waiting for?”

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Community | Executive Suites

One-Stop Shop:

All-inclusive offices give business executives peace of mind

BY JESSICA O. SWINK PHOTO BY PAUL CHIN, JR Stop by College Park Executive Suites anytime and you’ll be welcomed by classical music — if not first by a big smile.

“I think (the music) adds a more relaxing air,” says CPES owner Jackie Gilmartin. “There’s nothing I hate more than office buildings that have frenetic music.

It’s distracting, and I find it stressful.”

After reviewing the list of services provided by CPES, it’s easy to see that Gilmartin creates an office environment that is anything but stressful.

In addition to office leases including the basic high-speed Internet connections, access to conference rooms and after-hours access, CPES also provides rental furniture, full administrative services, overnight delivery and pick up, and receptionist services.

Not only are the conveniences of office management a plus, but Kimberly Davis of Northwestern Human Services reflects that Gilmartin is also supportive of her non-profit program.

“She offers support for what we do. We are a non-profit with a corporate office in Pennsylvania, so we have low overhead costs here,” Davis says. “Plus, she’s a notary, so that’s convenient.”

Davis shopped around for executive suites for seven months, but what sealed

u ALL SMILES CPES Owner Jackie Gilmartin greets everyone with a smile. the deal was the office management services of Gilmartin.

Gilmartin says her executive suites offer most of the same services of others in the area, but since she is a woman-owned business, her office space is often attractive to government contractors.

“The bigger picture is that not only the owner on premises, but I’m the most active person here,” Gilmartin says. “It they don’t succeed it reflects on me as well.”

According to Gilmartin, she has 15 physical tenants, but 20 virtual tenants, who use the building for a physical address for mailing and phone services, and have access to the facility as needed.

“Location of these offices is key,” says

Oak Management, Inc. senior systems analyst Philip Duquette, who drives to work from North Carolina. “All you have to do is jump on I-64 and you’re here.”

Duquette and Davis, both tenants of CPES, recommend the suites to anyone looking for affordable office space, either temporary or permanent.

“All businesses can benefit from executive suites because they aren’t cookie-cutter,” Davis says. “We have 50 employees, and they are all managed out of one office here.”

Gilmartin is happy to please. “I’ve spent most of my adult life supporting other businesses so I know how to do it and do it well.”

Are You Connected to SBI Online? www.smallbusinessinsight.com Stay plugged in for info about upcoming issues, events and information about SBI Owners council and SBI Emerging Businesses

facebook.com/SBI.HamptonRoads

@SBI_HamptonRds

Find our groups: Small Business Insight magazine, Small Business Insight Owners Council, Small Business Insight Emerging Businesses

Community | Local Businesses

Chiropractic Work is All It’s Cracked Up to Be “School taught me how to be a chiBY T.J. PRIEUR PHOTOS BY PAUL CHIN, JR

ropractor. It taught me all about the science. It didn’t teach me how to be a business owner, how to communicate with people, how to market, how to work with staff,” says Dr. David Packer, founder and

owner of Precision Spinal Care in Chesapeake.

Born in Virginia but raised in Las Vegas, Packer received a Bachelor of Arts in history and an MBA from the University of Nevada, Las Vegas; he also joined the U.S. Naval Reserve, serving his country during Operation Desert Storm.

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“Work with someone who is where you want to be ... That way, you don’t waste a lot of time reinventing the wheel.”

p THE DOCTOR IS IN | Dr. David Packer of Precision Spinal Care in Chesapeake spends time studying both business and medicine resources.

His early interest in chiropractic medicine was sparked again when his mother, who suffered from fibromyalgia, told him about a new treatment she was receiving, called NUCCA. Packer entered Palmer College of Chiropractic in Davenport, Iowa, and specialized in the treatment.

Packer explains that every function of our bodies, regardless of how large or small, is controlled by electrical and chemical messages that travel back and forth from the brain to all parts of the body at the rate of thousands of messages per second. Dr. Roger Sperry won a Nobel Prize by discovering that 90 percent of the brain’s activity is used to balance the body within the gravitational field of earth. He stated that if your body is off balance, it begins to affect the other 10 percent of the brain’s activity, which controls all the other body functions. The NUCCA Spinal Correction, which is painless and barely felt by the patient, is designed to restore body balance and normalize the flow of healing messages from the brain to all parts of the body.

After graduating from Palmer, Packer moved to Seattle, Washington, to train under one of the top-certified NUCCA doctors in the country, Dr. Lee G. Yardley. In 2002, Packer relocated to Chesapeake and has been in private practice ever since, but he credits the three years he spent with Yardley as his mentor for much of his success today.

“I’d read the book The E-Myth many years before and I always remembered the statistic that 95 percent of businesses fail within 10 years,” he says. The author recommends business use a “franchise model,” developing operating procedures that can be copied and reproduced. “While I was working with Dr. Yardley I not only learned about his techniques I also created a manual, like a McDonald’s, so that when I was out on his own I could follow his business procedures,” Packer explains. He credits his manual, which he says constantly must be updated, on much of his early success. “Our first month in business we did $8,000, our second month $9,000, and by

the fourth month we were in the $20,000s and we never looked back,” he says.

Packer didn’t stop his training or his research into both medical and business techniques when he opened his own practice. He not only is an avid reader of business books, he also hired a business coach to help keep him on track. But even the most successful business person can fall into “a rut,” he says, and a few years ago he realized he had done just that. “For three years we were consistently bringing in just shy of a million a year, but we weren’t growing,” he explains. Packer realized that if his business was to continue to grow he had to “shake things up.”

He attended new and different seminars and conferences and found a new business coach.

His goal now is to double his business in the next few years.

Of course, you can not run a large business without the help of staff and Packer credits his with much of his success. Dr. Allen Harrison and Dr. Armen Manoucherian both work with Packer. Having other doctors in his practice has also given him the opportunity to do something else new in his business — take some time off. “It’s great to know that if I’m not here my business is still running without me,” he says.

All of the preparation that Packer went through before opening his own practice kept him from having too many surprises when he did go out on his own, he says. “That’s what really enabled me to hit the ground running.

I see a lot of younger doctors struggling because they just haven’t been exposed to the experiences that I have.”

In fact, making sure that you find a mentor is his number one recommendation for anyone starting out in business. “Work with someone who is where you want to be. Surround yourself with people who have done what you are trying to do and succeeded, then learn from them. Mimic everything they do,” he says.

“That way you don’t waste a lot of time reinventing the wheel.”

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Community | Anniversary

40 Years of Power From Manual to Digital, They’ve Seen It All

F

BY T.J. PRIEUR PHOTOS BY PAUL CHIN, JR ew industries have changed as much in the past 40 years as the office supply and machinery business.

But Connie and Joan Powers have watched it all, managed to change with the times, and now are celebrating their 40th anniversary in business. Powers Business Machines, Inc., celebrated its 40th anniversary June 1. The business has grown from a one-person typewriter repair company to selling and servicing almost every type of high tech office machine available.

They’ve also increased to a staff of 17 sales and service people.

When Connie opened his door in Newport News, there were dozens of small, independently owned office supply companies throughout the area. He watched as one by one those businesses closed their door in the face of competition by big box companies like Office Max and Office Depot.

“We’ve had slow growth over the years. We haven’t had peaks, but we’ve also had no valleys to speak of,” Connie says.

He credits staying up with the times for their success. “We came out of the 70s and mostly repairing manual typewriters and manual office equipment and moved into the 80s with the electronic typewriters and calculators. Then we became associated with facsimile machines and electronic cash registers.”

In the 90s, they transitioned again and began specializing in high speed

38 Small Business Insight | July 2010

“It’s about being fair, honest and dependable. If you say you’ll deliver a product, you deliver it on time. It you give a guarantee, you stand behind it.” copiers.

“We learned from seat of the pants, so to speak. It was primarily analog copiers in early 90s, and then in 1998, Sharp was looking for a dealership for its full line of high-speed digital copiers,” he adds.

He is proud of his long-time association with Sharp. The company has received the “Hyakuman Kai” Award from Sharp, for outstanding Sales Achievement for Copiers and Fax Machines, for 10 years in a row.

“When the market changes you have to change the product and change the business. Each time something new comes along we have to get familiar with the new technology; our sales people have to learn it and our service people have to learn it,” he explains.

The company is known for its wide range of office supplies and equipment. “You can get everything for your office here except the people,” jokes Connie’s wife Joan, who has been his partner in business and marriage for close to 40 years, raising three children while running their business.

“We have everything from pens to printers, shredders to staplers, file folders to fax machines and copiers to calendars,” she adds.

It started, Connie explains, with a simple desire to help people. “I’d

come into an office to fix a typewriter and someone would ask me if I could get them a certain type of notebook with columns. If I didn’t know, I’d tell them I could find it for them, and I did.”

Connie and Joan believe they’ve been able to withstand the changes in their industry because of their relationships with their customers and their reputation for service.

“It’s about being fair, honest and dependable. If you say you’ll deliver a product, you deliver it on time. It you give a guarantee, you stand behind it,” he says. “I just talk to people, listen to what they need and then try to solve their problem.”

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Community | SBI Lunch

May Luncheon SBI Magazine

1.

Each month, Small Business Insight invites businesses featured in the current month’s issue to enjoy a lunch and meet other business owners. On May 18, we met at Coastal Catering in Virginia Beach for lunch, laughs and great networking.

At each luncheon, business owners have a chance to reflect on the current issue of SBI and offer suggestions for future story ideas, potential businesses to feature and learn of future opportunities to connect again through organizations like SBI Owners Council or SBI Emerging Businesses.

2.

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3.

The food was great, the staff was friendly and overall, everyone had a great time reviewing the magazine and meeting one another.

Here’s to another great event to help connect small business owners!

— Jessica O. Swink

4.

Community | SBI Lunch

Who’s Who at Lunch:

v 1. Khoi Vu and Jim Marx of Broad Bay Cotton look over their company’s feature in the April edition of SBI. v 2. Rowena Fullinwider of Rowena’s passes out her famous cookies to all tables at the luncheon. v 3. From left, Jennifer Elizando from Navan Foods, T.J. Prieur of Lincoln Financial, Kyle Smith from FocusUp, Zack Howell from Xooma Worldwide, David Nesbitt from Xooma Worldwide, Ron Howell from Xooma Worldwide and Catesby Jones of Peace Frogs sit down for lunch. v 4. Nicole Livas with WAVY 10 TV speaks with April Spring of FOXERS. v 5. Ron Howell of Xooma Worldwide and Nathan Richardson of Marlowe’s Telecommunications share a joke. v 6. Larry Robertson, Convergent Technologies; Blake Dozier, CB Richard Ellis; Ron Heider of Heider Marketing & Advertising and T.J.Prieur of Lincoln Financial speak after the luncheon. v 7. David Nesbitt of Xooma Worldwide speaks with Christy Morris of Marlowes Telecommunications. v 8. Al Moore of Marathon Consulting discusses ecommerce systems with Barb Smith of Cherry, Bekaert & Holland; Jennie Taylor Martin of Edgar Cayce A.R.E. and Angela Blanchard of Blackhawk.

5.

8.

7.

6. smallbusinessinsight.com

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Strategy | Summer Marketing

It’s summer.

Make a splash!

We have been trained since school days that summer is a time to slow up and relax; the problem is that the bills still need to be paid! The secret is to use the magic of summer to drive your business growth. Here a collection of marketing ideas to drive business.

1.

Host a fishing tournament as a fund raiser for charity that you support includes lessons. Try to provide an array of prizes to involve all of the participants. While promoting the event, don’t forget to visit local bait shops and meet the owners.

2.

Throw a beach party. Supply food and drinks and don’t forget the fun games! Summer favorites include beach volleyball, horse shoes, badminton, corn hole, and bocce ball.

42 Small Business Insight | July 2010

3.

Host a barbecue. Invite your clients, prospects and neighbors to a grill-out at your business. Set up in the parking lot or have barbecue served in your office. Make it fun and include a gift certificate to a local ice cream store for anyone who wears flip-flops.

4.

Pick up the phone. When you are on vacation, plenty of time is spent in the car or airport terminals waiting on transportation to get you where you’re going. During this time, schedule quick appointments to call your clients and thank them for being your clients.

5.

Have a wine tasting at a local boat dealership.

Include your local boat lender and insurance professionals and have them bring guests.

6.

You don’t have to hit the links to have a fun day of golf. Throw a golf tournament at a local miniature golf course with trophies and awards banquet afterwards.

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www.paulchinjr.com paulchinjr@gmail.com | 757.630.2183

Commercial, Event & Por trait Photography

44 Small Business Insight | July 2010

smallbusinessinsight.com

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Most Franchisable Businesses Small Business Insight is recognizing local businesses that have what it takes to franchise their business. Some qualities include: • • • • •

Highly profitable business model Fully developed sales strategy Unparalleled organization and business leadership from owner Strategic, targeted marketing campaigns Proactive goal-setting and goal-reaching metrics

The top five businesses will be profiled in the September franchising edition of Small Business Insight, and winners will be announced in the October edition. (Nominated businesses do not need to have plans to franchise. We’re simply looking for noteworthy business models.)

E-mail nominations to info@smallbusinessinsight.com. Businesses can be self-nominiated or can be nominated by other businesses. All nominations are due by July 5.

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Can you double the income of your business in 90 days?

Many don’t think that it’s possible. It is possible and you can see if it is possible for you by joining a room full of like-minded business owners and professionals for the Double Your Income Workshop.

The workshop is for business owners and professionals that want to achieve a substantial increase in the growth of their business.

The Double Your Income Workshop is a two-hour strategy seminar that gives you the opportunity to explore what you can do to double your business income in as short period of time as 90 days.

This workshop is led by a Team Nimbus certified facilitator who works with small business owners and sales producers to have extraordinary results in their businesses and their lives.

This workshop is fun, fast-paced and informative, and you have an opportunity to meet all the other business owners and professionals that are interested in growing their businesses rapidly.

This workshop is free!

SAVE THE DATE

When: July 7, 9-11 a.m.

August 4, 9-11 a.m.

Where: One Columbus Center.

Town Center, Virginia Beach 4th Floor Conference Room RSVP: You must register for free online at doubleyourincomehr.eventbrite.com.

Only 40 slots are available.

Contact: For questions, please call 757-560-4640.

48 Small Business Insight | July 2010