Southern Business Journal, August 5, 2014 by The Southern Illinoisan

S O U T H E R N

Serving 18 Illinois counties • www.sbj.biz

AUGUST 2014

“One Region, One Vision” ™

SHARING IN THE RISKS AND REWARDS OF OWNERSHIP | SEE PAGE 3

August 2014 Southern Business Journal

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Fine Print Building permits Carbondale‌

Daielle Crum, 615 N. Allyn St., $130 Carol Czmyrid, 400 S. Skyline Drive, $2,500 James Jaikoh and Maria Simol, 910 N. McDaniel St., $300 Southern Illinois Paint Supply, 204 E. Walnut St., $25,000 R. Throgmorton/Giant City Htg., 8609 S. Giant City Road, $5,000 Stix Bar and Billiards, 517 S. Illinois Ave., $11,500 AT&T Communication, 1450 Radio Drive, $25,000

Metropolis‌

A.J. Brown Inc., 100 Front St., $4,000,000 SIGNCO, 1502 10th St. W, $12,485

Mary Atkinson, 410 Sixth St. W, $12,000 Mary Parmer, 102 Oak Drive, $5,000 Ribbons and Beaus, 905 Fifth St. E, $437

Marie McHenry, 2217 Cherry, $0 Gary Bradshaw, 512 Broadway, $100,000 ALC Investments, 3 N. Cusumano Professional Plaza, $480,000 St. Mary’s Catholic Church, 1416 Main St., $0 Mount Vernon‌ Central Christian Church, 301 N. 10th St., Alexandria Wright, 66 Beech Drive, $3,800 $4,000 A &T (cell tower), 7 Cusumano Professional Lucky’s Beer Wine and Spirits, 1713 S. 10th St., Plaza, $19,000 $550,000 First Church of God, 1000 N. 42nd St., $17,000 Relay For Life of Jefferson County, 4212 Demian Waller (Shorty’s) 515/517 S. 12th St., $0 Broadway, $0 Demian Waller (Shorty’s) 1225 S. 10th St., $0 Relay For Life of Jefferson County, 1010 S. 10th Johnny Kaushal, 16 Kingsridge, $46,000 St., $0 Eric Ashby, 1319 N. 11th St., $65,000 Habitat for Humanity, 309 Marteeny, $108,000 Tony Clark, 129 E. Last St., $0 Mike Hanson, 14605 N. Old Centralia Road, Wes Rogers, 1321 S. 10th St., $3,500 $18,000 AT&T (cell tower), 1900 S. Eighth St., $35,000

Jefferson County Shriners, 1400 Main St, $0 Barbara Strickland, 15538 Old Centralia Road, $3,000

Murphysboro‌

Michael Sullivan, 2116 Roblee Ave., $7,500 Michael Schumaker, 2003 Illinois Ave., $1,500 Jason Brannon, 920 N. 22nd, $4,500 Ryan Kennedy, 624 N. 22nd St., $4,000 Chris Grither, 383 Amusement Park Road, $150,000 Eric Miller, 430 Wells St., $3,000 William and Lois Murphy, 215 S. Ninth St., $500 Michael Burke, 389 Wells St., $16,000 Ron Milton, 1601 Gartside St., $1,000 Mary Ahlheim, 734 N. 11th St., $3,000

Bankruptcies Chapter 7‌

Randy A. Evans, 187 E. Autumn Ridge Road, Carbondale Jack C. Yarbrough, 104 Division St., Anna Matthew S. and Jacinta N. Hupe, 303 Prentice David W. Batts, 17019 Illinois 149, West Frankfort St., Carterville Austin B. Rice, P.O. Box 496, Hurst Heather Jo Rogers, 1383 Coral Way, Carbondale Larry D. Skaggs Jr., P.O. Box 123, Olmsted Matthew D. Fisher, 205 Walnut, Browns Roger D. and Lucrecia Short, 603 Jackson St., Shannon D. Hearst, 802 Sixth St., Bluford Karnak Carole R. Sandusky, 101 Fifth St., Carmi Amy Beth Basham, 807 E. Fifth St., Metropolis Rusty Lynn Pritchett, 835 Eagle Point Bay Road, Jana L. Bayless, 136 11th St., Carmi Gene A. Jacquot, 453 Hiser Road, Murphysboro Goreville Daniel J. and Michele R. Halligan, 902 S. Cross Lloyd E. and Alice M. McCann, 137 W. Chestnut St., Crossville St., Anna Vicki Lynn Brandon, P.O. Box 32, Enfield Kelia B. McCoy, P.O. Box 3945, Carbondale Gregory Allen Wilkinson, 331 Poplar St., Mount Jeanette Marie Owens, 628 Berkley, Carbondale Carmel Katherine M. Reid, 405 S. Main St., Belle Rive John C. Miller, 1609 Newton St., Eldorado Andrea L. Woods, 12270 Cochran Road, Marion Jennifer L. Berry and Liddell M. Berry Sr., 909 W. Gale L. Homuth, 10057 Whitecotton Road, Pecan St., Carbondale Marion Kenny D. and Patty Weatherington, 230 Old Cape Road, Jonesboro Chapter 13 Annette K. Taylor, 592 Illinois 15, Albion Rosetta O’Dell, 205 Mitchellsville Road, Carrier Margaret M. Farley, 16626 Fairfield Road, Mount Mills Vernon William J. Crabtree, 216 W. Monroe, Herrin Kristopher Todd and Rebekah Marie Bass, 32 Carroll D. and Linda F. Berlin, 8601 Gold Hill, Crosby Lane, Carbondale Shawneetown Kenneth W. and Tasha L. Clover Jr., 1188 Inman Elizabeth A. Bigham, 414 Union St., Cairo Road, Ava Kenneth D. Jones, 740 Fourth St., Tamms DeeAnn McGowan, P.O. Box 713, Harrisburg Wndell R. Tucker, 805 N. Monroe, Apt. A., Shirley L. Rosenow, 1813 W. Cherry St., Herrin Marion Harold L. and Evelyn M. Livesay, 600 Old Willards Tina Stucker, P.O. Box 4, Hurst Ferry Road, Jonesboro Amanda L. Bundren, 850 Pierce Square, Herrin Nathan Daniel Elders, 1811 W. Cherry, Marion Edward L. and Barbara A. Beavers, P.O. Box 62, Anthony C. Owens, 605 Studell St., Benton Shawneetown Justin Lee and Beth Ann Rivard, 503 Back St., Brainard E. Hagler, P.O. Box 35, Mounds Wayne City Travis W. and Shanna M. Scott, 206 W. Ogara St., Harrisburg Thomas A. Carter, P.O. Box 43, Colp Floretta A. Deppe, P.O. Box 335, Percy Steven C. Waterbury, 808 S. Bently, Apt. A, Linda L. Irby, 10256 Day Road, Marion Marion Dennis L. and Marla R. Mandrell, 512 S. Elm St., Jennifer S. Ross, P.O. Box 278, Willisville

Sesser Joshua D. and Krystal N. Smith, 407 W. Cherry St., Norris City Charles Gene and Elizabeth Ann Pierman, 5049 Lock and Dam Road, Modoc Cheryl L. James, 14470 Cambria Road, Carterville Brandy D. Hankins, 1403 E. Poplar, Apt. 3, West Frankfort Ezra L. and Laura J. Reams, 449 San Francisco Road, Carbondale Lance Tyler Korando, 908 Stratton St., Chester Martin K. and Charlotte E. Yancey, 315 N. Brown St., Benton David Warren Mitchell Sr. and Pamela Kaye Mitchell, 710 Second St., Tamms Thomas K. Gowin, P.O. Box 283, Olive Branch Curtis G. and Cathy A. Conley, P.O. Box 36, New Burnside Randall S. McFarland, 18243 Illinois 149, West Frankfort Darren F. Grigsby, 314 E. Chestnut, Carbondale Troy W. and Teresa A. Allsopp, 1691 Pulltight, Carterville Richard P. and Amanda J. Pryor, 2013 U.S. 51, Du Quoin Barbara Elizabeth Sarapin, P.O. Box 2894, Carbondale Brad E. Trent, 18414 New Ohio Coal Road, Pittsburg Robert L. and Robbin A. Andrews, 107 W. Park, Benton Jill Rene Winner, 711 Katie Lane, Herrin Iris L. Johnson, 385 Bryden Ave., Vergennes Floyd L. Cook, P.O. Box 265, Murphysboro Kimberly Jean Orr, 104 E. Hawkins St., Apt. B, Pinckneyville Gregory L. and Janetta L. Johnson, P.O. Box 107, Mound City

Kenneth L. and Sharon S. Ruff, 3184 Sunfield Road, Du Quoin Alan L. and Florence L. Minton, 1004 E. Market St., Christopher Jason R. and Julie A. Prince, 8256 Knox Road, West Frankfort Ian O. Hayano, 805 S. Division St., Apt. 12, Carterville Josie A. Rutland, 704 Country Village Drive, Apt. B, Anna David A. Reynolds, 662 Foster Lane, Marion Angela S. Underwood, 1312 Dorris Heights Road, Harrisburg Lloyd M. Grant, 1912 Illinois Ave., Murphysboro James L. and Brenda K. Stewart, 54 Adkins St., Metropolis Michael Paul Lampe, 121 N. 13th St., Mount Vernon Ueldean and Donald D. Cralley, 2102 Waltonville Road, Mount Vernon Richard W. and Kimberly A. Travelstead, 1544 Lakeshore Drive South, Goreville Williams S. Rice, 704 W. Webster St., Benton Jesse T. Morris, 1012 E. Webster, Benton Lawrence Greg Miner, 119 Baggott, Zeigler Jeremy Gene Pierman, 8149 Clore St., Evansville Heather Maxine Pelka, 155 N.W. Railroad St., P.O. Box 367, Ashley Roger F. Lair and Maggie E. Stevenson, 2615 W. Striegel Road, Carbondale Nathan K. and Cassandra N. Wright, 611 N. Main St., Carrier Mills Kenneth W. and Diane L. Bailey, P.O. Box 158, Cambria Richard C. Harris, 313 N. Ninth St., Murphysboro Donna M. Staszak, 233 N. 13th St., Apt. 510, Murphysboro Neil Blankenship, 100 N. Fourth, Marion

Southern Business Journal August 2014

w wine e illinois & products pr s 2014

food

DuQuoin State Fair

air-conditioned expo hall

O V e n n l y d To res ors: a f erve y ew our s spa pace, c call ( es le f 618) 536-2 t! 4

show

24!

Celebrating our eighth consecutive year of showcasing Southern Illinois businesses! The Illinois Small Business Development Center/International Trade Center at Southern Illinois Universityy C Carbondale and the Illinois Department of Agriculture are partnering to present the showcase of Illinois food productts. Fairgoers g visitingg the Illinois Food & Wine Products Show will be able to see, sample and purchase a variety of Illinois food and products.

Live Cooking Demos — Expo Hall stage Throughout the 2014 fair week, guest chefs will prepare special recipes and wine pairings that highlight Illinois products. Saturday, auguSt 23 ...................................................... noon and 3 p.m. SuNday, auguSt 24 ..........................................................1 p.m. and 3 p.m. Friday, auguSt 29............................................................5 p.m. and 7 p.m. Saturday, auguSt 30 ...................................................... noon and 3 p.m. 6:30 p.m. wine pairing SuNday, auguSt 31 .......................................................... noon and 3 p.m. 4:30 p.m. wine pairing

Food & Wine Expo

Participating companies will offer free product samples, promotional information and items available for the public to purchase. The marketplace will be at the north end of the Expo Hall.

Saturday, auguSt 30 .........................NooN – 7 p.m. SuNday, auguSt 31.............................NooN – 5 p.m.

www.agr.state.il.us

To learn more about the Illinois Small Business Development Center/International Trade Center and the programs of the Entrepreneurship and Business Development unit, call 618/536-2424, or visit the website at sbdc.siu.edu. The Illinois Small Business Development Center/International Trade Center is funded in part through a cooperative agreement with the U.S. Small Business Administration and the Illinois Department of Commerce and Economic Opportunity and hosted by Southern Illinois University Carbondale.

August 2014 Southern Business Journal

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Money Matters

Wealth management requires a broad array of skills risk tolerance. With that knowledge, an advisor can do a portfolio ‌Wealth management is a term often used by financial advisors. Families need analysis of a client’s to make sure their whole financial picture current holdings. This analysis of is taken into consideration when deciportfolio should sions are met. For an advisor to help, show how close a they should follow the wealth manageportfolio’s holdment formula. Tison ings are to the Wealth Management = Investment Consulting + Advanced Planning + Rela- asset allocation that matches a client’s risk tolerance. It tionship Management should also show how well diversified an Investment consulting is probably the primary function of wealth management. account is by sector and also by Morningstar category. It is the management of all investment Investment consulting also includes elements to maximize the probability of the assessment of impact that costs clients achieving all that is important to them. It should begin with an interview to and taxes can have on a portfolio. There determine the client’s assets and income always needs to be an evaluation to determine whether or not the costs are worth sources. With that information, combined with learning about a client’s goals it. Lastly, you and the advisor should determine together if there needs to be an and objectives, a risk assessment for the investment policy statement. An investclient should be determined. With that risk assessment, an advisor can then rec- ment policy statement is a great tool that ommend an asset allocation that matches spells out the investment strategy in a MICHAEL P. TISON SBJ CONTRIBUTOR‌

clear fashion. Advanced Planning = Wealth Enhancement + Wealth Transfer + Wealth Protection + Charitable Giving Advanced planning is a tool primarily used for high net worth clients. Truly, those with a lot of assets usually need to take into consideration more. Wealth enhancement consists primarily of tax mitigation and cash-flow planning. Wealth transfer decisions are important to a family. There are many ways to transfer wealth effectively. Transfers may or may not be within a family. Wealth protection consists of risk mitigation, legal structures of assets and transferring risk where appropriate to insurance companies. The last part of advanced planning is charitable giving strategies. When giving to a charity, a goal should be to both maximize the impact to the charity and make sure a donor takes advantage of all charitable giving strategies. Some charitable giving strategies would be donating highly appreciated property, starting your own donor-advised fund, or maybe using

a charitable-remainder trust, to name a few. Relationship Management + Client Relationship Management + Professional Network Relationship Management It is important for a financial advisor to first get to know a client very well. The No. 1 rule of being an advisor is to know your customer. This is even included in the Series 7 test. The Series 7 test, also known as the General Securities Representative Exam, is a test administered by the Financial Industry Regulatory Authority (FINRA) that candidates must pass to become a registered representative in general securities for a FINRA member broker-dealer firm. Really everything revolves around learning about a client’s needs and really understanding them. MICHAEL P. TISON is a registered principal/financial advisor with Raymond James Financial Services, Inc., member FINRA/SIPC. He can be reached at 618253-4444. Raymond James has offices in Marion and Harrisburg.

Benefits denied due to payments made to family caregivers lose government benefits. Generally, these agreements are an integral part ‌Generally, when one person performs services for another which are requested of a long-term care plan; accordingly, it and accepted by the other person, the is vital that the care law creates an obligation on the part of the other person to pay reasonable comagreement meet not only contractual pensation, unless there is some special requirements, but relationship between the parties that Habiger indicates otherwise. Illinois has long held also comply with that, absent written evidence to the con- the policies of the VA and Medicaid. Recently, a New Jersey appellate court trary, there is a legal presumption that a child who performs services for a parent upheld a denial of Medicaid benefits to pay a parent’s nursing home bill because does so out of natural affection, and not it found that a written care agreement with a view to being compensated. was insufficient. Mary signed a care A written care agreement is a comagreement with her daughter Paula mon tool used by elder law attorneys under which Paula would provide room to overcome the legal presumption. and board for her mother in return for When the care agreement is supported payment by Mary of $2,000 per month; by additional written evidence, a carethis amount included $800 for rent and giver child may be compensated by the $1,200 for services. Some of the services parent without causing the parent to RICHARD HABIGER SBJ CONTRIBUTOR‌

identified in the contract included preparation of three meals per day; weekly cleaning; assistance with bathing, dressing, hair care and shopping; and assistance in financial management. Mary resided with Paula for two years. During this period, Mary paid Paula $2,000 per month for 11 months. In addition, Mary transferred $16,000 to her granddaughter Reba. Thereafter, Mary moved to her daughter Gina’s home for two years. During this period, Mary transferred $46,595 to Gina; but, unlike with Paula, Mary did not have a written care agreement with Gina. Subsequent thereto, Mary entered a nursing home and applied for Medicaid benefits to help pay for her care. The New Jersey Medicaid system imposed a penalty period (that is, a period of months during which Mary would not receive help paying for her care). Mary appealed, but the appellate court upheld

the denial of benefits. The evidence showed that some payments were made to Paula’s 13-year-old daughter Reba during a time when she was in school. Moreover, the record did not delineate how Mary and Paula decided on the $1,200 monthly rate or what tasks were to be performed or for what length of time Paula was to earn $1,200 per month. While Illinois law does recognize the importance of caregiver children, the Illinois Medicaid system imposes a lot of “nit-picky” rules and strictly audits the evidence in such cases. RICHARD HABIGER is the author of the Illinois edition of “How to Protect Your Family’s Assets from Devastating Nursing Home Costs: Medicaid Secrets” and an elder law attorney who focuses on asset protection, Medicaid and VA benefits. He can be reached at 618-985-4529 or info@ habigerelderlaw.com.

Southern Business Journal August 2014

August 2014 Southern Business Journal

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Achievements Franklin Hospital leaders attend meeting

For more information, visit www. northprotech.com or call 618-565-0471.

‌Franklin Hospital leaders recently attended the Illinois Hospital Association’s annual meeting of small and rural hospitals to discuss innovative strategies for rural health care. The meeting was in Springfield. Attending from Franklin Hospital were CEO Hervey Davis and Derek Johnson from the business development office, along with board members Brent Young, Mary Stevens, Janet Patten and Bob Lewis.

SSM Health Care among most wired

ONB Foundation awards $5,000 ‌Old National Bank Foundation, the philanthropic arm of Old National Bank, has awarded $5,000 to one Southern Illinois organization and a total of $783,630 footprint-wide, with some contributions being multi-year commitments. Trinity Strong Foundation will receive $5,000 for a Science Lab Initiative, an update to the science lab with modern equipment to help Trinity Christian School students meet Science, Technology, Engineering and Mathematics (STEM) and college preparatory standards.

Frost receives industry honor

Boys & Girls Club Business of the Month‌

‌SSM Health Care is ranked as one of the nation’s most wired health care organizations. That’s according to the 16th annual Health Care’s Most Wired Survey, conducted by Hospitals & Health Networks. Good Samaritan Regional Health Center of Mount Vernon and St. Mary’s Hospital of Centralia are jointly sponsored by SSM Health Care and by Chicago-based Felician Services, Inc. As the nation’s health care system moves from volume to value-based care, the survey showed health care organizations are tapping into information technology to better connect and coordinate with care providers.

New Kahala hosts grand opening ‌ ew Kahala recently hosted a grand N opening ceremony at its new location, 600 E. Grand Ave., in Carbondale. New Kahala is a Chinese restaurant that has served Carbondale for nearly 22 years. In May, New Kahala closed on Illinois Avenue to start preparations at the new site. Business resumed after a ribboncutting ceremony and short reception at the new location.

‌Kevin Frost, a financial advisor with Northwestern Mutual in Herrin, has qualified for membership in the MilSalem named Mentor of the Year lion Dollar Roundtable, an international, independent association of nearly 19,000 ‌Family medicine physician Dr. Anad leading life insurance producers. Salem was chosen as Mentor of the Year Frost has been affiliated with Northwest- by first-year students at SIU School ern Mutual since 2004. He has received of Medicine. MDRT recognition from 2009 to 2014. He was honored for his work as a volunteer mentor to the medical students Technology company opens office during their first year in Carbondale and presented with a plaque on July 7. Salem is a physician in Carbondale ‌Northbridge Professional Technologies, and affiliated with multiple hospitals in a new technology company, has opened the area, including Herrin Hospital and an office in Murphysboro. Bart Swisher, owner and senior engineer Memorial Hospital in Carbondale. of Northbridge, opened the Murphysboro office in January. Reaching out to organi- Wheeler achieves designation zations and businesses along the Illinois 13 and Interstate 57 corridors, Northbridge ‌Ann E. Wheeler of Wheeler Therapeutic provides a wide range of products and Massage in Carbondale has achieved the services, some of which include network designation of advanced practitioner from support, PC and server installation and John Barnes Myofascial Release. support, managed services, IP phone This designation requires the complesystems, security cameras and wireless tion of nine courses comprising 180 networks. There are also special services hours of hands-on training and clinifor education, churches and auto dealers. cal work in the John Barnes method of

The Boys & Girls Club of Carbondale is pleased to announce Furniture King as their Business of the Month for July!

For more information, call 618-997myofascial release. Wheeler has a bachelor’s degree in ath- 8999 or visit www.famfunzone.com. letic training and has practiced as a physical therapist assistant since 1986. She is J Fortune Photography relocates currently a licensed massage therapist in private practice and may be reached at ‌J Fortune Photography recently 618-201-2938. relocated to Illinois Star Centre Mall in Marion. Owner Jenn Fortune said she relocated Joggerst joins cardiology group from Herrin to offer customers greater accessibility and expanded service hours. ‌Dr. Steven J. Joggerst has joined Saint Francis Medical Center as a medical part- The full-service photography studio offers packages ranging from families to ner and is serving as an interventional pets and weddings to boudoir. cardiologist at Cape Cardiology Group. For more information, call 618-997He joins Cape Cardiology Group after 6448 or visit www.jfortunephotography. serving as a chief fellow of cardiology com. at Texas Heart Institute/Baylor College of Medicine.

Family Fun Zone opens in mall ‌ amily Fun Zone, a 19,000-squareF foot indoor playground for the entire family, recently opened in Illinois Star Centre Mall in Marion. Cost is $6 for children, ages 2 to 15, and $1 for individuals 16 and older. Play time is unlimited. Family Fun Zone is open from 11 a.m. to 5 p.m. Wednesday and Thursday, 11 a.m. to 6 p.m. Friday, noon to 6 p.m. Saturday and 1 to 5 p.m. Sunday. It is closed on Monday and Tuesday.

Gun shop opens in Herrin ‌Wild Dave’s Firearms, a new gun shop, recently opened at 1101 N. Park Ave. in Herrin. David Wells and his son-in-law, Brandon Dempsey, own the business. They also have storage units on the property and serve as a dealer for Cardinal Portable Buildings. Business hours are from 10 a.m. to 5 p.m. Monday through Friday and 10 a.m. to 2 p.m. Saturday. For more information, call 618-967-4855 or 618319-3040.

Southern Business Journal August 2014

Achievements Sanders joins Boyt Engineering‌

Boyt Engineering in Marion has hired a new engineer, and the company also has reached a milestone. Richard Sanders, a Marion native and graduate of the U.S. Air Force Academy, has joined the firm. “We have now designed 1 million square feet of new construction,” company owner Ben Boyt announced. “This is a major milestone for us that we are proud to celebrate.” Boyt Engineering is located at 107 N. Carbon St. The company is licensed in more than two dozen states.

in improving the administration of justice, enhancing public safety and improving outcomes for young people and communities in Illinois.

McGrath receives service award ‌Phillip McGrath, a financial advisor for Edward Jones in Murphysboro, recently received the firm’s Service Award. McGrath has served five years with Edward Jones, a Fortune 500 company headquartered in St. Louis.

West elected library representative

honors two member organizations that have had the most success in lowering employee accidents and losses. And, for 2013, Southeastern Illinois College was one of those two to win the award for Outstanding Member of the Year. Several safety-focused committees on SIC’s campus work to create a safe environment for students and employees, including the risk management team, campus emergency response team, campus violence prevention team and safety team. The college’s safety efforts have cut accident losses by 60 percent.

Hospital in Alton. SIU’s Center for Alzheimer’s Disease now has 38 provider sites as part of its Springfield-based center. The sites provide a network of physicians, nurses, nurse practitioners, allied health professionals and nursing home staff members in downstate Illinois. They are trained to evaluate and recommend treatment for patients and families who may be dealing with Alzheimer’s disease and related disorders.

Fitness center opens in Marissa

‌Linda Louise Fitness Center opened recently at 521A N. Borders St. in Marissa. This is a joint project between Sparta ‌Sandy West, coordinator of technical Community Hospital and the city services and collection management at of Marissa. Rend Lake College, has been elected as the ‌Mark D. Hassakis, attorney and senior ‌Saint Francis Medical Center has For information on how to become a newest academic library representative partner of the law firm Hassakis & Hasreceived the 2014 Healthgrades Outstandmember, call 618-443-6966. for Illinois Heartland Library System. She ing Patient Experience Award, based on sakis, P.C. in Mount Vernon, received an award from the Juvenile Justice Initiative, started her three-year term this month. survey responses from its patients. West has been employed at RLC since Illinois Association of Juvenile Justice Healthgrades awarded 447 hospitals in HMC among nation’s Councils, Illinois Collaboration on Youth, 2001. She works in the Learning Resource 2014, distinguished as the top 15 percent Illinois Juvenile Justice Commission, Illi- Center and is responsible for collection of hospitals nationally, based on patients’ most wired hospitals development, cataloging and processing nois Juvenile Justice Leadership Council response to the Hospital Consumer ‌Harrisburg Medical Center’s use of materials for circulation. and Illinois Models for Change, all conAssessment of Healthcare Providers technology to improve patient care has veners for their Re-Connecting the Pathand Systems survey for visits occurring landed it on the American Hospital Assoways Conference June 3 in Springfield. between April 2012 and March 2013. ciation’s list of the nation’s top 25 most SIC wins safety award The award is in recognition of Hassakis’ wired small and rural hospitals for the efforts and focus on juvenile justice issues second year in a row. ‌The Illinois Public Risk Fund annually Volkswagen of Marion Most wired hospitals lead the way breaks ground in technology integration at all levels, including infrastructure, business and ‌Volkswagen of Marion, part of the Ike administration applications, clinical qualfamily dealerships, recently celebrated ity and safety, and care continuum. The the construction of its new facility with data used to identify hospitals that are a ground-breaking ceremony at 4403 W. most wired comes from Hospital & Health DeYoung St. Networks magazine’s annual survey of The new facility, east of Ike Honda, is hospitals from around the country. expected to employ at least 30 Southern Illinoisans. Volkswagen of Marion will continue Hughes earns prestigious to operate its temporary facility at 8100 Sanders Hassakis Frost McGrath membership Express Drive until construction of the new building is complete. ‌Attorney R. Courtney Hughes of CarFaces in the news bondale has been certified as a member of the Million Dollar Advocates Forum. Hamilton District Hospital Have you been promoted? Send a photo. One of the most prestigious groups of Has a colleague at work completed an intenjoins network trial lawyers in the United States, memsive continuing education program? Send ‌Hamilton District Hospital in McLeans- bership is limited to attorneys who have a photo. Others in the business community won million and multi-million dollar verboro is one of three health care organizawill want to know it, so please consider tions that recently joined the Memory and dicts, awards and settlements. passing on your employment news and Hughes is a graduate of SIU School of Aging Network at SIU School of Mediphotos to the Southern Business Journal. cine’s Center for Alzheimer’s Disease and Law and specializes in plaintiff trial pracFeel free to email the information to sbj@ Wheeler Joggerst tice, concentrating in medical malpractice Related Disorders. thesouthern.com. and injury trials. The other two new providers are St. Mary’s Hospital in Decatur and The Find more business news at Memory Care Center of St. Anthony’s www.sbj.biz

Hassakis recognized for work in juvenile justice

Hospital recognized for patient experience

August 2014 Southern Business Journal

Contact the Admissions Office Today! Discover a College Education that is All About You!

www.jalc.edu Late registration august 4-15 CLasses begin august 18

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Southern Business Journal August 2014

Investments

Four common mistakes of asset allocation SCOTT MCCLATCHEY SBJ CONTRIBUTOR‌

‌Smart people make silly mistakes all the time. Allocating and managing portfolios successfully in today’s marketplace is difficult. There are many pitfalls along the way to complicate matters. When investors and portfolio managers fail to avoid mistakes, they place portfolios at risk. McClatchey At stake are not only the growth and safety of investors’ portfolios, but also their future financial independence, control and security. As a result, investors and financial professionals need to be aware of the common mistakes that can be made when employing asset allocation, so they can avoid them.

Mistake 1: Excluding desirable asset classes Research studies have concluded that how you allocate a portfolio, rather than which investments you select or when you buy or sell them, is the leading determinant of investment performance over time. As a result, make every effort to allocate a portfolio among all appropriate asset classes. Each asset class and asset subclass provides returnenhancing and risk-reducing benefits. By not incorporating attractive classes, a portfolio may not exhibit the desired risk-and-return trade-off profile. Regardless of your risk tolerance, you should want to earn a return that outpaces inflation and taxes over time. Some investors shy away from moderately risky assets, such as large-cap stocks, fearing the market’s ups and downs will hinder long-term performance. By doing so, investors may find it very difficult, if not impossible, to fund the style of living they desire

in retirement. Even conservative investors with a long-term time horizon are highly encouraged to consider a small allocation to stocks for their portfolio, thus increasing the odds that its performance will outpace that of inflation and taxes.

cation addresses both the numerator and denominator of the risk and return trade-off equation, while diversification deals only with the numerator: risk management.

Mistake 3: Overestimating the level of diversification

geographies (e.g., varying location of revenue sources).

Mistake 4: Paying excessive portfolio expenses

If you don’t keep it, did you really make it? Over time, the compounding effect of portfolio management Mistake 2: Confusing asset expenses can be quite large and surDiversification is the key to reducing allocation with diversification prising, thus reducing a portfolio’s risk, namely investment-specific risk. returns. Even small annual expenses There are two ways to overestimate the Many investors confuse asset allocan add up to significant expenses over level of diversification. First, one may cation with diversification. They the long term. Obviously, it is more or believe that the quantity of securities, believe the two are the same thing. For less impossible not to pay some sort of such as stocks or bonds, currently in a many investors, this confusion is not portfolio is sufficient to create a diversi- portfolio-related expenses. Neverthetheir mistake. less, you should focus on minimizing Many money management companies, fied portfolio when, in fact, it is not. portfolio management expenses, namely Second, but much less important, financial authors and investment protrading costs, both commissions and fessionals explain it this way in an effort although a portfolio may hold an bid-ask spreads, and investment adviappropriate quantity of securities, the to “keep things simple,” or sometimes sory fees. For investors choosing to work majority of the securities may be too because they do not fully understand with financial advisors, the key is “bang similar to provide significant diversifithe difference. This confusion is one for the buck.” Are you getting excepcation benefits. of the leading misconceptions of asset tional service, expert advice and/or For example, the stocks of General allocation. enhanced returns from your advisor at Motors and Ford will provide some Diversification impacts only the diversification benefits, but due to their a fair cost? Unless you are comfortable management of risk, specifically the doing your own research and investinherent industry similarities, holding reduction of investment-specific risk. ment decision-making, you’ll need to both in a portfolio will not provide a Incidentally, market or systemic risk find someone who you trust to help significant level of diversificaisn’t generally reduced by simple manage your investments, and that will tion. Diversifying across fundiversification. damentally different sectors or have a cost associated with it. Make sure On the other hand, industries is therefore recom- to hold this person accountable, and asset allocation not remember that, like any product or sermended, as is diversifying only maximizes riskvice you purchase, you do have choices. among various company adjusted return, sizes and but also reduces SCOTT MCCLATCHEY is a certified risk by combining financial planner with Alliance Investasset classes that ment Planning Group, a Carbondale have low or negainvestment firm located at 115 S. tive correlations. Washington St. He can be reached Asset alloat 618-519-9344 or scott@allianceinvestmentplanning.com. He also provides investment, retirement planning and insurance services to SIU Credit Union members through the SIU Credit Union Investment Services partnership. Securities offered through LPL Financial, member FINRA/ SIPC.

I S I N D Consumer credit score

Credit scores are numeric reflections of financial behavior and credit worthiness and they are based on information included in a credit report. Ranging from 330 to 830, a higher score means a lower credit risk. Scores are from May 2014. SOURCE: EXPERIAN

673

Local

Region

675

666

State

U. S.

New vehicle sales

Total cars, trucks sold based on title applications filed. Excludes motorcycles, trailers.

Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Washington White Williamson REGION

q 23.5% q 4.3% q 16.0% p 12.9% q 6.3% p 19.1% p 0.9% q 23.8% q 36.4% q 4.6% p 120.0% p 16.7% q 2.1% p 1.0% p 24.5% q 31.6% p 19.6% q 0.5% q 0.1%

Apr 14

Apr 13

13 134 21 35 15 168 111 32 21 62 11 14 94 97 61 52 67 215 1,223

17 107 21 31 4 131 93 35 37 70 8 17 90 89 48 54 73 187 1,224

Change

2013 165 1,522 282 384 129 1,705 1,172 500 390 734 106 199 1,115 1,078 601 700 796 2,498 14,076

R S U of I Flash Index

2012 128 1,134 265 278 102 1,572 894 389 240 618 82 141 1,039 1,056 476 493 633 2,250 11,790

Change p 28.9% p 34.2% p 6.4% p 38.1% p 26.5% p 8.5% p 31.1% p 31.1% p 62.5% p 18.8% p 29.3% p 41.1% p 7.3% p 2.1% p 26.3% p 42.0% p 25.8% p 11.0% p 19.4%

Total units sold, including condominiums

Q1 14 Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Williamson ILLINOIS

2 43 2 3 5 58 64 13 23 15 4 1 26 30 29 136 31,507

Q4 13 1 82 3 1 6 63 54 27 32 7 7 1 39 39 24 159 32,975

Change

p 100.0% q 47.6% q 33.4% p 200.0% q 16.7% q 8.0% q 15.7% q 51.9% q 28.2% p 114.2% q 42.9% 0.0% p 33.4% q 23.1% p 20.8% q 14.5% q 4.5%

June 14 106.0

2013 15 288 13 3 16 325 306 103 122 106 18 6 148 136 100 704 151,720

2012 12 306 12 13 11 346 269 61 118 92 10 8 130 164 93 646 127,588

Change p 25.0% q 5.9% p 8.3% q 77.0% p 45.5% q 6.1% p 13.8% p 68.9% p 3.4% p 15.2% p 80.0% q 25.0% p 13.8% q 17.1 % p 7.5% p 9.0% p 18.9%

’11

F M

’14

Hotel/motel stats

Consumer Price Index

Total amount of revenue generated in Carbondale by hotels and motels for room rentals only.

Apr 14 Apr 13 MONTHLY TOTALS $663,429

Change

$685,622 q

3.2% 238

YTD TOTALS $2,246,871

$2,334,492 q

2012 ANNUAL TOTALS

2011

3.8%

Change

$74,500 $51,500 $43,000 $20,000 $117,500 $94,750 $67,500 $79,000 $42,250 $58,000 $55,000 $19,800 $60,500 $41,250 $72,000 $89,450 $134,000

236

234

U.S. City Average June 14 238.3

232

230

$7,728,261 q <0.01%

MEDIAN SALES PRICE Q1 14 Q1 13 $40,500 $37,500 $51,250 $93,000 $80,000 $89,500 $80,500 $112,000 $45,000 $59,000 $58,500 $28,000 $76,000 $50,000 $85,000 $93,125 $148,000

The CPI measures average price changes of goods and services over time, with a reference base of 100 in 1982-84. To put into context, a current CPI of 194.5 means a market basket of goods and services that cost $100 in 1982-84 now costs $194.50.

228

226

224

Change q 54.4% q 72.8% p 19.4% p 365.0% q 32.0% q 5.6% p 19.2% p 41.7% p 6.5% p 1.7% p 6.4% p 41.4% p 25.6% p 21.2% p 18.1% p 4.1% p 10.4%

222

Midwest Urban June 14 227.6

220

218

216

A ’13

F M ‘14

SOURCE: U.S. DEPARTMENT OF LABOR

Prices at the pump Average price per gallon of regular, unleaded gas as of July 21 and June 18, 2014.

July 14 June 14 Metro East Springfield Illinois U.S.

$3.68 $3.42 $3.63 $3.57

SOURCE: AAA

Monthly Page Views:

Monthly Unique Visitors:

Monthly Visits:

2,554,844

373,888

905,328

*July 2014 omniture

SOURCE: INSTITUTE OF GOVERNMENT AND PUBLIC AFFAIRS, UNIVERSITY OF ILLINOIS

SOURCE: ILLINOIS ASSOCIATION OF REALTORS

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’13

’12

$7,732,810

SOURCE: ILLINOIS SECRETARY OF STATE’S OFFICE. LATEST DATA AVAILABLE.

Home sales

108 107 106 105 104 103 102 101 100 99 98 97 96 95 94 93 92 91 90 89

The Flash Index is an early indicator of the Illinois economy’s expected performance. It is a weighted average of growth rates in corporate earnings, consumer spending and personal income. An index above 100 indicates expected growth; an index below 100 indicates the economy is contracting.

$3.81 $3.67 $3.89 $3.68

July 13 $3.93 $3.70 $3.95 $3.67

Retail sales for Southern Illinois cities City Anna Benton Carbondale Carterville Chester Du Quoin Harrisburg Herrin Jonesboro Marion Metropolis Mount Vernon Murphysboro Nashville Pinckneyville Red Bud Sparta Vienna West City West Frankfort REGION ILLINOIS

YTD May 2014

2013

2012

2011

2010

2009

51.4 40.3 251.9 17.0 22.3 71.1 91.1 68.8 4.9 293.2 35.9 220.8 56.1 56.2 16.6 33.7 54.0 16.7 39.1 50.1 $1,491.2 $68,469.0

121.8 92.7 594.5 42.8 55.7 119.1 217.0 160.7 12.2 726.7 85.3 519.2 136.2 136.0 41.7 82.6 131.7 41.6 93.2 122.3 $3,533.0 $165,238.9

114.1 83.2 552.4 38.9 53.2 114.4 205.1 152.5 11.8 620.1 77.8 494.9 127.5 116.3 38.6 78.4 120.2 38.4 87.1 70.8 $3,192.7 $152,406.7

119.1 86.4 593.5 42.0 55.7 113.5 214.0 154.0 11.4 686.9 84.4 533.6 135.2 110.3 42.3 74.7 128.2 40.1 88.3 122.5 $3,436.1 $154,650.6

120.9 69.5 598.0 42.2 55.3 77.1 195.0 153.4 11.8 683.1 82.0 507.0 130.6 96.6 38.5 75.2 128.5 39.9 87.8 112.4 $3,304.8 $147,232.0

114.5 69.4 565.5 39.9 52.9 100.8 191.9 147.2 12.5 676.0 77.1 476.7 129.1 107.9 37.2 70.1 126.4 37.1 91.9 111.4 $3,235.5 $139,593.2

% change 09-13 p p p p p p p p q p p p p p p p p p p p p p

6.4% 33.6% 5.1% 7.3% 5.3% 18.2% 13.1% 9.2% 2.4% 7.5% 10.6% 9.0% 5.5% 26.0% 12.1% 17.8% 4.2% 12.1% 1.4% 9.8% 9.2% 18.4%

SOURCE: LATEST STATISTICS AVAILABLE FROM THE ILLINOIS DEPARTMENT OF REVENUE. FIGURES ARE IN MILLIONS.

Labor force

Jobless

June 2014

2,862 16,793 2,474 4,264 1,625 28,782 20,428 4,903 7,357 9,048 1,795 2,602 14,893 12,219 7,503 9,194 7,182 33,798 187,772 6,602,484 156,997,000

306 1,649 192 258 175 2,000 1,423 425 644 828 181 252 1,031 982 683 474 457 2,455 14,415 471,872 9,893,000

10.7% 9.8% 7.8% 6.1% 10.8% 6.9% 7.0% 8.7% 8.8% 9.2% 10.1% 9.7% 6.9% 8.0% 9.1% 5.2% 6.4% 7.3% 7.7% 7.1% 6.3%

May 2014 June 2013 9.9% 9.6% 8.0% 6.8% 9.8% 6.2% 6.8% 8.4% 7.5% 9.2% 9.5% 9.2% 6.8% 7.9% 9.4% 5.3% 6.6% 7.0% 7.4% 7.2% 6.1%

The CFMMI is a monthly estimate by major industry of manufacturing output in the Seventh Federal Reserve District states of Illinois, Indiana, Iowa, Michigan and Wisconsin. It is a composite index of 15 manufacturing industries, including auto and steel, that uses electrical power and hours worked data to measure monthly changes in regional activity. It is compared here to the national Industrial Production index for Manufacturing (IPMFG). Base year is 2007. Starting in November 2005, the index excluded the electricity component. This chart has been suspended until further notice.

IPMFG Dec 13 97.8

105 104 103 102 100 98 94 90 88 86 84 82 81

Unemployment rates for Southern Illinois counties, state and nation Alexander Franklin Gallatin Hamilton Hardin Jackson Jefferson Johnson Massac Perry Pope Pulaski Randolph Saline Union Washington White Williamson REGION ILLINOIS U.S.

N I L L I Chicago Fed Midwest Manufacturing Index

11.2% 12.1% 10.5% 8.4% 11.9% 8.8% 9.0% 10.8% 9.4% 12.0% 10.6% 11.3% 8.9% 9.9% 11.4% 6.6% 8.0% 8.5% 9.5% 9.8% 7.8%

Change month 0.8 0.2 0.2 0.7 1.0 0.7 0.2 0.3 1.3 0.0 0.6 0.5 0.1 0.1 0.3 0.1 0.2 0.3 0.3 0.1 0.2

p p q q p p p p p p p p p q q q p p q p

80 78

Change year 0.5 2.3 2.7 2.3 1.1 1.9 2.0 2.1 0.6 2.8 0.5 1.6 2.0 1.9 2.3 1.4 1.6 1.2 1.8 2.7 1.5

q q q q q q q q q q q q q q q q q q q q q

CFMMI Dec 13 97.4

74 72 70 68 66 64

A M J

A S O N D J F M A M J J A

’12

S O N

’13

SOURCE: FEDERAL RESERVE BANK OF CHICAGO

Williamson County Regional Airport passengers June 14 June 13 MONTHLY TOTALS 871

Change

887

q 1.8%

2,707

q 0.9%

YTD TOTALS 2,684

2013 ANNUAL TOTALS 10,476

2012 10,170

Change p 3.0%

SOURCE: ILLINOIS DEPARTMENT OF EMPLOYMENT SECURITY, U.S. DEPARTMENT OF LABOR. FIGURES ARE NOT SEASONALLY ADJUSTED.

thesouthern.com

 #1 most visited news, information and advertising

website in Southern Illinois.

August 2014 Southern Business Journal

| 9

Workplace

Organize your life in three key areas Workload

ANGELA HOLMES-YOUNG SBJ CONTRIBUTOR‌

‌You don’t have to be an organized person or personality to reap the rewards of an organized workspace. Assess your surroundings. Go ahead. Do it now. Is your workspace truly set up to facilitate the actual work that you do? Do you spend more time looking for things than working? Now is the time to be brutally honest. It’s OK. I won’t judge you. If the answer is yes, then you must get organized as Holmes-Young soon as possible. I’m not completely organized either, so it’s OK to admit it out loud. Aside from the practicality of it all, there are many reasons to get organized today. You are truly wasting valuable time by not being organized. Let’s work on getting you more organized than you are at this point in time. Baby steps. Let’s get started. An organized workspace lends itself to: zz Safety‌ zz Quality‌ zz Improved efficiency‌ zz Better time management‌ zz Improved morale‌ (These are what I can come up with off of the top of my head). There are many, many more. I am also thinking about pride. We all want to be proud of where we work and our own personal work area. Certainly, you do. And, of course, your staff does as well. Don’t discount the importance of this. There is value in this. So, when should the organizing be done or begin? Well, as I always advise, do it now. Do not wait. Is my office spotless? Definitely not. Do I work on it a bit each week? Yes, I truly try to. I look at the process of organizing as an

on-going process which does not end. I cannot imagine ever “being finished” with my organizing efforts, although I often wish that were the case. Let’s get you organized in the following three areas:

Workstation

Whatever your workstation consists of — let’s clean it up. Doesn’t matter where you work. I am speaking about wherever you work. In other words and to be more specific, I would like to see your workstation organized. Here is how you can do this. 1. Get the tools that you use most often and find a place to keep them near you. 2. Take the things that you use less often and put them farther from you. 3. Get rid of anything that you have not used in three months. 4. Go through your files and purge what is not needed. Now, I am aware that various quality systems regulations require some records to be kept for certain periods of time. Of course, comply with these rules. 5. Analyze your workstation for flow and/or process flow. When a project

1. Don’t over-commit to people or projects. I am famous for this. There are so many things that I want to do that I say yes to almost everything. Don’t get your plate so full that you cannot be effective at anything. 2. Allow for delegation and assistance where it makes sense. 3. Don’t be afraid to say that you are overloaded. 4. Cross train or ask for cross training. 5. Don’t stay late every day. 6. Stay late or come in early only if you are actually being effective. Throughout my career, I have worked with many people who came in early or stayed late to make a good impression or put in an appearance. They were not actually being effective. This is a poor choice and poor example. You are smarter than this. or an item or a document comes “in,” 7. Take breaks. Smoker or nonwhere does it go? Does it make sense? smoker. You deserve breaks. Take them. Bring in an outsider to take a quick In the end, be the professional that look. Make a few changes here. you want to be. Start here and become organized. Summer is the perfect time to make this happen. Some (not all) Work practices businesses have shutdowns or slower Have you heard the saying, “Work seasonal periods. Use this time to do a smarter, not harder?” 1. Don’t answer every email the min- few of the things that you have put off ute you get it. Pick a time to answer the doing during the first half. Finally, I often end my columns with emails and take care of them in batches. a quote from someone I truly respect. The time you waste as you answer This one comes from my boss, and he email by email is not worth the effort. said it to me as recently as last week. 2. Touch items once if possible. I’m not sure where he got it or if it is Don’t spend precious time agonizing over what to do with something. Think his, but here it is. “Don’t let someone else’s lack of planning cause a crisis about how much you are touching and dealing with items. Minimize this work. or panic on your part, Angela.” He is so wise. Take this advice to heart. Get Eliminate re-work. organized today. 3. Set time limits on some of your project work. Plan your day. Maybe you answer emails for the first 30 min- ANGELA HOLMES-YOUNG is the author of “Bring It On, The Aspiring Profesutes of your day, after lunch and again sional’s Guide to Getting a Leg Up on before you leave for the day. the Competition.” Her book is avail4. Use your vacation time. Life is able at Bookworm, amazon.com and short and you don’t want to look back barnesandnoble.com. Angela is also the and wish you had, once it is too late. corporate recruiter for NRE. She can be 5. Delegate when possible. reached at ang_holmes@yahoo.com or 6. Use technology to your advantage @A_Holmes_Young. when it makes sense.

Southern Business Journal August 2014

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August 2014 Southern Business Journal

| 7

Entrepreneur’s Mailbag

Any time is a good time to review your business plan CAVANAUGH L. GRAY SBJ CONTRIBUTOR‌

‌One of the best descriptions I’ve ever heard regarding business planning came from a successful entrepreneur who described his efforts this way. “My goal was to start a business and simply work my ‘tail’ off.” Although this approach might not work for everyone, it does shed some light on the importance that hard work plays in running a successful business. If I had to make an educated guess, I would say that a good number of entrepreneurs make the mistake of developing a business plan only to set it on a shelf and view it sporadically over time. Regardless of how long you have been in business, I recommend a review of your existing business plan at least once a year. The following are a few key areas to pay attention to.

Your keys to success

Key success factors are different and specific to each business and provide an indication of a company’s competitiveness in an industry. For one company, the ability to gauge the effectiveness of a new customer service program might be one of its keys to success. For another company, future success might depend on reducing costs, while a key success factor for a third company might be to see a greater return on its current marketing efforts. I recommend that companies try to identify three keys to success, even if they can focus on only one at a time. When evaluating your company’s keys to success, it’s important to remember that they can change from year to year, and owners should respond accordingly.

Conduct a marketing review

At times, marketing can be seen as

a take it or leave it business function. What some entrepreneurs might not realize is that marketing is the vehicle that helps a company achieve its overall business objectives. The following are some marketing items owners should pay attention to in their business plan review. Positioning: Positioning is the process of designing a brand so that it occupies a distinct and valued Gray place in the mind of the target consumer. Positioning is often overlooked; and, without it, your company can simply be another face in the crowd. We don’t all drive the same vehicles. Some people drive minivans, while others might prefer a BMW, “The Ultimate Driving Machine.” How is your small business positioned? Once you have clearly identified your position, determine the best way that your advertising can be used to communicate that message. Market research: Good market research is a key to any successful business planning efforts. Unless you are a larger organization in need of very specific data, most entrepreneurs can get by with good secondary research. From year to year, your market research should continue to help you answer the following questions: How well do I know my target customers? Is my industry growing or is it on the decline? What trends are currently shaping my industry? How crowded is my industry and who are my direct and indirect competitors? Marketing mix: During a business

plan review, an owner might want to ask the following questions in order to determine if marketing efforts are working. Is my product still satisfying customer needs? Are my current channels of distribution or the places that my product and service can be acquired sufficient? Has my current price point allowed our company to operate profitably? Have our current promotions, including all advertising and sales efforts, served the company well? Owners should be able to evaluate their marketing mix and make any necessary changes that will help improve them.

is nominal. Break-even: Whether a company sells products or services, knowing the number of units to be sold or hours of service to be completed in order to reach profitability can help play a big role in helping the company reach its objectives. Financial assumptions: A lot of business plans lack financial assumptions. Financial assumptions can best be described as the reasoning behind the numbers that we use in our budgets. For example, let’s say that plan to lower your overall marketing budget for the upcoming month, quarter or year. The assumption behind this decision might be that the company’s use of a Going by the numbers new marketing technology will make it Another key area that requires more cost efficient and effective. attention during a business plan Business owners usually have their review, one that often gets overlooked, hands full, and they are often too is the financials. Let’s face it, finanbusy to make revisions on their existcials can be boring and uncomforting plans. able, but be sure to spend some time Even if the time doesn’t permit reviewing the following: entrepreneurs to completely overhaul Sales: I would encourage owners their existing business plans, time to play with their sales projections should be taken to review their keys to to some extent. Take a look at what success, select marketing efforts and the business would look like if the financials. In doing so, I believe it will company only met 75 percent of the help owners gain more clarity as their year’s projected sales. As it’s better businesses look to grow. to err on the side of caution, what would this reduction in sales mean for CAVANAUGH L. GRAY (cgray@ecafellc. your business? com) is director of business development Salaries: Owners will often omit for The Entrepreneur Café, LLC, 877-511their salaries, choosing to forego pay 4820. For more information on business and benefits for some period of time, planning or to read a chapter from his while their company gets off the ground. The problem is that all of their book, “The Entrepreneurial Spirit Lives: efforts have an opportunity cost asso- 25 Tales to Help Entrepreneurs Start, Grow, and Succeed in Small Business,” log ciated with them. If that work goes on to www.ecafellc.com. For more inforunaccounted for, it can give an inacmation on how to start, grow and succeed curate picture of the financial health of the company. My suggestion is that in small business, ‘Like’ on Facebook, all efforts by the owners be accounted ‘Follow’ on Twitter @TheECafe or ‘Connect’ on LinkedIn. for in the budget, even if the amount

Southern Business Journal August 2014

Consider all your options before entering a forbearance agreement ERIC PETERSON SBJ CONTRIBUTOR‌

‌In many ways, lessons from the Great Recession unfolded for businesses much like a fishing boat in stormy seas, earnestly making for the promise of land, only to strike rock and sink. The desperate hope of putting to port to fish another day made the captain risk foundering against the rocks. In many cases, debt-ridden Peterson business owners approached forbearance in the same way. They wanted to escape stormy waters by accepting risks that ultimately drove the business under. Acting in desperation, they forgot that the ultimate goal should be prospering when the seas calm. Forbearance saw increasing use during the Great Recession. Rather than sue business owners to collect a debt, creditors regularly offered forbearance to allow the debtor more time to pay off the obligation. For many, it was an opportunity to wait out the worst. In some cases, it worked. But for many, they accepted terms so onerous that they wound up in breach from day one. Entrepreneurs by their very nature

tend to be optimists at heart. When the recession hit, they hoped for a better day and, in some cases, unwittingly defaulted to taking poor terms in forbearance agreements to extend maturity dates of loans to live and fight another day. What many actually accomplished, though, was merely prolonging their own recession by taking on harsh forbearance terms, ultimately driving them out of business. When the economy turned around, instead of picking up market share, they got picked off. Creditors will often seek forbearance terms that include new collateral, new requirements and covenants, pre-payment penalties and personal guarantees. Like any business, they want to improve their position and minimize the risk of loss. Business owners should, therefore, fully consider all options rather than making an emotional decision to grab for the “live to fight another day” lifeline. First and foremost, business owners should think of the company mission of long-term prosperity. They should focus on clearing off debt now so they are in a better position to grab market share. That includes cleaning up balance sheets by getting out of bad leases, selling off nonproductive lines or divisions of business, and getting out of poor agreements. And, yes, business owners should also consider availing themselves of the protections afforded by bankruptcy, such as renegotiating debt. If opting

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for bankruptcy, there are always tradeoffs to be carefully considered. Today, however, one such trade-off is no longer the “stigma” of a bankruptcy filing. No rational economic or management decision can be based on a perceived fear of stigma, when the alternative is to be saddled with debt when markets begin to expand. Indeed, virtually any type of business can find advantages in a reorganization process. Businesses directly affected by commodity prices may be able to reduce or eliminate debt resulting from inopportune material purchases such as metals, lumber, frozen food or other goods. Real estate investments can be restructured to balance the outstanding debt to collateral values. Manufacturers can renegotiate trade debt as can retail and wholesale firms. With the goal of preserving the value of a going concern, the bankruptcy reorganization process can be a valuable business tool. This is particularly true during a recession when the economic climate and managerial decision-making will dictate who will come out of a recession in position to grow and which companies will continue to suffer the drag from old debt and bad forbearance contracts.

If you must take forbearance, the terms have to align with the long-term success of the business. Debtors need to carefully consider terms that include hair-trigger default clauses, difficultto-achieve business milestones, consent judgments, additional or new third-party guarantees, various attempts to restrict management in the event of a bankruptcy filing, increases in interest rates, new fees, points and other charges. When faced with mounting debt, the first thing to do is pull out the company’s mission statement — its very reason for existence. If the goal is to stay in business, entrepreneurs should always evaluate options that allow the company to fulfill its mission. When confronted with an enormous challenge, there are very few quick fixes. It’s better to address hard decisions, even if they should have been made long ago, than to take the risk of steering into the rocks for the illusion of an easy solution. ERIC PETERSON is an officer in the creditors’ rights and bankruptcy practice group of the law firm of Greensfelder, Hemker & Gale, P.C., which serves Illinois businesses from its offices in St. Louis, Belleville and Chicago.

August 2014 Southern Business Journal

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August 2014 Southern Business Journal

| 4

Employee-owned: Sharing in the risk and rewards shares are $28.70. “The research that we conducted at the time said that companies that otherwise be sold to an unknown buyer, have an employee-ownership plan have perhaps a foreign entity, and split apart employees more mindful of very imporor sold off in pieces with little regard for tant things, like expenses and customer the workers or the community,” she said. services,” Brockelmeyer said. “That’s a According to Silverman, S ESOPs were benefit we see every day.” created in Washington D.C. Twice a year, stocks are put into “Congress authorized this unique employee accounts. structure, and so the S ESOP community “It is a unique retirement benefit. of businesses, including many in Illinois, We offer a 401k and a company match,” are always concerned about potential, he said. inadvertent policy harms that could According to Brockelmeyer, employbefall S ESOPs,” Silverman said. “Most ees see their relationship with the comconcerning is that, since these are creapany differently. tures of tax policy, any major overhaul “I am an employee owner in the busiof the tax code could yield changes that ness, and I am going to treat it as my would undercut S ESOPs and make them own,” Brockelmeyer said. “Our folks go less viable. That said, S ESOP compathe extra mile to treat that customer as nies have many allies in Congress, and Neal Tire in Herrin, started by the Neal family in 1925, has always been employee owned and there is legislation now pending (S. 742 operated. It has 25 locations in Illinois, Indiana and Kentucky and carries Bridgestone, Firestone, their own.” The employees have a chance to in the Senate, H.R. 4837 in the House) Cooper Tires, Carlisle, Goodyear, Kelly, Multi-Mile, Pro Comp Tires, Mickey Thompson, Dayton, Kenda, Sumitomo, Alliance, Yokohama and Titan brands. impact their future every day. that would help make this structure an “That’s the employee-ownership culoption for many more companies whose ture. It’s very powerful,” Brockelmeyer Rex Fisher, senior vice president at productivity, profitability, job stability employee owners could benefit from said. “It makes people think and act and HDR, attributes employee ownership to and job growth generate a collective $19 being part of an S ESOP.” make important business because they S ESOPS offer many benefits, accord- billion in economic value that otherwise the company’s success. “That ownership and motivation when have a vested interest in the company.” would not exist.‌ ing to Silverman. Carr agrees that when employees have you are an owner makes you invested in That higher productivity, job stability zz Retirement account balances are and job growth has propelled employee- success,” Fisher said. “We believe that’s a stake in the business, it shows. three to five times higher than the aver“They definitely take a lot of pride in owned HDR, a leader in academic, civic, why we’ve risen to the top.” age 401k.‌ their work,” he said. No one employee owns more than zz $14 billion in new savings each year corporate, health care, justice and sciHe told the story of a recent new 3 percent. Once a year, employees ence and technology architecture, into for workers.‌ hire, who has worked for several other can invest money from their 401k in the global market. zz While nearly 46 percent of workcompanies, and says Neal Tire is the HDR stock. The firm, with branches in Murphysing Americans do not have access to an best company he has ever worked for. “It’s a great business model,” Fisher boro, Springfield and Chicago, also employer-sponsored retirement said. “As an employee said, ‘When is the Carr agrees. “It is a really good company works in a variety of fields savings plan, all S corporato work for,” he said. “We take a lot of last time you washed a rental car?’” — from drinking water tion ESOP participants pride in helping customers. They are the Employees are invested financially projects, health care, oil have a plan which is reason we are here.” and gas, power, energy, and emotionally in their company. wholly funded by According to Carr, the company is One of the nation’s largest ESOPs has science and technoltheir companies.‌ motivated to look for ways to impress ogy, transportation, local facilities. zz On net, “I am an employee customers. “We now have a Keurig cofFerrellgas, which supplies local waste manageemployment fee machine and have ordered a popcorn homes, business and agricultural with ment, resource among the surowner in the business, machine and a small fridge,” he said. “We propane gas, has locations in Anna, Du management, veyed S ESOP and I am going to also have a lot of giveaways, including Quoin and Marion. water resources firms increased Miners tickets. We are here for the cusThe company has an additional 39 and fisheries and over 60 percent treat it as my own.” interior design to locations in Illinois with 176 employees, tomer. Everything is about the customer.” from 2001 to Happy customers will keep coming and there are 3,600 employees nationmilitary design. 2011 as comScott Brockelmeyer, back, which means more work for the wide. The company is also celebrating The firm has pared to zero of Ferrellgas employee-owned company. According its 75th anniversary this year. more than 8,000 job growth in the to Fisher, employee-owned companies “We are somewhat unique among employees and private sector as are important to the economy and to the companies that have formed an 200 offices around a whole.‌ employees themselves. employee stock ownership program,” the world. zz S ESOP com“There is no debate. Employee-owned HDR, which was founded said Scott Brockelmeyer, company panies weather the companies have been more successspokesperson. “We are also publicly in 1917, has been employee economic storms better than traded on the New York Stock Exchange ful, in good times and bad,” Fisher said. owned since 1997, when the CEO led an their non-ESOP counterparts in job “Employee-owned companies can since 1998.” employee buyout. creation and preservation.‌ do well.” According to Brockelmeyer, when HDR designed the longest continuous zz Employee ownership has helped company owner Jim Ferrell sold the bridge in the Illinois bridge system on preserve jobs in the hard-hit manufacDEB SAUERHAGE is a correspondent for I-270 over the Chain of Rocks Canal, the company to the employees, the value turing industry.‌ Southern Business Journal. of the stock shares was $4.10. Now the Mississippi shipping canal. zz Every year, S ESOPs’ higher From page 3

August 2014 Southern Business Journal

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Employee-owned companies Sharing in the risks and rewards of ownership DEB SAUERHAGE SBJ CORRESPONDENT‌

‌Local large and small companies are enjoying the profits and benefits from being employee owned. Employee stock ownership plans, or ESOPs, allow many employees to own or buy their companies. The ESOP acts as a trust for the employees. While each company may be different, a committee of employees makes decisions about the company. Profits from the company are given to employees through their 401k plans, which can be invested in company stock and employees can access at retirement. The employee and the employee’s money are both invested in the company.

A.J. Carr, manager at employee-owned Neal Tire in Herrin, said there are many benefits to being employee owned. “The benefits are far greater than a corporate-owned business,” Carr said. “Employees receive stocks at no cost to them, and health and medical benefits far outweigh anything from other companies,” Carr said. The company, started by the Neal family in 1925, has always been employee owned and operated. It has 25 locations in Illinois, Indiana and Kentucky and carries Bridgestone, Firestone, Cooper Tires, Carlisle, Goodyear, Kelly, MultiMile, Pro Comp Tires, Mickey Thompson, Dayton, Kenda, Sumitomo, Alliance, Yokohama and Titan brands. At Neal Tire, an employee committee, including a mix of management and nonmanagement employees, helps make company decisions and looks for ways to improve stock shares.

Employee ownership can also protect According to the Employee Owned the company from unwanted takeovers, S Corporations of America, ESCA, according to Stephanie Silverman, website in 1998, private compresident and executive director panies pressed Congress of Employee Owned S Corto let their workers (soporations of America. called S corporations) “The “Many times, when the also benefit from owner of a private busiemployee ownership. benefits are ness looks to retire, sellToday there are far greater than a ing that company can more than 2,600 S be difficult, especially corporation ESOPs corporate-owned during a slow economy,” around the country. business.” Silverman said. “When Employee-owners at the company can be ESCA companies in A.J. Carr, manager transitioned to an ESOP, Illinois number more at Neal Tire it remains whole, vibrant, in than 9,000 with over the community.” 15 employee-owned comBottom line. Employees panies in Illinois. In addition, there are 20-plus employee-owned com- stay employed. “That’s a big relief for workers who are panies which operate in Illinois. worried that their company might Employee ownership has many benefits besides a say in the company and stock options. See EMPLOYEE-OWNED / Page 4

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ECONOMICS

INVESTMENTS

Know all the risks: When business conditions founder, debts might threaten imminent disaster. An offer of more time and patience for payment, forbearance, might sound appealing. But special attention must be paid to the terms and conditions. Forbearance works for some, but others discover the terms so onerous they wind up in breach from the very first day.

Avoiding costly mistakes: We know that it’s difficult to allocate and manage portfolios successfully in today’s marketplace. Key mistakes by investors and portfolio managers place portfolios at risk. But you can minimize your risks by learning to identify the four areas of common mistakes — such as confusing asset allocations with diversification.

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WORKPLACE Three key areas: It’s OK to admit we are not perfectly organized at work (who is?) but it’s definitely not a good idea to accept clutter, confusion and wasted efforts as permanent conditions. First determine if your workspace is truly set up to facilitate the actual work you do. Then take control over your workstation, work practices and workload by continually applying organizational strategies — such as disposing materials not touched in three months and responding to emails only at designated times.

John A. Logan College .............13

Pepsi MidAmerica...................20

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ACHIEVEMENTS Who’s in the news: Find out who has been hired, who has been promoted or who has received an award for efforts in business. Make sure you check out our newest Faces in the News collection of business portraits and learn more of the achievements and honors in regional business. If you know of a business person who deserves special recognition for advanced training, a unique honor or a business expansion, please let us know at sbj@thesouthern.com.

PAGES 14-15

Raymond James Financial ....... 6

SIU Credit Union ......................16

Small Business Growth Corp. .. 5

Southern Illinois Healthcare .... 8

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Southern Illinois University .....18 S O U T H E R N

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The Southern Business Journal is a publication of The Southern Illinoisan. Contact us via mail at 710 N. Illinois Ave., Carbondale, IL 62901, or at P.O. Box 2108, Carbondale, IL 62903. Also reach us on the Web at www.sbj.biz and via email at SBJ@ thesouthern.com. The Journal is published 12 times per year monthly, and mailed to businesses, community development leaders, chambers of commerce members and other professionals in Southern Illinois. Copyright 2014 by The Southern Illinoisan, all rights reserved. A subscription may be obtained by calling 618-529-5454 or 618-997-3356, or by visiting our website.

Publisher John Pfeifer 618-351-5038 Editor Gary Metro 618-351-5033 Advertising Mark Dynis 618-351-5815 Design and Layout Rhonda May 618-529-5454, ext. 5118

Southern Business Journal August 2014