Working together. We think that’s the key to better health care for you and your family. And now the doctors and specialists at Stormont-Vail HealthCare and Mayo Clinic are joining forces. We will work together to resolve your hard-to-solve medical problems and to find better answers. For you that means peace of mind, and access to the finest medical knowledge available. Right here at home. Stormont-Vail HealthCare and Mayo Clinic. Working together. Working for you.
To find out more, visit stormontvail.org
features
Summer 2014
Contents
PG 12
Seizing Opportunities Neal Spencer is leading the Ernest-Spencer group of companies into the global marketplace and continuing the family legacy. PG 18
Mars Chocolate North America Mars opens their state-of-the-art factory in Topeka. PG 20
NOTO Arts District Music venues, restaurants and art shops are flourishing along North Kansas Avenue.
20
PG 28
Navigating Health Insurance for Your Business Employers of all sizes face new changes with health insurance. Now is the time for businesses to explore different strategies under the new law. PG 32
In the Trenches To be your own boss takes more than a great idea. It takes hard work, perseverance and hope. Owners of Kendall Construction, Topeka Landscape and Latta Whitlow share their stories. PG 42
44
Committed to Excellence Committed to Topeka City Manager Jim Colson shares the work being done to create a Topeka that others look to as a model city.
in every issue
PG 44
PG 6
Growing the Talent Pool Through Internships
Washburn University School of Business offers advice on effectively utilizing interns, and breaks the myths associated with internships. PG 48
Space for Lease TK takes a look at the vacancy and the expansion of business properties in the Capital City.
18
Extra Extra
Business news from around the Capital City.
PG 55
TK Business Experts Local experts provide valuable information on issues that affect your business.
PG 64
Scene About Town
Who's who at the local business events. TK Business magazine
summer 2014
3
From the publisher Tara Dimick
Success is Messy
I recently saw a picture like the one above and it made me smile as I considered my own journey over the past 15 years. No matter what you deem as success -- climbing the corporate ladder, owning your own business, building a strong family, making tons of money -- it's never a clear path. There are distractions, obstacles, road blocks and failures. But it is in all that mess that we grow stronger, wiser, more compassionate and more understanding. It is in that mess that we build lifelong friendships and partnerships. It is in that mess that we truly become successful. Yes, we need goals and we need focus, but enjoy the journey, enjoy the mess.
Summer 2014
Contributors Publisher Tara Dimick
Editor-in-Chief Lisa Loewen
Designer
David Vincent
Photographer Rachel Lock
Contributing Writers Melissa Brunner Jim Colson Michael Hooper Lisa Loewen Wendy Long
Contributing Experts Bob Gunther Earl Kemper Dr. Louella Moore, CPA Gina Ochsner Martha Piland Diana Ramirez
Publishing Company E2 Communications PO Box 67272 Topeka, KS 66667 785.217.4836 2014 TK Business Magazine is published by E2 Communications, Inc. 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 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.
4
summer 2014
Tk Business magazine
6
summer 2014
Tk Business magazine
Taking care of business.
Financial solutions to grow your business.
cAPcITyBANK.cOM
Our experienced business banking team can provide you with financial solutions to help you take care of your business. If it’s important to you, it’s important to us.
Ben Tenpenny
Amy Strathman
Vice President, Commercial Lender
Assistant Vice President Business Banker
274-5845
274-5635
PERSONAL BANKING. BUSINESS BANKING. MORTGAGE LOANS. TRUST AND ASSET MANAGEMENT.
MEMBER FDIC
Experience the Tradition
The Topeka Country Club www.topekacc.org
TO
.
P E K A C. C
membership - golf - tennis - swim - dining - banquets - weddings TK Business magazine
summer 2014
9
companies When a business continues to thrive and grow in the same community for almost 100 years, it must be doing something right. Literally making a splash in Kansas and across the United States, the future is very exciting for Ernest-Spencer and everyone in their wake. For the Ernest-Spencer group of companies, it started with establishing value in their Midwest community, and continuing to do so through the generations, now extending beyond to the global community. It has always been about the people—encouraging and empowering them—and then the business—producing quality products and reliable services. True to its entrepreneurial spirit, the company continues to diversify. Its latest venture, under Neal Spencer’s able leadership, is DynaMarine. That’s right. The company is building boats right here on the plains of Kansas. It certainly took a visionary to make that happen—or maybe two. The story of its beginnings is one of Neal’s favorites. “Everybody is like 'why are you building airboats in Kansas? That’s a little odd,”' Neal said. It all started when Neal was walking through the aluminum welding area of the metal fabrication shop one day and saw his crew building something that looked a little odd—something resembling a boat. And indeed that is exactly what it was—an airboat hull. Intrigued, Neal found out the design was based on a set of drawings provided by Shane Lavalette from Lawrence.
14
summer 2014
After building several of these boats, Neal decided it was time to meet the guy behind the airboats. The meeting was serendipitous. Shane’s boat design was unlike any other boat on the market. Neal already had a company in place with the latest equipment, as well as the facilities and manpower to handle all aspects of the business side. The partnership just made sense. And 15 months later, the airboat business has exploded. “Anything I can create, I like to create in conjunction with something else,” Neal said. “They create a vertical synergy with each other.”
Building a Legacy This philosophy of seizing opportunities all began in the early 1900s. Edward Ernest, a carpenter by trade, founded his company, Federal Engineering, in Topeka. He worked closely with the local businesses, in particular the Bybee family and Topeka Foundry. Then the Great Depression hit and the business landscape drastically changed. Seeing what was happening in his community and in the surrounding areas, Edward Ernest decided he was going to start designing and building wood grain elevators. He created a one-man company called Ernest Engineering. From designing the structure to procuring the materials to building the
Tk Business magazine
ernest-spencer metals Produce steel fabricated parts, manufactured goods www.ernestspencer.com/metals.htm
ernest-spencer inc. Design, build & install agricultural equipment in the Midwest www.ernestspencer.com/construction.htm
ernest-spencer custom coatings industrial Power Coated goods www.ernestspencer.com/coatings.htm
stainless steel design concepts Stainless steel signage, custom projects, corporate projects and collegiate liscensed products www.ernestspencer.com/metals.htm
TK Business magazine
summer 2014
15
actual facility, he did it all from start to finish. Based in his central office on VanBuren Street in North Topeka, he loaded everything up at Great Overland Station and traveled all over western Kansas. Despite the blighted economic climate, the business continued to grow. In the 1940s, Bud Spencer brought his vast knowledge and engineering skills to the business and partnered with his father-in-law, Ernest. Ernest-Spencer began designing and building grain elevators and cattle feed yards all over Kansas and the Midwest. It was during this time that the transition from wood to steel allowed for bigger, stronger and longer-lasting structures. This became their main business for the next 40 years.
Expanding Opportunity The family business flourished and continued to expand. By the 1970s, grandson Brad Spencer joined the business. He brought his own ideas and improvements, especially on the fabrication side. During this period, they created a steel fabrication shop in Topeka to support their field crews. Instead of sending the raw sheet metal to the field, they now had a place to build the steel pieces for the structures. Once at the building site, it simply had to be put together and erected, not built all the way from scratch. Not only would this cut down on overall costs, it would also provide shorter lead times for their clients. Due to their combined efforts, the company saw exponential growth into the new millennium. The company went on to build nearly every cattle feed yard and grain elevator in the Midwest. With the latest equipment and technology, they soon began to build for other types of projects. The fabrication company had to be moved to allow more space for growth. They searched the area for a place to build a new state-of-the-art facility and ended up choosing a site in Meriden. Ultimately, they also added a powder coat painting facility in Ottawa to paint the fabricated metal from their facilities as well as
16
summer 2014
contract painting for other companies and private individuals. Stainless Steel Design Concepts and a retail store in the NOTO arts district of Topeka, The Eclective, added another dimension to the metal fabrication business.
Overcoming Tragedy In the midst of this exciting time of expansion and diversification, an unexpected tragedy occurred. The company lost its current president, Brad Spencer, at only 56. Traditionally, the company had been passed down from generation to generation in a slow and natural transition. This time the plan was drastically changed. Neal Spencer, at that time the Operations Manager, was suddenly left without his father and mentor. At 30, the responsibility of the company was laid solely on his shoulders. Of course, the business had always been a part of Neal’s life. He had literally grown up in it. From the age of 15, he built fences, drove trucks, delivered products, and did whatever else needed to be done. The employees were long-time friends and colleagues. They were the ones who had taught him how to drive a stick shift, how to weld, and all the other aspects of the business. The challenge was to get these people to trust him to be their leader at such a young age. But Neal knew the business. He knew the people and the community. He knew it would take some time and energy, but he knew it could be done. “One of the things I always remembered from my dad was to surround yourself with good people, help empower them, make them successful, and you will be successful because of that,” Neal said.
Surging Ahead Spencer set out to create a core of people, leaders in the company he could trust. He knew it was critical to get the right people around him—and in the right places in the company. He spent the first year after his father’s death developing this group. With these people standing alongside him, Neal was able to ensure the successful progression of the business. These eight core people know
Tk Business magazine
dynamarine performance boats Design, build and assemble performance boats www.dynamarine.com
Ballistic gear drives Manufacture and distrubution of precision gear drives for the airboat industry www.ernestspencer.com/metals.htm
Photos from Ernest-Spencer Archives what needs to be done, and they have the autonomy and authority to do it. Neal is there to support and empower them. “This is a fourth-generation business, which is very unusual,” Neal said. “But each generation in my family, from my great-grandfather to my grandfather to my father, taught the next one. And each one made it better because of that. They took the knowledge that they had and put their own touch on the business and really made it something unique.” Bud Spencer, now 90 years old, still comes to the office every Monday. He gets the mail, has his coffee and goes around catching up with everyone. He sometimes tours the shop, and he continues to be amazed. The company he led more than 25 years ago of 30 people and 20,000 square feet, has grown to 200 employees and a quarter of a million combined square footage. And, thanks to his grandson, Neal, and the work of his dedicated team, it is still growing. TK
Why Has
Been the Most Trusted Bank in Topeka for Over 140 Years?
Our People. Gerald Lauber President
KawValleyBank.com
Brea Black VP of Operations
Dr. Glenn Swogger Jr. Chairman of the Board
Susan Koch Robert Maxwell John Johnson EVP & Chief Credit Officer Human Resource Officer EVP & Trust Officer
R e j u v e n at i n g is ...... tiMe well SPent
Meet Our Professional Staff
Jamie Joseph, RN, BSN
Michelle Juarez, Licensed Esthetician/Electrologist
Dr. Kipp Van Camp, DO Triple Board Certified Physician
Personalize your Visit. Receive a FREE micordermabraison with this ad. Microdermabrasion 1230 SW Harvey St. Ste. B . Topeka Botox Injections Wedding Event IPL Photo Rejuvenation 785.783.8559 Dermal Fillers Bridal Parties European Facial www.RejuvenateMedicalSpa.com Chemical Peels Pre-Prom TK Business magazine
summer 2014
17
It’s a new day... Every day. It’s a new opportunity. That’s the way we look at it.
It’s a new day means we’re here for you, doing what we do best. And we’re proud of that. Serving you is our tradition. And our future. More innovation. More dedication to our community. Everything we do, every day, is to make sure you have what you need, when you need it.
I t ’s a new day. E ver y day.
TK Business magazine
summer 2014
21
There is a revitalized arts district in North Topeka and it doesn’t look anything like Lawrence or Kansas City. The NOTO Arts District is uniquely Topeka.
Located north of the Kansas River, the district is attracting thousands of people every month to shop along North Kansas Avenue. Music venues, restaurants and art shops are flourishing in a place that was fairly empty five years ago. Entrepreneurs have invested in buildings, businesses and gallery spaces, creating a colorful sense of community. There are at least 30 shops and businesses along North Kansas Avenue. At least two dozen artists work in studios along the avenue, plus many more display their work in galleries that have popped up in recent years. It’s not uncommon to see an artist and patron debating what is art. Or a writer signing his book. Or musicians striking up a new sound on the street. I recently saw a man wearing a vintage bowler hat, while cradling a statue of a man wearing the same type of hat—it was as if the collector had found his Doppelganger.
NOTO Burrito, a casual Mexican fast food restaurant; Pinkadilly, a Vintage home accessories boutique; and Gravity Gallery and Shops. “I’m most proud that all four of our businesses are debt free,” Torrence said. “But I work for cheap labor. I work all the time.” She said she has mortgages on the real estate, but her businesses inside each building are debt free.
Acceptance Barry Feaker, executive director of the Topeka Rescue Mission, said that many years ago a city father told him
the Rescue Mission would have to leave if there was an effort to revitalize North Kansas Avenue. When Feaker told that story to John Hunter and Anita Wolgast, co-chairs of the NOTO Arts District, both said there would be none of that. “In fact,” Feaker said, “they embraced us and invited our children and families to get involved in the arts.” Acceptance for people of all walks of life is an ongoing theme. “We accept everyone, no matter who you are,” Torrence said. “The only people we don’t like are bigots.”
Investor “Loved the Feel” Jenny Torrence was inspired to buy a building in North Topeka nearly three years ago. The building at 820 N. Kansas houses Serendipity, a bar and event space. “This was a gut decision,” Torrence said. “It was spur of the moment. I loved the building. I loved the feel of it.” Other Serendipity partners are Chris Page, Shannon Bannerman and Patti Torrence. They run a professional first class space. At a recent First Friday Art Walk, Serendipity was comfortably crowded with people, food, drink and live music, spilling out onto the outdoor patio area where one could sit and enjoy the view. I met a woman who said that when she was growing up, “you didn’t go to North Topeka.” Now, she said, she admires the impressive way the arts district has developed and visits frequently with family to experience all that it has to offer. Because Torrence had first right of refusal on two neighboring buildings, she bought them too. Then she installed
Rusty Haggles antiques
poca studio
two days monthly market
bradley's Corner cafe
rusty haggles antiques
two days monthly market
Cashmere popcorn
1951
Flood & Rebirth
After the 1951 flood, businesses north of the river were awash in mud and water. The area lost its luster as the bridge over the Kansas River bypassed Kansas Avenue. The district fell into disrepair by 2005. Only a handful of business owners were hanging on. On May 2, 2014, after years of hard work, the NOTO Arts District and its board members, donors and volunteers celebrated the opening of the NOTO Arts Center in the former Post Office building. Jerry Farley, president of Washburn
24
summer 2014
University, said Anita Wolgast and John Hunter had a bold audacious plan but little or no money. Yet they were relentless. In the mid 2000s, The City of Topeka refinished the pavement on Kansas Avenue, installed new sidewalks, benches and lighting. Yet it is fair to say the vast majority of investments have come from the private sector, including the Teeter family, Bette Morris and the Swogger family. Many others contributed time, money and assistance, including
Tk Business magazine
the Washburn Technology students in construction projects to improve these old buildings. “It’s blood, sweat and tears,” said Barbara Waterman-Peters, the first artist to go through the NOTO Arts District Incentive Program for Artists. Waterman-Peters leases space at 831 N. Kansas and subleases space to other artists to help cover the rent payment. The building is owned by longtime North Topeka business owners Jim and Charlene Robuck. Last year, Waterman-Peters said, her revenues were good enough for a near break-even year financially. “This year, so far, I’m in the black,” she said. “I think this year will be better.” As a business owner, Torrence is reminded of how important it is for consumers to shop locally rather than chain stores on Wanamaker Road. “What keeps us colorful and unique is the mom and pop businesses,” she said.
IT'S ALL ABOUT THE LOVE YOU PUT INTO IT...
Explore your natural habitat. The ripple of water, the rugged texture of stone and wood, the fresh scent of the world coming to life – right in your own backyard. Topeka Landscape’s experienced, professional staff can help develop an outdoor plan that conforms beautifully to your green spaces as well as your budget. This year, let Topeka Landscape break down the barriers between inside and out, making your yard a natural extension of your home.
3220 SW Auburn Rd • Topeka, KS 66614 • (785) 232-8873 • www.topekalandscape.com
TK Business magazine
summer 2014
25
The
NOTO Advantage
NOTO has some advantages over downtown Topeka. It is more concentrated—everything is on one street that is four blocks long. WatermanPeters said the high concentration of artists has led to so much more collaboration, networking and exchange of ideas that have raised the bar for all the artists working there. These discussions can be heated because the artists are so passionate about their views. WatermanPeters said the vitality they share is not unlike heated discussions that artists had about Abstract Expressionism at the Cedar Tavern in New York. The only difference is this is Topeka. Artistic passion and humanity are universal. Several shops in NOTO are stores where the business isn’t the only source of income for the owner, but could grow into that over time. Merchants are savvy, using online marketing and Facebook to get the word out. Having advocates such as Anita Wolgast and John Hunter, The NOTO Arts District has become a revitalization success. “I’m very proud to be a part of it,” Waterman-Peters said.
studio 831
serendipity
26
summer 2014
Tk Business magazine
I want to get a loan for my business. What do banks consider when making a decision? Scan the QR code to watch INTRUST commercial banker Scott Griffith answer this question.
Get the free mobile app at gettag.mobi.
See our answers to this and other banking questions at
INTRUSTKnowsBusiness.com. Because from agriculture to restaurants, construction to manufacturing, we want to make your business our business.
Scott Griffith | 785-431-5310 INTRUSTKnowsBusiness.com
Navigating Health Insurance for your Business Whether sponsoring a health insurance plan for employees, or helping them understand and meet the requirements of the individual mandate, employers of all sizes are facing new changes with health insurance. All employers need to know their obligations under the Patient Protection and Affordable Care Act (PPACA), and now is the time for businesses to explore different strategies under the new law. Gina Ochsner, President and CEO of Century Health Solutions, Inc., outlines health insurance strategies available to employers and discusses the pros and cons of each option.
Employer size based on Full-Time Equivalents
Employer Insurance Strategies under the Patient Protection and Affordable Care Act (PPACA)
O -9
■ Individual Health
1O-49
■ Individual Health
5O-99
Insurance Market ■ Fully Insured Plans
Insurance Market ■ Fully Insured Plans ■ Partially Self-Funded Plans ■ PEO
■ Fully Insured Plans ■ Partially Self-Funded Plans ■ PEO
1OO+
■ Fully Insured Plans ■ Partially Self-Funded Plans ■ PEO ■ Private Exchanges ■ Captives
28
summer 2014
Tk Business magazine
Individual Health Insurance Many small business owners are canceling their employersponsored health insurance because of cost, participation, and administrative hassle—or simply because their employees can get cheaper and better coverage in the individual health insurance market. This qualifies employees for a special enrollment period due to loss of group health insurance. In the individual health insurance market, employees are solely responsible for acquiring and managing their health insurance.
PROS • Employers reduce the cost and administrative burden of providing health insurance to employees. • Employees have more plan options in either the private market or through the Health Insurance Marketplace. • The Health Insurance Marketplace offers tax credits or subsidies to help low or middle income individuals pay for insurance premiums.
CONS • Employers may find it more difficult to hire and retain employees since workers view employer-provided health insurance as a valuable benefit. • Employers lose the tax deduction for contributions under group health plans. • Employees can no longer make contributions to health insurance plans on a pre-tax basis.
Fully Insured Plans Fully insured plans are group health insurance plans in which an employer pays a premium to an insurance company that assumes the risk of paying the medical claims generated by the employees.
PROS
CONS
• Most employees expect to receive health insurance benefits with employer contributions as part of their compensation package. • The employer signs up for the plan and leaves the financial risk and plan administration to the insurance company. • The amount an employer pays for contributions under a group health plan is tax-deductible. • Employee contributions can be made on a pre-tax basis.
• The insurance company sets the premiums and determines what benefits can be offered. • Premiums have risen significantly in the past few years. • Under PPACA, fully insured plans are required to pay new fees and taxes. Specifically, the Health Insurance Fee results in a cost i impact ranging from 2 to 2.5 percent of premiums in 2014 and is expected to increase to 3 or 4 percent in later years.
Partially Self-Funded By choosing to self-fund, an employer accepts the financial risk of providing health care benefits to its employees rather than pay a fixed monthly premium to an insurance company.
PROS
CONS
• Employers have flexibility of • Claims make up the majority of benefit design, actionable data, premiums so an employer needs control over cash reserves and to focus on how their dollars are savings related to being spent, which requires premium taxes and certain administrative time. PPACA fees. • A company must have the cash • With data, an employer can put flow necessary for this type of targeted programs in place to plan, but this level will vary drive down costs based on depending on the provisions of the claims history. stop loss insurance. • If claims are higher than usual, • Due to the cyclical nature of stop loss insurance coverage can claims, it can take several years pay for excess costs and limit the for an employer to benefit from employer’s risk. measurable savings under a selffunded plan. • Self-funded plans are generally exempt from premium taxes and certain benefit mandates in most states. continued TK Business magazine
summer 2014
29
Professional Employer Organization (PEO)
Captives
A PEO is a firm that provides an outsourcing solution for certain management tasks such as employee benefits, payroll, workers’ compensation, recruiting, risk/safety management, and training and development.
An employee benefit group captive is a pooling mechanism that allows employers to jointly form and manage their own insurance entity and reap the benefits of self-funding without the inherent risk and volatility. By working together, a number of employers can leverage their size to purchase services like stop-loss and administration at prices only available to larger employers.
PROS
CONS
• The PEO becomes the employer • A PEO arrangement creates a “co-employer” relationship of record for tax and insurance although the employer retains purposes. control over the work performed • The PEO can offer pooled by its employees. employee medical, dental and other healthcare related plans, • Employers are restricted to only and often provides more choices the plans offered in the PEOs. to employees at a lower rate. • PEO arrangements vary greatly so • Alleviates the tasks of it is important to review contract employment administration details before you sign it. Some and certain function of human PEOs bundle services that are resources. More time for what not needed and charge for them matters. whether or not they are used. • PEOs can relieve the burden of compliance and save business owners money on administrative tasks.
Private Exchanges Unlike a public health exchange, which provides a conduit for the government to provide a premium subsidy to qualified individuals, a private exchange lets businesses provide eligible employees with an employer-paid subsidy to purchase policies that comply with PPACA and state insurance regulations.
PROS
CONS
• Employers can give eligible employees a fixed amount for individual or family coverage. • Employees add their own salarydeferred contributions to select among differently priced plans from competing health insurance companies. • Provides greater cost predictability for employers and more choice for employees. • An outside party assumes responsibility for administrative functions such as enrollment.
• Employers may only make pre-tax contributions to exchanges offering group plans. • Any employer contribution offered to employees who enroll in individual policies must be made on an after tax basis. • No federal subsidies are available through private health exchanges.
PROS • The captive acts as a shock absorber reducing the risk to the individual employer. • Captives provide transparency and predictive modeling that allows employers to introduce employee health and wellness programs that will improve health, lower claims and control costs in the long run. • Self-insured employers are exempt from many of the costs associated with PPACA reform. • Captives allow employers to benefit from lower claims.
CONS • During start-up period and in times when the captive sustains poor claims experience, the captive may be required to build up a surplus. • Management of captives is a shared responsibility with multiple decision makers. • The decision to use a captive isa long-term commitment to the risk management method.
puzzled by
employee benefits? Let Century connect you with the right employee benefits for your business.
www.century-health.com offering flexible healthcare and employee benefits for your business
TK Business magazine
summer 2014
31
Building a business doesn’t happen overnight. In some cases, you have to get dirty. In some case, literally! The entrepreneurs on the following pages have spent years working in the trenches to learn the tricks of their respective trades, each driven by a unique set of circumstances to become their own boss. Perhaps more comfortable in steel toes than wing tips or heels, they are helping build the foundation for the capital city into the future.
Roofing excellence since 1979.
Do the right thing. “When a customer needs help, we always do the right thing.” For 35 years and three generations our family has kept that promise. Our proven approach saves money and prolongs the value of your investment.
(785) 232-4276
Rock a Career in Real Estate!
www.MidwestCoating.us
Call or visit us online for more info.
Don’t risk your roof on an unproven contractor.
#HOMEROCKS
Call the pros at Midwest Coating.
CBKansas.com GRIFFITH & BLAIR AMERICAN HOME
To Join our Team of
Award-Winning Agents, Contact Sara Fox today!
2222 SW 29th St., Topeka, Kansas 66611
785-267-8322 | Sara@CBKansas.com
Randy Morris
President
© 2014 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Office Is Independently Owned And Operated Except Offices Owned And Operated By NRT Incorporated.
TK Business magazine
summer 2014
33
In The
Trenches
KENDALL CONSTRUCTION Owners rick & Sheri kendall Sheri and Rick Kendall enjoy the kind of camaraderie that can only develop over 33 years of marriage. A look conveys their thoughts; they finish each other’s sentences; and the other chuckles in anticipation when one has told only the first few words of a story. For example, the time Rick called Sheri at her job at an insurance agency and started making chicken noises. “She said we needed this income, and I said, ‘It’s too late! You’re not going to save us now!’” Rick laughed.
Carrying the checkbook The phone call came about two years after Rick launched his company, Kendall Construction. He grew up in construction and respected the people for whom he
34
summer 2014
worked, but decided it was time to take the knowledge he had gained and strike out on his own. “I was at the age where I needed to try it,” Rick said. “I’m someone who wants to be in control of things.” “In control of your own destiny,” Sheri added. “You want to be in control of your own destiny and see how good you can do,” Rick said. “I said “go do it,” but finances were tight,” Sheri said. Their daughter was 6 years old at the time, so Sheri kept her full-time job at an insurance agency to ensure they’d maintain a steady income. “I worked 60 hours a week, then did construction books on the weekend,” Sheri said.
Tk Business magazine
“Several of her paychecks went to make payroll,” Rick said. Rick started the business with one employee, a retired firefighter. He remembers their first job was building a one-car garage and he needed to buy a saw. He and Sheri also joke about those first years, driving around with his checkbook. “I walked around with the checkbook in my pocket because I thought if I paid everyone as I went, I wouldn’t have bills,” Rick said. “Pretty soon, I didn’t have time to go around and pay everyone.” Sheri interrupts. “Until the day he called (the insurance office) and said, ‘You’re quitting today,’” she recalls. “He couldn’t carry the checkbook and the phone and take care of the subs (subcontractors) and employees.”
Hire an accountant Sheri and Rick both say those first couple of years involved a lot of on-thejob training.
“I knew it would be hard, but I guess I didn’t know the definition of that word,” Rick said. “A lot of the processes and paperwork—I didn’t have much formal education at all in the construction business end of things.” “Neither one of us went to college or ran a business to know what goes on behind the scenes that the average employee would know,” Sheri said. “We went to the school of hard knocks basically.” Perhaps the biggest lesson came about five years into the business. Rick had completed a $175,000 job on which he was unable to collect and the credit union they’d always used had just been taken over by the state, dismantling arrangements he’d made to purchase new trucks. This time, his checkbook wasn’t the answer. But when he went to a bank to explore opening a business line of credit, they wanted the name of his accountant. Rick and Sheri didn’t have one. So they made a call and went back to the bank with an accountant now on the payroll. It was instant legitimacy, Rick said. Not only that, they were informed soon after that they would be audited. The accountant was able to get them through the process so they could focus on the business. It’s no surprise, then, that when they helped their daughter set up a business a couple of years ago, they knew the first step.
“Hire an accountant right off the bat!” Rick said.
Living the dream Even as they mark 20 years in business, Rick jokes that he still is not entirely certain they’ll make it work. In November, they finally moved their office out of their home and to a location on NW Brickyard Road. But he and Sheri are committed. “It’s been a lot of learning and a lot of hard work to develop some relationships with the customers,” Rick said. It’s those relationships Rick says he values the most. He learned early on that nice guys really can finish ahead of the pack. “Treat everybody like a customer, even a supplier,” he said. “Take good care of them and you’ll find the people that you want to do business with. People really do help you if you ask and don’t start yelling at them.” Both say the best part of sticking it out is the sense of freedom they can now appreciate. “It was so hard for so many years, and now, we can pretty much do what we want to do,” Sheri said. “It took 10 years before we made that point where we could hold our heads above water and take some deep breaths.” “I just feel like I’m living the dream,” Rick said. ►
Above all, we are
COMMITTED TO YOUR Anderson Chandler
Allan Towle
Experience
SUCCESS! Integrity
Financial Strength
Troy Mitchell
Relationships
Local Decision Makers
Call us today! 785-295-2100 Mark Kossler
Tim Royer
TK Business magazine
summer 2014
35
In The
Trenches
TOPEKA LANDSCAPE Owner blain bertrand Blain Bertrand often deals in dirt and he doesn't recall ever wearing a tie to work, but that doesn't mean he's not a professional. “[People] have that preconceived notion of the guy who mows grass,” he said. A professional approach was Bertrand’s priority when he started Topeka Landscape in 1994 at the age of 25. He said he worked for a great landscaping company while a student at Kansas State University, but had trouble finding that same atmosphere in landing a job out of college. “I couldn’t find a good place to work that treated green industry people as professionals,” he said. Bertrand decided that, if he couldn’t find such a company, he would create one. “It’s hiring quality employees, looking at the whole industry as a
38
summer 2014
profession instead of a person that knows grass,” he said. “You can hire a lot of people, but maybe those people shouldn’t be an employee.”
Cultivating a team
As a professional employer, Bertrand stresses education, drawing a lot from K-State’s horticulture and landscape design programs. He also does drug testing and background checks and he offers health benefits. Most of his 55 employees are full time, rather than seasonal. He considers it an investment well worth it in terms of keeping those quality workers. “I feel you have to have people that it’s their passion and they want to grow,”
Tk Business magazine
he said. “It’s getting a team of people that are like minded and playing the game the way it should be played. If there’s a problem, we take care of it. We do ongoing training to help that employee base do things the right way.” Of course, the difference between Bertrand’s team of professionals and those in the corporate world is the dirt you’re likely to find under their fingernails! When he first started the business, Bertrand said he spent about 75 percent of his time on actual job sites. “Getting my hands dirty (was) 100 percent necessity just to make sure the job was getting done the proper way and consistent with what I had sold the client,” he said.
Branching out
Eventually, Bertrand found he needed to turn the shovels over to his crew leaders. He said it not only helped his employees know they were respected and trusted, it was also practical. “The main challenge was being bookkeeper, designer, laborer and salesperson all at the same time,” he said of his first years in business. The title Bertrand won’t give up, however, is designer. He says his favorite part of the business is collaborating with clients to bring their visions to life. “It’s my passion that I have to be involved in that design process, helping that client work through what they want to achieve and then getting that done,” he said. “It’s a satisfying job because it helps people enjoy their outdoor space.” Bertrand’s vision of growing a business rooted in a professional approach is an environment in which he believes both his clients and his workers will flourish. “A lot of our employees, their passion is the green industry,” he said. “Even though it might be considered blue collar, it still is a profession and should be treated like any other.” ►
TK Business magazine
summer 2014
39
In The
Trenches
Latta whitlow Owner gay stryker In the final days of his fight against cancer, Ron Stryker gave his wife, Gay, an out when it came to their business. "He always said if you can't do it, then you should sell it. Don't feel guilty about it," she recalls. Her fate was sealed when she walked into Latta-Whitlow after Ron passed away in 2008 and faced a group of people she'd grown to love. "All these employees have been here forever," Gay said. "You look at them and all the dedication and think, 'How could I ever sell?'"
The Beginning Ron Stryker got into the heating and cooling business in 1987. The company he bought included an electrical business and Ron later added a plumbing company. "I was married to a go-getter," Gay laughs. "He was an entrepreneur that didn't stop!"
40
summer 2014
Stryker eventually became Blue Dot, with nearly 80 employees. Gay says she expressed concern to Ron that, if something ever happened to him, the business was simply too large for her to manage. So he sold Blue Dot in 1998. "I thought we were going to retire," she said. "Not so much!" In 2001, Latta-Whitlow became available. Gay says Ron was "bored,� and decided to jump back into the business. Once again, the heating and cooling company came as a package deal, including Roto Rooter and Owen and Son Plumbing. Ron sold those components after he was diagnosed in 2006.
Carrying On Even though Gay had her own interior design business, she still assisted Ron with accounting and did the social planning. There were no secrets between them, she says, calling Ron her "very best friend."
Tk Business magazine
Returning to the office after his death was surreal. "You have the service on Friday and walk in on Monday and say, 'I could use a little help here. What do I do?'" she said. It turns out Gay was armed with a few secret weapons. First were those long-time employees she didn't want to let down. The second was an invaluable gift from Ron. "He was so organized that he left this black book, and everything I needed to know to run this business was in there," she said. "I'm not a stay-at-home person, so I thought I'll give it a shot and see what happens, do the very best I can." Gay credits her general manager, Marla Heusted, along with Len Satzler, who handles purchasing and sales, with helping her continue the company's success. "Their dedication is beyond amazing," Gay said. "That's what it's all
about. I want it to be a fun place to work even though it can be stressful."
Lessons Learned
Marla heusted, gay stryker, and len satzler washburn ad.pdf
1
3/12/14
11:56 AM
That's not to say everything has been smooth sailing. "I can have the black book and refer to it, but business has changed so much," Gay said. "It's still a learning process, and I try to learn as much as I can." Sometimes, she admits, she found herself questioning if she'd learn it quickly enough. "I drove around in my car a lot," she said. "I think it's hard to go from the social person to the manager, that role where you have to have meetings one-onone and look [a person] in the eye and say, 'Here's what's wrong.'" Gay recalled that first time, about six months after Ron's death, when she found herself in the situation of having to let an employee go. Handling it successfully, even though she didn't like it, was the first time she believed she would be able to make the business continue to work. Of course, just as she was proving it to herself, she realized she'd have a few doubters she'd have to prove wrong. After all, she was a female owner with a female general manager in a maledominated industry.
"I'm a very direct person," Gay said. "I think that salesmen or people will come in and they don't expect me to say, 'That offends me,' or, 'That's unacceptable. Can we work something out?' Or they'll say, 'Can we speak to the gentleman in charge?' and I'll say, 'That would be me.'"
Moving Forward Gay says she's able to make it work with a great team of 10 full-time employees and great customers. She says she truly believes in the old adage, "The customer is always right." "They are our customers and that's how we survive," she said. "We listen with the idea that you're not going to get mad. We're not going to fight (with a customer) but we will stand up if someone is trying to take advantage. We'll listen and explain and give the best customer service we can. And she loved Ron. She still feels he's watching over her. "There are times when there's a thunderstorm and I think he's saying, 'What are you doing?'" she laughs, then pauses and adds, "but I think he'd be pleased. I think he'd proud." TK
Y
TK Business magazine
summer 2014
41
Committed to Excellence
Committed to Topeka by Jim Colson, City Manager
Becoming a Team
City management could be described as the ultimate team sport. The relationship between the city leaders including the elected governing body and the city manager is often a delicate balancing act of information exchange, policy recommendations and actionable items. During the past few years, these parties have worked together in a way that should make Topeka proud. The leadership of this community is working diligently to craft policy and programs based on informed decision making and a healthy engagement process. In addition, much work has been done to encourage effective dialogue with the private sector, the residents and the community at large.
Identifying The Opportunities
Topeka has a rich and vibrant history. It has many assets that make it an enjoyable place to live. It also has suffered from economic and societal challenges. Many residents view the olden days with fond memories and wish that today could be more like the past. While that is understandable, it does not reflect reality.
Creating a Better Tomorrow
It has been my pleasure during the past nearly two years to work with a large and diverse group of people who believe the good old days are still ahead of us. The governing body, other elected officials, senior staff leadership, city employees, private sector leaders, volunteers, community members and many more have aggressively engaged in the process of creating a better tomorrow for Topeka.
Achieving Excellence
One of the most important roles that called the City of Topeka can play is to make sure that we deliver
42
summer 2014
Tk Business magazine
the services required to promote a healthy work environment, a sense of personal safety and a desirable quality of life. It is the objective of this administration to achieve excellence in service delivery based on best practices and reliable benchmarks. Each of our employees, individually and corporately, are expected to act with integrity, understand their role and performance expectations and be held accountable for their own work product as appropriate. Organizationally, we need to ensure that we are innovative and responsive to the need of the community and opportunity as it is presented. We need to be committed to continual improvement, seeking better ways to accomplish our mission. We need to be open in our communication, informing people in a manner that is timely, concise and relevant, and providing people an avenue to tell us what they think on public matters.
Finding Efficiences
As we manage the city’s finances, we need to be cognizant that we are stewards of the community’s resources. As such, we need to continually look for better and more cost effective ways to serve the community. Each department is challenged to find a better way to deliver their work product in an optimal and cost effective manner. We continually look at ways to establish effective management tools based on performance metrics and accountability standards to ensure that we are effectively pursuing our goals and objectives. We have accomplished a lot, but the reality is, we still have a long way to go. I am encouraged that so many people are committed to a better Topeka, and I believe the City will be a major player in bringing that future to reality.
TK Business magazine
summer 2014
43
Growing the Talent Pool through
INTERNSHIPS From the Professor
BY Dr. Louella Moore, cpa; Professor of accounting, Washburn University Complex software and technology is needed to provide seamless customer service in a 24/7, global environment. But advanced technologies are not plug and play. Finding suitable human capital for complex professional organizations is much more difficult than purchasing a product off the retail shelf or downloading an app. Attracting the skilled workforce to maintain complex systems remains a constant challenge.
talent shortage A ManpowerGroup TM 2013 Talent Shortage Survey found that 35 percent of companies are having difficulty filling jobs due to a lack of talent. More than half of the employers indicate that these shortages have a direct impact on their ability to meet customer demands. Yet one out of five employers are doing nothing to remedy the skills gap. Progressive companies, on the other hand, are taking on the problem by 1) providing additional training to existing staff and 2) expanding their hiring criteria to include those who lack some specific technical skills, but who have the capacity to learn. Partnering with university internship programs can be a dual strategy for hiring workers for shortterm projects and for attracting a larger pool of talent in the future.
44
summer 2014
Internships Must Be Relevant Not many students today can afford to attend college full time without working. Working while attending college can have either a positive or a negative effect; the difference hinges on whether a direct connection exists between work activities and the course of study. If students are working long hours in a setting where they perform activities that pay the bills but are not connected to a path toward career advancement, they are much more likely to become discouraged and drop out of school. On the other hand, students become energized when they are being challenged to expand their technical and leadership skills to solve real organizational problems. Students who undertake part-time internships during the academic year begin to come to class in professional dress and become more engaged in classroom conversations.
Internships benefit everyone Internship programs benefit not only employers and students, but also society as a whole. Intended benefits of tax dollars paid to subsidize private and public higher education are not fully realized when students enroll, but do not continue on to finish their degree. This failure to persist is not due to a lack of
Tk Business magazine
college programs to address the issue. Colleges around the country have instituted pre-enrollment counseling, added tutoring resources, and created Freshman Experience classes aimed at making sure students receive the attention and support they need to be successful in college. So why are students enrolling in college, but not persisting? In my experience, the problem has increased partly as a result of the way modern societies organize their administrative functions. Achieving efficiencies in a global, digitally connected society means having highly technical and specialized processes in place, many of which are invisible behind the scenes.
Internships Must Be engaging Research on the problem of student retention has persistently shown that students will not be retained unless they are fully ‘engaged’ in what they are learning. As much of the work of businesses and nonprofits has moved to specialized, technical, software driven functions out of the public eye, students have an increasingly difficult time grasping a vision of what they are really preparing for without some simultaneous connection between their classroom experiences and professional goals.
Internship
MYTHS 1.
students take internships because they cannot find a paying job. Intern positions attract the better students who are thinking about longer-term career objectives, rather than just a way to pay their bills.
2.
Intern programs are a place for employers to find a pool of cheap or unpaid labor to answer phones and do go-fer work.
Realistically, organizations that have successful intern programs are selective and pay a competitive wage to attract top talent.
3.
Interns should be used primarily for routine tasks that can be done with very little training.
Those students who apply for internships rather than just traditional part-time jobs do so with the goal of getting a reference from the company that says this person is able to take on workplace challenges and develop new skills. When an intern site provides interesting but challenging work, students are motivated to put forth their best work. They are often eager to learn and have the technical skills the job requires.
TK Business magazine
summer 2014
47
Drive around Topeka and you will find “For Lease” signs in the windows of countless buildings. Other business properties simply sit vacant, showing signs of decay. At the same time, you will notice several new buildings under construction in various parts of the city. If businesses need office space, and vacant properties are obviously abundant, why aren’t those businesses utilizing that existing space? 48
According to CBRE commercial real estate broker Ken Schmanke, the answer to that question isn’t so simple. Schmanke said that even though Topeka has a significant number of vacant properties, very few of them are considered desirable business space either because of location, building condition or functionality. One should also consider that a “For Lease” sign in front of a building does not mean the entire building is vacant. The building might be 95 percent occupied. Most buildings in Topeka are 100 percent occupied with no “For Lease” sign. Schmanke said that many of the buildings around town sit vacant because they have become obsolete in one or both of the following ways: • Functional obsolescence is always something that pertains to the property itself or within the boundaries of the property. Example: A warehouse that has 12 foot high ceilings when
modern warehouse space is expected to have 24 foot clear ceiling height. • Economic obsolescence, also referred to as external obsolescence, is the loss in value resulting from influences external to the property itself. Example: A new retail mall is built on the other side of town from your retail store transferring most of the retail traffic and reducing the value of your location. “We like to think there is a business that will fit every property, but realistically, there is a reason that building sits vacant for a long period of time, and if that reason does not change and the problem still exists, the property will eventually be reverted back to land until a new viable use for the land is determined by the Ken Schmanke market,” Schmanke said. CBRE Commercial Real Estate Broker
summer 2014
Tk Business magazine
“What Every Small Business Owner Needs to Know”
GROW SALES
EXECUTE YOUR PLAN
Martha Bartlett Piland
Rich Drinon
3
INCREASE PROFITS Rick LeJuerrne, Esq.
part business seminar series courtesy of ECU’s Business Development. Registration is limited to locally owned established businesses. The series is free to attendees, advance registration is required. Details and registration information are available at our website:
www.EducationalCU.org
Introducing . . . ECU’s Business Resources Summer Series July 10 17 31
Is Your Business Protected?
Total Quality Assured Lower Your Risk. Lower Your Total Cost. Improve Your Peace of Mind.
Guaranteed! 1.800.591.7378
schendelpest.com No matter what’s bugging you... Schendelize ‘em TK Business magazine
summer 2014
49
Topeka’s Commercial Real Estate Landscape In an effort to provide a comprehensive view of the commercial real estate landscape in Topeka, CBRE’s Topeka Commercial Real Estate Market Report Q1 2014 provides a comprehensive view of the commercial properties in Topeka, ranking retail and office properties greater than 10,000 square feet and industrial properties greater than 20,000 square feet as either A, B or C* properties depending on factors such as building condition, location, access,
amenities and functionality. As the summary below indicates, almost no Class A space is available for
any of the three business categories, and Class B space is limited. *C space not included in report
Class A Class B Occupancy Avg Rent * Occupancy Avg Rent * 98.79% 90.34% $18.50 $9.45 Retail Office 94.95% 90.84% $20.17 $14.97 Industrial 99.78% 88.87% $4.85 $3.53
Q1 2014 TOPEKA | KS
COMMERCIAL REAL ESTATE MARKET OVERVIEW
*See full report for definition of Avg Rent, additional details and market narrative. © 2014, CBRE, Inc.
Commercial Real Estate Ranking Criteria Class A properties Newer buildings in prime locations with easy access, modern functionality, premium construction and available amenities. Class B properties Older buildings that are still in good condition with decent access and adequate functionality or new buildings in less than prime locations and/or less than premium construction.
OFFICE
CLASS
A
Athene USA office building 555 S. Kansas Ave
Prime office space in prestigious location with high end contstuction materials and desirable amenities.
Schmanke admits the ranking system can be somewhat subjective. “Ultimately it comes down to what the market is willing to pay,” Schmanke said. The ranking of property class can also be very different from one market to another.
OFFICE
CLASS
B
Bank of America Tower 534 S. Kansas Ave
As a 40-year-old building, it receives a lower rank.
RETAIL CLASS
A
Natural Grocers at 5836 SW 21st St.
Brand new building in a high traffic area with quality construction and modern functionality.
50
summer 2014
Tk Business magazine
RETAIL CLASS
B
Brookfield Plaza 2121 SW Wanamaker A good location with access right off Wanamaker, but building is older with more limited functionality.
Post-Acute To Home (PATH)
PATH acts as a bridge between hospital and home by helping patients overcome the challenges of recovering from an injury, illness or surgery. To learn what we can do for you, contact Topeka Presbyterian Manor at 785-272-6510. TopekaPresbyterianManor.org
PATHrehab.org
TK Business magazine
summer 2014
51
INDUSTRIAL
CLASS
INDUSTRIAL
CLASS
A
B
Reser’s Fine Foods Distribution Center at 3167 SE 10th
Reser’s Fine Foods plant at 6th and Deer Creek Trafficway
Expansion and facility upgrades in 2004 have kept this building in good condition, but because it is an older facility, it received a lower rank.
Newer state-of-the-art food processing and distribution facility designed for functionality.
Avoiding Obsolescence Highest and Best Use is the reasonable probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. In some cases, the highest and best use of a property means changing its functionality and its classification. Burlingame South, located at 37th and Burlingame, is undergoing this type of change. When Falley’s Market closed its doors, this retail location struggled to keep tenants and maintain rent. The decision to repurpose the property from retail space to office space took it from a Class C retail space to a Class B office space, revitalizing the area and spurring renewed interest in lease opportunities. “If a building becomes obsolete, action needs to be taken to adjust the property’s position in the market. This may mean making improvements to the property or reducing the rent. If not, at some point it will remain vacant and go back to dirt,” Schmanke said. “Some properties survive hundreds of years because over time people have been willing to invest in the property and adjust to the changing market demands.”
52
summer 2014
Schmanke’s Outlook “The Topeka commercial real estate market is stable. This condition has caused Topeka to be less influenced by market swings, both up and down. More volatile markets across the state and the country have and will build speculative development projects to meet the demands of a growing population and suffer the consequences of large vacancy, declining rental rates and failed projects when the music stops. Most Class A space in Topeka is custom built for a long-term lease tenant or an owner occupant. This is not expected to change given the current conservative lending environment and Topeka’s growth rate. Current new construction costs 125-150 percent more than leasing or buying an equivalent Class A existing facility. The problem is that these equivalent Class A existing facilities are occupied. Those who want to occupy a Class A facilities will need to: 1) Move quickly when a Class A facility becomes available.
Tk Business magazine
2) Plan on spending more for customized new construction; 3) Settle for a Class B facility.
I do expect smart landlords to reinvest in their properties to maintain a quality facility, push rents upward and compete in the Class A market.”
Burlingame South at 37th & Burlingame
A Word of Caution: While the Class A market in Retail, Office and Industrial is nearing full occupancy, there are only a small percentage of occupants willing and able to pay for Class A space.
Julie C. Swift, DDS, MS Offering a full range of periodontal services, including maintenance, surgical, esthetic and implant procedures. www.topekaperio.com
TK Business magazine
summer 2014
53
TK BUSINESS
EXPERTS Martha Piland
MB Piland Advertising + Marketing
Diana Ramirez
Express Employment Officials & Specialized Recruiting Group
Bob Gunther
MRH Insurance Group, Inc.
Earl Kemper
ActionCOACH
TK Business magazine
summer 2014
55
Expert: Internal Marketing Martha Piland, Owner, MB Piland Advertising + Marketing
Q: What is internal
branding and why does it matter for my business?
A:
Businesses who align their external branding with their internal culture will always be far stronger than those who do not. With a unified effort, the brand becomes bulletproof. • Sales people are more effective. • Employees who do not officially “sell” still promote the business. • Great talent joins and stays. • Customers get a consistent experience no matter how they connect with the brand. And that adds up to loyalty, more revenue and more profit. Do you have an internal brand? Do your employees know—and connect to— the brand “guts” of the organization? Do they live the brand in their daily work? If not, then here are some steps you should take right now:
1. Make sure YOU really know what your
brand is—then translate it internally. Nordstrom’s is high-end and high service. Its Nordies are the people so passionate about providing a legendary experience that they will press a shirt for a customer needing one for a meeting, or take a return on tires when they’re not even in the store’s product line. At MB Piland, we have the “Groovies.” Being groovy means having an eye for style, whether it’s design for a client, design in our office environment or what we wear. It’s about innovating and
56
summer 2014
outsmarting even the toughest challenges. Groovy means having an attitude that’s fun, hip, generous and collaborative. Though many of these ideals have an inward focus, they are the very foundation of our client work. It’s powerful, and it shows.
2. Integrate your brand with your
people, processes and purpose.
An employee newsletter is great, but it can’t be the only thing you do. Nordies were not born overnight. Their corporate culture has been developed with strong leadership and extensive training—then the authority is given to employees to make decisions that wow the customer. They know and live the mantra. Extraordinary service resonates inside and out. • Train for what you want and how you will achieve it. • In meetings, ask if the “great idea” fulfills your purpose and brand. • Celebrate team achievements. • Communicate in multiple ways to engage your whole internal audience.
Tk Business magazine
3. Emphasize your brand for
recruitment and retention.
Really knowing who you are and what you are about makes it easier to find and keep the best talent. You should look for skills AND ability to love (not just fit into) your culture. • Do you talk about the brand and purpose when recruiting? • Do you use the brand and purpose to help evaluate candidates? • Do you address the brand and purpose in your employee manual? • Do you make the brand and purpose part of onboarding and employee appreciation activities? At MB Piland, we have a “Groovy Guide” (supplementing our employee manual) that talks about our ideas and ideals, how we do things and what we are about. This is a normal part of orientation and ongoing teamwork. Don’t wait. Strengthen and align your brand from the inside out. Your bottom line will thank you.
by providing expert accounting services
services provided by CBIZ
by minimizing your taxes
solutions challenging economy providing
Š Copyright 2012. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved.
in a
ACCOUNTING, TAX & CONSULTING
by identifying tax planning opportunities by improving your profitability
by understanding your goals by developing an effective business plan
AUDIT, ACCOUNTING & ATTEST
services provided by Mayer Hoffman McCann P.C. Together, CBIZ and Mayer Hoffman McCann P.C. are one of the Top Ten accounting providers in the country.
by providing you with an advantage 785.272.3176 www.cbiz.com/cbizmhm-topeka www.mhm-pc.com Mayer Hoffman McCann P.C. is an independent CPA firm providing audit, review and attest services, and works closely with CBIZ, a business consulting, tax and financial services provider.
business
our is growing
TK Business magazine
yours
summer 2014
57
Expert: Human Resources
Q:
A:
I want to follow the Affordable Care Act appropriately to avoid the fines as I reach 50+ employees. How do I grow with less risk?
Because all staffing companies are not the same, I will address this question from Express Employment Professionals perspective. The Affordable Care Act (ACA) requires individuals to seek health insurance and includes some employer mandates. Employers who averaged 50+ full-time employees/FT equivalent employees for prior year must offer health insurance or risk penalties. A solution to providing health benefits, as well as other benefits, to your employees is to partner with and outsource the HR functions of hiring and payroll to a staffing company. Staffing companies have the resources and willingness to become experts on the ACA, freeing up their client companies to focus on their business. This is an ideal scenario for a small to medium business with limited resources, as they are then partnered with a larger company—in Express’ case, the nation’s largest privately held staffing firm. If your company is already over the 50 full-time employee mark, a staffing company can assist by transitioning current employees to becoming contract employees so they can receive medical insurance. Express provides full benefits, including medical insurance. This meets both the individual and the company obligation under ACA. Hiring permanent employees can feel risky in a wobbly economic environment, but when the added financial burden of providing health benefits for employees is thrown into the mix—against the backdrop of a complicated law, no less—it can be a little overwhelming for businesses. Utilizing a staffing company can serve as a way to grow your business with less risk.
58
summer 2014
Diana Ramirez, Owner, Express Employment Professionals and Specialized Recruiting Group, Topeka & Emporia
What is the difference between traditional temporary staffing and contract staffing? Traditional temporary associates help companies with short- and long-term staffing needs. Temporary staffing allows you to maintain productivity and ensure that quality work will continue while a full-time employee is on vacation, sick leave or maternity leave. Contract staffing allows you to bring in highly skilled workers to complete a project within a set amount of time. Contract staffing provides associates who are skilled in one of the seven professional niches: human resources; engineering, mechanical, and technical; sales and marketing; accounting; health care; information technology; and scientific.
When considering a staffing company, ask the following questions: 1. What do you specialize in? 2. Do you provide full insurance coverage on your associates?
Worker’s Compensation (Statutory) Employer’s Liability ($1,000,0000) Comprehensive General Liability ($5,000,000) Umbrella Liability ($10,000,000) Error & Omissions ($5,000,000) Fidelity Bond ($1,000,000) Automobile (hire & non-owned) ($1,000,000)
3. Do you offer benefits to your associates? 4. What is your guarantee? Temporary/Contract placements? Direct hire/Professional placements? 5. Do you offer drug & criminal background checks on your associates? Extra cost or included?
Tk Business magazine
Benefits of Temporary/Contract Staffing: • No downtime • No profitability loss • Quick placement of workers • No additional workers' compensation, unemployment costs & payroll taxes • Competitive pay • Full benefits to the associates • Cost savings • Piece of mind that ACA requirments are met
Express Associate/Contractor Benefits: • Medical Benefits • Retirement Savings • Life Insurance • Dental, Vision, and Short-Term Disability Insurance • Holiday Pay • Vacation Pay • Scholarships • Referal Bonus Program
Also available at 900 N. Ks Ave
TK Business magazine
summer 2014
59
60
Winter 2013
Tk Business magazine
Expert: Cyber Liability
TOP
5 Bob Gunther, Producer,
Is there anything to protect me if my Q: company is hacked?
MRH Insurance Group, Inc
Cyber Risk Coverage, better known as Cyber Liability, will become a “household� form of insurance coverage that you will need as much as your Property, Personal Property, General Liability, Professional Liability, Umbrella and Workers Compensation. The full integration of using technology to store and transfer customer data is already well established, and as technology continues to rapidly evolve, the need for Cyber Risk Insurance is critical to your insurance program. The all-too-familiar news coverage of another nationwide company that has had its client records compromised from hacking propagates the misperception that Cyber Liability is only needed for Fortune 500 companies. However, small, family-owned businesses are actually more susceptible to data breach because they do not employ an entire IT division to protect client information. Do your employees carry office laptops home or when traveling for work? Do you allow your employees to download programs from the Internet? Do you ever e-mail
sensitive customer data? Do you allow your customers to pay you electronically? All of these common business scenarios provide a real risk for customer data to be compromised. Imagine trying to continue your day-today operations while also having to deal with the following consequences of a data breach: 1. Report and respond to governmental agencies that monitor customer privacy rights. 2. Fines from governmental agencies, requirements to notify each customer that their sensitive data has been breached. 3. Lawsuits from third parties and from your customers for not taking the necessary precautions to protect their data. 4. Interruption of your business operations and lost income. It would be ironic that the use of technology to help your customers and make your company more efficient could be the same tool that dismantles your company. Contact your insurance provider to learn more about Cyber Risk Coverage.
REASONS YOUR BUSINESS NEEDS CYBER RISK COVERAGE
1. 2.
Data Breaches and cyber attacks have increased 42 percent in the last year alone.
3.
All industries are vulnerable to a data breach or cyber attack, including education, financial services, nonprofits, professional services, manufacturing, hospitality and retail.
4.
The average cost of a data breach has risen to $5.4 million and includes costs related to business disruption, revenue loss, equipment damages, legal fees, public relations expenses, forensic analysis, and notification costs that are legally mandated in 46 states.
5.
The costs associated with a data breach average $188 per compromised record.
40 percent of all breaches have occurred in organizations of 1,000 or fewer employees and 31 percent in organizations of fewer than 100 employees.
*Data source from Symantec 2013 Security Threat Report, Verizon 2013 Data Breach Investigations Report and Ponemon 2013 Cost of Data Breach Study: Global Analysis. Courtesy of Travelers Casualty and Surety Company of America, which MRH Insurance Group, Inc. is an appointed agency.
Expert: Strategic Planning
Q: How do I grow You can double just your business by putting three to five new strategies in place in the next 12 months. Most businesses look at growth based on three variables: (1) number of customers, (2) revenue, and (3) profit. The only problem with this approach is that tracking these metrics only measures the outcomes, not what impacts those numbers. The greatest key to growing a business is to understand the five critical measurements that actually drive the results in a business.
5 WAYS CALCULATOR
All businesses are driven by five critical components
Leads Generated
X
Earl Kemper, ActionCOACH 5 CRITICAL BUSINESS DRIVERS
FIVE STRATEGIES
A:
my business?
Number of Leads
Conversion Rate
Number of Transactions
Average Dollar Sale
Profit Margin
Total number of potential buyers.
Percentage of potential buyers that actually bought.
Number of annual purchases by the average customer.
Total sales divided by total customers
Net profit divided by revenue
Increase Fees
Payment Terms
Sell Your Own Label Commission Only Sales Team Increase Margins
POS Material
Increase Price
Create Package Deals
Accurate Database
=
Sales Scripts
Ads
Training
Strategic Alliance
Added Value
Social Media
Testimonials
Public Relations
Exclusive Line
%
Conversion Rate
Referral System
Provide a Checklist Streamlined Service Regular Contact Under Promise & Over Deliver Increase Range
Up Sell
Download the 5 Ways Tool for FREE at www.actioncoachempowerment.com
Customers/Clients
Enlist the Help of a Coach
X Number of Transactions
X Avg. $ Sale
$
Revenue
$
= X
%
Profit Margin
=
Profit
62
summer 2014
$
Every top performer is surrounded by coaches and advisors. Just like great athletes who follow the lead of a coach with a winning game plan, more business owners are turning to business coaches to help develop winning game plans. Even CEOs of megacompanies such as Google and Apple look to business coaches for guidance. Accountability is one of the greatest strengths of working with a business
Tk Business magazine
coach. They help businesses focus on their highest priorities, and execute them at the highest level while holding them accountable. When business owners do the right things right, they achieve their greatest potential via the fastest route possible. A business coach will help you develop long-term and short-term goals and strategies, and improve your business in areas that you might have overlooked.
TK Business magazine
summer 2014
63
SCene about town
34th Annual Small Business Awards Ceremony May 13, 2014 Washburn University PHOTO 1
John Appel and Braxton Copley with Pioneer Group; Shawn Myers, and John and Ruth Mahon with Meridian Roofing Solutions
PHOTO 2
Tracy Doll, Kim McAlister, Ellen Horn, Jill Hoover, Jenny Valdivia, and Alicia Reynolds with Topeka Periodontics
1
PHOTO 3
Judy and Patrick McCrite, McCrite Plaza
PHOTO 4
Tim Lancaster, Rachel Ogle, Bob McCann and Janice Bates with PTMW
PHOTO 5
Fred Patton, Patton Law Office; Emma Starkey, Heartland Visioning; Zach Snethen, HTK Architects
PHOTO 6
Brian Adams, SodaWorks; Hal and Jean Gardner, Rusty Haggles Antiques; Ruby Bradley, Yeldarb Gallery; Jason Gascon, Edward Jones; Jim Ogle, WIBW-TV
PHOTO 7
Eugene Williams, Jared Gregg, Wanda Hinton, Kevin Goodman, Betty Lou Pardue and Laurie Buhler with KTWU
3
6
4
2
5
7
Ad_4.25.14_Layout 1 4/25/14 3:40 PM Page 1
Need to Talk Business? think Topeka Scottish Rite Center (Topeka Masonic Center)
Meetings n Seminars n Conferences n Banquets Special Events n Ceremonies n Training Sessions n Retreats
You Can Have It ALL!
785-783-7720 2300 SW 30th, Topeka, KS kelly.topekamasoniccenter@outlook.com www.topekamasoniccenter.com www.facebook.com/TopekaMasonicCenter
“Dad has always been there for me. So when he needed more help to stay independent at home, I called Midland Care.�
Call today at 1-866-394-3600 or visit us online at www.midlandcareconnection.org to learn more
TK Business magazine
summer 2014
65
66
summer 2014
Tk Business magazine
SCene about town
YWCA Women's Leadership Lunch Maner Conference Center April 2, 2014 PHOTO 1
Dianne Anderson, Holly Graves, Amy Martens, Robyne Goates, Blue Cross Blue Shield; Megan Goates, General Dynamics; Linda Pracht, Blue Cross Blue Shield
1
PHOTO 2
Julie Lux, Westar Energy; Carol Ohlde; Kerri Winter, Florence Manufacturing Company; Jeanette Bouzianis, Westar
PHOTO 3
Hailey Dick, Rossville High School; Randy Dick, Kaw Valley Insurance; Dr. Beryl New and Jessica Johnston, Highland Park High School
PHOTO 4
Dr. Linda Wiley, Manuela Garcia (Student), and Carolyn Altman, Topeka High School
PHOTO 5
Ron Krueger, 190th Air Refueling Wing Kansas Air National Guard; Kirk Thompson, KBI; Kansas Attorney General Derek Schmidt
2
PHOTO 6
Carrie Magill, Washburn University Foundation; Cynthia Hornberger, Washburn University; Julie Olson and Kathy Busch, Washburn University Foundation
PHOTO 7
Cheryl Kingfisher, Third Judicial District; Sue Buckley, Dynamic Computer Solutions; Sloane Lewis, Miss Kansas 2012; Keven Pellant, Washburn University
PHOTO 8
Dawn Lassiter, Community First; Darlene Palmer and Tatiana BryantWilmore (Student), Highland Park High School; Dale Cushingberry
PHOTO 9
3
Cacy Klumpp, Feel Good Nutrition; Sheyvette Dinkens, Women Empowerment
4
767
5
Winter 2013
Tk Business magazine
6
8
9
SCene about town
North Topeka Business Alliance Great Overland Station April 1, 2014 PHOTO 1
Lisa Propps, Community Bank; Linda Sowards and Keith Sowards, Sowards Glass, Inc.
1
PHOTO 2
Gary Starr, Edward Jones Advisors; Mike Foster, Topeka Rescue Mission
PHOTO 3
Brian Tefft, Ace Computers; Bret Degand, Ace Computers
PHOTO 4
Erik Evans, Envista Credit Union; Frank Henderson, Topeka Rescue Mission; Jeff Dick, Topeka Capital-Journal
PHOTO 5
Gary Piland, Umbrella; Rick Shaw, Exceptional Advertising Specialties
PHOTO 6
2
3
Stan Teeter, Hills Pet Nutrition; Darrell Six, Six Auto Sales
PHOTO 7
Justin Glasgow, Performance Tire and Wheel; Fred Gatlin, Gatlin Farm
PHOTO 8
Fred Patton, Patton Law Office; Karl McNorton, Soldier Township Fire Department
PHOTO 9
Eric Claspill, Waddell and Reed; Ben Tenpenny, Capital City Bank; Dave Brubaker, Hall Commercial Printing; Shawn Steinkamp, Walmart
PHOTO 10
Jo Turner, Roy Frey Western; Karen Rusher, A1 Lock and Key; Shawn Herrick, Association Management
5
95
6
4
7
10
8
SCene about town
Career Chapter ABWA 32nd Annual Scholarship Luncheon & Woman of Distinction March 11, 2014 Manor Conference Center PHOTO 1
Marcia Holston, Betsy Rohleder, Teresa Watson
1
PHOTO 2
Meg Bell, Loretta Wilks, Eileen Caspers
PHOTO 3
Alex Reilly, Nancy Lewis, Marsha Pope, Grace Morrison, M.D., Shelley Matalone, Kris Scothorn
PHOTO 4
Craig Heideman, Gerald Lauber, Mandy Bunger, Susan Koch, Elaine Stephens, and Sandy Atwood, Kaw Valley Bank
PHOTO 5
ABWA Women of Distinction Blanche Parks, Marilynn Ault, Marjorye Savage Heeney, Alica Salisbury, June Windscheffel, Martha Bartlett-Piland, Christel Marquardt, Jayne Cafer, Linda Elrod, Neta Jeffus, Anita Wolgast, Pamela Johnson Betts
3
5
2
4