TK Business Magazine - January 2022 Issue by E2 Communications & Publishing

HIGH TECH STORAGE | SUPPLY CHAIN CRISIS | INNOVATIVE ENTERTAINMENT | HEALTH OF A BUILDING JANUARY/FEBRUARY 2022

JONG’S THAI KITCHEN

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CONTENTS

Photos by JOHN BURNS

TK BUSINESS MAGAZINE | JANUARY/FEBRUARY 2022

INNOVATIVE ENTERTAINMENT

Two new businesses and one ever-evolving one can help friends and families discover creative ways to have fun.

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CONTENTS

TK BUSINESS MAGAZINE | JANUARY/FEBRUARY 2022

ON THE COVER HIGH TECH STORAGE | SUPPLY CHAIN CRISIS | INNOVATIVE ENTERTAINMENT | HEALTH OF A BUILDING

Adapa builds adaptable products for increased productivity.

TopCity Storage opens a new contactfree facility on Topeka Boulevard.

JONG’S THAI KITCHEN 22

JONG’S THAI KITCHEN

Derek Ragsdale, Nimm Ragsdale and Banjong Jongthep are cooking up something special in a quaint little restaurant in the Holliday Park Historic District.

Photo by JOHN BURNS

FILLING A NICHE

EXPERTS

UNDERSTANDING AND COPING WITH THE SUPPLY CHAIN CRISIS

A Washburn University professor of Production and Operations Management explains supply chain issues and offers strategies for small businesses to survive them.

TAX STRATEGY: NOT JUST FOR YEAR END Brian Lang, SSC CPAs + Advisors

BEST PRACTICES IN STARTING A PRIVATE PRACTICE Alicia Lawrence, Lydia Diebolt and Tonya Ricklefs Washburn University Department of Social Work

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TK Business Magazine

HIGH TECH STORAGE

Learn the story behind the success of Mohan Construction.

Bringing a piece of her Chinese heritage to Topeka, Victoria Wu hopes to turn more Topekans into coffeeheads.

Sunflower Foundation restores buildings on “Healing Hill.”

The Center for Economic Development and Business Research at Wichita State University provides forecasts on the economic outlook for Topeka.

HEART OF THE ENTREPRENEUR

THE HEALTH OF A BUILDING

Photo by JOHN BURNS

COFFEEHEAD

TOPEKA’S ECONOMIC OUTLOOK

SCAMPER

An out-of-the-box tool to spur innovation.

Photo by EMMA HIGHFILL

Photo by JOHN BURNS

JANUARY/FEBRUARY 2022

Making Sure you take your best shot at financial goals.

Joseph Prokop, CFP® CRPC® CERTIFIED FINANCIAL PLANNER™ Client CFO & Fiduciary

(785) 272-5000

www.ruontarget.com 5301 SW 7th St Topeka, KS 66606 joe@ruontarget.com

atstopeka.com

Investment advisory services offered through Cambridge Investment Research Advisors, a Registered Investment Advisor. Cambridge and On Target Financial are not afﬁliated.

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TK Business Magazine

CONTRIBUTORS

PUBLISHER

Tara Dimick

EDITOR-IN-CHIEF

Lisa Loewen

CREATIVE DIRECTOR & DESIGNER

Janet Faust

MANAGING PARTNER & SALES DIRECTOR Braden Dimick braden@tkmagazine.com MARKETING DIRECTOR & SALES Ally Oakes ally@tkmagazine.com

COVER PHOTOGRAPHER

WRITERS

Kim Gronniger Lisa Loewen Eric Smith Adam Vlach Kathy Webber

PHOTOGRAPHERS

John Burns Emma Highfill Rachel Lock Melvina Taylor

EXPERT

Lydia Diebolt, LSCSW Akhadian Harnowo, Ph.D Brian Lang, CEPA, CPA, CVA Alicia Lawrence, LSCSW Tonya Ricklefs, PhD, LMSW

2022 TK Business Magazine is published by E2 Communications, Inc., 7512 SW Falcon St., Topeka, KS 66610, (785) 438-7773. Reproduction or use of this publication in any manner without written permission of the publisher is prohibited. Every effort was made to ensure accuracy of the information in this publication as of press time. The publisher assumes no responsibility of any part for the content of any advertisement in this publication, including any errors and omissions

@tk_business_

John Burns

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therein. E2 Communications, Inc. makes no endorsement, representation or warranty regarding any goods or services advertised or listed in this publication. Listings and advertisements are provided by the subject company. E2 Communications, Inc. shall not be responsible or liable for any inaccuracy, omission or infringement of any third party’s right therein, or for personal injury or any other damage or injury whatsoever. By placing an order for an advertisement, the advertiser agrees to indemnify the publisher against any claims relating to the advertisement.

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Get expert business advice and up-to-date information on business in Topeka at TKmagazine.com. Send your news releases to news@tkmagazine.com.

BUSINESS NEWS

JANUARY/FEBRUARY 2022

Heinen Brothers Agra Services to Expand in Topeka The Joint Economic Development Organization (JEDO) board approved an incentive agreement that will aid in the expansion of Heinen Brothers Agra Services. Previously referred to as “Project Helix,” this expansion is expected to create up to 20 new jobs with an average wage of $45,000, plus benefits. The total economic impact expected over the next 10 years is $135 million. The performance-based incentive for this project is up to $119,000, resulting in a 324% return on investment.

Ernest-Spencer Metals to Expand in Topeka JEDO board approved an incentive agreement that will aid in the expansion of Ernest-Spencer Metals. Previously referred to as “Project Warrior,” this expansion is expected to create up to 35 new jobs with an average wage of $43,500, plus benefits. It will also lead to $3.8 million in capital investments. The total economic impact expected over the next 10 years is $264 million. The performance-based incentive for this project is up to $214,000, resulting in a 249% return on investment.

HME Inc. to Expand in Topeka JEDO board approved an incentive agreement that will aid in the expansion of Haas Metal Engineering. Previously referred to as “Project Platinum,” this expansion is expected to produce an estimated $15 million in capital investment. The total economic impact expected over the next 10 years is $12.5 million. The performance-based incentive for this project is up to $60,000, resulting in a 172% return on investment.

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PHOTO SUBMITTED

Qiana Anthony, CoreFirst Bank & Trust Virginia Barnes, Blue Cross & Blue Shield of Kansas Lisa Becker, AE Wealth Management Tracy Blocker, Technical Applications & Consulting Marleah Campbell, WIBW-TV Marsha Carrasco, FHLBank of Topeka Lane Clothier-McNeil, Hill’s Pet Nutrition Bill Cochran, City of Topeka Cleotha Daniels, Midwest Health Inc. Justin Davis, SE2 Lauren Edelman, Washburn University Autumn Friedli, Topeka & Shawnee County Public Library Leilani Grey, Topeka Collegiate School Martinez Hillard, United Way of Greater Topeka Ashley Lehman, Greater Topeka Partnership Brynne Liedtke, 43 Ten/Shawnee Heights High School Jacqueline Lightcap, League of Women Voters of Kansas Sarah Lundry, Advisors Excel Leslie Meitner, Security 1st Title, LLC Marcus Miller, First Tee-Greater Topeka Jaclyn Mullins, The MCP Group Sandra Muniz Uria, US Bank Ally Oakes, TK Business Magazine Gina Penzig, Evergy Inc. Jacquetta Ramirez-Jennings, SENT Inc. Stanley Robinson, Hill’s Pet Nutrition Rebecca Roth, Shawnee County Human Resources Brenden Sheehy, Bartlett & West William Skrobacz, Jr., Capitol Federal® Savings Bank Bobbie Smith, BNSF Railway Company David Uhler, WIBW-TV Hannah Uhlrig, City of Topeka Casey Vigus, Brandon Aldridge State Farm Tony Weingartner, Kansas Bureau of Investigation Bridget Whittington, Central National Bank Michael Williams, USD 501/Highland Park High School

PHOTO SUBMITTED

Leadership Greater Topeka Announces Class of 2022 Now in its 39th year, Leadership Greater Topeka is a local tradition that offers budding leaders in the community a chance to learn more about the opportunities and challenges facing Topeka and Shawnee County. The following individuals were chosen to be part of the 2022 LGT class:

Visit Topeka Announces Inaugural Youth Indoor Track & Field Invitational The inaugural Topeka Super Indoor Invitational will be held Feb. 19, 2022, at Washburn University’s new indoor athletic facility. It is estimated that the invitational 300 youth athletes, as well as their families, to Topeka, resulting in positive economic impacts for the capital city and local tourism partners.

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Oakland Wastewater Treatment Plant: Producing renewable fuel to drive city revenue and environmental sustainability “Bartlett & West helped us understand the long-term potential in biogas. By producing energy and selling to the power grid, we avoid flaring and expect to cut down on our operating costs. It’s rare to find a municipal project that generates revenue. This is a huge win for the City of Topeka.” Sylvia Davis, Deputy Director of Operations

Driving community and industry forward, together.

City of Topeka Utilities Department

JANUARY/FEBRUARY 2022

www.bartlettwest.com

TK Business Magazine

“Our company is known as the Cadillac of the industry.” —Scott Halsey President adapa

Photo by JOHN BURNS

JANUARY/FEBRUARY 2022

TK Business Magazine

Longtime Topeka business FILLS niche

Adaptable Products for Increased Productivity By ERIC SMITH Photos by JOHN BURNS

The capital city has many hidden treasures that often go unheard and unnoticed—places that have been in business for decades and continuously put out a great product. One of those such places is adapa, 5525 S.W. Randolph Ave., a locally owned, employee-oriented business started in 1964 by Paul Halsey and ran today by son Scott and the Halsey family. A designer and maker of material handling carts, adapa, with its plant near the corner of S.W. 57th and Burlingame, sells its products to drywall distributors, cabinet manufacturers and furniture manufacturing plants across the country. The way Scott Halsey describes it, adapa makes four-castered (wheel) carts similar to the ones you see in Lowe’s, Home Depot, and Menards that are used to move materials around. The difference is that adapa’s carts are designed more specifically to be on a construction site or a manufacturing plant. “There are several companies throughout the U.S. that do what we do,” Scott said. “The interesting thing about our company is we’re kind of known as the Cadillac of the industry. Our customers use our products, but they may sell our competitors’ products to their customers. We’ve definitely been around longer, and the quality of product we put out is a little higher than others.” The name adapa came from the slogan for the company: “Adaptable products for increased productivity.”

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TK Business Magazine

Photo by JOHN BURNS

Adapa makes four-castered wheel carts similar to the type seen at home improvement stores but designed specifically for construction sites or manufacturing plants.

A family-run business through and through, Scott said his mother, 92-yearold Marilyn, still comes into work and helps with the day-to-day process. Additionally, Scott’s sister Robin Halsey Ortiz has worked for the company 20-plus years and runs the office and oversees the shipping of products. EARLY BEGINNINGS Adapa saw its evolution from Paul Halsey’s construction business, HalseyTevis. The Halsey family moved to Topeka from Wichita in 1965 when the construction company obtained the contract to build the interior of White Lakes Mall. Along with the move came adapa, Paul’s new start-up. Paul saw a need to have wellconstructed, American-made material

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handling carts to help cut labor costs on job sites. Other people found out about what he was doing and started asking if he would be able to provide those products for them. In 1979, Paul Halsey got out of the construction business and went full-on into adapa. Scott joined his father’s business in 1981 and worked his way up to president, a position he’s served in for more than 30 years. Paul Halsey took his products to trade shows, conventions and conferences throughout the United States and Canada. Some of his creations had patents both in the U.S. and Canada. In 1987, adapa added a plant at its current location and then in 2002 added a large addition, making the plant nearly 40,000 square feet.

TK Business Magazine

Another company, which became known as Shopcarts, was added when adapa started manufacturing carts for cabinetmakers. The additional space allowed adapa to go into the powder coating business for its items in addition to doing work for others. When adapa moved to the new manufacturing building, a lot of land was available for a mini-storage area. The Halsey Corporation, which owns the land and buildings used by adapa, decided to go into business as Adaptable Storage. Adapa started with one design, and over the years, has increased their product line to fit the needs of the construction trades. “With a focus on the material handling aspects of drywall sheet goods, the business has continued

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Adapa started with one design and over the years, has increased their product line to fit the needs of the construction trades.

Scott said all of his kids worked at adapa a little bit growing up but sticking with the family business wasn’t for Caitlyn. Scott said he enjoys having weekly discussions with Caitlyn about what’s going on with her business. “She runs a lot by me trying to figure what is the best way to move forward with some of her concepts. Her business is totally different than mine, so I enjoy working with her. I give her the guidance I can, and she decides whether or not to follow it,” Scott said with a laugh. “That’s all I can do. That was her concept and her baby; we just back her the best we can.”

Photo by JOHN BURNS

to offer new and innovative products to the market that are often imitated but never duplicated in their quality,” Scott said. Paul was involved as an advisor in the family business until his death in 2010, Scott said. COMMUNITY PROJECT In addition to well-constructed material carts and its typical products, adapa also takes part in a community initiative. For the past few years, the business has made bike racks for the Topeka Community Cycle Project. Located at 801 N.E. Poplar St., the nonprofit has the goal of broadening access to cycling in Topeka through hands-on education and bike repair. The locally produced racks are located at Shawnee County Parks and Recreation facilities around town,

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including Hillcrest Community Center, McDonald Field and Clarion Woods Park. “They came to us and asked if we would be able to help them out,” Scott said. “And we were able to do what they needed us to do, and it’s just been an ongoing relationship since then.” LIKE FATHER, LIKE DAUGHTER Adapa isn’t the only Halsey-owned business in town. Caitlyn Halsey, Scott’s daughter, is the owner and founder of Dialogue Coffee House, 4009 S.W. 29th St., at the intersection of S.W. 29th and Gage. Dialogue has an employee base of adults with intellectual and developmental disabilities, giving everyone a place to be part of the conversation, without the definition of one’s abilities.

TK Business Magazine

BUSINESS IS GOOD Adapa’s business slowed right at the very beginning of the pandemic but has come back strong since. “Currently, at this point in time, it’s good,” Scott said. “We’ve returned back to pre-COVID numbers. It took us a while to get back to this point. We’re at a good spot, and we hope that continues.” While adapa is small with about 10 employees, like many businesses, it’s looking for a few more employees and working to find the balance of how much production can get done with the workforce and supplies the company currently has. Scott said adapa sells locally to North Topeka-based drywall distributor Rew Materials, 730 U.S. Highway 24. Beyond Topeka, adapa works with a lot of companies on the east and west coast and has done business in nearly all 50 states and Canada. TK

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HIGH-TECH STORAGE By ERIC SMITH Photos by JOHN BURNS Like many great business opportunities, Topekan Crystal Reuter saw a need for a service in the capital city and made it a reality. TopCity Storage opened the first week in June at 4600 S.W. Topeka Blvd., just south of the Kansas Turnpike. This isn’t your typical selfstorage arrangement—the whole high-tech operation is contactfree, and Reuter says it’s the first to use NOKĒ smart entry technology to fully automate storage in Topeka.

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CRYSTAL REUTER | OWNER | TOPCITY STORAGE Photo by JOHN BURNS

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WE DO I.T. CLOUD • INFRASTRUCTURE • MANAGED IT • SECURITY nex-tech.com/business • 800.588.6649 JANUARY/FEBRUARY 2022 TK Business Magazine

Photo by JOHN BURNS

TopCity Storage features 84 units in a 14,000 square-foot, well-lit facility.

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“Everything can be done from your smartphone. No padlock or physical key to lose. Your phone is your key,” said Reuter, the owner and only employee of the business. “Contactless rentals are the way the industry is moving.” The brand new 84-unit, 14,000 square-foot, well-lit facility gives clients 24-hour access to their units and has an emphasis on clean and safe storage.

TK Business Magazine

“I just kept seeing people posting that their storage got broken into,” Reuter said. “I thought if we’re going to do this, I wanted to build something that was secure. And unique. Not just a boring, standard storage building.” To rent, customers visit the TopCity Storage website, choose a unit, e-sign an agreement and provide payment information. Then a digital key is sent via email

Photo by JOHN BURNS

“[There is] no padlock or physical key to lose. Your phone is your key.” —Crystal Reuter Owner TopCity Storage

with download and accessibility instructions. No locks are needed; the mobile app logs who is coming and going, and smart technology knows if it’s locked or not. All units have motion sensors inside, and the digital key can be shared with movers, family members or friends as needed. “I have an 80-year-old customer that loves the facility’s

ease of use. It’s pretty simple,” Reuter said. Reuter said it’s extra difficult to break into the units as the electronic locking mechanism is on the inside of the unit as opposed to the outside. Additionally, any time motion is detected, or someone is trying to break in, a message is sent to the unit renter to notify them. The renter can

view and monitor all activity from the palm of their hands. The whole facility is monitored by CCTV cameras. “The automation gives me flexibility; I can be out marketing the facility, but if someone needs help, I can be there at any time to help,” Reuter said. Even in a power outage, the units are accessible, thanks to the Tesla batteries that power the units. Reuter said the demand for storage units has been strong through October, and sales have leveled off a bit with the holidays. The facility offers both temperaturecontrolled and drive-up access and can be rented on a long-term and shortterm basis. The units range in five different sizes from 10-by-30 to 5-by5. TopCity Storage has pricing to fit most budgets, starting at $65 a month. Drive-up access units with parking for recreational vehicles and cars are also available. “Business has gone better than expected,” Reuter said. “We opened at the right time, as there was an immediate need for storage when we opened in the summer. Topeka has been really receptive to us opening.” TK

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TK Business Magazine

JONG’S THAI KITCHEN By KATHY WEBBER Photos by JOHN BURNS

Nestled in central Topeka is a small quaint Thai restaurant that delivers tasty food in a comfortable, homey atmosphere with personal service that makes guests feel at home. This combination is hard to find in most restaurants, but good friends Banjong Jongthep and Derek and Nimm Ragsdale have done just that with Jong’s Thai Kitchen, located in Holliday Park Historic District at 800 SW 12th St.

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Photo by JOHN BURNS

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TK Business Magazine

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“We are good partners because we work well together.” —Nimm Ragsdale Co-owner Jong’s Thai Kitchen

Jongthep and the Ragsdales always wanted to open a restaurant where they could share the Thailand culture with others through food and service. How they ended up opening such a restaurant all stemmed from a friendship that developed while working together at Tuptim Thai in Topeka. COMING TO AMERICA Jongthep left Thailand 20 years ago to come to the United States. After traveling to many different states, she eventually ended up in Topeka where she met Derek and Nimm Ragsdale while working

at Tuptim Thai. Nimm, also from Thailand, has been in the United States for eight years. Nimm met Derek, a Topeka native, while working at Tuptim Thai and the two have been married for three years. Although working together at Tuptim Thai was a good experience, the Ragsdales and Jongthep really wanted to open their own restaurant. “It is nice to own your own restaurant because you have the freedom to make it the way you want it to be. We can do what we think is best, and we are good partners because we work well together,” Nimm Ragsdale said. When the trio opened Jong’s Thai Kitchen in September of 2020, it was right in the middle of the pandemic, but according to Jongthep, it did not affect their restaurant very much. “It was hard for us because of COVID, but sometimes in really hard times, people rally and support you, and that is what Topeka did. They really supported us,” Jongthep said. Jongthep has not always been a skilled chef and did not cook much while growing up. She discovered her skill

Photo by JOHN BURNS

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TK Business Magazine

Photo by JOHN BURNS

for cooking while working at Tuptim Thai. “I started cooking at Tuptim Thai and that’s where I found out I had a knack for cooking,” Jongthep said. “I like to create food and change it up to make it taste better. I like to serve you food and see your reaction that it tastes really good.” JUST THE THREE OF US Jong’s Thai Kitchen is a quaint little restaurant with only five tables and a very small kitchen, but according to Derek Ragsdale, it is the perfect size for them, and there are no plans to expand. “It is just the three of us running Jong’s Thai Kitchen, so five tables is really all we can handle,” he said. “Customers sometimes ask us why we aren’t adding tables or hiring more people to work here, but the

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BANJONG JONGTHEP, DEREK AND NIMM RAGSDALE | OWNERS | JONG’S THAI KITCHEN

JANUARY/FEBRUARY 2022

TK Business Magazine

Photo by JOHN BURNS

To maintain a high level of quality in both the dishes and the dining experience, the owners at Jong’s Thai Kitchen purposely keep the seating capacity limited.

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answer is we don’t want to grow because we want to give a good quality experience to everyone who comes here, as if you were dining at our home.” Another reason they do not wish to hire more staff to increase their output is because they feel they would lose the quality control. Nimm Ragsdale compared it to the painter Van Gogh, who could have trained others to paint his portraits, but it wouldn’t be the same value or quality. “Jong can see things and smell and taste things that only she can recognize how it needs to be prepared to taste just right. It would taste different if someone other

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than Jong were to prepare it,” Nimm Ragsdale said. “It is just Jong and me in the kitchen. If we increase the number of tables, it won’t be the quality and experience we want it to be.” RESERVATIONS RECOMMENDED Since Jong’s Thai Kitchen has only five tables, reservations are highly recommended. They do not reserve a table until one is vacated and will call and let you know that the table is available. It is this kind of service that gives Jong’s Thai Kitchen a personal feel. “We don’t want to rush people out of the restaurant. We want the customer to feel like they are sitting

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Banjong Jongthep, co-owner at Jong’s Thai Kitchen, is always trying new recipes and enjoys preparing special orders with advance notice.

Photo by JOHN BURNS

in their own kitchen. We can deliver delicious food, that is for sure, but if we are trying to do too much, the quality of the food decreases,” Nimm Ragsdale said. Jongthep is always trying new recipes and will even cook special order food that is not on the menu. It is just one more thing that Jongthep and the Ragsdales do to make their customers happy. “We can make whatever you want us to make, just call us ahead of time and we will make it for you,” Jongthep said. “If you have a reservation for next week, and you want lobster and your husband wants steak, we will cook it for you. We want you to be happy, we just need to be prepared for it.” Jong’s Thai Kitchen also allows you to bring your own alcoholic beverages in while you dine, and there is no corking fee. “It’s just like if you were to come to my house to eat, you can bring whatever you want to drink,” Nimm Ragsdale said. Nimm Ragsdale originally planned on returning to Thailand, but she loves Topeka and says she has a new family here. “When we opened Jong’s Thai Kitchen we got a lot of support, they didn’t look at us like you are Asian, they looked at us like we were fellow Topekans. Topeka has been very supportive. I knew this was my home,” she said. Jongthep agrees. “I cannot say thank you enough for all the Topeka community support,” she said. “When customers come back, and we see you return, it makes us so very happy.” TK

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FROM THE PROFESSOR

Understanding and Coping with the Supply Chain Crisis By AKHADIAN HARNOWO, PH.D The year 2021 was supposed to be a brighter year for businesses in the U.S. after many troubles in the preceding year due to COVID-19. However, fast forward to the end of 2021, the economy was not as good as predicted. As reported, the U.S. saw the highest inflation in the last 30 years. According to the Bureau of Labor Statistics, wholesale prices rose 8.6%, and consumer prices grew 6.2% in October compared to 2020. Moreover, the U.S. experienced widespread shortages too. As a result, Black Friday sales last November were much calmer than those in the past. All of these were driven by one factor: the supply chain crisis.

SUPPLY CHAIN IN 2021 A supply chain is like an orchestra; every member has their task, but all members must work together in sync to play a symphony. It also works similar to a relay race; passing the baton is critical, and it requires good communication, cooperation, and coordination between the runners. Unfortunately, the United States witnessed the complete opposite of a beautiful symphony, causing a supply chain crisis. There were stockouts, shipment delays, labor and truck drivers’ shortages, and seaports jams. At the root of these disruptions is the global COVID-19 pandemic.

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SUPPLY CHAIN DEFINITIONS What is a supply chain? There are misconceptions about the supply chain’s definition. For example, many people think that the supply chain is the movement of goods from one company to another or that it is synonymous with logistics. Instead, a supply chain is a set of three or more entities/firms connected with the flow of products/services, money, and information. To illustrate, a restaurant, its meat supplier, and its customers exemplify a supply chain. Note the complexity of the supply chain; the restaurant has more than one supplier. Similarly, its meat supplier has different customers, and it has multiple suppliers too. And to increase the complexity, there are many restaurants in the country, and each has its supply chain! What is supply chain management (SCM)? A supply chain is inherently created when a firm is established, but that does not mean it is managed. To become economically sustainable, a firm needs to manage its supply chain to have continuous supplies from its suppliers and steady customers. Supply chain management is the synchronization of a firm processes with those of its suppliers and customers to satisfy the end consumers’ demand. By this definition, logistics is an essential part of SCM. However, SCM also includes other activities such as sourcing, procurement, production, sales, and fulfillment. To illustrate, imagine what will happen if the meat supplier delivers the meat during lunch hours? All restaurant employees are probably busy serving customers and not prepared to receive the orders. Similarly, the restaurant must place the order at the right time to ensure the meat’s availability and freshness. Due to the complexity and stretch of the supply chain, a failure in one part will quickly spread and disrupt other parts’ flow, creating a supply chain crisis. For example, remember what happened with the meat shortage in 2020. The meat supply chain collapsed when meat processing plants closed due to the COVID-19 outbreak. As a result, farmers had millions of animals euthanized while distributors, restaurants, and retailers were out of meat. To avoid such a problem, all firms in the supply chain need to work in harmony. In addition, communication, cooperation, and coordination across firms are essentials. No firms are allowed to work in silos. Research shows that an effective supply chain can achieve superior performance, such as lower costs, better quality, and higher profits.

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FROM THE PROFESSOR

STAKEHOLDERS’ INITIATIVES In short, Americans who were forced to stay at home during the pandemic set off a surge of orders, led by home furnishings and household appliances orders. The arrivals of these high orders caused a logjam at the U.S. major seaports. Ports have a limited capacity to load and unload containers, and the pandemic and its restrictions have further limited their constraints. Moreover, there has been a shortage of truck drivers and warehouse labor. Finally, there have been shipping-container and chassis shortages that added a layer of complexity. The crisis showed how vulnerable the supply chain is. Throughout the past two decades, firms have focused on applying lean strategies such as just-in-time (JIT), zero inventory, or slack minimization. Research shows that lean systems allow efficiency that can increase firm performance. However, such strategies carry higher risks and stretch the supply chain thin, leaving only a small tolerance to supply disruptions. To mitigate these problems, firms and the government took necessary measures. Some were successful. However, others were unsuccessful and created new problems. Unfortunately, small firms ended up paying the consequences.

JANUARY/FEBRUARY 2022

Initiative 24/7 Ports Operations In October, President Biden announced the plan to open Southern California ports 24/7 to clear the freight clogs at the terminals.

Firms Stocked Up Inventory Best Buy and Target had 55% and 27% more inventory in 2021 than they did the year before, respectively. In addition, Walmart and Home Depot placed orders early to prepare for the holiday season.

Problems Unfortunately, there was no immediate effect of this policy. In fact, the number of container ships waiting at the shore increased weeks after the intervention. The reason is that the warehouses, trucking, rail, and the entire supply chain did not work around the clock, so they were not ready to accept the goods.

Inventory hoarding caused shortages in some places due to the absence of uniform allocation from the supplier. To illustrate, large firm A had the opportunity to secure inventory ahead. As a result, firm A’s competitors followed suit leaving small and medium firms with shortages. Inventory hoarding also created a new problem as firms needed to find a warehouse to store the goods. Firms that did not have a warehouse or could not afford one left the containers at the ports or rail yards as their “storage.” These unclaimed containers limited ports’ capacity to load and unload. As a result, containers got stuck at the bottom pile for weeks, and firms were penalized for storage. In addition, containers and chassis became scarce.

Firms Worked Around the Logjam Home Depot, Target, Costco, and Walmart chartered their own vessels to move products across the Pacific Ocean and rerouted to lesscongested ports like Oakland, CA, or Portland, OR.

Large firms had the capital to secure container slots and charter vessels amidst the high orders’ arrivals. However, the scarcity of container slots increased shipping costs by multiple folds, putting small firms at another disadvantage. The cost was passed on to the end consumers resulted in increased prices across many products. The online marketplace picked up the prices changes, and more retailers followed suit. The global containers scarcity increased the price of containers. In addition, many containers were immediately shipped back to China/Asia once unloaded. As a result, farmers in Kansas and Missouri struggled to ship grains and soybeans to Asia.

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JANUARY/FEBRUARY 2022

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FROM THE PROFESSOR

STRATEGIES FOR SMALL FIRMS During the supply chain crisis last year, small firms suffered the most. They paid shipping costs multiple times only to receive a small portion of their orders. Furthermore, they absorbed most of these costs because they did not want to risk losing customers if they increased the price. It is time to rethink and redesign the supply chain to be more resilient to handle disruption.

Risk Management Quadrants1 HIGH

Loss Mitigation

Mitigation Action Contingency Plan

Risk and Loss Acceptance

Risk Mitigation Contingency Plan

PROBABILITY

LOW SEVERE

MILD

IMPACT

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TK Business Magazine

Prepare for the unexpected Research suggests that firms need to categorize potential disruptions by two dimensions: probability and impact to the business.1 For example, some disruptions with a low likelihood, such as floods or accidents, may have mild consequences that an insurance company can absorb. However, other disruption types require contingency plans and mitigation actions. Determine ahead of time: options to address the highest risk disruption and who will be in charge, and identify the supply chain key contacts and preferred communications methods. Contingency plans are procedures that a firm will take if a disruption occurs. In contrast, mitigation actions involve actions ahead of disruption to reduce risk and loss. Loss mitigation focuses on minimizing the consequences of disruption, while risk mitigation deals with reducing the likelihood of disruption.

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FROM THE PROFESSOR

2 Integrate your supply chain One common mistake in the stakeholders’ initiatives is a disjointed supply chain. Unfortunately, many firms used this pandemic crisis to profit instead of solving the supply chain bottleneck. As a result, widespread and persistent bottlenecks occurred across the U.S. and throughout the year. Preferably, a firm must collaborate with its partners to achieve effective and efficient flows of products/services, information, and money to satisfy the end consumers. Therefore, communication, collaboration, and coordination are critical to integrating the supply chain. In supply chain management, product shortages and shipping delays are highly likely. However, a firm can maintain close communication and provide early and frequent updates to customers to minimize the impact. Similarly, expect the same updates from the suppliers. For example, many firms were left frustrated during the last holiday season when they received only a small portion of their orders and did not have enough time to respond. Close supplier and customer ties also help to reduce risk mitigation. A firm can coordinate with its suppliers and customers with a contingency plan should a disruption occur. In addition, they can collaborate and quickly come up with new ideas to adapt to new developments. For example, there was a high demand for face masks at the beginning of the pandemic in 2020. Small firms were able to fulfill the demand quickly by designing, producing, and distributing the masks. They promptly adapted to the situation thanks to their close relationships with other firms in their supply chain.

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TK Business Magazine

3 Build a resilient supply chain Resilience is the ability to recover to the original shape following a disruption. Research shows that redundancy and flexibility can help with resilience.2 Inventory is the standard approach to build redundancy. Due to the JIT practices, many firms are accustomed to having lean inventory. As a result, they struggled during the supply chain crisis last year. Inventory, however, is expensive and not a good strategy during an extended disruption. In addition, research shows that extra inventory can lead to reduced quality. Instead, a firm can embrace flexibility. To become more flexible, a firm should also redesign its internal processes and supply chain in harmony. For example, a firm can develop the ability to move and modify production lines, use modular components in its products, have cross-trained employees, or utilize flexible equipment. In addition, a firm should also find suppliers and customers that embrace similar capabilities. To illustrate, during early COVID-19 outbreaks, many large processing plants closed or operated at reduced capacity. However, some smaller plants were able to pick up some of the unmet orders by adjusting the production lines. These plants already employed skilled employees that were adaptable to switch quickly and process different animals.

SUPPLY CHAIN OUTLOOK 2022 The U.S. will see the effects of the 2021 crisis flowing into 2022.  There will be a price increase across a broad category of products. Many firms passed on the increased costs to their customers. As a result, there was a decline in Thanksgiving sales in 2021 compared to the previous year.  Inventory hoarding, logjam, and unsold holiday products will cause surpluses in some product categories.  By contrast, there will be a shortage in other product categories given current economic conditions and the recovery of factory production.

 Following the 2021 crisis, firms will pay more attention to supply chain risks by identifying and mapping possible disruptions in their supply chain.  Firms demand more control over their supply chain. Some examples include diversifying the supply base, finding local sources, and exploring substitute materials or products.  Firms expect more visibility and quick information from their supply chain partners to prepare for disruptions.  There have been many changes in consumer behavior following the pandemic. As a result, firms will invest in more slacks and flexibility to adapt to changes quickly.  Finally, the government can facilitate the relationships between private and public sectors across regions to integrate the supply chain. In addition, the government needs to come up with policies and provide solutions that benefit all stakeholders, including small firms. TK

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However, declining freight rates, easing port congestions, and the end of the holiday season can be reasons to be cautiously optimistic in 2022. As a result, supply chain activities will be calmer in the year’s first quarter; it will be an excellent time to evaluate and reflect. The U.S. supply chain will go through a round of evolution in 2022. This evolution brings new opportunities for small firms as many firms will consider redesigning their supply chain.

Akhadian Harnowo, Ph.D is the Assistant Professor of Production & Operations Management at Washburn University School of Business.

References

Knemeyer, A. M., Zinn, W., & Eroglu, C. (2009). Proactive planning for catastrophic events in supply chains. Journal of operations management, 27(2), 141-153. 2 Sheffi, Y. & Rice, J. (2005). A supply chain view of the Resilient Enterprise. MIT Sloan Management Review 1

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O N

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T A V

T N E M

IN TAIN ER

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By KIM GRONNIGER Photos by JOHN BURNS

If your New Year’s resolutions include having more fun and trying new things with family and friends, two new businesses and an ever-evolving venue can get you started. TK Business Magazine

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A SMASHING GOOD TIME

THE HAVOC ROOM 40

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Carrie Correll, owner of The Havoc Room, offers a uniquely different type of entertainment option that gets your adrenaline pumping. Photo by JOHN BURNS

Have you ever had a day when you wanted to smash something to pieces? Now you can! The Havoc Room, 2600 SW 17th St., a garage where people once pumped gas, now caters to folks who want to pump up their adrenaline. Plastic crates of breakables in three sizes and price ranges can be purchased and pulverized with baseball bats, golf clubs, mallets, sledgehammers and other tools. If customers prefer, they can hurl items freestyle at the cement walls. A small crate has 10 items for $10, a medium crate has 20 items for

$25 and a large crate has 30 items for $35. Each participant also pays a $15 entry fee. “Some people beat things to a pulp and others just make little tosses,” said Carrie Correll, who owns the space with Arthur Smith. “Either way, they can break stuff with no guilt and no clean up.” Long-sleeved shirts and closed-toe shoes are required. Safety goggles, face shields, hardhats and K95 masks are mandatory, and optional coveralls are available to shield exposed skin. Bluetooth speakers allow for

streaming music to accompany an individual’s experience, but Correll said many customers find it more satisfying to hear the breakage. Customers range from children celebrating birthdays and employees participating in teambuilding activities to adults enjoying a night out and individuals venting frustrations. “One person told her therapist about how much better she felt after a session here, and the therapist came to check it out because she noticed that her client seemed like a different

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Customers choose crates of breakables and how they would like to pulverize with no guilt at The Havoc Room.

JANUARY/FEBRUARY 2022

person,” said Correll. “We’re not offering a replacement for therapy, but this offers an outlet to express emotions in a safe, controlled environment. It’s a very satisfying stress reliever.” Correll said one man came by himself and bought the middle package. “He said he just wasn’t that angry, but when he finished, he decided to add a TV,” she said. “It’s an adrenaline rush and kind of addictive.” Items that can be smashed at The Havoc Room include everything from printers and filing cabinets to ceramics and windows, many of which are donated by individuals looking for a place to drop off chipped china, company coffee cups, Christmas ornaments, scratched records, picture frames, wooden furniture, computer monitors and televisions. Correll also receives donations

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from thrift stores like the one she once owned and recycles as much material as she can, including electronics. Correll learned about smash rooms in Japan through an internet search and soon found an online network of proprietors willing to share marketing tips and other advice. “I decided I wanted to invest in myself with a business and ran through a lot of ideas before having this one,” said Correll, who has two teenage sons. “It’s nice to be able to offer a different entertainment option in Topeka and so satisfying to have people tell me how much fun they’re having. There is a lot of giggling going on.” The Havoc Room has two rooms available for use and is open from 11 a.m. to 9 p.m. weekdays, 11 a.m. to 10 p.m. Saturdays and 11 a.m. to 7 p.m. Sundays.

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A STIMULATING SIMULATION

THE TEE BOX 44

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Regardless of the weather outside, The Tee Box patrons have the opportunity to play more than 140 courses seven days a week.

The Tee Box, a four-bay indoor golf simulation space, recently opened its doors at 906 S. Kansas Ave., but the business concept actually came to life in late 2019 in the cab of co-owner Brandon Best’s truck. “I was driving to Colby, Kansas, listening to the PGA channel on the radio,” Best said. “They were talking about how the tour was being converted to virtual simulated play because of COVID. I thought to myself,

‘wouldn’t it be great to be able to play golf indoors all year round?’” Intrigued by the idea of simulated golf experiences, Brandon began doing some research. He found a place on the east coast that offered what he was looking for, but nothing close to home. The more research he did, the surer he became that he had a winning business concept. Brandon brought another avid golfer and good friend, Jake King into the venture and the two

never looked back. They began by tracking three years of weather patterns in The Farmer’s Almanac. “We discovered that there were only about 86 days of the year when the temperature was above 55 degrees and below 95 degrees without rain or snow,” said King, co-owner and manager. “We noticed that the parking lots of Topeka’s nine golf courses were always full and knew there would be a market for people who wanted to play year round.” Using Trackman Simulation Solutions technology, The Tee Box offers patrons of all ages and skill sets opportunities to play games and check their prowess on more than 140 courses across the United States and in some foreign countries seven days a week. “I’ve played Shangri-La, a PGA course in Oklahoma, in person several times,” said King. “On our system, the course looked just like it did when I was there last.” Patrons can select from four options—course play, shot analysis, games like closest to the pin and longest drive and a combination option that professional golfers use to assess their swing. They can also participate in tournaments with players from all over the world. King hopes to eventually host a tournament at The Tee Box. “There is a lot of pride and respect in being a golfer,” said King. “The challenge is never ending. You can always get better at it and when you finally hit that one great shot, it sucks you in. You want to replicate that feeling. On the course, whether you play well or not, you still get to visit with your teammates and have a drink, and now you can do it here year-round.” The Tee Box has clubs available for adults and children who don’t have their own and offers golf instruction too. “It’s a great way for kids to find out whether they like it,” he said. Open Sunday through Thursday 7 a.m. to 10 p.m. and Fridays and Saturdays from 7 a.m. to midnight, The Tee Box strives to accommodate every demographic and offers private events like birthday parties and team building sessions. A four-person bay rental is $55 an hour, and a six-person bay is $70 an hour. Although golf is the main attraction, the clubhouse experience is an integral part of the sport’s culture, so King and Best have replicated that with breakfast, lunch and dinner menus and craft cocktails developed by Pedro Concepcion,

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TK Business Magazine

Socializing and dining are also an integral part of The Tee Box atmosphere and experience.

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K.I.T. Solutions, and Aaron Zentner, respectively. A variety of domestic and craft beers and gluten-free options are also available. The menu includes gourmet hot dogs, wings, salads, charcuterie boards and flatbread pizzas with a gluten-free crust option. For sweet cravings, customers can order a bucket of balls—cinnamon and sugar cake doughnuts. “It’s a small menu but it packs a lot of flavor,” King said. “Some people come by just to eat.” King left a 17-year career with HME Inc. to join Best, who owns and operates Best Trucking and is a Top City Logistics partner. King and Best own The Tee Box with their wives, Meagan King and Lindsey Best, who both work at Advisors Excel and have played an essential role in bringing The Tee Box to Topeka. As with most new ventures, starting the business came with a few challenges, not the least of which was asking banks for a loan to open an indoor business right after COVID hit. “Several banks turned us down before we found Equity Bank downtown,” Best said. “Jason Pickerell isn’t a golfer, but when we showed him the research and the business plan, he could see the revenue potential and gave us the backing we needed.” Planning began two years ago when King and Best bought acreage in Southwest Topeka with the intention of building a new facility. “When we were ready to get started with financing, the construction costs had tripled and the lead time went from nine months to two years,” said King. “The same day we decided to take a step back and lease, we found our spot on Kansas Avenue.” Situated down the block from the Cyrus Hotel and across the street from The Pennant, King said the new location is ideal and a draw not only for locals but also business travelers and vacationing families. A couple of weeks before The Tee Box opened on Nov. 11, King and Best played in one of the bays for six hours. “We quit around 1 in the morning,” said King. “We couldn’t get enough of it.” Now King and Best enjoy seeing other people having fun in the new space. “For two years, we worked hard and stayed at it,” he said. “Now we’re here and glad our customers are enjoying the experiences we provide.”

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A TASTE OF NOSTALGIA

THE PENNANT

The bowling alley is just one fun activity that The Pennant offers to make it a favorite place for people of all ages to hang out.

The premise behind The Pennant’s opening in March 2018 was to draw families and adults downtown to enjoy great food and fun activities. With a bowling alley, an extensive arcade, an inventive menu and themed pop-up events, The Pennant, 915 S Kansas Ave, has become a popular hangout for people of all ages and a novel setting for birthday and office parties. The Pennant frequently transforms its upstairs bar and arcade area into a colorful, kitschy haven perfect for pop culture tributes and festive St. Patrick’s Day and Christmas celebrations. Not only are The Pennant’s surroundings transformed with tricked-out sets, but its menu is too. The venue’s cocktails, gourmet burgers, wraps, salads, milkshakes with artistically rendered edible toppers, tater tot nachos and other options get temporarily renamed to complement the setting. “It’s a tried-and-true marketing concept that nostalgia sells,” said Seth Wagoner, chief executive officer and chief financial officer of AIM Strategies. “It connects people and never gets old.” JANUARY/FEBRUARY 2022

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The Pennant has a tried and true marketing concept of nostalgia themed decor and events that engages loyal customers and attracts new fans.

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Harry Potter, “The Office” and a “Friends” Friendsgiving have been popular themes, along with “Frozen,” when an Elsa impersonator posed for pictures with kids. A “Cheers” pop-up got interrupted by the pandemic. December’s Mistletoe pop-up included nods to “Die Hard” and the Grinch, as well as a “National Lampoon’s Christmas Vacation” trivia contest (and a Christmas wish that Chevy Chase, who performed at The Topeka Performing Arts Center on Dec. 23, would pop in too). Wagoner and his team strive to find new ways to engage with loyal customers and attract new fans. “We’re trying to connect with different groups, and my team members all have ideas,” said Wagoner. “I know about ‘Cheers’ and ‘The Office’ but I don’t know anything about Harry Potter.” He said a Man vs. Food competition will kick off this year, beginning with a 3½ pound burger—El Gigante. “If you can eat it in 30 minutes, you’ll be in our Hall of Fame,” he said. “We’ll have a giant countdown clock and we hope people will turn out to cheer contestants on so it’s an interactive experience.” An oversized burrito and shake may follow. During the four years that The Pennant has been open, Wagoner said it’s been gratifying to see downtown thrive with other restaurants and retail shops populating Kansas Avenue. “Downtown is on the cusp and will continue to develop,” he said. “It’s the cool place to be in Topeka.” TK

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BUSINESS TAX STRATEGY

Tax Strategy is not just for the end of the year! Effective planning should be tailored to the unique circumstances of each business. However, some strategies ought to be considered in each planning session.

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Evaluate the Tax Classification of the Business

Brian Lang, CEPA, CPA, CVA Chief Executive Officer SSC CPAs + Advisors

At the beginning of each year, many people commit to New Year’s resolutions for changes they want to see in their lives. Did you know that it is also a great time to reflect on your business structure and assess the foundation upon which your 2022 tax strategy will be built? By beginning early in the year, a business owner may be able to take advantage of even more planning opportunities. As with any business decision, an effective tax strategy should be developed holistically, considering all factors unique to your situation, and not focused solely on tax minimization. A great advisor can talk you through the options available to you. Leveraged opportunities in 2022, coupled with careful planning and a focus on the long-term financial health of the business, will position your business, and our community, for a prosperous new year.

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Many businesses are initially set up as Limited Liability Companies (LLC). This entity type has many benefits and remains flexible to adapt as your business grows. However, the IRS does not recognize LLCs as a business separate from the business owner for tax classification purposes. This means that for tax purposes, the business will be classified as either a sole-proprietorship or a partnership, depending on the number of business owners. One major disadvantage to this form of tax classification is that 100% of the business earned income is subject to employment taxes in addition to income tax. This can add a substantial tax burden on a profitable business. Another tax classification to consider is electing to be taxed as an S corporation. This election informs the IRS that the business wants to be taxed under a corporate classification while still following rules similar to a partnership. One major advantage to classifying as an S corporation is that the business profits are distinguished from the wages paid to the owner for the services they provide. The profits earned, in excess of owner wages, are not subject to the additional layer of employment tax. The filing deadline to elect S corporation status is March 15, 2022 for businesses with a December 31 year end wishing to be treated as an S corporation for the 2022 tax year. The business structure selected has a significant impact on liability exposure and income tax considerations. Your advisor can help you understand how your structure will affect the business and identify your best option.

Review the Retirement Plan of the Business

Develop a Plan for Equipment Purchases Early

Contributing to a retirement plan can be an excellent way to reduce taxable income. Writing a big check to a retirement account is generally preferred over a big check to the IRS.

If you purchase property and start using it in 2022, there is a unique opportunity for an additional tax benefit. The Tax Cuts and Jobs Act (TCJA) allows for 100% first year bonus depreciation for qualified new and used property that was acquired and placed in service during 2022. Currently, this benefit is scheduled to begin phasing out for equipment purchased in 2023. If you have long-term plans to purchase equipment, you may want to consider moving those purchases into 2022.

There are several retirement plans available to small business owners. Two that are wise to consider are listed here: SEP IRA These plans are available to self-employed individuals and businesses with employees. A SEP IRA allows for contributions of 25% of your earnings each year, with a maximum contribution of $61,000 for 2022. SEP IRAs can be established after year end and need to be funded prior to filing of the income tax return.

401(k) Plans These plans can be setup for a business with as few as one employee and allow for employee contributions of $20,500 during 2022 with an additional $6,500 catch up contribution for those over age 50. The business can then make a profit-sharing contribution, subject to certain limitations, which can bring the total up to $61,000 or $67,500 for those over age 50. 401(k) plans can be very beneficial and allow for larger contributions, but they involve more complexities than SEP IRAs. There are deadlines for establishment of 401(k) plans during the year, so consult with your advisor soon to start planning.

Be Proactive with any 2022 Tax Law Changes As I write this article, Congress is debating legislation and the means of paying for the proposals. Many proposals include tax rate increases and alterations to existing deductibility of certain expenses. By the time of publication, there will likely be more information to keep in mind while planning. Consider shifting the payment of expenses between years to take advantage of your anticipated income in 2022 and the potential for tax law adjustments in 2023. TK

You Deserve a Strategic Tax Partner You Can Trust Learn More About How We Help Businesses Think Ahead ssccpas.com Consulting, tax and accounting services provided by SSC Advisors, Inc. Audit and attestation services are provided by SSC CPAs, P.A.

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Steve Mohan, founder and president of Mohan Construction, started with a dream of owning his own business and accepted the risk and hard work to find success.

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For Steve Mohan, founder and president of Mohan Construction, that was never a question. He always knew that building things would be a cornerstone activity in his life. Construction, as he puts it, is in his blood. What he didn’t always know— although he hoped for it—was whether a company of his own would be one of the things he’d one day build. But fortune favors the bold, and through decades of hard work, commitment and unwavering vision, what was once a distant dream is now a thriving reality. “My dad had a construction company. He designed and built microwave, radio and TV towers. I grew up with that,” Mohan said of his introduction to the world of construction. “I went to K-State and went through their construction science program then went to Kansas City and worked for a large general contractor

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“The Camp Cowabunga project at the Topeka Zoo allowed us to really show our skill and creativity on something that was special.” —Steve Mohan Founder & President Mohan Construction

where I got some very good experience before coming back to Topeka and starting Mohan Construction.” To strike out on his own was hardly a spontaneous decision. Besides the fact that entrepreneurship had been a long-held wish, so many of Mohan’s experiences, childhood, academic and on-the-job, seemed to lead up to this point. Nevertheless, making the leap did not come without its share of uncertainty. “It was always a dream of mine to have my own business, but when you already have a job that you enjoy, it can be a risky decision,” Mohan said. Success in business is far from a guarantee. Mohan understood this. He also understood there is no reward without risk and that there is no other time than the present. “I had confidence in myself, so I felt like the time was right for me to try it, and I’m glad I did,” Mohan shared. The early days, as Mohan tells it, were ones of true bootstrapping and rolling with the punches. On his own without so much as an intern to call on for backup, the young businessman found every facet of the business—and its overall success or failure— resting squarely on his shoulders.

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“When you’re first starting a business, you’re doing everything,” Mohan said. “I was doing sales and marketing, estimating, project management, and the overall running of the business, including taking out the trash.” “There are a lot of long hours in trying to get it started, getting known in the area and getting some experience to show people what we could do. The first couple years are tough, and I think that’s the way it is with any small business.” BRICK BY BRICK Then, brick by brick, project by project, decade by decade, Mohan Construction grew into the community pillar that it is today. The company’s success and prosperity did not come without trial or challenge, but it also did not come without a lot of fun along the way. Mohan recalls several marquee projects centered around some very well-known locales. One project in particular spanned the better part of a decade, and its completion gave the company a boost in terms of putting Mohan Construction on the map. “In the late ‘90s, we got the contract to renovate the Payless Shoesource building on 6th Street,” Mohan said. “It was somewhere

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Mohan Construction has done a little bit of everything when it comes to commercial construction: office buildings, retail stores, restaurants, healthcare facilities and even downtown lofts. around 300,000 square-feet and it took us about 10 years to renovate that entire building. That project was significant for us in terms of helping us turn the corner because it was something really significant that allowed us to show other people what we could do.” The honor of being Mohan’s favorite project, however, belongs to a more recent venture the business undertook at the zoo. “The Camp Cowabunga project at the Topeka Zoo was a challenging but fun project. It was really something different that we hadn’t done before,” Mohan said. “It allowed us to really show our skill and creativity on something that was special. That’s one I really like to talk about. It was a good project and something that I think most Topekans are familiar with.” HEADWINDS CREATE CHALLENGES In the past two years Mohan Construction has faced some higher-level headwinds as a result, in part, of the Covid-19 pandemic. As the world grapples with a

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tumultuous economy and a fickle supply chain, Mohan Construction has found it is not exempt from those same challenges. “We’re commercial contractors, so when the economy turns down and businesses aren’t expanding or renovating their facilities or their offices, then that becomes a bit of a challenge. On the other hand, when the economy picks up, things improve and do better,” Mohan explained. “Overall, it’s understanding the market and the economic ups and downs that happen over time that is the biggest challenge.” “There are other challenges, too,” he continued. “Right now, like many businesses, we’re going through a labor shortage. Hiring and retaining good people is a challenge. It’s always a challenge, but even worse right now. And of course, right now, getting materials with all the delivery and transportation problems can cause problems with scheduling.” Had you asked a young Steve Mohan whether navigating a global pandemic, supply chain shortages and a national talent crisis—let alone all at the same time—was part of the vision for his business, he most likely would have said “absolutely not.” If you were to ask Mohan today whether being a business owner is worth it in light

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of those curveballs, he would tell you “absolutely.” “I’ve really enjoyed running the business,” he said. “What’s really fulfilling is being able to serve the needs of our clients. They’re coming to us and looking for solutions. Whether they are expanding or renovating their business, they’re looking to us to serve those needs. I find it very satisfying to be able to provide those services and meet their needs. I think that’s what it comes down to.” REACH AND IMPACT Today, Mohan Construction’s reach and impact expands throughout Topeka and Shawnee County and into the broader Northeast Kansas region. The deepening of its roots in the regional community came hand in hand with the deepening of its expertise in practically every area of commercial construction, as evidenced by the wide array of services the business now offers. “Over the years, we’ve done a little bit of everything from office, retail, healthcare, and restaurants,” he said. “We recently finished some downtown lofts. I don’t think there’s anything we’re not capable of doing in the commercial building market.” Mohan maintains a pragmatic and optimistic outlook for the future of the business. The

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fundamentals continue to guide him as he steers the company through the uncharted waters of a post-pandemic world. “We always want to try and grow the business, but there’s not a plan for any significant expansion right now,” he shared. “We want to continue to do well and serve our customers and hopefully that leads to growth.” Mohan has some advice to pass on to the next generation of entrepreneurs. “Number one, you’ve got to believe in yourself, have confidence in yourself, and be willing to put in the hard work to make it happen,” he said. TK

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Photo by EMMA HIGHFILL

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Victoria Wu, owner of CoffeeHead, is so picky about flavors that she makes her own syrups for the tea and coffee.

CoffeeHead By LISA LOEWEN Photos by EMMA HIGHFILL

“I always said my dream was to spend all day in a coffee shop. I just didn’t think it would be as the owner.” —Victoria Wu Owner CoffeeHead

As an unapologetic coffee addict, one of my favorite things is discovering local shops that offer their own take on a great cup of coffee. So, when a friend told me about CoffeeHead, a place I had yet to visit, I was intrigued. The name itself called to me like a bee to honey, and after reading what the name coffeehead means, I figured out why. According to the Urban Dictionary, a coffeehead is someone who enjoys drinking six to seven cups of coffee a day, preferably in a cafe with their laptop so everyone can see them write. With laptop in hand, I headed out to see if Coffeehead could live up to its name. Even though I had the address programmed into my phone, I missed it on the first pass. Then again on the second. The red pin on my navigation system was telling me to turn in to a Quick Stop. Then I saw the sign. Sure enough, there it was, on the end of the building in what used to be a garage attached to the convenience store at 3101 SW 29th St. SMELLS LIKE HEAVEN I parked and headed inside, wondering if my friend might have led me astray. Those fears were diminished the minute I walked through the door. Tiny but quaint, the little shop smelled like heaven. The menu board showed the traditional

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CoffeeHead, an unassuming coffee shop in a converted garage, delivers big on flavors. Photo by EMMA HIGHFILL

lattes and cappuccinos you would expect from a coffee shop, but it had some things I hadn’t encountered before, like milk teas and boba, as well as CBD infused teas. With a lavender latte in hand, I sat down to talk business with owner Victoria Wu. Victoria opened CoffeeHead in November 2019 on the recommendation of her husband, who owns the gas station and convenience store next door. He suggested she use her passion for coffee to turn the unused garage space into a coffeeshop. “I always said my dream was to spend all day in a coffee shop,” Victoria laughed. “I just didn’t think it would be as the owner.” She didn’t know the first thing about running a business but didn’t let that stop her. She did her homework, found a coffee supplier in Kansas City, bought the barista equipment, and then started designing her menu. Obviously, she would serve coffee,

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but she also wanted to bring in some of her Chinese heritage as well by serving traditional milk tea. That decision has not only set CoffeeHead apart but also created a whole new target audience. “People love the milk tea. There is only one other place in Topeka that offers it,” Victoria said. Because she grew up drinking traditional milk tea, she understands what it should taste like. When she couldn’t find a supplier that offered what she was looking for, she created her own milk tea recipe. Unlike most places in the states that make milk tea, she doesn’t use any powders or artificial ingredients. Her milk tea only contains real milk, organic tea and heavy cream. In fact, she is so picky about the flavors that she began making her own syrups for the tea and coffee so she gets the exact results she is looking for.

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Don’t just join a Club

Join a Family

tHE toPEKa CountRY Club

Grant Cushinberry

Vince Frye

Marvin Spees

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Matt Strathman

March 10, 2022

www.topekacc.org (785) 354-8561

Hotel Topeka at City Center

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One of the unique menu items at CoffeeHead is milk tea like this matcha boba milk tea.

Photo by EMMA HIGHFILL

SMALL BUSINESS CHALLENGES While creating great tasting coffee and tea is easy for Victoria, running the business is not. She has had to learn all aspects of running a small business, from record keeping and sales reporting to marketing and staffing. “There is no school for owning a coffee shop,” Victoria said. “I didn’t even know if I was professional enough to pull this off.” And then there are the long hours. As an employee, you go home when your shift is done. As the owner, you take work home with you. “I pretty much do everything,” Victoria said. “I spend all day at the shop, and then when I get home, I am working on the books or shopping for product. It can get pretty exhausting.” She has hired two employees to help at the store, but even the extra help can present their own challenges. “I have great employees, but they don’t do everything the way I would do it,” Victoria said. Just when she thought things were running smoothly, the pandemic hit and shut them down for three months. But when she opened her doors back up, her loyal customers came right back in. With an active focus on social media, including showcasing some of her new home-baked pastry items that the shop sells on weekends, business has been picking up steadily as word is spreading about the great coffee and unique menu items. Even at 2 o’clock in the afternoon, a steady stream of customers kept flowing in the door. Regulars would greet Victoria with a “hello, you know what I want.” And newbies would ask for recommendations or explanations about the tea. All I know is that I am definitely going back for another lavender latte. TK

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THE HEALTH OF A BUILDING

Sunflower Foundation restores buildings on “Healing Hill”

By LISA LOEWEN

JANUARY/FEBRUARY 2022

TK Business Magazine

After more than eight years in the planning and a $10 million investment, the Sunflower Foundation has opened its doors at 5820 SW 6th Ave. atop historic Martin Hill. In addition to serving as the foundation’s headquarters, the campus includes the Sunflower Nonprofit Center, which offers space and resources to assist other nonprofits, charitable organizations and public agencies working to improve the health of Kansans, as well as the Powerhouse Center, which will serve as a state-of-the-art location for nonprofits conferences and events. Constructing a brand-new building would probably have been easier and less costly but bringing renewed health to historic buildings in need of care aligned with Sunflower’s vision of improving the health of all Kansans. It also allowed the foundation to integrate the concept of social purpose real estate—the idea that organizations include part of their philanthropic mission in their corporate office space. “I am a native Topekan and had been walking Menninger Hill from the time I was in high school,” said Billie Hall, Sunflower Foundation president and CEO. “I knew these buildings were abandoned and looked pretty bad, but I brought the members of the Board of Trustees to the hill, and they saw what I did: With a little care, these buildings could be restored and given new life.” That is where the vision for adaptive renovation started. The Sunflower Foundation asked Schwerdt Design Group for help with designing a plan that make these buildings work for what they wanted. Enlisting the advice of historical renovation experts, they came up with a design that would renovate these buildings in a way that kept the historical perspective but at the same time offered a beautiful and modern result.

History of Healing Hill

From the beginning, Sunflower Foundation wanted to honor the legacy of those pioneers who cared and advocated for better care for Kansans who are sick and in need. Menninger Hill, originally known as Healing Hill, has a long history of innovative health care that has served people in Kansas and throughout the country.

1919

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This historic hilltop location was first home to the Knights and Ladies of Security, known today as Security Benefit, which established a home for the elderly, an orphanage, hospital and working farm on the grounds.

1921

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The powerhouse facility was built to provide energy to the SBA hospital.

1927

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1954 SBA shifted its focus to life insurance and closed the Security Benefit Hospital and Home.

1959 Menninger Foundation purchased the property PHOTO SUBMITTED

to house a clinic, sanatorium, and a school of psychiatry.

1982

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Menninger developed the “West Campus”—a residential community of 28 structures on the 350-acre hilltop campus. Most of the SBA buildings were converted to Menninger Clinic programs.

1960-2001

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Thousands of people from across the country sought treatment at the Menninger clinic.

2002

The Menninger clinic moved its operations out of Topeka.

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HAPPY

Top: FHLB Topeka rendering Bottom: FHLB Topeka

Top: WU Indoor Athletics Building rendering Bottom: WU Indoor Athletics Building

Top: Sunflower Foundation rendering Bottom: Sunflower Foundation

schwerdt design group 785.273.7540 | sdgarch.com

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2015

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The Sunflower Foundation purchased 13.5 acres of land including the powerhouse and the former nursing residence.

2019

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Renovations on the buildings began.

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2021 The Sunflower Foundation moved into its

Photo by RACHEL LOCK

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Photo by RACHEL LOCK

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new home.

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Walk through the atrium of the Sunflower Nonprofit Center and into the Hall of Inspiration and you will be immersed in the history of “Healing Hill.” Now that the project is complete, Hall says she feels like she is experiencing a little of what it would have been like back then. “When you look at these buildings now, you see all of the beautiful new aspects, but those beautiful old buildings with so much rich history are still shining through,” Hall said. “I remember when we finished the Powerhouse, I patted it and said ‘OK, you’re ready for another hundred years.” Even though the renovated buildings are impressive, Hall says she finds her eyes returning to view the parking lot. “My office is on the fourth floor, so when I look out my window, I can see all across Topeka,” Hall said. “But I have to say, my favorite view is the parking lot with the old cottonwood tree that still stands proud and strong after all of these years.” TK

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PRIVATE PRACTICE START-UP

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Alicia Lawrence, LSCSW Director of MSW Field Education Social Work Department at Washburn University Owner, Lawrence Family Therapy

Lydia Diebolt, LSCSW Director of BSW Field Education Social Work Department at Washburn University Owner, Diebolt Family Therapy

Best Practices in Starting a Private Practice Starting a private practice gives you a chance to structure your business in the way that works best for you. Three of the faculty at Washburn University’s Social Work Department Alicia Lawrence, Lydia Diebolt and Tonya Ricklefs have their own private practices and share their

GOOD BUSINESS PRACTICES

CREATE AN INTERNET PRESENCE

Like any business, a private practice needs to consider ways to be efficient and cost effective. Using software systems and an electronic health record system can streamline business operations and record keeping.

A good website will allow you to focus on highlighting your unique skills and areas of expertise. Showcase unique knowledge like working with children diagnosed with autism, military expertise, knowledge of LGTBQ+ topics, etc. People searching for your specific area of expertise will be more likely to find you when your website pops up on a Google search.

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“You will find that good record keeping is a true lifesaver,” Alicia said.

Tonya Ricklefs, PhD, LMSW Chair Social Work Department at Washburn University Tonya Ricklefs Private Mediation/Conciliation Services

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recommendations for starting a business focused on counseling and mediation. Starting a private practice requires strong business acumen and responsibility. Key areas to consider include business practices, internet presence, liability insurance, network of resources and pricing.

Lydia recommends sharing office space with others in a similar field, if possible, to cut back on the costs associated with running your own practice.

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“A strong website will attract more people than referral businesses that you have to pay for,” Alicia said.

GET LIABILITY INSURANCE

FIND YOUR “PEOPLE”

CHARGE APPROPRIATE FEES

Liability insurance is a must and not an area to cut costs. You can obtain liability insurance through the National Association of Social Workers or other professional organizations or private insurance groups.

Create a network of individuals who you can consult in a particularly difficult case. You can do this without breaking confidentiality. Ask them things such as, “What would you do? What am I missing?”

Finally, figure out how you are billing and what you are charging. Many times, in our attempt to be accessible for everyone, we charge rates that underestimate the amount of work involved in each session. Think about the following before you start taking clients:  Do you want to accept insurance?  Do you want to charge income-based fees? If so, what does your sliding scale look like?  How much of your time will a case take?  What are your policies on payment? TK

“I often speak to mediators and mental health professionals because they help me figure out what hat I am wearing that day and keep me in check,” said Tonya. “My group of colleagues are priceless.”

Insured by NCUA

ANGEL MCGHEE, OWNER | FIREHOUSE BOUTIQUE & STUDIO

YOUR STORY is our passion.

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WICHITA STATE UNIVERSITY

Data is provided by Jeremy Hill, director for the Center for Economic Development and Business Research at the W. Frank Barton School of Business.

TOPEKA ECONOMIC OUTLOOK The Center for Economic Development and Business Research at Wichita State University has compiled data to provide forecasts on the economic outlook for Topeka. For a more comprehensive look at Kansas economic data, visit kansaseconomy.org.

Cumulative Employment Growth

Ju l- 2 0 Se p20 No v20 Ja n21 M ar -2 1 M ay -2 1 Ju l- 2 1 Se p21

-2 0

M ay

M ar

n20

TOPEKA’S ROAD TO RECOVERY The Topeka metropolitan area had a smaller relative impact from the pandemic than the other large markets within the state. After the reopening of the market, the region added 1,300 jobs but has yet recovered to its pre-COVID levels.

101% 99% 97% 95% 93% 91% 89% 87% 85%

Topeka

Wichita

Source: CEDBR, BLS-QCEW

Kansas City

Cumulative Employment - Topeka MSA 100% 95% 90%

n20 M ar -2 0 M ay -2 0 Ju l- 2 0 Se p20 No v20 Ja n21 M ar -2 1 M ay -2 1 Ju l- 2 1 Se p21

85%

TOPEKA’S LABOR MARKET MYSTERY Employment at firms within the Topeka market remains 3.9 percent below January 2020, accounting for 4,400 jobs. Household employment, however, exceeded its previous peak in July of 2021. Although there could be some technical measurement errors, the gap between the two surveys represents a drastic labor shift of households leaving multiple temporary jobs for full-time benefited positions.

105%

Business

Source: CEDBR, BLS-QCEW, BLS-LAUS

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Household

Unemployment Rate - Topeka MSA LABOR MARKET WILL CONTINUE TO TIGHTEN The labor market within the Topeka metropolitan area is expected to heat up over the next twelve months. The pressure within the labor market stems from increased global demand while the labor force has peaked. As a result, unemployment rates will slowly decline over the next two years as firms hire and train from the existing 4,500 unemployed workers.

6% 4% 2% 0%

Rate 2020

Source: CEDBR, BLS- LAUS

2021 (e)

2022 (f)

2023 (f)

Retail and Income - Topeka MSA 8% 6% 4% 2% 0%

2020 2021 (e) 2022 (f) 2023 (f) Retail Sales Total Personal Income

RETAIL CONSUMPTION WILL SHIFT Big box retail stores within the Topeka market were positioned well during the pandemic. As the markets improve, consumer demand will spill over into smaller specialty retail stores and the leisure and hospitality sectors. In addition, total personal income is expected to remain strong over the next two years as firms battle out the tight labor market with a wage war.

Source: CEDBR, KDOR, BEA (Inflation Adj)

Topeka Employment by Industry* 2020 (a) 2021 (e ) 2022 (f) 13,300 13,415 13,363 Nat. Resources, Mining & Cons. 5,350 5,263 5,077 Manufacturing 7,950 8,152 8,286 Trade 16,725 17,498 17,426 Services 51,125 50,912 51,377 1,183 1,101 1,186 6,992 6,774 6,679 Professional & Business Services 12,250 12,595 12,308 18,733 18,116 17,959 Leisure & Hospitality 7,383 7,734 8,635 Other 4,583 4,592 4,610 Government 25,975 26,198 26,716 Total 107,125 108,023 108,882

2023 (f) 13,600 5,110 8,490 17,424 51,715 1,145 6,673 12,461 18,130 8,682 4,624 26,573 109,313

2021 0.9% -1.6% 2.5% 4.6% -0.4% -7.0% -3.1% 2.8% -3.3% 4.8% 0.2% 0.9% 0.8%

2022 -0.4% -3.5% 1.6% -0.4% 0.9% 7.8% -1.4% -2.3% -0.9% 11.6% 0.4% 2.0% 0.8%

2023 1.8% 0.6% 2.5% 0.0% 0.7% -3.5% -0.1% 1.2% 1.0% 0.5% 0.3% -0.5% 0.4%

TOPEKA IS POSITIONED FOR STRONG GROWTH IN 2022 Food manufacturing and the government sector provided economic resilience to the Topeka metropolitan area, and both will help lead to a higher than normal growth in 2022. The market area is expected to add over 850 jobs in 2022, with a growth rate of 0.8 percent. In addition, leisure and hospitality, which includes restaurants, hotels and entertainment, is expected to see strong growth from changing consumer preferences. TK

Source: CEDBR, BLS - CES

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Leader Topeka LOCAL BUSINESS

SPOTLIGHT PARTNERS

MAKING YOUR DREAM HOME A REALITY Prellwitz Construction realizes that building a new home could be one of the largest investments you might make. Prellwitz Construction keeps that in mind throughout the building process. From the initial designs and want lists, to finding the ideal building site and preparing the actual blueprints, Prellwitz Construction will spend time with you upfront to ensure that all of the details are worked out. Prellwitz Construction will then guide the construction phase and ensure the process delivers just what you are expecting in your new home. With over 60 years of building experience in NE Kansas, Prellwitz Construction has seen many trends as well as the introduction of new products and changing technology. Prellwitz Construction prides itself in staying current and presenting all options for all budgets to ensure your home is just what you dreamed it would be. www.prellwitzconstruction.com 785-806-9005

SUPPORT LOCAL BUSINESS LEADERS

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TRUSTED SEWING MACHINE SALES & SERVICE Since 2016, John’s Sewing Machine Repair has proudly been serving avid sewists in the Topeka area. John, its technician, is certified by Bernina, Bernette and Janome and provides a broad spectrum of sewing machine repair and services for new to vintage machines. The store carries an excellent inventory of new machines and previously loved machines. It is a certified dealer for Bernina, Bernette, Janome, Eversewn and Consew industrial sewing machines/sergers. They also represent Handiquilter, Grace and Janome long arm quilting machines and frames. John’s Sewing Machine Repair features a variety of machine accessories as well as threads by Guterman, Isacord, Mettler, Seracor and YLI, and OESD embroidery supplies. Watch for a class schedule in Spring 2022 where you can learn all about sewing, quilting, embroidery or new machine owners’ training. www.johnssewing.com 785-438-0669

COMMON NAME, UNCOMMON SERVICE With 45 years of experience serving the Topeka, Lawrence, Manhattan and surrounding communities, Bob’s Janitorial Service is dedicated to excellent customer service. When scheduling a carpet, air-duct, window, or hard floor service Bob’s Janitorial Service prides itself on not only getting the job done but doing it the right way at the right price for its customers. Realizing that you have choices when partnering in the care of your home or business, Bob’s Janitorial strives to always exceed expectations. You would be joining the thousands of others who have chosen Bob’s Janitorial Service because it is a local, family-owned company who takes care of its customers like they would take care of family. Visit Bob’s Janitorial Service’s website or call to schedule an appointment today. www.bobsjanitorial.com 785-271-6600

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Using

S C A M P E R

to INNOVATE By TARA DIMICK

Wikipedia defines innovation as the process that an individual or organization undertakes to conceptualize brand new products, processes, and ideas, or to approach existing products, processes, and ideas in new ways. Over the last two years, innovation in the way that we do business has been forced upon us. And while it might

be nice to take a break, this is a perfect time to harness that change mindset to create even greater innovation in your products, services and/ or processes. One way to engage yourself and/or your team in the continued practice of innovation is through an out-of-the-box thinking tool, SCAMPER, that was developed in 1953 by Alex

Osborne and enhanced in 1971 by Robert Eberle. SCAMPER is the acronym for Substitute, Combine, Adapt, Modify, Purpose, Eliminate and Rearrange. To innovate and continuously improve a product, service, or process, simply take it through the tool and see what ideas and opportunities come to light.

SUBSTITUTE

Find a part of your concept, product, service, or process that you could replace with another to see whether it will result in improvements, such as efficiency gains. Questions to ask: • Can any part be replaced? • Can the rules be changed? • Can other ingredients or materials be used? • Can the shape be changed? • Can it be used differently? Example: Automobile manufacturer using different composites for the frame to make vehicles lighter.

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COMBINE

One idea might not work alone, but you could combine several ideas, processes, or products into one more efficient output. Questions to ask: • What ideas or parts can be combined? • Can I merge this with something else? • Can I include different materials? • Can I combine different talents? Example: Cell phone is integrated with a camera and an MP3 player.

ADAPT

Sometimes an idea that worked to solve one problem, could also be used to solve a different problem. Questions to ask: • What else is this “like” when used in a different context? • What could it emulate? • What can be incorporated? • What other ideas or applications does it suggest? Example: Netflix started out in 1999 as a DVD rental service, but unlike Blockbuster they quickly realized that the future belongs to online streaming and changed their business model.

MODIFY

Modify an aspect of your situation or problem to see whether it gives you a new insight or adds any value and identifies which part of your process or concept is the most significant. Questions to ask: • Can this be made larger? • Can this be made smaller? • Can something be added to it? • Can something be eliminated from it? • Can this be copied? • Is it better to have many (items, parts, uses) instead of one? • Is it better to have one, instead of many? Example: An organization decides to expand the production of one product and focuses on that product.

JANUARY/FEBRUARY 2022

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PURPOSE

This is very similar to “Adapt”, it’s about putting an existing idea or concept to another use, i.e., using it differently than it was originally intended to. Questions to ask: • Why does this exist? • Would it have more meaning/value if used for something else? • Can this be applied to a new need? • Can it be used by other people for different purposes? Example: A q-tip is used for cleaning a computer keyboard.

ELIMINATE

Eliminate inefficient processes (‘waste’) with the goal of streamlining them. Questions to ask: • How can this be simplified? • What features can be minimized or eliminated? • Can it be made more compact? • What can be removed without ruining function? Example: Apple’s decided to not include an optical CD/DVD drive in their MacBook Air to make them thinner and lighter.

REVERSE

Reverse the orientation or direction of a process or product, do things the other way around, completely against its original purpose. Sometimes when you reverse the way a product is used, it will help you see things from a different perspective. Questions to ask: • Consider it backward? • If it were assembled in a different way, would it be better, worse, or changed entirely? • Would a different pattern be better? • Can it be changed to meet a different need, better than it did the original? Example: A company with a top-down approach for decisionmaking adopts a bottom-up approach. TK

CREDIT: Creativity Universe, http://allofme0823.blogspot.com; MindTools, https://www.mindtools.com; Derek Christensen, http://www.derekchristensen.com

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Celebrating 55 years of recovery services

Get Help, Find Hope! Valeo Behavioral Health Care:

• Serves 7,000 people annually • Provides 29 programs to assist in recovery • Crisis Center is open 24/7 • Crisis Line is answered 24/7 • Never turns anyone away for services due to inability to pay Valeo’s Crisis Center 400 SW Oakley Avenue Topeka, KS 66606 (785) 233-1730

Valeo’s 24-Hour Crisis Line: (785) 234-3300

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