Serving the greater Lynchburg regiOn
aPriL/May 2016
www.selectivewm.com
Interested in evaluating stocks? Call today to schedule a complimentary 30-minute meeting with our portfolio manager to discuss investing-related topics of your choice. Whether you’re a beginner seeking guidance or a seasoned investor looking to deepen your research skills and evaluation-techniques, stocks are what we do. We’re committed to bringing transparency, clarity and understanding to business ownership and look forward to assisting you in this endeavor. To learn more about Selective, visit our website at www.selectiveWM.com We manage IRAs, 401(k)s, 403(b)s and taxable accounts for over 200 individuals.
434-515-1517
828 Main St, Suite 1703, Lynchburg VA
equiTy & DiviDenD pluS Bright ideas for long-term growth. • DepenDable anD GrowinG DiviDenDS • aTTraCTive funDamenTalS • ConvinCinG riSk STaTiSTiCS
The value of experience… 30 years of providing a compelling approach to investing.
inDiviDual • inSTiTuTional • reTiremenT 434-845-4900
www.fbpinc.com
Lynchburg, Viriginia
HELPING TO MAKE YOUR MEETINGS A SUCCESS With ample seating, the latest technological resources, tasteful ambiance, and competitive prices, the Liberty Mountain Conference Center provides everything you need to ensure that your next corporate event is a success.
W W W.LI BERT YM O U N TA I NC O NFERENCE CEN T ER .C O M (434) 592-5600 | LMCC@liberty.edu | 3700 Candlers Mountain Road, Lynchburg, Va. 24502
INSIDE LB
TABLE OF CONTENTS April/May 2016
FEATURES 24
UPFRONT
7 BY THE NUMBERS 14 IN THE NEWS
LEADER PROFILE
16 MOVERS & SHAKERS 17 PLUGGED IN
28
18 LET’S DO LUNCH
Jan Walker Senior Vice President, Chief Administrative Officer, Centra
28
Benjamin’s
HEALTHCARE SPOTLIGHT
COLUMNS
Johnson Health Center
Researching Consumer Trends
HEALTHCARE FEATURE
32
19 MARKETING
21 LEGAL
Buyer—and Seller—Beware!
A Primer on Employee Coverage
36
27 HEALTHCARE
Benefits of Physical Therapy
SMALL
e s i R
36
FINANCIAL FEATURE Diversify with Gold: Yay or Nay?
BUSINESSES
35 FINANCIAL
Employee Retirement Tips
on the
50 COMMERCIAL REAL ESTATE
Financing Fundamentals
53 REAL ESTATE
Creating Strong Contingencies
41
LEADING LADY Linda Jones
42
42
SMALL BUSINESSES ON THE RISE Local Success Stories
57 HUMAN RESOURCES
54
Impact of FLSA Overtime Proposals
MADE IN LYNCHBURG
56 SIMPLIMATIC AUTOMATION
BUSINESS PROFILE Moore’s Electrical & Mechanical Hits 30
54
ON THE COVER: Jan Walker, Senior Vice President, Chief Administrative Officer, Centra. Read her profile on page 24. Photo by RJ Goodwin. APRIL/MAY 2016
LynchburgBusinessMag.com
5
INSIDE LB
EDITOR’S LETTER
I
f there are any topics discussed as frequently as politics and the weather, they just might be money and healthcare. With so many demands on our wallets, this issue should give you some insight on making the most of your money; see coverage starting on page 35. And it’s no surprise that the healthcare industry has been undergoing some massive changes in recent time; we address some common questions employers face when choosing healthcare plans on page 32. For some entrepreneurial inspiration, flip to our second annual Small Businesses on the Rise feature where we share the stories of nine local companies that have experienced tremendous growth. As Doug Roh learned upon opening Bräuburgers in 2014, you sometimes have to adjust your plans to better meet the needs of your customers. Within a few months of opening his eatery, Roh realized his customers wanted full service, so he adapted. Like Roh, the other entrepreneurs we cover—starting on page 42—should provide plenty of insight on growing a successful business. This issue also contains practical and personal advice from several individuals worth watching such as this issue’s Leading Lady Linda Jones, principal at Dominion Seven Architects located in downtown Lynchburg. Of doing business, Jones believes: “You can’t take it with you, so value people and relationships over money every time and avoid regrets.” It’s an axiom that sounds nice in theory, but how difficult it can be to put into practice! Read more insights from Jones on page 41. Moore’s Electrical & Mechanical chose to follow a similar mantra with their company—investing in their employees above all else. Not surprisingly, that approach has only led to company growth on all fronts. In just over 30 years, the company is now doing more than $80 million in gross revenue; they also give 10 percent of their annual profits to community organizations. Read more about their unique and inspiring company culture starting on page 54. All of these tidbits distill to one central point: Listen to those around you. That’s what led me to decide that the time has come to bid goodbye to a job that I have loved for a season of my life. But something new is now calling my name—specifically, two little girls saying “Mommy.” As a new parent, people often say things such as “Enjoy it while they’re young,” and “Don’t blink, or you’ll miss it.” Well, I’m immeasurably blessed to be able to fully embrace that advice, and so I will. If there’s anything I can leave you with, it’s to have confidence in what the Lynchburg community is capable of. I believe we will continue to grow our region to greater prominence, and I’m privileged to have contributed in drawing attention to the great work happening here.
Lynchburg Business Magazine is a bimonthly publication devoted to highlighting Lynchburg-based businesses and those in the surrounding areas of Amherst, Appomattox, Bedford and Campbell Counties, as well as the Town of Altavista. Every other month, 10,000 copies of Lynchburg Business Magazine are distributed by mail to local businesses, executives and individual business decision-makers. The goal of Lynchburg Business is for readers to look to the magazine as a resource worth keeping in their businesses and homes; one that appeals strongly to professionals in our area. Publisher Randy Thompson Managing Editor Jennifer Redmond Editorial Director Angela Blue Editorial Assistant Ashley Bunner Contributing Writers Jeremy Angione, Peyton Bailey, Kendrick Brunson, Ashley Bunner, Amy DeRamus, Tommy Doukas, Billy Hansen, Emily Hedrick, Megan House, Colleen McLaughlin, Drew Menard, Brandon Osterbind, Suzanne Ramsey, Jennifer Redmond, Dan Vollmer Vice President of Production Holly Watters Art Director Chris Meligonis Client Relations Manager Brittany Proctor Contributing Designers Josh Haralson, Kaye Ellen Trautman, Corey Watson Web Creative Director Chris Murphy Sr. Web Developer & Web Administrator Brandon Litchfield Web Developer Caleb Whitehead SEO Analyst Michael Saks IT Marketing Consultant William Warford Web Marketing & Promotions Manager Kearsten Walden Photography RJ Goodwin, Jim Pile Editorial Intern Peyton Bailey Vice President of Sales & Distribution Paul Brannock Account Executive/Team Leader Missy Celli Account Executives Carolyn Keeling, Tina Moon Customer Service Representative Keely Miller VistaGraphics Staff Copy Editor Robin Cather Controller Anita Burns Accounting Manager Dawn Meehan Accounting Clerk Kelsey Stephens Office Manager Tracy Thompson Contributing imagery supplied by Thinkstock.com
WWW.LYNCHBURGBUSINESSMAG.COM Proud Member of:
SUBSCRIPTIONS Receive Lynchburg Business at work or at home by subscribing today for $9.97 annually. Receive 6 bi-monthly issues: Feb/Mar, Apr/May, June/July, Aug/Sept, Oct/Nov and Dec/Jan. To subscribe, go online to www.LynchburgBusinessMag.com or please send your check payable to VistaGraphics, Inc, 1264 Perimeter Parkway, Virginia Beach, VA 23454, Attn: Circulation Mgr. Please be sure to include your mailing information: name, address, city, state, zip code, and phone number. For changes of address, please email George Carter, Circulation Manager: george@vgnet.com Lynchburg Business is published bimonthly by VistaGraphics, Inc. The corporate office is located at 1264 Perimeter Pkwy, Virginia Beach, VA 23454. © 2016 - all rights reserved. Reproduction of any material prepared by VistaGraphics, Inc., and appearing within this publication is strictly prohibited without express written consent of the publisher. Publisher does not purport to authenticate and is not responsible for claims made by advertisers found within this publication.
All my best,
JUNE/JULY 2016
Jennifer Redmond, Managing Editor jennifer@lynchburgmag.com 6
LynchburgBusinessMag.com
APRIL/MAY 2016
ADVERTISING DEADLINES Advertising Space Reservation................................. April 29 Editorial & Events........................................................ April 29 Final Artwork...................................................................May 5 For Advertising or Distribution Information, Please call 757.213.2461 or email paul@vgnet.com
BY THE NUMBERS
BY THE NUMBERS
14.8
98%
YEARS
Average age of our featured Small Businesses on the Rise; more about all nine businesses on page 42.
45 to 90
Amount of consumers who tend to ignore online survey requests from businesses; more on page 19.
54
Number of possible violations of the Virginia Consumer Protection Act (VCPA); more on page 21.
DAYS 113%
Increase in costs if the proposed FLSA employee salary threshold for overtime is approved; more on page 57.
Average length of the commercial lending process; more on page 50.
CORRECTION In our Feb/March 2016 edition, we incorrectly noted some information about Waste Solutions, a locally-owned and operated recycling company that we featured as our “Business Under 10 Years.” The information should have read as follows:
Founded: 2013 Location: 119-D Tradewynd Dr., Lynchburg Employees: 13 Learn more at www.wastesolutionsinc.com. Lynchburg Business regrets the error.
COMPLETE FAMILY DENTISTRY
Dr. Joshua Binder | Dr. Daniel Yeager Dr. Victoria Yeager Dr. Jennifer Johannsen
VOTED #1 DENTAL CENTER Our friendly and WE WELCOME compassionate staff will make NEW PATIENTS your visits comfortable.
Thank you Lynchburg, for voting to make us #1, and to all our patients for trusting us with their smiles.
1604 Graves Mill Rd., Lynchburg, VA 24502 | 434-385-7307 Open: Monday–Friday 8am-5pm | www.ForestDentalCenter.com APRIL/MAY 2016
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Find the Best Local Businesses! Clients Come First, Top Quality Work, Supporting Our Community “Bringing Business with Integrity to Our Customers”
www.LynchburgConnect.com
Reach the very best in reputable businesses--those businesses with the highest integrity, ethics and standards.
We strive to make our customers’ needs the #1 priority.
8
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APRIL/MAY 2016
Atlantic Bay Mortgage Group is a Mortgage Lender where the genuine care and consultation of our clients is our highest mission. We pledge to provide the finest personal service to our clients who will enjoy the entire mortgage process and become a “client for life.”
SANDY SPECK Branch Manager NMLS #290113 Licensed in VA
434-941-2800 sandyspeck@atlanticbay.com www.sandyspeck.com
atlanticbay.com • @atlanticbay • #atlanticbay
Accurate | Prompt | Professional Certified Inspector
At BHI, the focus is on providing a high level of confidence in, and knowledge about, the condition of your next home. Our Mission is to reduce your stress, increase your confidence and knowledge by providing a thorough, accurate and complete home inspection from which an informed decision can be made about one of life’s largest investments.
1048 Lejack Circle Forest, Va 24551 • 434.944.0365 • www.BatemanHomeInspections.com
Rusty Bateman "Your Satisfaction is my Commitment"
DePaul Wealth Management financial
compass
“Your Financial Compass to Successful Planning” Christian H. DePaul,
CFP®, MS, CDFATM Certified Financial Planner
Comprehensive Financial Planning Investing, Retirement, Estate Planning and Insurances. 3728 Old Forest Road | Lynchburg, VA 24501 | (434) 385-1340 | christian@depaulwealthmanagement.com
www.DePaulWealthManagement.com Christian H. DePaul is a Registered Representative offering securities through Cadaret, Grant & Co., Inc. Member FINRA/SIPC. DePaul Wealth Management and Cadaret, Grant are separate entities. APRIL/MAY 2016
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Together, we make a great team! Brickwork by All-American Masonry Railing by Bailey Spencer Welding
Restorations and New Construction 30 Years’ Experience Chimney Inspection Repairs Brick Hardscape
BEFORE
Concrete Rock Block (434) 660-4740 • www.allamericanmasonryva.com Licensed & Insured • joehall70@ymail.com
Iron Work ThaT WIll lasT a lIfeTIme
(434)941-9073 gates • fences • hand rails • deck rails custom iron work • restoration welding • power coating
AFTER
Your business has a story to tell.
Give us a communications challenge. We’ll create a plan to tell your story. Our experienced FASTSIGNS team will tailor the right mix of graphic solutions to help you meet your business goals. Locally veteran owned and operated.
LY N C H B U R G
14521 FOREST RD, FOREST VA 24551 | 434.333.0808 | www.FASTSIGNS.com/2062
Polished to Perfection Kathryn McDaniel, Owner/Founder of Polished to Perfection
The Ferguson family has been a client of Polished to Perfection for nearly two years. With their busy career of owning "Lynchburg's Finest Real Estate Brokerage", balancing family time became increasingly difficult for them. They found themselves regularly choosing between finding time to clean their home or spending quality time together as a family. Here at Polished to Perfection we believe families should not have to make that choice. Our goal is to find a personalized cleaning plan that works hand in hand with your family's schedule and budget. A friend referred the Fergusons to us and we were able to immediately get them on a bi-monthly schedule to clean their home. At Polished to Perfection, we believe client testimony is the most powerful measurement of our proven reputation. "Betsy & I were struggling with the work/life balance of keeping family priority when we were not at work. At home keeping the house clean always seemed to initiate a debate. Whose turn is it to clean the bathrooms this weekend? After working full days at our business during the work week, we wanted to spend quality time with our daughter Layla Grayce on the weekends. We realized we had found the secret of how to get more time together as a family, by giving up cleaning ourselves and hiring, Polished to Perfection. Today we have more time together and we no longer have to make time to do the dirty work. We have a regular system in place with Kathryn. The peace of mind knowing we can allow her into our home when no one is there and trust her completely is a gift. When the job is done, our house is a clean sanctuary to come home to. Playing games, riding bikes, dancing and coloring books with our daughter Layla can now take precedence. When the fun is over, our home becomes a place of retreat and relaxation." - Matt Ferguson, CFO of Lynchburg’s Finest Real Estate
Meteorologist Matt Ferguson & His Family The Ferguson Family Proudly Owns
434-381-3085
Call for a Free Consultation • 434-222-4122 • www.polishedcleaningva.com APRIL/MAY 2016
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m o c . r e d r a H Jen
Two Great Companies, One Fantastic Cause
Wife, Stay at Home Mom & Health Solutionist
We give half our profits back to our cause partners Fundraising and Wine Tastings
If your health is failing or you just want to feel better, find the solution with Jen!
Elizabeth Horsley Snider CAUSE ENTREPENEUR ONEHOPE
15-25% Discount on your First Steps to Becoming Healthy
Breast Cancer Awareness
434-851-2877
www.viaOneHope.com/elizabeth viaonehopewithelizabeth@gmail.com
Call or Text Jen | 434-941-3787 60 Day Unconditional Money Back Guarantee
“You Relax, we’ll Fool with the Pool.” “Pool Foolin trusts their business promotion with ProMojo!”
Pool Care Specialist Routine Maintenance— from Full Weekly Maintenance, to Specialized Assistance.
Marcus Lesniak 434-426-9489 John Lesniak 434-426-5749
We Can Help Nearly All Pool Owners with their Specific Needs Residential and Commercial Services Available Open and Closing Programs | Repair Services
Proud Members of the Connect Group www.lynchburgconnect.com
www.poolfoolin.com ProMojo highly recommends Pool Foolin
If it’s Inked, We Can Handle It! Customized Apparel & More (From Single Piece and Up)
Embroidery • Screen-Printing Business Brands • Team Apparel Schools • Promotional Products
info@pro-mojo.com • www.pro-mojo.com • 434-851-2012 12
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“Embrace Spring... Let Us Engage the Clean” Exterior Cleaning at its Finest. Our Services: Commercial & Residential Pressure Washing New Construction Washing • House Wash • Roof Wash • Fleet Wash Steam Clean • Restaurant Deep Clean • Licensed & Insured
434-444-5812 • www.bpmobilewash.com
Expert Plumbing Installation & Repair Services Take care of any problem when you work with the team at Blue Ridge Plumbing. Our plumbers can handle your leak repair and other services for your residential, commercial, and historic locations.
Call the Best Flush the Rest
Whether a simple clog or a major remodel, we handle jobs of all sizes. With more than 14 years of experience, our locally owned company is your source for professional and affordable plumbing services.
www.blueridgeplumbinglynchburg.com (434) 221-9382
Residential Residential Commerical New Commercial New Construction Construction New Upgrades Upgrades Construction
Commercial Residential
OFFICE
434 -2 6 6 -1238 434 -2 6 6 -1238 434 - 610- 4 373 434 - 610- 4 373 OFFICE CELL
Authorized dealer of Upgrades
CELL
MINI-SPLIT Authorized dealer of AIR CONDITIONERS 10 year parts & compressor
warranty MINI-SPLIT AIR CONDITIONERS
10 year parts & compressor Special offer warranty
Spring Tune Up For $99
you’ve tried the rest, now try the best! APRIL/MAY 2016
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UPFRONT
IN THE NEWS BUSINESS OPENING
LAW FIRM REJECTS STATUS QUO WITH UNIQUE APPROACH
R
elevant Law, based in Lynchburg, Va., has opened as of March. As a full-service law firm that provides legal solutions for individuals and small to midsize businesses, Relevant combines legal experience, technology and client-focused service in a way that aims to reduce risks, costs and time to the consumer. The firm is formed of experienced attorneys who have local-market expertise and legal understanding; their goal is to provide a better client experience overall. According to their press release, Relevant Law represents a modern and more sophisticated business model that eliminates much of the costly overhead and over-staffing traditionally associated with law firms—costs that are typically passed on to clients. Relevant’s innovative approach to law firm management and use of technology allows them to offer clients exactly what they are seeking—quality legal advice from knowledgeable local attorneys at attractive, affordable rates. “The traditional law firm model is broken”, said Mark Bold who heads Relevant Law. “High billable hours are business-as-usual for traditional law firms, leaving clients uncertain and anxious about how much it will cost to solve their legal matter. It’s that uncertainty that produces the greatest fear about hiring a lawyer for help. We knew there was a better way to provide legal services, and we’ve spent years developing that model before we decided to launch.” Relevant’s offices are now open in Wyndhurst with permanent offices to be located in the Cornerstone community by July 2016. Contact them at (434) 288-0411.
BUSINESS EXPANSION EMBRACE HOME LOANS ENJOYS RECENT GROWTH
T
he Lynchburg office of Embrace Home Loans has recently renovated and expanded their Wyndhurst location, and community members are invited to stop by for a tour. The physical expansion serves to better equip the Embrace team in meeting the needs of their clients. Embrace offers a wide variety of
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APRIL/MAY 2016
BUSINESS DEVELOPMENT “ESCAPE ROOMS” OFFER UNIQUE TEAM BUILDING OPTION BY JENNI F ER RED M OND
T
hey’ve been popping up all over the country, and this April two of them will open shop in Lynchburg—they’re called “escape rooms.” While the initial premise may seem creepy—or confusing perhaps—the general premise is simple: a group of individuals are essentially “locked” into a confined space, then they have one hour to use the pre-planned clues to make their escape. “This fun, team-oriented experience caters to many groups such as sports teams, dorms, birthday parties, and friends; however, the majority of participants are coworkers,” said Ryan Culkin, co-owner of Locked Up Lynchburg, which is opening April 15 in Wyndhurst. Since escape rooms are typically associated with entertainment, this approach may seem unusual, but co-owner of One Way Out, which also plans to open in April, Lauren Cox said, “Groups learn to function together by applying the various strengths of team members to solve the challenges and puzzles presented.” Benefits of this type of professional development can pay dividends down the road. “It provides insight on which workers are natural leaders and which work well in a group setting,” Culkin said. “Businesses are starting to understand the importance of positive morale in the office, and this activity allows workers to interact in a stress-free environment outside of work.” Helping employees build friendships outside of the office could also improve employee retention and satisfaction because “comradery is created through attempting to beat the clock or other teams,” Cox said. Various packages and theme rooms are available at both locations. More information at www.LockedUpLynchburg.com and www.LynchburgEscape.com.
loan programs for both purchases and refinances; they process, underwrite, fund and close all loans in-house. Embrace’s unique program “Approved to Move™” provides clients with the advantage of a fully underwritten loan approval without having property. The Lynchburg branch maintains Embrace’s core value—doing business with honesty and integrity—which helps them continue to grow. A national mortgage lender, Embrace is a different kind of company: a team of professionals who care about their customers.
UPFRONT
REBRANDING
SMALL BUSINESS
CASPIAN TATTOO NOW OFFERING COSMETIC TATTOOING
RMA UNVEILS NEW LOGO AND MOTTO
BY A S H L E Y B U N N E R
BY A SHL E Y BU NN E R
T
he Lynchburg Retail Merchants Association (RMA) has recently updated their look with a new logo and motto, which reads “Uniting Businesses. Together We’re Stronger.” A full-service membership based organization, RMA works with members to “deliver solutions that help solve business needs.” Along with their rebranding comes a fresh focus on educational workshops and networking events—strategies that are designed to impact business growth and efficiency in the Lynchburg community. The RMA is also working to develop innovative programming and events in order to help grow new and existing businesses throughout the region. Some of RMA Lynchburg’s coming events include an RMA Business Expo, a Buy Local Scavenger Hunt, Shift Your Shopping Campaign to include Small Business Saturday and the Annual Lynchburg Christmas Parade. For more information on RMA Lynchburg, visit LynchburgRMA.com.
C
aspian Tattoo has brought a new service to the Hill City with the option for cosmetic tattooing. Also known as permanent makeup or medical tattooing, cosmetic tattooing gives clients the option of having their eyebrows, eyeliner, lips or lip liner tattooed. Jennifer Griffin, who joined the staff as Caspian’s cosmetic tattoo artist in January, helps clients who have undergone chemotherapy and experienced the loss of their eyebrows to have them restored. Dave Casper, Caspian Tattoo owner, believes many other individuals can also benefit from cosmetic tattooing. “Some clients do not have the ability to apply makeup with a steady hand, so they elect to have some of their makeup applied permanently,” Casper said. “Clients who live active lifestyles enjoy the luxury of never having to worry about their makeup washing off.” In order to set up an appointment, customers are required to call (434) 237-1900 or stop by in person to set up a 30-minute consultation to find if they are eligible for cosmetic tattooing. Most procedures will require a two-hour appointment for completion. For more information, visit caspiantattoo.com.
LOCAL NETWORKING
BUSINESS RECOMMENDATIONS
B
S
SERVICE YOU CAN TRUST FROM LOCAL BUSINESSES
“NOT YOUR FATHER’S NETWORKING GROUP”
ack in the 1980s, Oldsmobile had a commercial with the slogan “not your father’s Oldsmobile.” An outdated car concept was trying to reinvent itself to be relevant to a modern audience. The concept of a networking group is much like the Oldsmobile. It worked great in the 80s but hasn’t quite been able to make the trip to the current environment that sales professionals are operating in. Mike Cook spent the last three years trying to build a “New Networking Group concept” in Central Virginia with mediocre results. Last summer he was discussing the dilemma with his friend Mike Garrison who operated multiple networking groups in the late 1990s and early 2000s. They both agreed that it was time to start fresh. Mike Cook closed the networking groups he was operating and the “two Mikes” then co-founded Strategic Referral Team: referral groups for professional sales people. Networking and referrals have evolved, and so must the group concept. For the professional sales person, SRT invites him or her “to pull up a chair and get serious about your business.” Visit StrategicReferralTeam.com for more information.
electing reputable and skilled professionals for all the issues that arise in life can sometimes feel like throwing darts blindfolded. To help combat that sense of helplessness, a group of local business people launched CONNECT. Formed of 40 professionals who represent a wide array of businesses, CONNECT members go through a vetting process, thereby offering the Central Virginia region a select group of professionals that meets predetermined criteria: dedication to integrity in business; excellence; ethical work practices; extraordinary customer service; and community involvement. The group includes a variety of services such as financial planning, plumbing, banking, painting, legal expertise, pest control, marketing, web design, painting, tile installation, advertising, office/home cleaning, insurance, health/nutrition, mortgages, masonry, iron work, pool maintenance, landscaping, gutter replacement, commercial or residential real estate, and more. These business people are trusted and highly competent members of the community. Whether facing a crisis, seeking guidance, needing a service or product for home or business, or simply addressing needed repairs, browse to www.LynchburgConnect.com; CONNECT is the one-stop resource for the very best reputable businesses in the region.
Your Complete Office Outfitters! Residential & Commercial Office Furniture
Copiers & Business Computers Sales & Service IT Services
Sofas | Desks | Bookcases Chairs | Filing Systems
50% Off of Select Showroom Inventory! Call Clyde Carter Today!
C. Ray Carter Co., Inc.
1195 Carters Stable Rd. | Forest, Va 24551 | Near JF High School www.craycarter.com | 434.660.1658 APRIL/MAY 2016
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UPFRONT
GRAND OPENING MOORE’S COUNTRY STORE OPENS NEW LOCATION
M
BY A S H L E Y B UN N E R
oore’s Country Store plans to open a sixth store location on the corner of Graves Mill Road and Creekside Lane near Home Depot this May. The ongoing project has been almost two years in the making.
SMALL BUSINESS
NEW FINANCIAL SERVICES LAUNCH
L
ynchburg has a new banking and financial-services firm in town as of early March—Community Mission Financial (CMF). “Family. Relationships. Mission. These are not words people are used to hearing about a bank,” says Co-Founder John Gobble an Albemarle County native. Gobble attended the McIntire School of Commerce at the University of Virginia before managing commercial banking operations for both SunTrust and United Bank. From its very conception, CMF is out to do things differently. For starters, they’ve designed the business to give up to 15% all profits back to the community. “The difference here is that the community is a primary stakeholder,” said Ashley Carter, another co-founder who is experienced in payroll services and purchasing cards. Co-founder Laurel Cartwright, a merchant service veteran at both Wachovia and Wells Fargo, completes the trifecta. All three founders have built long-term relationships with banking customers in the greater Virginia area over the past 15 years. That’s why, in addition to community, CMF has structured customer relationships into everything they do. From brokerage and retirement plans to payroll and group employee benefit plans, all products and services will be aggregated under one umbrella. This means they can offer a hands-on servicing team without the cost. “People are not accustomed to the level of service we’re providing them,” said Cartwright. “We can’t say it enough,” Gobble said. “We’re about community and a solid mission before anything else. Just look at how we ordered the name.” For more information on Community Mission Financial, contact acarter@communitymissionfinancial.com.
R. Edward Fielding, Inc. parking lot layout & marking
tennis courts • athletic tracks industrial safety aisles phone : (434) 845-1740 mobile : fax : (434) 846-2856 (434) 841-8676 refielding@verizon.net 16
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Founded in 1926 on U.S. 460, east of Lynchburg, Moore’s Country Store is famous for its hot chili and homemade hot dog toppings which have been around for 65 years. According to Vice President of Moore’s Country Store Jennifer Moore, the expanded facility at Graves Mill will not only serve locals and travelers alike, but will also feature 4,500 square feet of rentable retail/office space in a lower level facing Creekside Lane near Miller Motte Technical College. The new location will also feature Shell brand gasoline and diesel, as well as Moore’s brand of unique All-American classics such as hamburgers, cheeseburgers, French fries and their famous hot dogs.
MOVERS & SHAKERS SANDY SPECK—Branch Manager and Senior Mortgage Banker at Atlantic Bay Mortgage. Speck brings more than 30 years of mortgage services experience specializing in Construction to perm financing. She plans to grow the Lynchburg office by meeting the refinancing, purchasing and building needs of the community. AUTUMN R. VISSER— Named a Principal in Woods Rogers PLC firm. Visser is a member of the Business and Corporate Law group, where she concentrates on contract drafting and negotiation, general corporate governance, and mergers and acquisitions. Visser also works on anti-trust concerns, credit union compliance matters, employment benefits, government contracts, intellectual property, licensing and real estate. DEBORAH GRISHAW— Promoted to Vice President and Mortgage Loan Originator at Bank of the James. Grishaw joined Bank of the James Mortgage in April 2015. Her prior career was in the mortgage and real estate industry where she served as Vice President of Mortgage Atlantic, Inc. from 1996 to 2013 and was named President of the company in 2014. Grishaw is a 1989 graduate of Heritage High School and attended Central Virginia Community College. RENAE ADRIAN—Chief Executive Officer and Lead Business Consultant of FASTSIGNS® Lynchburg. The former Artistic Administrator for the Virginia Arts Festival, Adrian brings 20 years of diverse nonprofit arts management and special event experience to Lynchburg in launching this comprehensive visual communications business. Adrian focuses her business on providing creative branding, excellent project management and high caliber customer service.
ASHLEY CARTER— CoFounder of Community Mission Financial (CMF), a Central Virginia relat i onship - manage me nt firm that specializes in connecting clients with a spectrum of financial solutions and helping them to maintain and adapt those solutions over time. Carter honed her consultative approach to financial services in traditional banking, with focus areas in electronic payments, payroll and efficiency consulting. She helped develop CMF’s model due to her belief in the power of relationships as a value-added service. KIM KEYES—Ranked as one of the top 10 new agents for AAA Mid-Atlantic in 2015. Keyes has been in the insurance industry for 13 years and specializes in protecting clients’ personal lines of business such as personal auto, home, bike and life insurance needs. CHAD BRYAN—New agent for the Virginia Farm Bureau Insurance Company. After a 12 year career in secondary education and coaching, Bryan’s passionate drive to help people has transferred into a career where he strives to provide excellent customer service while protecting his customers’ daily risk. His product line includes farm, auto, home, business and life insurance. ABE LOPER—Owner of The White Hart Cafe, accepted an offer from Northwestern Mutual Financial Network, joining their Downtown Lynchburg office. Loper’s area of focus is long-term financial security. LAUREN A. COX—Owner of One Way Out, LLC, a real life escape room business launching in April. Participants will discover clues, solve puzzles and work as a team to escape a themed room in under 60 minutes.
PLUGGED IN
APRIL 5
APRIL 20
LUNCH & LEARN: “SPEED NETWORKING” PRESENTED BY THE BEDFORD AREA CHAMBER OF COMMERCE
ADMINISTRATIVE PROFESSIONALS LUNCH PRESENTED BY THE LYNCHBURG REGIONAL BUSINESS ALLIANCE
Bedford Welcome Center 816 Burks Hill Road, Bedford Noon to 1:30 p.m. $10 for members; $15 general admission. Information at (540) 586-9401.
APRIL 5 BUSINESS AFTER HOURS PRESENTED BY THE LYNCHBURG REGIONAL BUSINESS ALLIANCE
2677 Waterlick Road, Lynchburg 5:30 to 7 p.m. Enjoy networking and hors d’oeuvres to celebrate the new Lynchburg Life magazine. Cost is free for members; $10 general admission. Information at (434) 845-5966.
APRIL 7 RETAIL UNPLUGGED BY RETAIL MERCHANTS ASSOCIATION
The White Hart, 1208 Main Street, Lynchburg 5:30 to 7 p.m. Network after work in a relaxed atmosphere. Information at (434) 528-1732.
APRIL 9 41ST ANNUAL BOWL FOR KIDS’ SAKE
AMF Lynchburg Bowl 9 a.m. to 5 p.m. Hourly time slots; money raised benefits the Big Brothers Big Sisters of Central Virginia. Information at (434) 528-0400.
APRIL 13 LUNCH TO LEARN SBDC: SUSTAINABILITY PRACTICES FOR YOUR BUSINESSES
Central Virginia Community College 3506 Wards Road, Merritt Hall, Lynchburg Noon Learn how to increase your bottom line with green practices. Information at (434) 832-7295.
UPFRONT
Hilton Garden Inn 4025 Wards Road, Lynchburg Noon to 1:15 p.m. Gloria Witt speaking; optional workshop from 2:00 to 4:00 p.m. Cost is $35 for lunch; $99 for the workshop. RSVP at info@lynchburgregion.org.
APRIL 23 BE A HERO FORE LIFE: 4TH ANNUAL GOLF TOURNAMENT PRESENTED BY THE BLUE RIDGE PREGNANCY CENTER
London Down’s Golf Course Noon for lunch; 1:30 p.m. tee time Help support a life-affirming organization in our community! $300 for a 4-person team includes: lunch, green fees, cart, 1-mulligan each player, and more. Information at www.brpcfriends.org.
APRIL 27 COACHES ROUNDTABLE HOSTED BY RETAIL MERCHANTS ASSOCIATION
2412 Langhorne Road, Lynchburg 9 to 11:30 a.m. Join in the conversation to discuss collaboration with RMA member businesses on how to generate leads, engage customers and gain resources for business operation. Information at (434) 528-1732.
APRIL 27 LUNCH TO LEARN SBDC: THE SHARING ECONOMY AND YOUR BUSINESS
Central Virginia Community College 3506 Wards Road, Merritt Hall, Lynchburg Noon Learn about the sharing economy and how it grows your small business. Information at (434) 832-7295.
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MAY 10
“MUST HAVE” DOCS FOR A LIFE WELL-PLANNED “MONEY-SAVVY WOMEN SERIES”
LUNCH TO LEARN SBDC: VETERANPERNEURSHIP
Magnolia Foods 2476 Rivermont Ave., Lynchburg 6 p.m. Financial Advisor Amanda E. Stiff is hosting a personal finance education course. RSVP at kcook@harborfs.com or call (941) 336-7504.
MAY 3 LUNCH & LEARN: “NETWORKING IS ABOUT SALES” PRESENTED BY THE BEDFORD AREA CHAMBER OF COMMERCE
Bedford Welcome Center 816 Burks Hill Road, Bedford Noon to 1:30 p.m. $10 for members; $15 general admission. Information at (540) 586-9401.
MAY 5 RETAIL UNPLUGGED BY RETAIL MERCHANTS ASSOCIATION
The White Hart, 1208 Main Street, Lynchburg 5:30 to 7 p.m. Network after work in a relaxed atmosphere. Information at (434) 528-1732.
MAY 5 SMALL BUSINESS AWARDS LUNCHEON PRESENTED BY THE LYNCHBURG REGIONAL BUSINESS ALLIANCE
The Kirkley Hotel and Conference Center 2900 Candlers Mountain Road, Lynchburg 11:30 a.m. to 1 p.m. Information at (434) 845-5966.
Central Virginia Community College 3506 Wards Road, Merritt Hall, Lynchburg Noon Learn about the impact of local veterans on small business. Information at (434) 832-7295.
MAY 11 BUSINESS AT BREAKFAST PRESENTED BY THE SUMMIT AND THE LYNCHBURG REGIONAL BUSINESS ALLIANCE
The Summit in Wyndhurst 1400 Enterprise Drive, Lynchburg 7:30 to 9 a.m. Speed network! Bring business cards. RSVP at info@lynchburgregion.org or call (434) 845-5966.
MAY 24 CONNECTION EXPO PRESENTED BY UNION BANK & TRUST
LaHaye Student Union Center, Liberty University 1 to 6 p.m. Build and market your products for success. Information at (434) 845-5966.
MAY 26 MARTINIS & MARKETS “MONEY-SAVVY WOMEN SERIES”
Magnolia Foods 2476 Rivermont Ave., Lynchburg 6 p.m. Financial Advisor Amanda E. Stiff is hosting a personal finance education course. RSVP at kcook@harborfs.com or call (941) 336-7504.
2016 Nominations Open May 2! Visit www.LynchburgBusinessMag.com
Workforce Development Career & Technical Education Programs
State State Licensure Licensure Industry Industry Certification Certification National National Competency Competency Certification Certification Career Career Electives Electives
www.lcsedu.net www.lcsedu.net
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UPFRONT
LET’S DO LUNCH! Benjamin’s
Great Cows & Crabs BY JE NNIFE R RE DM OND
What to Expect: Inventive, flavorful food with an emphasis on fresh and local
What to Try: “Being able to be creative—that’s my passion,” says owner and chef Ben McGehee. And that’s evident in the Southern gourmet fare you’ll find on the regular menu and the daily specials. “Business people seek us out for lunch because we’re creative—we have a distinctive menu.” Consider such options as duck breast salad or cow tongue tacos—“They’re the best,” McGehee says with a wide smile. During our visit, we sampled a heaping plate of homemade beer-battered Fish and Chips, served with a side of tasty tavern fries. We also dug into the Santa Fe Grilled Chicken Salad, packed with a range of flavors from fire roasted corn and black beans to crispy tobacco onions and jalapeños. Drizzled with a house made dressing, the salad left us more than full. While it may be unusual for lunch, forgive yourself the midday indulgence and make sure to save room for one of Mama Sue’s delectable desserts. House made on a daily basis, these are so good you should at least take one (or two!) to go.
The Extras: McGehee’s catering offshoot—Cows and Crabs Catering—can serve a variety of needs from rehearsal dinners to corporate events. Businesses can also opt for delivery options or events on site for up to 50 people.
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And if you haven’t heard, Benjamin’s Sunday brunch is a community standby; just make sure you call ahead for reservations!
The Experience: If you haven’t met McGehee, chances are you will soon. Together with several family members, he’s created a warm and welcoming atmosphere that permeates Benjamin’s. “The loyalty of our local customer base is so strong,” McGehee says. “We build relationships with them as friends.” If you’re looking for some weekend fun, stop by on a Friday or Saturday evening to find out why they were voted “Best Night Spot for Live Music” in Lynchburg Living’s 2015 Best Of contest. “Our atmosphere is unique,” McGehee Location: 14900 Forest says. “It’s rustic with higher end food. It’s not Road, Forest ‘white tablecloth,’ but we’re not trying to be.” Fancy they are not, but at Benjamin’s you are RSVP: (434) 534-6077 guaranteed to find genuine service and some Open for lunch Tuesdays— heaping plates of good food. Fridays at 11 a.m. Visit them online at www.cowsandcrabs.com.
AT A GLANCE
MARKETING an incentive given for taking the time to respond on the survey (e.g., chance to win a monetary gift card, etc.). The best way to reach Millennials would be through online social media surveys. The surveys should be designed to take fewer than five minutes to complete. The average completion rate for survey takers is five close-ended questions (e.g., gender, age bracket, choice of options, etc.) per minute and two open-ended questions (e.g., essay questions, etc.) per minute (Fryrear, 2015). Though a business owner should consider conducting periodic online surveys among the enterprise’s most loyal customers, there may be better ways of determining the current perceptions of consumers than using online surveys.
HOW CAN BUSINESSES
USE MARKET RESEARCH EFFECTIVELY? BY DR . K E N DR I CK B RUN SO N
WHY DO BUSINESSES NEED MARKET RESEARCH? The simple answer to the question is one word: Change. In the Information Age, change in consumer preferences is occurring rapidly and to a greater extent than before in the marketplace. This change occurs within consumers for numerous reasons: changes in life’s demands, availability of advanced technological solutions, etc. What consumers preferred before is not always a good predictor of what they prefer now or will prefer in the future. A wise business owner needs to remain vigilant in assessing the changing needs, wants and desires of the target market for his or her enterprise in order to provide relevant solutions to those desired customers. In order to know what they need now and in the future, market research in some form is required. One group of consumers attracting much attention in the marketplace is the Millennial Generation, generally those born between the early 1980s and early 2000s. In the U.S. market, they represent over 80 million consumers and are not particularly brand loyal yet. They also are in the acquisition stage of life as they begin their careers and start new families. The Millennials have demonstrated a significantly different approach to the marketplace than previous generations, especially in the areas of social media, for identifying preferred products and services based on recommendations by friends and even strangers through product reviews. A business owner needs to know what is different about consumers’ preferences in today’s marketplace and to predict what trends or patterns are developing for the future marketplace. So where can a business owner turn to obtain timely, relevant information that can lead to sound strategic decisions? WHICH METHODS WORK BEST? The standard method used today is an online survey introduced through a link on an email or on a receipt. The fact is that most consumers—as high as 98%—still do not want to be bothered to take a survey. It has been suggested that the best methods for obtaining high response rates to surveys come from distributing the survey opportunity directly to the most loyal customers with
PRACTICAL SUGGESTIONS FOR LEARNING CONSUMER BEHAVIOR TRENDS 1) “Meet and Greet” Customers Inside of the Business Establishment Consumers often prefer the personal touch, and greeters can observe customers’ reactions during the friendly encounter. Someone from management in addition to customer service representatives should check with customers at least once during their visit to ask, in a genuine manner, if their needs are being met to their satisfaction or if there is something else that can be done to make their visit more enjoyable/productive. 2) Establish/Enhance a Loyalty Membership Group Many enterprises offer punch tickets for discounts after a number of purchases but do not know the customers behind those punch tickets. It would be better to establish a loyal customer profile in a database system with contact information and then reward those customers with preferential pricing, special company store hours, advanced notice of new arrivals, etc. through the use of a loyalty data card. In addition, sales activities of membership customers can be tracked through those data cards to study purchase behavior patterns of the enterprise’s most loyal customers. 3) Offer Rewards for Ideas to Enhance the Business Starbucks has a blog (mystarbucksidea.force.com) devoted to customers giving ideas of how to improve the quality of the products, atmosphere, operations, etc. from the company. On the website is listed the ideas that have been submitted, some usually within the past few minutes, ideas that are under review by the company and ideas that have been adopted by the company accompanied by a photo of the customer/employee who submitted the idea and praise given for the recommendation. This approach can create a partnership between the enterprise and loyal customers mutually invested in wanting the enterprise to succeed. 4) Stay Tuned to Industry Trends On a macro, secondary level of research, a business owner should be connected to periodic trade or industry publications in addition to staying current on newsworthy economic events in the general news media. The business owner should be scanning for events that might have implications for potential shift patterns in consumer behavior that could affect his or her enterprise in the future. Source: Fryrear, A. (2015, July 27). Re: Survey response rates. Retrieved from https://www.surveygizmo.com/survey-blog/survey-response-rates/ Dr. Brunson is on the faculty of the Liberty University School of Business and teaches marketing courses in the undergraduate and graduate programs. Brunson retired from GTE/Verizon in 2003 as Marketing Manager for major business accounts in the Southeast.
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LEGAL
READY TO SELL YOUR HOUSE? BUYER—AND SELLER—BEWARE!
Violating the Virginia Consumer Protection Act has Never Been Easier BY BRANDON S. OSTERBIND, ESQ.
A
s the real estate market continues to rebound from the 2008 recession, more and more homes are being sold each year. In this new recovering market, caveat emptor—or “let
the buyer beware”—has been the mantra of the real estate world and the magical words “as is” find their way into virtually every residential sales contract. For centuries, the law has embodied the principle of caveat emptor in most respects with very few exceptions.
BUYER BEWARE TRAP TURNED UPSIDE DOWN The Supreme Court of Virginia carved out one such exception in Van Deusen v. Snead where Mr. and Mrs. Van Deusen bought a house from Mr. and Mrs. Snead. After the Van Deusens bought the house, they discovered differential settlement of about 4 to 5 inches, out of the level floors and tension on the roof resulting in a lateral shift of the soffit and soffit brick molding. The Van Deusens accused the Sneads of putting new mortar in the cracks around the foundation and placing objects in front of the cracks in the basement to prevent the Van Deusens from noticing the defects and making the proper inquiries about the defect. The Van Duesens filed a lawsuit to set aside the contract for the sale of the real estate and for damages caused by fraud and misrepresentations made by the Sneads and their real estate agents. The trial court dismissed the complaint and the Van Deusens appealed.
AMANDA E. STIFF, MBA Investment Advisor
Put my three decades of diversified financial services experience to work for you
We listen. We coach. You take control.
ACCESSADVICE.NET 941 366 7504 astiff@harborfs.com 1305 Langhorne Road Lynchburg, VA 24503 Security and Advisory services offered through Harbor Financial Services, LLC Member FINRA/SIPC clearing through Raymond James & Associates, Inc. Member New York Stock Exchange/SIPC. Access Advisors, LLC is not an affiliate nor subsidiary of Harbor Financial Services, LLC
Join us at our
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Thursday, April 28 “Must Have” Docs for Life Well-planned Thursday, May 26 Martinis & Markets For reservations call 941-366-7504 or email kcook@harborfs.com.
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LEGAL
“FRAUD” AND HOW TO PROVE IT The Supreme Court explained that the “party alleging fraud must prove by clear and convincing evidence (1) a false representation, (2) of a material fact, (3) made intentionally and knowingly, (4) with the intent to mislead, (5) reliance by the party misled, and (6) resulting damage to him.” In response to the Van Deusens’ lawsuit, the Sneads invoked the doctrine of caveat emptor. While the trial judge agreed with the Sneads, the Supreme Court took a different approach. The Supreme Court explained that “a very important exception to that rule is that the seller must not say or do anything to throw the purchaser off his guard or to divert him from making the inquiries and examination which a prudent man ought to make.” The Court also said that concealing a material defect “is as much a fraud as if the existence of the fact were expressly denied, or the reverse of it expressly stated.” Reversing the trial court, the Supreme Court emphasized a common law remedy for fraud that, under the facts of that case, was available to the Van Deusens. But the problem with common law fraud is that there are difficult elements to prove and an extremely high burden of proof. In fact, the burden of proof is so high under the common law that many home buyers lose their cases as a result. VCPA CREATES A NEW REMEDY Recognizing the difficulty of proving a common law fraud claim in a consumer transaction, our General Assembly created a new remedy in the form of the Virginia Consumer Protection Act (VCPA). The VCPA applies to consumer transactions that are defined as, among other things, the sale or lease of real estate “to be used primarily for personal, family or household purposes.” The statute now lists 54 different potential violations of the Act but, most importantly, it creates civil remedy for actual damages if the seller uses any “deception, fraud, false pretense, false promise, or misrepresentation . . . .” This language is borrowed from some of the old common law terms but the VCPA is very different than common law fraud. In fact, the VCPA is replete with violations for contractual matters, the regulation of half-truths, misrepresentations or any type of deception, including but not limited to full blown fraud. Thus, even though common law fraud would be sufficient to prove a violation of the VCPA, it is not necessary. Even more important than the lessening of what one has to prove to be successful in court is how much evidence one needs to prove it.
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In every case, there are three different possible burdens of proof that may apply. We have all heard of the standard in criminal cases where the state is required to prove “guilt beyond a reasonable doubt.” In most civil cases, though, the burden of proof is a preponderance of the evidence, which simply means guilt is 51% likely, or, more likely than not. But in common law fraud, the burden of proof is clear and convincing evidence, which is somewhere in between the first two definitions. The VCPA does not specify what the burden of proof is when a person goes to court for a violation against a seller. This issue came to a head last year when I argued to the Supreme Court of Virginia in Ballagh v. Fauber Enterprises, Inc.—a case very similar in facts to Van Deusen v. Snead—that the VCPA creates a separate remedy from common law that was intended to make proving fraud easier. The Supreme Court agreed and decided that the VCPA “creates a new, statutory cause of action, distinct from and in addition to common law fraud. The elements of the two claims are different.” The Court concluded that “a plaintiff must prove a violation of the VCPA by a preponderance of the evidence rather than by clear and convincing evidence.” VIOLATING THE VCPA HAS NEVER BEEN EASIER This victory for the consumer has great meaning in the real estate market here in Virginia. Now that the VCPA is easier to prove than common law fraud, a violation in the context of the sale of a house creates much more risk from the seller’s perspective than the buyer’s perspective. If a seller lists and sells a house with a leaky basement but uses air-fresheners, shop vacs and fresh paint to cover up the latest water leak, then a buyer can easily make out a case of concealment which is the same as a misrepresentation and now a violation of the VCPA. Even if the house was sold “as is,” if that sale was induced by a concealment or misrepresentation, then there is a strong likelihood that the seller will be liable for the actual damages and legal fees incurred by the buyer in addressing and rectifying the defect(s). If that concealment or misrepresentation was willful, then the seller has to pay the buyer three times their actual damages. Violating the VCPA has never been easier and, now, proving the violation has also never been easier. Seller beware. Brandon S. Osterbind, Esq. is an attorney at Overbey, Hawkins & Wright, PLLC and practices civil litigation in the greater Lynchburg area. Find more at www.OverbeyLaw.com.
LEADER PROFILE
LEADER PROFILE JAN WALKER
Occupation: Senior Vice President, Chief Administrative Officer, Centra Hometown: Lynchburg, Va.
What does your day-to-day look like? No two days are alike, for sure! As the Chief Administrative Officer for Centra, I oversee functions that include the Human Resources Department, Legal Services, Risk Management, Safety, Security, Licensure & Accreditation, and Pastoral Care and Community Outreach. Needless to say, hourly developments throughout the organization can drive priorities of the day. That said, the majority of my time is spent listening closely to a team of highly skilled and dedicated staff with a goal of providing executive support as needed.
What led you to where you are now? Wow, that is a long and winding road! I started my career in computer technology since at that time (think late 70s/early 80s) computer science was routinely cited as one of the most promising career choices. However, upon graduation and entering the job market, I quickly determined that I was much more interested in the people using the computers than I was the computers themselves. My first job after college was in the Financial Services industry, where I eventually moved from the IT division to the Human Resources Department, serving first as an IT technical recruiter and ultimately being promoted to Vice President of Leadership Development at the corporate level. My true passion was unleashed—working with leaders to develop teams of excellence.
What were the early days in your position like? When I transitioned from Financial Services to Healthcare, I had no idea how much there would be for me to learn. Healthcare is a unique “business” to be in, in that the 24/7/365-organizational setting is one in which our services connect with people on what can be their first hours of life or their last. The work requires a commitment and compassion beyond anything I had experienced in a professional setting previously. I quickly learned that healthcare is the ultimate “team effort.”
What have you learned over the years? I think I’ve learned to have more patience in understanding other points of view. We each carry our own experiences, and these experiences provide filters through which we see the world; understanding the story behind the person matters.
Is there anything you would change in retrospect? As I look back now, I wish I had worked in healthcare sooner in my career. Nothing comes close to the incredible teamwork I now get to be a part of. I sometimes wonder if I would have pursued a more clinical tract had I been exposed to a medical setting earlier in life. Of course, I still get queasy at the sight of blood, so it’s probably best for everyone that I’m on the non-clinical side of our patient experiences! 24
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What are the most recent changes in the realm of HR? In larger organizations, HR is finally being viewed as a strategic partner, evidenced by more HR leaders being invited to the executive table. With these new alignments comes the opportunity for HR leaders to help drive talent development and employee engagement, which ultimately leads to improved quality, safety, service and growth.
How have technological developments changed the workplace and workforce development? Technology has brought both innovation and challenge to the workplace. On one hand, it has improved our ability to share information in a timelier manner, often across many miles that geographically separate us. We hold meetings and share PowerPoint [presentations] without leaving our offices; we train through webinars; we consult with patients and physicians via closed circuit secured technologies—all with a purpose of improving our efficiencies while maintaining high levels of service and quality. On the other hand, we stay so plugged into our 24/7 environment that we can easily lose sight of a healthy work-life balance.
What’s your best advice for business owners looking to improve employee relations? Ask questions and then be prepared to LISTEN. Employees value the chance to express what’s on their minds, and they will often have great ideas for improving the workplace. And, don’t always assume that the key to their happiness is about the money. Sometimes it is something as simple as making sure they have the right tools to do their jobs or simply having a coffee pot that works! Here at Centra, we hold regular “townhall meetings” with our CEO (EW Tibbs). In these sessions, staff get to hear updates of Centra’s strategies and current events, but these sessions also serve as a platform for staff to ask questions and express their views. It is a forum in which we frequently learn from each other.
LEADER PROFILE
What excites you the most about the work that you do?
What does this region need to do in order to build a skilled workforce?
That every day, in the healthcare field, I have the ability to influence and contribute to a work environment that impacts people’s lives in such a significant way. I have the privilege of working with an amazingly intelligent and talented team, and I don’t take that for granted.
Our community is incredibly fortunate to have a wide variety of both public and private institutions of learning. So, our ability to develop a skilled workforce is limited only by our commitment to a regional collaboration, working together to access the needs of our industries and allocating resources accordingly. An example of such effort is demonstrated through the Workforce Investment Board, whereby I had the opportunity in a previous role to coach employees who had been displaced by their employers. These individuals were often men and women who had been at the same job for years and were fearful of competing in a job market that felt foreign to them. By assisting them in identifying their strengths, skills and talents, I would frequently see their attitudes move from despair to hope. They learned to see their full potential and that was a very rewarding experience to share with them.
What are some challenges you’ve faced over the years? I come from the baby boomer generation, where many of us previously thought it was perfectly normal (perhaps even expected) that you would have a long and successful career with just one organization. So, when I started my own career with a local bank, and had several early successes through promotions, I felt I was well on my way to having that lifelong relationship. Of course, many us remember what happened in the banking industry during the 80s and 90s, and after a series of mergers, I was ultimately asked to move to Atlanta, Ga.—something I was not prepared to do at the time due to family needs (including aging parents). So, after nearly 20 years with an organization I loved, I made the decision to leave. The sense of displacement was profound. The story ends well, however, since it led me to Centra Health. And along the way it reminded me to face uncertainties with determination, proving that it is sometimes okay to start again with new faces who eventually become friends.
Do women in leadership face unique challenges? While it may be true that there are still fewer women traditionally in senior leadership roles, significant progress has been made. As an example, here at Centra, nearly 40% of our executive team is composed of women. With those types of advancements, the challenges today are often more on the home front than in the office. Leadership roles are highly competitive, and there are sacrifices required if you choose to pursue the path of leadership. There are times when you have to choose between the family dinner and the board meeting. There are vacations where everyone else is on the beach while you’re in the house on a conference call. Leadership is not a Monday through Friday, 9 to 5 job. So the challenge for women is to balance out the demands of their roles. For me, that meant having an amazing husband who equally shared the responsibilities of raising our two daughters. My advice: Don’t try to be superwoman. Be prepared to make sacrifices, but ensure you have a support system.
What do you appreciate about Lynchburg’s business environment? I appreciate the variety; we have small entrepreneurial businesses, large international corporations and everything in between. This variety of business provides opportunities in terms of consumerism, while also providing a diverse range of employment options supported by high quality educational institutions. This strength is not by chance, but rather the offspring of what I perceive to be an active network of professionals dedicated to lending their expertise to the development of our next generation of business leaders.
What do you envision for the Lynchburg business environment? We need to continue to work as a community, pooling our resources where possible, in order to create and sustain a high quality of life, which is determined by multiple factors including strong educational systems, quality healthcare, safe neighborhoods, cultural diversity, and perhaps at the core of these things, accessible and sustainable employment. Towards that end, our businesses will continue to depend heavily on the region’s ability to attract, develop and retain a highly skilled workforce.
What type of leader are you? I’d like to think that I’m an inspiring leader, one who brings out the best in those around me. I enjoy helping others grow professionally and personally. I’ve never felt a strong need to “get credit” for any accomplishments I’ve been part of but instead enjoy giving that credit for success to the team.
What’s the best piece of advice you’ve received? The best advice I received came early in life from my dad. He was a man who believed that hard work, combined with sincere intent to do the right thing, would vastly improve one’s likelihood of achieving amazing things. In essence, he believed whatever you do, give it your very best effort and that will typically be more than enough.
What one piece of advice would you share with others? Building upon the advice from my dad, I would add that you should strive hard to do what you enjoy; discover your talents, find the right setting in which to apply them, and then give it your best!
Any final thoughts? It goes without saying that a lot of hard work, long hours and sacrifice goes into obtaining the type of success I’ve enjoyed, but I would be remiss if I did not share my belief that any successful career is built with the support and encouragement of those with whom you share your life. My husband Jack—along with our two beautiful daughters Addison and Sydney—has played a vital role in my ability to pursue my goals, and I am forever grateful to them.
UNLIKE ANYTHING ELSE—“Healthcare is a unique ‘business’ to be in, in that the 24/7/365-organizational setting is one in which our services connect with people on what can be their first hours of life or their last. The work requires a commitment and compassion beyond anything I had experienced in a professional setting previously,” Walker says. APRIL/MAY 2016
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Good FOOD. Good FRIENDS. Good FUN.
KICKIN’ CHICKEN SANDWICH MEAL
Back in the ‘90s, two childhood friends had a simple idea—serve delicious chicken fingers, wings, sandwiches and salads in a fun atmosphere where you can be yourself. That small idea grew into something much bigger…which brings us to your neck of the woods. Whether you’re dining in, making a drivethru run after a hectic day, or catering an event, we’ll be waiting to serve you and this community. At Zaxby’s®, you’ve always got a seat at our table, because our love for flavor starts with you.
CATERING
ZAPPETIZERS® VISIT YOUR NEIGHBORHOOD ZAXBY’S: 17051 Forest Rd. • Forest (434) 616-2633 1038 Wards Ferry Rd. Lynchburg • (434) 237-2651
© 2016 Zaxby’s Franchising LLC “Zaxby’s” and “Zappetizers” are registered trademarks of Zaxby’s Franchising LLC. Each Zaxby’s restaurant is independently owned and operated under a license agreement with Zaxby’s Franchising LLC.
Indescribably GOOD.
HEALTHCARE exercises are often used. While not all pain can be eliminated completely, it can often be significantly reduced so the patient can return to his or her regular levels of functionality.
PHYSICAL THERAPY: REHAB DELIVERS INJURY PREVENTION AND RECOVERY BY AM Y DE RAM US B U S INE SS M AN AG E R , CE N T RA O UT PAT I E N T R E H AB I LI TAT I ON
G
et better faster—that’s the primary reason to seek help from a physical therapist. And who doesn’t want to feel better and return to living their life sooner rather than later? We often think an injury is going to heal on its own, but many times it doesn’t. Sometimes the body needs a jumpstart to begin healing, and that’s when physical therapy and rehabilitation can play important roles in getting you back to work or play in the shortest amount of time possible. Whether you’re experiencing post-surgical rehabilitation, a balance disorder or a sports- or work-related injury, rehabilitation and physical therapy can help restore function, improve mobility, relieve pain and prevent or limit physical disabilities. TIME IS OF THE ESSENCE A frequent comment physical therapists hear from their patients is, “I wish I had come to you sooner. I waited for months thinking this would get better and was miserable with pain and not being able to perform my daily functions.” Relieving discomfort and inconvenience though aren’t the primary reasons that therapists want to see patients sooner rather than later. Our bodies heal well when we address injuries before they lead to additional problems. Oftentimes swelling can block the body from healing, or a muscle is tight or a joint won’t move. Therapies can address and alleviate these problems and return a body to the point where it can continue to heal.
PAIN REDUCTION Pain is one of the ways the body communicates that something is amiss. But while pain is a great warning sign, it can also prevent us from performing our daily activities and responsibilities as well as we’d like or even at all, whether at work, home or play. Physical therapists have a number of options available that are clinically proven to reduce pain. Manual techniques, electrical stimulation, ultrasound and specific
WORK INJURY PROGRAMS Physical therapy and rehabilitation are also integral in helping employees avoid injury in the first place, or if an injury has already occurred, preventing the same injury from reoccurring. Job simulation, sometimes even using the exact items that an employee uses, enables work rehabilitation professionals to develop a customized treatment plan. It also allows them to see how an employee works, and from that, understand how an injury occurred so that they can make recommendations for preventing future injuries and suggest an exercise program to strengthen the employee.
EXERCISE’S ROLE IN HEALING AND PREVENTING INJURY Physical therapists oftentimes start patients on a home exercise program from the very first visit. Because patients are away from us more than they are with us, we want them to be able to work on their own and continue to progress during our clinical time together. The exercises are often focused on improving endurance, cardiovascular strength and specific job related tasks. Patients in a work hardening program often work with a physical therapist from two to eight hours a day as part of a very rigorous schedule to address flexibility, strength, function, cardiovascular issues, as well as endurance. The goal is to reduce or eliminate their pain, prevent the injury from recurring, and return them—as quickly as possible—to work and living the life they want to live.
THE EVIDENCE SPEAKS FOR ITSELF There have been numerous studies conducted over the years that examined results for injured patients who went through a physical therapy or rehabilitation program as part of their healing and compared them to patients who tried to heal themselves. Those studies consistently show that patients who went through a rehab program achieved a higher quality of functionality faster than patients who didn’t go through rehab. In addition to the documented benefits, insurance companies often cover the costs associated with physical therapy, so there is a strong case for encouraging and supporting the use of rehab.
PREVENTING INJURY IN THE WORKPLACE Physical therapy and rehab professionals also play an important role in helping employers ensure the safety of their employees through injury prevention. Whether an employee is a new hire or returning to work after an injury, a physical therapist can help employers better determine what an employee can do physically by conducting an ergonomic assessment, pre-work screening and/or job coaching. Determining an employee’s abilities and matching them to the job can ultimately reduce the likelihood of a workplace injury. Amy DeRamus, LPTA, is a business manager for Centra Outpatient Rehabilitation Services. She is a licensed Physical therapy assistant, overseeing 10 clinics and coordinating Centra’s STAR (Survivorship Training and Rehab) Program for cancer rehabilitation.
JOHNSON H E A L T H
C E N T E R
Improving Access to Health Care for All
Locations in Amherst, Bedford & Lynchburg www.jhcvirginia.org APRIL/MAY 2016
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HEALTHCARE SPOTLIGHT
PROVIDER SPOTLIGHT:
JOHNSON HEALTH CENTER BY J E R E MY A N G IO N E
A
s healthcare has become a growing concern for average Americans, Johnson Health Center (JHC)—named for Lynchburg doctor Robert Walter Johnson— provides unique opportunities for Central Virginia residents to receive care.
AT A GLANCE Founded: 1998; declared a Federally Qualified Health Center in 2003 Location: 134 Elon Road, Madison Heights, Va. Employees: Approximately 135 Signs of Growth: Patient numbers up 10 percent; staff increased by 20 percent; addition of Amelon Square Immediate Care center
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Although actually founded by Centra in 1998, it wasn’t until 2003 that JHC became a Federally Qualified Health Center. Since then it has maintained its philosophy of serving as many members of the community as possible according to Gary Campbell, who served as interim CEO before officially accepting the CEO position early last year.
Campbell insists that JHC strives to increase the accessibility of their practices to the insured, underinsured and the uninsured. “There are no barriers to care,” he said. Although JHC’s headquarters is located in Madison Heights, the facility also boasts several satellite locations across Lynchburg, Bedford and Amherst. These locations range from primary care facilities, to dental care, to a pharmacy and behavioral health clinics. Altogether there are seven locations with those varying functions. “We will go where our patients need us,” Campbell said. Additionally, JHC opened the Amelon Square Immediate Care center in January. According to Campbell, the facility is intended for JHC patients to have more open access to care in terms of scheduling. There is no need to schedule appointments until the day of care. “We saw the need for same day access,” JHC Community Outreach Coordinator Chelsey Tomlin said. Campbell notes that diabetes and obesity—especially youth obesity—are growing concerns that JHC is seeking to address by constructing both diabetes and obesity wellness groups to encourage a healthier lifestyle overall. Aside from those specific issues, JHC fosters the idea of wellness and preventative care. According to Campbell, making sure members of the community are making regular wellness visits is a goal for JHC.
HEALTHCARE SPOTLIGHT “Preventative care is a big deal for us. We’re not only focused on taking care of the sick; we’re focused on innovation around wellness programs,” Campbell said. Overall, Campbell wants the people of Central Virginia to understand just how many services JHC offers to address those wellness concerns—all under one roof. “It’s a one stop shop,” Campbell said. JHC offers a range of services to its community of patients with major departments including primary care, behavioral health, dental care, pharmacy and prenatal/OBGYN. Besides healthcare, JHC offers another unique resource—its staff. Campbell speaks highly of his employees, saying the staff fosters a family environment Currently, JHC has a work force of roughly 135 people spread across their various care centers and satellite facilities. “We really work hard to make this a great place to work. If our employees are happy, our patients will be happy,” Campbell said. JHC’s simple yet poignant core values—respect, integrity, excellence, innovation, team work—inform all of their policies and practices and are instilled in the staff, who serve in a variety of areas and each “have a passion for the mission,” Campbell said. Tomlin is one such employee who engages the community for the sake of insurance enrollment. She delegates these responsibilities to five other employees across JHC’s locations to engage different portions of the area. Tomlin helps to coordinate several workshops and events, to both educate and care for the community. One particular event is a back to school fair setup by JHC. According to Tomlin, JHC collects school supplies from the community in order to donate them to local children in need. Tomlin states that another unique trait of JHC is its nonprofit status. Although that status can be helpful in some arenas, Campbell cites the uncertainty of future funding as an ongoing concern for JHC. “We continue to monitor the changing landscape in healthcare and work to prepare for the changes in the funding stream should they occur,” Campbell said. Campbell assures that JHC has created a “very strong awareness program,” one that engages and educates the community about issues that could be easily complicated for the layman. Insurance being one such issue. JHC seeks to
alleviate any undue burdens to patients by providing free insurance counseling to help them pick a fitting plan, tailored to their needs. According to Tomlin, because JHC accepts all insurance, while also providing reduced fees for the uninsured, it is “able to help anybody in the community.” Further into 2016, JHC is spearheading an initiative to provide its patients with an “Integrative Care Model.”
According to Campbell, that entails providing patients with the ability to receive virtually any healthcare resource under one roof such as medical care providers, behavioral health providers, care managers, pharmacy, dentistry and outreach. “We have the ability to offer all those services in a primary care setting. We want to make sure that when a patient comes to JHC we can provide all avenues of care in a coordinated model.” While Campbell says the model is partially in place, JHC is working toward making the process more “coordinated and seamless.” Although JHC has work cut out for its development in 2016, Campbell still asks the question of his organization, “How do we continue to innovate?” “We are constantly on the look out to see how we can improve our services to our patient population.”
COMPANY VALUES Among the current, heated political season it is important to remember that healthcare is more than a campaign issue—it is a personal responsibility. Politics aside, Campbell states that “improving access to healthcare for all,” has not changed as a top priority for JHC. Here are their defining values. Respect: No matter your background or whether you are insured or not, JHC will do its best to make sure you receive proper care at an affordable rate, according to Campbell. Accessibility is the philosophy under which JHC was developed. Integrity: According to its website, JHC is “committed to doing the right thing every time. Our actions reflect our commitment to honesty, openness, truthfulness, accuracy and ethical behavior.”
Excellence: According to Campbell, not only is care made affordable for JHC’s patients, but also every resource is made available to them when necessary. Continued growth is something that Campbell strives for with JHC. Innovation: JHC’s Integrative Care Model allows you to receive a multitude of healthcare resources in one location thanks to the collaboration and coordination of its staff. Teamwork: According to Campbell, the staff is passionate about patient care. They are happy to provide quality care because of the family environment that JHC fosters.
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CENTRAL VIRGINIA HEALTHCARE UPDATE
TO BUILD A BETTER HEALTHCARE COMMUNITY WE USED ONE THING:
COLLABORATION.
When everyone works together, great things are possible. Our goal is to take our passion and commitment to quality healthcare and create better, more affordable health options for you. We are bringing together physicians, providers, insurers, employers, agencies and others to create a sustained focus on the triple aim – quality care, lower costs, and enhanced patient experience. Collaborative Health Partners is continuing to grow by partnering with healthcare organizations to enhance technology, implement innovative solutions and operational excellence, expand care management initiatives and continue to provide great healthcare, built on a solid primary care foundation. For patients, employers and the community, you can expect quality care and a partnership to identify and promote cost effective healthcare. As we continue to grow and expand our network, we are changing the face of healthcare in Central and Southern Virginia. CHP brings together independent physicians and specialists to streamline care, increase cost efficiencies and improve access to community resources. Because CHP has the largest primary care network in Central Virginia, we have a deeper, more patient-focused platform to align around quality and cost in a way not achievable in traditional health care models.
LIBERTY MOUNTAIN MEDICAL GROUP
Find out more at www.CollaborativeHP.com
HEALTHCARE FEATURE
SHOPPING FOR EMPLOYEE HEALTHCARE COVERAGE: Where and How to Start BY JEREM Y ANGI ONE
W
hether you are a new or seasoned business owner, you have a constant litany of concerns before you to keep operations running smoothly. Client relations, strong marketing and quality of goods and services are just a few of those concerns. However, health insurance coverage can either add tremendous value to your company, or detract from it, depending on its implementation. Learning how to navigate employee healthcare coverage is vital to any business’ financial stability. A few experts have lent their collective knowledge on the issue to make things a degree more palatable, so here are some common and essential questions addressed. WHAT’S THE VALUE OF COVERAGE? Despite any strong marketing campaign, businesses should understand that consumers should not be the only ones catered to. An organization needs to understand the needs and desires of its workforce. “Most employees consider health coverage to be their most important employee benefit. Keeping a healthy and productive workforce is vital to any organization,” said Cheryl Midkiff, Director of Communications and Marketing for Piedmont Community Health Plan (PCHP). The experts agree in regards to providing quality coverage for employees. Other than being in generally better health with greater access to care, it can easily raise employee morale, insurance representative at Beskin and Associates Rod Goldberg suggests.
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It may be helpful for an employer to see things from the employees’ perspective and so discover what kind of plans they find valuable. According to Anita Burns, controller at VistaGraphics Inc., from the employees’ point of view, a few considerations include: reasonable deductibles, copays and prescription copays. Additional employee concerns may include options for spousal or family coverage. “In an age where employees generally are not as loyal to their employer and are willing to change jobs and careers more often, employers may not be able to attract and keep good employees if they fail to provide a good benefits package,” Vice President of Scott Insurance David Barney said. WHERE DO I GET STARTED? Perhaps the first step in any complicated process is to find someone who is familiar with that given area. Both Barney and Midkiff strongly encourage consulting with an insurance professional to determine the needs unique to your organization. “The insurance carrier or a reputable and trustworthy insurance broker can walk you through the healthcare plan options available to find the best one suited for you,” Midkiff said. Additionally, Barney suggests talking with business peers to understand their approach in their organization. “The quality and cost of plans are the two most important considerations,” Burns said. While those are the greatest concerns for coverage distilled into their simplest form, Barney offers a few key questions any employer offering insurance should ask themselves: • How much can my organization afford to pay for insurance coverage? • Which carrier should I partner with (Anthem, PCHP, Cigna, Aetna, Optima, United Healthcare, etc.)? • Does the carrier provide a network that my employees can access for care? • Which plan designs fit my employees’ needs and my budget? • How much will I charge my employees for the cost of care?
HEALTHCARE FEATURE To answer most of these questions, it is important to assess the resources of your company, namely the number of employees. According to Barney and Goldberg, the number of employees can heavily impact options for coverage. “In my opinion, small businesses are most challenged by a lack of human resources capacity in managing plans and in compliance. Larger firms have more resources and personnel to manage human resources,” Barney said. Due to the implementation of the Affordable Care Act (ACA) in 2010, organizations with employees ranging in number of 50 or more must provide coverage or face a financial penalty, according to Barney.
“The challenge is in offering insurance that the organization can afford to pay for while ensuring that employees get value in a plan that meets minimum, or perceived, coverage levels,” Barney said. Coverage options become more numerous and present different caveats as the workforce increases, ranging from 51 to 100, 100 plus and 200 plus, according to Barney. “It is a balancing act to offer strong plans that employees like while maintaining a sustainable cost for the employer,” Barney said. WHEN DO I START? While Goldberg suggests the best time to begin enrollment for coverage is “immediately,” to keep employees invested, the other experts suggest the timeframe for enrollment is dependent on the organization’s needs. “There is no right or wrong answer to this question. The best start date is the one that lines up with financial and administrative consideration of the individual employer,” Barney said.
Barney and Burns both suggest that the first of January is a common and effective start date respectively for many companies. WHICH LEGAL CONSIDERATIONS SHOULD I MAKE? The ACA poses perhaps the greatest impact on healthcare and subsequent coverage policies of recent history. Different sources may argue if it was for better or worse. However, the experts explained a slew of regulations that business owners should be aware of. “The ACA has affected employer-sponsored plans in different ways. Small employers (two to 50) have seen the biggest impact in plan designs and premium increases,” Barney said. As an employer who plans to offer insurance coverage for your work force, a working knowledge of the ACA or someone on staff with such expertise is key. Because, as our experts state, employers are facing higher costs due to the ACA’s policies. “Increased premiums resulted in the need for the companies to evaluate options,” Midkiff said. Some of these options included changing the structure of plans and raising rates across the board. “In some cases, smaller employers opted to stop offering benefits entirely, thereby sending their workforce out to shop for their own individual/family coverages on the marketplace/exchanges.” Do not get bogged down with all the jargon and policies. Although the process can seem intimidating, if you follow these steps, you should find your business at a good starting point. Remember, know your employees’ needs, know your budget and talk to an expert within your company or from a consulting firm. Disclaimer: Please note that the above advice is merely introductory coverage on a complex topic and should be explored further with a trusted professional.
The right path for your employees and your company
Expect More: You have the right to expect more from your healthcare plan. Not only should it enhance the health and well-being of your employees and their families, it should also contribute to your company goals of boosting morale, building loyalty and attracting highly qualified personnel.
Call 434-947-4463 or 800-400-7247 to get the information you need.
Piedmont Community Health Plan Offers you:
2316 Atherholt Road, Lynchburg, VA 24501
• Flexible plans and broad solutions for your healthcare coverage needs.
www.PCHP.net
• The most comprehensive local network available. • Coverage of out-of-area employees and college students. • Emergency care coverage anywhere, anytime.
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Focused On Local E Commerce
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First National Bank is based in, and only focused on, Central Virginia. Romonda Davis and Tammie Griffin are local decision makers focused only on your business e-commerce solutions. Romonda Davis
E-Commerce Officer • (434) 369-3014
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FINANCIAL
Tips on
EMPLOYEE RETIREMENT PACKAGES
A
BY TO M M Y DO UKAS
s a business owner, making the decision to offer a benefits package to your employees can enrich their lives and serves to help strengthen and protect their families. Simultaneously, you can get the advantages of attracting better-qualified candidates, improved retention of valued employees and increased company morale. A robust benefit package allows you to show you care in a very tangible way and can usually be written off to help reduce the net cost to the bottom line. SETTING UP A PLAN: WHAT TO CONSIDER One of the most common benefits you might implement is a retirement savings plan. The choices range from a SIMPLE IRA up to much more complex varieties of a 401(k), which can have complementary plans in conjunction. Before making any decision, it is vital to know that you will be exposing yourself to regulation and scrutiny by both the Internal Revenue Service and the Department of Labor. Following the rules and being familiar with the array of options available can save you and your employees a great deal of time, effort and money. If you are using a plan that requires a Third Party Administrator you should ensure you have a solid provider, and have in writing how and when you can expect to receive service when you need it. You do not want to figure out what you paid for after the fact. Many times there is an impulse to drive down cost, but if it is done at the expense of service, knowledge and experience, the supposed savings will quickly evaporate into a quagmire of confusion and mistakes. You could be exposed to litigation and fines for some mistakes. I always recommend using a local Third Party Administrator, not just because I like being able to eyeball the people I rely on, but because you can often find people you respect who have used the provider and can recommend their services.
Penny Hatcher is a Third Party Administrator who works at Employee Benefit Services (EBS), which has served the Lynchburg community as a retirement plan resource for more than 30 years. Hatcher has had the opportunity to work on hundreds of plans for companies and says, “We work to understand the goals of the client, and then develop plan features to achieve those goals. We make sure the client understands the plan features and their responsibilities to the plan and the plan participants. Finally, synchronization between the client’s service providers, such as CPA, Financial Advisor, TPA, Payroll provider and internal Human Resources, will create a team approach for successful operation of the plan.”
SETTING UP A PLAN: WHO TO USE Working with an experienced Retirement Plan Advisor who specializes in opening and servicing retirement plans can unlock extra value. A great advisor can recommend a plan provider and educate you on the mix of investment options, plan features for your unique situation and additional complementary plans or even suggest a completely different approach so that you can make more informed decisions. This knowledge is not universal to all advisors and is a function of how focused and involved the advisor is in staying abreast of regulations and innovations in the qualified and non-qualified retirement market. One designation you might want to look for when you select a financial advisor to set up or take over the servicing of your plan is the Certified 401(k) Professional, commonly referred to as C(k)P® after an advisor’s name. According to The Retirement Advisor University at UCLA Anderson School of Management Executive Education, “to earn the right to use the C(k)P® designation requires more than just academic aptitude. A financial professional must have demonstrated real world application of the core competencies taught in the classroom.” In order to use the C(k)P® designation an advisor needs to have 10 retirement plans and $30 million in assets under management, and agree to abide by a code of conduct and ethics.1 Improving your company’s benefits package can have a positive effect on your profits when considered carefully. Using a local advisor and TPA can provide confidence when checking references and can provide critical communication in person when needed. Taking the time to locate and work with qualified advisors with a proven track record of performance is not just smart, it can make the difference between success and disaster. Disclaimer: The views expressed here are those of Tommy Doukas. Tommy Doukas’ views are not necessarily those of MML Investors Services LLC or its affiliates and should not be construed as investment advice.
1 The Retirement Advisor University at UCLA Anderson School of Management Executive Education website: TRAU - C(k)P Designation. (2015). Retrieved March 01, 2016, from http://www.trau-university. com/TRAUWS/CkPDesignationOverview.aspx CRN201803-200180
Thomas J. Doukas is an advisor with Financial Designs, located at 1116 Vista Park Drive, Suite A, Forest, VA. He can be reached at (434) 528-0051. He is a Registered Representative of and offers securities, investment advisory and financial planning services through MML Investors Services, LLC. Member SIPC. Supervisory Office: 222 Central Park Ave. Suite 1100, Virginia Beach, VA 23462 (757) 490-9041.
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FINANCE FEATURE
DIVERSIFYING WITH GOLD: TO BUY OR NOT TO BUY?
THE PROS AND CONS OF INVESTING IN AN AGE-OLD COMMODITY BY S UZANNE RAM S EY
T
here might be “gold in them thar hills”—and at pawn shops, jewelry stores and online retailers—but should you diversify your investments with it? Ask financial advisors, do some online research, and you’ll find it depends on a few things, and there are definitely some red flags to look out for. According to the folks at the personal finance website MoneyCrashers.com, “Historically, gold has played a major role in the economies of many nations. Although it’s no longer a primary form of currency, gold is still a solid, longterm investment and may be a valuable portfolio addition, particularly in a bear market.”
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Among the advantages of investing in gold, Money Crashers lists “easily converted to cash anywhere in the world” and “holds its value.” They call it a “good hedge against inflation,” “an especially effective way to diversify,” and a “universal commodity.” Also, it’s used to make other products, like electronics and jewelry, which “can force the price of gold higher.” That might be true, but experts say there are lots of things to consider before buying gold, among them your financial goals.
“Investors should consider what they are truly trying to accomplish with their investments and how gold might help accomplish, or not accomplish, that goal,” John Hall, a Certified Financial Planner and financial advisor at MontVue Capital Management in Lynchburg, said.
FINANCE FEATURE
Business Services Simple solutions for your small business
DO YOUR HOMEWORK—Gold is not a guaranteed investment; research your stage of life and compare your needs to a range of investment options.
A lot of times, Hall said, financial goals are long-term, stretching five, 10 or even 30 years. In his experience, he said, “there are more productive assets to put toward those goals” than investing in gold. Eileen Ambrose writes in AARP The Magazine that “many financial experts warn that gold ... is just too risky, especially for retirees who need incomeproducing investments rather than an asset that can swing wildly in value within short periods, or languish for years.” She elaborated: “In the wake of the 1970s oil crisis and years of high inflation, the price of gold hit a then-record peak of $850 an ounce in 1980. Next, after the Federal Reserve raised interest rates to quell inflation, gold swooned and barely budged for two decades. It took 28 years, until 2008, for the price of gold to creep over $850 an ounce again.
“The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. Talk then was that gold would more than double. Instead, the economy improved, stocks rebounded and gold plunged, losing 28 percent of its value in 2013. It fell again in 2014, ending the year at $1,184 an ounce.” BUSINESS CHECKING | Simple...to make your life easier Open with as little as $100 • No monthly fee • Sweep Savings Account
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Hall said the value of gold dropped 10 percent in 2015 and as of January 2016, “it has lost value over the past one-, three- and five-year periods. That’s not to say the value always goes down. Gold has risen some this year, but investors should not simply assume gold is a safe investment or a hedge against anything.” Asked by CNBC in 2009 about where gold would be in five years, investing icon Warren Buffet said, “I have no views as to where it will be, but the one thing I can tell you is it won’t do anything between now and then except look at you. “Whereas, you know, Coca-Cola will be making money, and I think Wells Fargo will be making a lot of money and ... it’s a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.”
FINANCE FEATURE During the same interview, Buffet also said gold “does not strike me as a terrific asset.” Regarding the hassle and cost of storing gold, Hall went as far as to call gold “dangerous to physically store,” an opinion echoed by Jeff Helgeson, a financial advisor with Executive Financial Services in Lynchburg. As Helgeson put it, gold is a “tangible asset” and as such “someone can kick down your door and steal it.”
Investors also have to consider how they’re going to unload gold when they’re ready to sell. Helgeson described stocks, bonds and mutual funds as “very liquid,” and said you can sell them “at the drop of a hat.” Not so much with gold. “When we have a gold bar or gold bullion or gold coins, you’ve got to figure out how to sell those,” Helgeson said, adding that the buyer also is not likely to pay spot price. “They will buy it back for a discount. For example, if gold is $1,100 an ounce, they’ll buy it back for $1,000 or something and try to sell it for $1,200. ... Very little liquidity.” Helgeson said the “average person has to be pretty careful” when it comes to buying and selling gold, because there are disreputable people looking to take advantage of investors. Asked about red flags, he said, “Typically, when things are too good to be true, they are.” Among other things, he said investors should be on the lookout for brokers with “little or no transaction fees,” and those who claim they never lose money are lying. While diversifying with gold is “always a good thing,” Helgeson said, people also shouldn’t overdo it. “Ten percent isn’t a bad thing. You want diversification. You don’t ever want to, as Mom told us, ‘put all your eggs in one basket,’ even if it’s all your eggs in one basket in precious metals.” Another pitfall is succumbing to late-night infomercials and end-of-the-world scenarios that encourage buying gold before the world economy goes south. “There are always those that attempt to profit from fear,” Hall said. “Television and radio commercials selling gold or gold-related products often fall into that category. “When there are rocky times in the stock market, those ads seem to be everywhere and this year is no exception. We help clients take a step back from the fear and put together a well-thought-out investment strategy specifically designed to meet their goals.”
What is “sale ready?” When you are not selling.
Business Continuity and Success(ion) Planning
Financial Designs THE ENSEMBLE PRACTICE GROUP
1116 Vista Park Drive, Suite A Forest, VA 24551 Phone: (434) 528-0051 Email: support@financialdesigns.com APRIL/MAY 2016
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434.239.0976 | 171-A Vista Centre Drive, Forest | www.CornerstoneCabinetsAndDesign.com
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LEADING LADY
LINDA JONES Occupation:
Principal at Dominion Seven Architects
Hometown:
Lynchburg, Va. What does your day-to-day look like? I meet with prospective clients to discuss their projects, do a little accounting work, go on job sites looking at a project under construction and do a little nonprofit work.
What led you to where you are now? Interestingly, owning an architectural firm was the last in a long line of careers. It evolved from marketing architectural services for another firm.
What were the early days of business ownership like? Certainly a lot of marketing to establish our reputation and a presence in the local community.
What is your advice for facing these unique challenges?
What did you learn in that process? You have to be looking for the next job while you are busy serving your existing clients. It is a difficult balance at times.
Be well educated on your subject matter and confident that you know more about your subject or issue than those you are working with, and you will be well prepared for whatever comes.
Is there anything you would change in retrospect? Not a thing. This “career” has been an adventure and a challenge, but one that I have thoroughly enjoyed.
What’s life like outside of work?
Nothing is more important than your reputation so doing a quality job is always a must.
I volunteer for several local nonprofit organizations—the Lynchburg City School’s Education Foundation, Lynch’s Landing, the Awareness Garden. I also love playing golf in my spare time.
What excites you about the work you do?
What do you envision for Lynchburg?
I meet so many new people in this work, and I thrive on getting to interact with people from all walks of life while at the same time treasuring the “old” friends and associates.
That we will continue to be a friendly City who cares about its own with a thriving downtown and forward-thinking leadership who makes all proud to live, work, worship and play here.
What are some challenges you’ve faced over the years?
What type of leader are you?
The economic downturn of 2009-2010 was very challenging for a small business. Everybody in our firm made sacrifices to get us through.
I have always believed that you cannot ask your employees to do something that you yourself are not willing to do. So lead by example and work as a team.
What are some ideals that you prioritize in business?
What’s the best piece of advice you’ve ever received?
First and foremost, you have to love what you do. Secondly, always do more than is expected of you for your clients. And, lastly, always do your best work and, if you make a mistake, own up to it and learn from it.
You can’t take it with you, so value people and relationships over money every time and avoid regrets.
What lessons have you learned?
Are there any unique challenges that women in business face? When I started in business there were still men who called me “honey.” I learned to “be one of the boys” to survive. Women in the workplace have come a very long way since. “Just be confident and know what you are talking about” was the motto I adopted back then.
What one piece of advice would you share with others? Do what you love and love what you do. The rest will follow. Life is short.
Any closing thoughts? I am beginning to phase myself out of the working life, and I am looking for my next challenge or opportunity. APRIL/MAY 2016
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SMALL BUSINESSES on
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SMALL
e s i R
FEATURE
BUSINESSES on the
Lest you think a small business should have fewer than
10 employees to earn the moniker, there is a wide range of
definitions. Some believe that fewer than 200 employees constitutes a “small” business while others may look at certain revenue levels as a better indicator depending on the industry. Either way, our region is a hotspot for small business development as the majority of our businesses have fewer than 100 employees. The goal of this year’s feature, our second annual installment, is to highlight a variety of businesses and to share their respective
success stories. From vehicle wraps to manufacturing and from web design to burgers, each of these businesses should renew your faith in the future of our regional business environment. W ITH RE P O RTIN G BY PE YTO N BAI LE Y, E M I LY H E DR I CK , DREW M ENARD, & JENNI F ER RED M OND PH OTO G RAPH Y BY J I M P I L E
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SMALL BUSINESSES on
TOMORROW’S RESOURCES UNLIMITED, INC.
As archers set their sights on the Olympic dream, they rely on the best training and equipment; likewise, Tomorrow’s Resources Unlimited (TRU), Inc., the Madison Heights-based designer and manufacturer of hunting and target archery release aids and sights, focuses on producing top notch products, which bow hunters and tournament archers consistently use to achieve their goals. “Whether you are an avid hunter … or you aspire to be the best tournament archer in the world, we create the highest quality, technologically superior products available in the market,” Brian Summers, a Vice President of TRU, said, noting it is the archers who use the products that are a testament to their quality. “They have the trophies, successes and wins to prove it.” TRU’s brands—T.R.U. Ball Releases, Axcel Sights and Axcel Scopes—are manufactured and assembled at S&S Machine, Inc., (a separate company of which Summers is also a VP) so products are 100 percent made in the U.S.A. The company’s products helped athletes earn a number of medals in the 2012 Olympiad including individual Gold and team Gold, Silver and Bronze; current Olympic hopefuls for this summer’s games in Rio are also using the company’s products. Summers said their focus on innovation has grown the brand, which consistently debuts new quality products on the cutting edge of design and technology. “You cannot rest on your laurels and become comfortable or stagnant,” he said. “You must listen to your customers and create products they desire. … (Our products) have drastically changed archery for the better. New ideas and concepts full of new technology
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produce more customers all over the world, making growth inevitable.” One example of this innovation has helped make the Axcel Achieve Carbon bar sight the best sight on the market; by redesigning some key elements, they have a more lightweight product with better aerodynamics, yielding better athlete endurance and control. The features go on, but the bottom line is simple—with it, archers consistently come out on top in tournaments all over the world. “The more archers win with our products, the more the word gets out that our products are more accurate, more durable, more technological and far superior to the competition,” Summers said. More information at www.TruBall.com. —D.M.
AT A GLANCE
Founded: 1995 Location: 131 Crennel Drive, Madison Heights
Employees: Close to 100 Signs of Growth: Company products routinely used in the Summer Olympics; additional production machines; employee growth nearly doubled since 2010
REID’S FINE FURNISHINGS Andrea Reid Waide, who co-owns Reid’s Fine Furnishings with her husband, Bill Waide, was once beckoned as “furniture lady” by a customer. Rather than taking offense at the nickname, Waide found it amusing and cites it as her favorite unofficial title. “The fact that he purchased a lot of furniture from us didn’t hurt either,” she adds wryly. Andrea’s sense of humor and easygoing attitude have doubtless played a significant role in the success of Reid’s Fine Furnishings, which first opened on October 1, 1995. Andrea, who had a background in selling furniture, was reassured by Bill that they could open their own business and be successful. As it turns out, Bill was right. Since they opened, Reid’s flagship store in Roanoke has expanded five times, and a second store opened in Forest in fall 2015. Andrea believes they grow due to self-awareness and unwavering commitment to quality: “We have always known who and what we are; you can’t be everything to everybody. We also have passion for good quality, good-looking furnishings. Styles have changed in 20 years, but quality and beauty are always popular and very important to us and our customers.” That said, Andrea also embraces changing trends. “You have to look forward and make changes to your inventory to remain relevant,” she says. “I see more growth in our product mixes for the future.” With the help of their new designer, Steve Parker, and a team of artists from Asheville, N. C., Andrea “plans to offer more clean-lined, modern styles for updated, minimalistic lifestyles” and “more ‘one of a kind’ art pieces, original paintings, and sculptures.”
At Reid’s Fine Furnishings, their guiding principle is dedication to the customer. Despite economic downturns such as the one in 2008 and the increasing popularity of online shopping, Andrea remains confident in her company’s ability to provide outstanding service to their customers whom they also regard as friends. “We find that discerning customers still want to see it and feel it,” she says. “We are constantly striving to introduce exciting, functional furniture to our folks.” She then adds, thoughtfully, “One of the best things about working for a small business is getting to know our many great customers. We’ve made lots of friends over the past 20 plus years.” More information at www.reidsfurnishings.com. —E.H.
AT A GLANCE
Founded: 1995 Locations: 14805 Forest Road, Suite 101, Forest; 1324 Grandin Road, Roanoke Employees: 13 Signs of Growth: New location in Forest; expansion of Roanoke store; hired new designer and team of artists; expanding product line
Exterior Tunnel Carwash & Do-It-Yourself Pet Wash! Equipped with State-of-the-Art Friction Technology The Fastest, Cleanest, Shiniest Car Wash Experience Possible Using Earth-Friendly Cleaning Solutions Do-It-Yourself Pet Wash is Designed Not Just for Ease of Use of Pet Owners, but also for the Health of their Pets’ Coats and Skin Unique Selection of Veterinary-Approved Premium, Natural and Specialty Shampoos
22087 Timberlake Road, Lynchburg, Va 24502 | 434-382-7011 www.facebook.com/refreshwash Refresh Pet Spa is dedicated to helping pets find their forever home; each time the Pet Spa is used, a portion of the proceeds goes to pay for the adoption fees of a deserving Pet. Fundraising opportunities available to local non-profit organizations for on-site car wash fundraising events.
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FEATURE
CREATIVE EDGE DESIGN
SIMPLIMATIC AUTOMATION
At one point, Creative Edge Design could not keep up with demand. After owner Bryan Shelton did a vehicle wrap on a drag race car and displayed it off Highway 29—his first experiment with wrapping vehicles in vinyl—clients began finding him. That was in 2008. Soon after he was asked to wrap a 40-foot trailer, which left him scrambling to find a shop large enough for the job. But not long Founded: 2009 after that, multiple vans and buses were on the Location: 4026 Wards Rd., Altavista road displaying Shelton’s handiwork. Then, a Employees: 3 full time, 1 part time transportation company put in an order for nine Signs of Growth: Growing client base on a buses to be wrapped, a task Shelton and his team national scale; company is debt-free and now accomplished in two weeks before garnering providing retirement and extensive healthcare another job of 33 buses for Virginia Regional plans for FT employees; one of only five Transit. Shelton did not have the necessary Virginia companies to receive 3M certification equipment for the job but quickly got a loan for a and a 3M preferred installer new printer and ink. Before long, Creative Edge Design moved to its current facility—including office space and a large workshop—right off of Highway 29. Over the years the company has continued to strengthen its impressive portfolio, continuing to wrap large quantities of buses for transit companies, as well as boats, vans, trailers, motorcycles, vending machines and more all across the country. The team travels to out-of-state locations, including North Carolina, Florida, Texas and more to wrap vehicles. Creative Edge Design receives large orders from transit companies across the world and has wrapped vehicles for Domino’s Pizza, Liberty University, Devils Backbone Brewing Company, and more, as well as large trucking companies and transit authorities. The success of Creative Edge Design is the culmination of years of hard work and taking financial risks with little return as Shelton worked in textile design and printing sign banners. In fact, the first vehicle wrap was done simply to try it. But the success speaks for itself and the client base continues to grow for Creative Edge. Shelton attributes this rising success to perseverance, creativity and a strong work ethic, as well as taking the opportunity to learn from a business mentor. Though the team is relatively small, they enjoy energy, camaraderie and an in-depth knowledge that promotes quick turnaround and customer satisfaction. One customer was so impressed with the company’s work that he drove his bass boat down from New York and dropped it off at night, sleeping in a hotel while the team wrapped the boat. “We shouldn’t have to advertise ‘top quality,’” Shelton said. “Quality should always be a given.” More information at www.CEDI.biz. —D.M.
AT A GLANCE
From its beginnings in the beverage bottling industry, concentrating on conveyors, Simplimatic Automation has risen to be among the most trusted names in material handling and automated solutions. The company specializes in material handling systems, automation equipment, robotics, engineering and integration, serving a wide range of customers across the pharmaceutical, medical device, optical, food and beverage, electronics and packaging industries. Though Simplimatic is headquartered in Forest, Va., its American-made lines and products are exported to companies across the globe. The company has representation from Florida to New Jersey, Pennsylvania to Arizona, and around the world in China and Malaysia. “Over the past 50 years, the products and services we have offered have changed to meet ever-changing industry demands,” Kevin Welsch, Simplimatic Marketing Manager, said. “But, through those changes one thing has remained—the Simplimatic name is synonymous with quality and reliability.” This means that each product created is designed to be a smart, simple manufacturing solution, Welsch said. They are created to perform in a variety of environments, meeting customers’ specific needs in a fast, efficient way. Through its growing process—which included acquiring a Pennsylvania-based “puck” (injection molded carriers for stabilizing unbalanced products during manufacturing) manufacturer in 2005 and a Virginia robotic assembly system integrator—Simplimatic consolidated several scattered warehouses into one expansive manufacturing facility. The previous operations totaled about 20,000-square-feet of space, whereas the new manufacturing area boasts 60,000 square feet, allowing for Simplimatic to take on new projects, growing its customer base and increasing both output and productivity. The state-of-the-art facility and equipment are often showcased to more than just clients—Simplimatic hosts local events and supports area programs, including the Bedford One Program and the Bedford Area Chamber of Commerce. School groups are given tours that give
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SMALL BUSINESSES on
the
Rise
FEATURE
SWIFT WEB DESIGN AND MARKETING When David Fredriksen realized that his former IT company wasn’t meeting all of its clients’ needs, he responded by starting Swift Web Design and Marketing in 2014. “We noticed very early that most . . . clients had the same questions and issues,” Fredriksen remarks. “They were asking ‘Can you build websites?’ and ‘What do you know about Instagram?’ They also weren’t supplied properly by previous marketing agencies.” Fredriksen, Swift’s Marketing Director and Lead Web Designer, regarded the venture as not only a solution but also as a way to delve back into design. “I desperately wanted to continue pursuing my passions for design, and this [was] a great opportunity,” he says. Swift, which is operated by Fredriksen, Operations Manager Rachel Fredriksen, and Creative Director and Lead Photographer Evan Puckett, has since grown substantially. “We started with a Founded: 2014 focus on small to medium business but can now provide service Locations: 1003 Rivermont to an organization of significant size and scope,” Fredriksen notes. Avenue, Lynchburg According to Fredriksen, the addition of Puckett as Creative Director Employees: 3 played a significant role in this growth and in the breadth of services Signs of Growth: Recent Swift offers: “Swift started out serving clients with only web design. hiring of Creative Director; Marketing services, especially on social media, became a point of added new services including interest to our clients, and we responded by offering social media branding, logo design, management and coaching. With the recent addition of our Creative photography and videography Director, and other strategic partnerships, Swift now offers branding and logo design, printed media, photography and videography services as well as video production.” A strategic approach to customer service has allowed Swift to offer this wide variety of services without becoming overwhelmed. “We experience a vast array of requests from clients: branding, social media, print, websites, pay-per-click ad campaigns—you name it!” Fredriksen exclaims. “We have adapted our approach to offer exactly what our audience wants combined with what we have found effective. We cannot be everything to everyone, but with the right strategic partnerships and additions to our team, we realize our client’s goals and exceed their expectations.” This approach seems to be working; Fredriksen cites the number one source of Swift’s growth as “referrals from satisfied clients,” and Swift has been nominated for the “2016 Small Business of the Year” by the Bedford Area Chamber of Commerce. Swift’s passion as a team drives their success: passion for the work they do, for satisfying the clients they serve and for their families. “Each member of our team is extremely family oriented,” Fredriksen says. “Don’t get us wrong—we work pretty much all the time, but having more control over our schedules allows for better time spent with the people we love. After all, we do this because it’s what we are passionate about, but we do it for our families ultimately.” More information at www.thatsswift.com. —E.H.
AT A GLANCE
budding engineers an inside look at the responsibilities of an engineering career. Simplimatic’s reputation has made its name one to be trusted, and industry leaders recognize that. At the IPC APEX trade show in March, Simplimatic partnered with Panasonic to debut the Panasonic Total Solutions Initiative. The initiative pairs Panasonic’s surface mount technology (SMT) assembly equipment with Simplimatic’s dual-lane, power width control (PWC) edge belt conveyor systems, as well as its shuttle gate and FIFO board buffering equipment. “It is exciting to know that our edge belt conveyor systems are perceived as the best in the industry from another leader in SMT equipment,” Welsch said. More information at www.Simplimatic.com. —D.M.
AT A GLANCE
Founded: 1965 Location: 1046 West London Park Drive, Forest Employees: 90 Signs of Growth: Addition of second shift; averaging
34% employee growth annually; single largest order in company history placed January 2016; a Tier 3 integrator of FANUC Robotics and recently begun integrating for Universal Robots (UR)
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SMALL BUSINESSES on
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FEATURE
REFRESH PET & AUTO SPA
BRÄUBURGERS
To hear Doug Roh tell it, his whole life was building to this point. Having worked in beer distribution for years, Roh had tried dozens of domestics and had an extensive beer background. But once he was introduced to craft beer, he says there was “no going back.” Coupled with years of personal research, it comes as little surprise that now Roh’s first foray into business ownership and restaurant development has taken off as well as it has. Bräuburgers officially opened fewer than two years ago, but their list of significant growth factors would indicate a much older establishment. Within months of first opening their doors in June of 2014, Roh says they were already tweaking their operations per customer input. “They weren’t easy decisions, but we weighed the risks and listened to our customers.” They expanded and remodeled the restaurant, adjusted their hours of operation and went to full service. On every occasion that I’ve stopped by, whether for dinner out or to do an interview with Roh, the eatery is buzzing with conversation, live music, a sports game on the large screens and servers doling out heaping burgers, brats or other entrees—all most likely served up with a side of Roh’s secret sauce, a creation that he and son Travis have perfected over time. Fast forward to late 2015, and Roh is in the process of even more facility additions and renovations, adding new menu items such as milkshakes, doubling their craft beer options—“we’re approaching 50 beers on tap in 2016”—and even, yes, opening a second Bräuburgers in the Richmond area. So what’s his secret? Roh claims, with a smile, it ultimately comes down to the food and its consistent quality. “We offer what we’re good at, and we won’t compromise. Focus is critical for success.” Along with his son Travis, who acts as a manager and also maintains the restaurant’s social media/promotions, Roh oversees food quality and ordering, helps develop their in-house recipes, interacts with customers and much more. Clearly keeping his finger on the pulse of their daily operations has given him prime insight, which he’s putting to good use in developing their second location, in the works for 2016. “After family and God, quality of food is important,” Roh says. “We want to make the best burger in America.” More information at www.brauburgers.com.—J.R.
AT A GLANCE Founded: 2014 Location: 14805 Forest Road, Suite 221, Forest Employees: 24 Signs of Growth: Expanded beer and food menu; Forest location expansion; opening second location in Richmond
A state-of-the-art exterior car wash combined with a convenient pet washing station forms Refresh Pet and Auto Spa, which uses innovative technology to clean any car with precision and quality. Business owner Jade White has enjoyed continual sales increases since launching last year, a trend that he attributes to his commitment to customer care. White’s venture has gone so well, in fact, that he expects to be opening a second location in 2016. Refresh Pet and Auto Spa opened in May 2015 after White had conducted market research and found that Timberlake would be an opportune place to open one. After spending two years researching car washing equipment, he made sure he delivered a top of the line experience for his customers. The system that he selected is found in Lamborghini dealerships, and the sophisticated laser system measures the size and angles of a car and will wash with fewer than 40 gallons of water per use. Even more impressive, this technologicallyadvanced car wash can be completely controlled from White’s smart phone. If a customer has a problem, they can contact him directly and within the next couple of minutes, he can fix it. Of his approach to customer service, White says, “You’re getting the owner—not an answering service.” Although White is the primary facilitator of the wash, the pet washing station was his daughter’s brainchild. The pet washing station costs only a dollar per minute with shampoo, conditioner, “de-skunking” wash and dryer all complimentary. Since the pet washing station is outdoors, White was forced to temporarily close it this winter due to freezing temperatures. “When the pet wash was open, it was growing every month,”
Helping Central Virginia Grow Since 1947 Lynchburg Plant (434) 846-6563
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Bedford Plant (540) 586-8380
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SMALL BUSINESSES on said White. “I underestimated how high the demand would be for the winter time.” Future improvements include White’s decision to enclose this area so pet owners can wash their pets year round. He expects this will be completed by the middle of 2016. Sales have been steadily climbing, and White believes his new customer loyalty program contributes to the growth. With this program, after five car washes, the sixth car wash is free. The customer return rate is growing exponentially. White’s business model is to “find a need and fill the gap,” and with his signs of growth in the past year, he has certainly found the need. “Loyalty runs deeper than dollars, I believe if you build loyalty, you can build your brand.” More information at www.facebook.com/ refreshwash. —P.B.
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RSG LANDSCAPING & LAWN CARE, INC.
Since launching 27 years ago, RSG Landscaping & Lawn Care, Inc. has experienced dynamic growth and change. What began as a residential mulch services provider in Lynchburg, quickly expanded to include seeding and grounds maintenance services. Today, RSG has offices in Concord, Roanoke, Richmond and Charleston, W. Va.; they also hope to expand to Charlottesville and Northern Virginia in the next four to eight years. “We have developed relationships with school systems, state and private universities, health care companies, apartments, HOAs and POAs, shopping centers, municipalities, office suites, and commercial and retail centers for our maintenance services,” says Kevin Foster, Director of Business Development at RSG. “We have also developed strong relationships with some of the Mid-Atlantic area’s largest General Contractors to provide our construction services, such as hardscaping, retaining walls, pavers and landscaping installations.” This dual focus on maintenance services and construction services has allowed RSG to function as a “one-stop shop” for its clients. “In essence, our goal has always been to offer value to all our clients in the form of being their go-to for all outdoor services,” Foster notes. “Over the years as we have grown, our clients have grown with us, leading to more needs that were out of our scope of services. However, carrying the spirit of partnership with our clients, led us to learn needed services, excel at them, and expand them to our other clients. A great example would be receiving our Certified Playground Inspectors designation for a large public school system that we perform grounds maintenance for.” Foster cites three specific factors that have contributed to RSG’s continual success and growth: “Sticking to our values and mission; finding the right members for our team who mirror our culture; and partnering with the right clients—clients who mirror our culture of quality and safety reliance—on both our maintenance and construction divisions.” According to Foster, the fact that RSG offers these three elements at a local level has proven to be an added boon for the company: “Overall, one key value of being a small business in the green industry is having local ownership and management to allow for swift decisions, responses and culture-driven leadership through face-to-face interactions versus via a ‘corporate headquarters situation’ that could be hours away, thus delaying proper service and timely decisions.” As it strives to bring small business customer service to more and more areas, RSG Landscaping is especially focused on creating new relationships with both potential clients and potential team members. “We will continue our growth by [among other things] developing relationships with new clients and adding new talent to our team who believe in our culture and vision,” Foster says. “Adding new members to our team and watching their respective growth in the company is extremely enjoyable and rewarding.” More information at www.rsglandscaping.com. —E.H.
AT A GLANCE
AT A GLANCE
Founded: 2015 Location: 22087 Timberlake Road, Lynchburg Employees: 1 Signs of Growth: Opening a second location within one year of opening
Founded: 1989 Locations: 1621 Crews Shop Road, Concord; additional locations in Roanoke, Richmond, and Charleston, W. Va. Employees: 160 across all locations Signs of Growth: New location in Richmond; planned expansion to Charlottesville and Northern Virginia; added maintenance and construction services
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In October of 2015, Gov. Terry McAuliffe spoke in Lynchburg at the grand opening of Seven Hills Food, a venture he was pleased to support, citing its projected $3 million investment into the City of Lynchburg. Joining him was the Secretary of Agriculture, Todd Haymore, and Lynchburg Mayor Michael Gillette. The governor’s confidence in the company was backed by a $250,000 grant from the Agriculture and Forestry Industries Development Fund. The City matched this, dollar for dollar, knowing it would create new jobs (a projection of more than 40 in the next three years) and grow the agricultural market. Just recently, the governor and secretary enjoyed a luncheon at the General Assembly that served sandwiches made from Seven Hills sirloin and was hosted in partnership with the Virginia Cattlemen’s and Dairy Associations. The support from state leadership demonstrates not only its commitment to growing Virginia agriculture, but also its excitement for Seven Hills Food’s endeavors. Seven Hills Food seeks to make Virginia-grown meat more readily accessible and competitively priced in the local marketplace. The company offers processing services for small farmers and direct marketers, while also purchasing larger quantities of beef for a wholesale product. “Our business allows for specialization within our food system,” Caleb Hersch, Seven Hills Food’s Head of Sales and Logistics, said. “Farmers can focus on farming while we can focus on processing and selling meat.” Hersch added that the new company strategically uses preexisting infrastructure whenever it can. When it was founded, the company pledged to revitalize the long defunct Dinner Bell Meat Company facility (built in the early 1900s) off Campbell Ave. Now, Seven Hills has renovated the 40,000-square-foot space with cuttingedge software and hardware, making for safer and more efficient processing. Upgrades include new processing and packaging equipment as well as a state-
Courtesy of www.sevenhillfoods.com
SEVEN HILLS FOOD
of-the-art traceability system and an energy efficient ammonia refrigeration system. Seven Hills Food boasts the largest independent abattoir in Virginia, equipped to handle cattle, hogs, sheep and goats. Less than a year in, and already seeing robust sales, the company is focusing on developing skilled employees among its mix of novice and veteran meat cutters. As the company grows, so will employment for skilled and unskilled labor. At its core, Seven Hills Food—which was started by an organic butcher (Ryan Ford)— is committed to fostering sustainability within the regional food economy by helping make local meats more readily accessible. More information at www.SevenHillsFood.com. —D.M .
AT A GLANCE Founded: 2014 Location: 1803 Holiday St., Lynchburg Employees: 14 Signs of Growth: Revitalized the largest independent slaughter facility in Virginia with state-of-the-art systems and equipment; ability to offer custom packing for smaller Virginia farmers to wholesale orders for butcher shops, grocery stores and restaurants
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Heritage Baptist Church
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Runk & Pratt Westlake
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COMMERCIAL INDUSTRIAL
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COMMERCIAL REAL ESTATE QUALIFYING A pay stub and good credit aren’t enough. Banks must qualify both the borrower and the property and will commonly refer to the 5 Cs of Credit, which consist of the following: • Capacity—How will the borrower repay? Does the property’s net income support loan payment? • Capital—Does the borrower have any skin in the game? • Collateral—How is the deal secured? • Conditions—How could market conditions impact the borrower’s ability to repay? • Character— What is the borrower’s trustworthiness to repay?
FINANCING FUNDAMENTALS
F
BY B I LLY H AN SE N
inancing is critical to the healthy functioning of the commercial real estate market. Occasionally, that long hoped for cash buyer with a suitcase full of money comes along and scoops something up, but, by and large, most commercial sales in our market are financed. While deals can fall apart for all kinds of reasons, a common reason is due to a buyer being unable to obtain suitable financing. While established buyers know what to expect on the path from contract execution, to the bank, and then to the closing table, many sales are to first-time commercial buyers. Let’s cover some basics and best practices for those new to the commercial real estate loan process.
For owner-occupied properties, the underwriting emphasis will be more on the strength of the borrower and their track record while the property’s past and projected performance will be the focus for investments. TERMS Generally, commercial loans have lower loan-to-value ratios compared with residential and very few little to no money down options. Interest rates cover a wide range but are higher on average. Instead of 15 to 30 years fixed, loan terms are most likely to be 3-, 5-, or 10-year with adjustable rates, balloon payments, and 15 to 25 year amortization. For small companies and LLCs created to buy real estate, banks will most likely want a recourse loan with a personal guarantee. 1) Time From the first lender meeting to closing, a residential mortgage could potentially be finalized in fewer than 30 days, while the commercial process is likely to be 45 to 90 days. The appraisal alone takes three to six weeks. Plan accordingly and give yourself enough time. 2) Appraisal Banks almost always require an appraisal, which costs more and takes longer to complete than residential appraisals. These draw the most attention when they come in lower than the purchase price. Even then, the deal isn’t automatically dead, but the bank must decide if it still wants to offer financing and on what terms. Many times, if the bank still wants to close the deal, they will lend on the lower appraised value. At that point, the borrower has a few options: Produce the cash necessary to bridge the gap between the revised loan value and the purchase price. Offer additional collateral, such as another commercial property or personal residence. Renegotiate the purchase price with the seller, or, ask the seller to finance the gap. Consider second mortgages and other alternative financing options carefully. Finally, the option always exists to walk away from the deal.
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After
COMMERCIAL REAL ESTATE IMPROVING YOUR DEAL’S CHANCES OF SUCCESS 1) Go Meet A Few Bankers Make the rounds early; don’t put a deal under contract and then go have your first meeting with a bank. Test the waters to see what kind of response your proposal receives. Most start where they do their primary banking, but be open to meeting with several bankers to find the right fit on a personal level and institutional level. Find a bank that provides clear and prompt feedback to loan requests. While loan programs and terms can and do vary between banks, there isn’t any one bank that beats everybody else all the time on all deal types. 2) Understand That Each Bank Has A Different Lending “Sweet Spot” Based on the bank’s size (community, regional, or big bank), credit policy, risk tolerance, leadership, people, and past lending history, each bank has certain deal types that they gravitate to and that they do well. While there is certainly significant overlap across institutions, preferences for and aversions to different deals emerge and can vary based on property type (retail, industrial, office, apartment), use (owner-occupied vs. investment), borrower profile (company size, corporate vs. local) and deal size. A good loan officer will tell you early on whether or not a deal is in their wheelhouse as they don’t want to waste your time or theirs on something that ultimately won’t work. 3) Don’t Assume That One “No” Means The Deal Can’t Be Financed If you hear “No” five or more times, that might be a sign to take a step back and reassess, but one “No” says very little about the viability of a deal. 4) Tell Your Story Well Clearly communicate who you are, what you want to do, and why. Prepare a packet with complete information about your ownership group
(relevant experience, tax returns, financial statements) and all relevant property details (plats, plans, proformas). As a loan officer considers a prospective loan, they want to get comfortable with the fundamentals of the deal in their own mind while also anticipating issues that could be flagged by underwriting or brought up during loan committee. The deal narrative and supporting documentation helps everyone get up to speed quickly and reduces the number of question marks surrounding the deal. Telling your story well is important in many different contexts, but especially so when you are asking to be entrusted with large sums of money. The benefit of being prepared is that you can proceed quickly and confidently when you are ready to move on a property. Buyers without a handle on their financing sources are forced to make weak offers that are bloated with long financing contingency periods. All else being equal, a cash offer beats a contingent offer and short contingencies beat long contingencies. Your preparation will impact what type of offer you can make and, ultimately, might make the difference between your offer being accepted or rejected. While the high net-worth individual investor with a proven track record and the well-established local company are sought after by every bank in town, and may be able to receive several competing term sheets on their latest deal just by picking up the phone, the rest of us can improve our chances of success by doing our homework, seeking out the best banking partner and being prepared when our turn arises. Billy Hansen, MAI serves the Lynchburg area as the principal commercial real estate appraiser of Hansen Realty Advisors, LLC and as an agent with Cushman & Wakefield | Thalhimer. To discuss more, email him at hansenrealtyadvisors@gmail.com.
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“If Karl can’t sell your property no one can!! He is very professional, smart and well prepared!” —Brooks “Karl is the best realtor we will ever have. He cares, he’s informative and exceptional. He gets the job done and goes above and beyond to make sure your transition is smooth. I’ll recommend him to everyone!” —Ruck and Gibson “My wife and I had an amazing experience with Karl in purchasing our first home. We were out of state buyers. Karl made us feel like we could trust him as our own family member to get important things done for us miles away.” —Nick and Kristy Castro “Karl handled the sale of our home in a professional and friendly manner. He gained our trust and respect by delivering exactly what he said in our first meeting.” —David and Lea Eppling “Karl was knowledgeable about how to market our property with a lot of acres and got our property sold in a timely manner.” —Jeff and Tamara Walston “A friend referred Karl to me and it was the best decision I could have made. He was diligent, optimistic and determined to get my house sold. He exceeded my expectations.” —Gail Bateman
K
Team
Karl Miller D a l t o n & C o m p a n y, I n c .
With over 200 homes sold in 2015, the Karl Miller Team thanks you for your business and referrals to your friends moving this year. Specializing in Residential Real Estate, our professional, enthusiastic and production-oriented team wishes you and your business The Best this new year!
(434) 239-2394 | www.karlmillerteam.com Mark A Dalton & Co Inc.
REAL ESTATE
COVERING ALL YOUR BASES: TIPS ON STRUCTURING A 4-PART FINANCING CONTINGENCY
O
BY DAN VO LLM E R
kay, so if you’re like most people, you probably haven’t spent much time reading over real estate contracts lately. Contracts which, over the past 20 years, have grown from two pages to eight, not to mention supporting addenda and disclosures. Simply making an offer on a property now consists of 25 or more pages of documents and a dozen signatures. As a prospective homebuyer, unless you purchase a home every couple of months, you are largely dependent on your buyer agent to walk and talk you through this pile of paperwork. One important aspect of any purchase contract is the financing contingency. Now, if you are fortunate enough to be able to pay cash for your next home, I won’t be offended in the least if you skip the rest of this article and go back to counting your vast fortune (I’m just kidding… unless that’s really what you do). But for the rest of us, structuring this contingency to properly protect you is paramount.
THE 4 ELEMENTS OF A FINANCING CONTINGENCY The financing contingency contains several key components the buyer has the option to specify: the type of loan the buyers intend to obtain; the down payment the buyers intend to make; the maximum interest rate the buyers would accept; the amortization of the loan and the discount/origination points required to obtain that loan. I often tell buyers they are “drawing a box” and requiring all aspects of the loan they obtain to fit within that box. All the criteria must be met (or exceeded) in order for the contingency to be satisfied.
1) The Type of Loan So, first off, what type of loan? Many first time homebuyers will use FHA financing; purchasers with limited down payment funds often choose USDA (or VA
if they qualify) loans; purchasers with more money for a down payment may prefer Conventional financing. Step one is choosing the type of financing most suited to the buyers and their situation. For this reason, it is highly recommended that a buyer first talk with a lender to work through the many options available. Once a lender reviews the buyer’s debt, income, savings and credit, that lender can then direct the buyer to the best loan products for their given scenario.
2) The Amount Financed Okay, so after choosing the loan, the next decision is how much of the purchase price will be financed by that loan. Put another way, how much of a down payment will the buyers make? Let’s say the Roberts family is buying a home for $200,000, and they have $10,000 to use as a down payment. That would equal a 5% down payment, leaving 95% of the purchase price to be financed (or secured by a loan).
3) The Interest Rate The next decision for a purchaser is the maximum interest rate they would accept. Again, very important for the buyers to have some idea of the rate they might receive from a lender. The thinking here is that a buyer does not want to be required to make good on their purchase if the only rate they can qualify for is exorbitant or unaffordable. Using the Roberts as an example again—let’s say that between the time they make their offer, and the time they sit down to actually apply for a loan, something catastrophic happens either to them personally or on a national/ global scale. The end result is that their interest rate goes from, say 4%, up to 5% or higher. This increase could potentially make the expense of owning this new home a financial burden too great to bear. Most buyers look at the interest rate given to them by their lender and think, “Well, if it goes up 1/4 or even 1/2 of a point, that’s not going to kill me; but if it were to increase by more than that, I’m not sure I’d want to buy this house.” Every buyer and every scenario is different; the main point is to protect yourself by indicating some interest rate as the maximum acceptable to the buyers.
4) The Life of the Loan And, lastly, it’s wise to indicate if the buyers intend to apply for 30-year or 15-year loan and to specify how many (if any) points the buyer is willing to pay to qualify. Taken all together, these four decisions create the “box” in which the buyer’s loan must fit. And, again, once determined, the buyer is free to accept financing that exceeds their criteria, meaning they can get a better rate, make more of a down payment or choose a shorter term of amortization. Hopefully this helps provide a basic understanding of the aspects included in a financing contingency and prepares you for making some of those determinations before you sit down to write up your next offer. Good luck! Dan Vollmer is an Associate Broker at Re/Max 1st Olympic and member of the Virginia Association of REALTORS Board of Directors. Find him at www.danvollmer.com.
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BUSINESS PROFILE
“OUR PEOPLE, OUR CUSTOMERS, OUR COMMUNITIES:” MOORE’S ELECTRICAL AND MECHANICAL BUILDS SUCCESS OVER THE DECADES
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BY M EGAN L . HOUS E
ith a vision of building a company that employees would be proud of, providing customers the best possible service and giving back to the community, Dale Moore founded Moore’s Electrical and Mechanical in 1985. The thriving company has experienced growth almost every year since they opened, and currently has 570 full-time employees. “One of the biggest things that sets us apart is the focus that we put each day on our vision,” said Andy Moore, president and CEO. “Our vision is not just words or propaganda or marketing material.” Moore, the son of the company’s founder, has worked for the company for 18 years. Moore’s offers a variety of services, including commercial electrical and mechanical services plus industrial electrical and mechanical services. Their commercial service division also offers electrical and mechanical services. Additionally, they have an automation service division which deals with building control. “When my dad started the company in 1985, he had a vision of creating a great place to work, for people to love their job, to take care of our customers, and to give back to the community,” Moore said. “Here we are 30 years later; each day we really work hard at fulfilling that vision.” To celebrate their 30th year, the company hosted a special luncheon and also continued the celebration by inviting all their employees, their spouses and children to Kings Dominion. Additionally, they revamped the company’s image, creating a new logo that has special meaning to the company.
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“As we moved into 2015 to celebrate our 30th year, we felt like it was time to rebrand, or update our logo,” Moore said. “One thing that we really wanted to add was a symbol.” Their new logo is not just a logo, but it is a symbol that holds significance to the company because it represents what the company stands for.
“Our symbol actually has meaning,” Moore said. “If you look at it closely enough, the background has three pillars, and the three pillars stand for our vision … our people, our customers, and our community.” At Moore’s, employees are referred to as “partners” and are held in the highest esteem. The company strives to create a close-knit community among their partners. Each month they host a luncheon and invite their employeepartners to attend. Although some have argued that customers should always be number one, at Moore’s, the employees are the priority, believing that valued employees lead to a more successful business, which in turn, benefits customers. “If we create a great place to work, if we take good care of our people, then they’re going to give that customer great service,” Moore said. “Our folks here feel like they’re valued, they’re cared for, they’re not just a number…that sets us apart.” What also sets Moore’s apart is their focus on being a “servant leadership company.” Since 2002, servant leadership has been implemented and began changing the culture of the company’s leadership. “A servant leader is an egoless leader who just treats everyone with respect no matter what your position and title,” Moore said. “No matter who it is, we’re all equal; we’re all treated with respect; we just have different job titles and different responsibilities.” According to their website, the traits of a servant leader include being “trustworthy, egoless, unselfish, caring for others, listening to people, valuing opinions, having faith in people, holding people accountable, desiring to see people grow and mentoring others.”
BUSINESS PROFILE
“We’ve been very blessed, and we’ve grown a lot,” Moore said. “Our growth revenue in 30 years went from zero to an 80 million dollar plus gross revenue company, but for us it’s not about being the biggest. We always say we want to be the best, and we try to run a very professional organization, and if the growth comes organically, so be it. We just rely on the Lord’s wisdom every day to put us in the right direction.” The third aspect of their vision, serving the community, is of the utmost importance to Moore’s. In 1999, Moore’s leadership began contributing 10 percent of their annual profit to Christian organizations. Now, Moore’s Charitable Foundation is an official nonprofit and still donates 10 percent of annual income, seeking to assist youth organizations through funding. “The 10 percent number is based on the biblical principle of tithing,” Moore said. “Over the years this money has gone to more schools, youth and youth ministries than I can remember.” Some of the places they have donated to include Faith Christian Academy, Altavista High School Microsoft TEALS Program, individual international missions trips and various youth groups. “In the future we hope to be able to help with scholarships for vocational or trade school training and higher education,” Moore said. To receive funding, there is an application process that can be started online. “We also donate labor, and we are currently providing donated labor to help relief clean-up for victims in Appomattox who received tornado damage,” Moore said. “These are just ways we have an opportunity to fulfill the third part of our vision, which is our community.” Currently, Moore’s has three locations in Altavista plus locations in Charlottesville, Richmond, Chesapeake and Manassas. Their service area includes the Commonwealth of Virginia, but their commercial service division also services North Carolina. Locally, they do a significant amount of work for Liberty University and Construction Management Associates (CMA), Inc. They regularly work with Jamerson Lewis Construction, Glass and Associates, Inc. and Blair Construction. “This was my dad’s vision 30 years ago, and we’ve been very blessed to go from one guy…to where we’re at today,” Moore said. “Our people are extraordinary. Those folks everyday are what make everything else possible. We’ve got great people, and they do a tremendous job.”
AT A GLANCE Founded: 1985 Location: 101 Edgewood Avenue, Altavista; additional locations in Charlottesville, Richmond, Chesapeake and Manassas Employees: 570
VALUES-BASED—Since its founding more than 30 years ago, Moore’s has focused on core values to drive company success. With Andy Moore now at the helm (top right), his father’s dream continues to grow.
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MADE IN LYNCHBURG
HIGHLIGHTING LOCAL PRODUCTS AND MANUFACTURING THROUGHOUT THE REGION 2000 PARTNERSHIP
Simplimatic Automation Keep it Smart. Keep it Simple. Simplimatic Automation in Forest, Va., designs, manufactures and integrates material handling systems and custom automation for companies worldwide. Simplimatic utilizes local vendors, machine shops and freight carriers to daily help the local economy. This commitment to high-quality U.S.-based manufacturing has made Simplimatic a trusted name in the industries they serve. Read more about the company on page 44.
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PICTURED: Simplimatic’s Simpli-FlexŽ conveyor serves a variety of industries utilizing modular components, extruded aluminum and flexible chain to provide maximum system configurability and scalability.
(434) 385-9181 | sales@simplimatic.com www.simplimatic.com
Do you know of a product manufactured locally? Let us know at feedback@lynchburgmag.com.
HUMAN RESOURCES WHAT DOES IT MEAN? For-profit organizations would immediately experience the impact to strategic goals as they would need to address organizational objectives impacted by the changes to their financial resources. Although all organizations will feel the financial impact of this change, small businesses and organizations that rely primarily on exempt classified employees falling in this affected pay range will find it most difficult to easily respond to the resulting financial changes. For-profit organizations may need to identify ways to increase revenue to attempt to offset these changes without negatively impacting their current employees’ job security.
THE FLSA:
Impact of Proposed Overtime Changes
A
BY CO LLE E N M CLAUG H LI N
t President Obama’s direction via a Presidential Memorandum to modernize and streamline the Fair Labor Standards Act’s (FLSA) overtime regulations, the Department of Labor has proposed changes to the current classification of employees as related to exempt and non-exempt employees. The three changes include the following: 1) increasing the threshold for exempt employees, 2) instituting an annual, automatic increase based on the 40th percentile or by the Consumer Price Index for Urban Consumers and 3) changing the duties test for exempt level employees. Currently, the requirement is that the exempt employee must earn at least $23,660 annually. The proposed change states that the new salary threshold should be $50,440—an increase of 113%. In other words, all exempt level employees who currently earn between $23,660 and $50,440 will then be classified as non-exempt. WHO IS IMPACTED? If the proposal is passed into law, all federal requirements pertaining to non-exempt employees will apply to each of the workers who previously were able to work overtime without receiving any additional compensation. The proposed change would impact these employees by requiring the employer to now pay overtime to the newly classified non-exempt employee who works more than 40 hours per work week. As the law currently requires overtime to be not less than time-and-a-half of the individual’s hourly wage, this will be quite costly to the organization.
WHAT ARE THE SPECIAL CONCERNS? According to the United States Chamber of Commerce, there are considerable concerns for nonprofit organizations as well as state and local governments. The U.S. Chamber describes the issue as one in which previous employees who may have worked extra-long or odd hours will no longer be able to do so unless the organization can afford to pay them the extra for overtime. As stated by the Chamber, “Imagine calling a hotline for suicide or domestic abuse late at night and hearing a message like, ‘Thank you for calling our hotline, unfortunately no one can take your call right now because we cannot afford to pay overtime to our staff. Please leave a message at the tone.’” Clearly, the above situation is unacceptable. Yet, how will these organizations, whose missions include providing food, clothing, shelter and support services to our communities, be able to function if their staffs are unable to maintain their current levels of work commitments? Nonprofit organizations primarily rely on the philanthropic giving of others as well as fundraising to accomplish their objectives, whereas the local and state governments rely on tax revenue. In the case of the latter, where increased revenue comes at the price of cutting services or increasing taxes, therein lies a significant issue. WHERE DOES THE PROPOSAL STAND NOW? Currently, the FLSA proposed changes are expected to be addressed either late spring or early fall of 2016. With the United States presidential election process underway, this has the potential to become a significant election issue. If passed into legislation, it is possible organizations may have little time to prepare for the changes. Therefore, it is critical that business leaders be proactive in preparing for the potential of this change to not only reach their organizations’ business goals but to also effectively care for their most valuable assets…their human resources.
QUESTIONS TO BEGIN ASKING • Will your organization need to reduce or eliminate projects? • Will your company have to cancel goals to develop and implement new services or products? • Will jobs need to be reduced or eliminated? • How will your organization continue to achieve its mission if the individuals who would normally be working longer hours and over weekends now either have to be paid overtime or not complete those duties? • How will your organization (whether it is a for-profit, nonprofit or state or local government) respond to this proposed change if enacted?
Colleen is an HR professional with 15 years of experience; she currently serves as a professor of business and as an HR consultant.
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PA I D A D V E RT I S E M E N T
W
elcome to the new Alliance! On January 1, two strong, thriving, business-focused organizations combined to form the Lynchburg Regional Business Alliance. The Alliance’s mission is to lead regional economic development through, generating jobs and investment, promoting our brand and image globally, enhancing the business climate, and cultivating talent. Regional economic competiveness is the underlying theme to unlock our region’s highest potential for a bright future. Mobilizing our business and economic development leadership to collaborate to retain and create jobs, enhance our tax base, build a regional brand, and improve the quality of life in all of our region’s communities is what drives us. The Alliance will continue to operate with a membership and investor model through the following focus areas: GeneratinG Jobs and investment The Alliance promotes regional cooperation and enhanced economic development efforts. We encourage sharing resources. We show prospective companies why their next expansion should be in our regional footprint. We will accomplish this with: • New site selector website providing comprehensive listing of regional sites and services • Site selector missions, familiarization tours and trade shows to promote our Region • Infrastructure improvements PromotinG our brand and imaGe Globally The Alliance’s core message is to promote the Region and its assets globally. This is through: • National and international marketing missions (industry recruitment) • Familiarization tours highlighting assets in our Region • Publications distribution promoting our Region • Regional video series and a viral marketing plan enhancinG the business climate The Alliance works to help network area businesses to the resources they need to grow and expand. We facilitate connections of resources, people, and prospective talent, by offering various programs and services needed to help impact businesses. We also engage with local, regional, state and national organizations where the Region’s voice can be collectively amplified. cultivatinG talent The Alliance’s workforce initiative is ensuring we are armed with the skilled labor to meet the demands of business in our Region. Our role is to connect today’s workplace with tomorrow’s workforce with a talent development strategy that includes: • Talent recruitment • Education and Training (workshops, Leadership Lynchburg, Young Entrepreneurs Academy) • STEM Education, Robotics, Future Focus Foundation, and STEM Network
Christine Kennedy, COO
Megan Lucas, CEO
leadershiP lynchburG The Alliance is now accepting applications for Leadership Lynchburg. This nine month program is designed for the aspiring or emerging leader, manager or first time supervisors in the Lynchburg Region that immerses participants in the study and practical application of community leadership. Through monthly sessions, participants learn from top leaders in our region, study and work together to solve pressing community issues, all while developing their personal leadership skills. Applications are being accepted through June 1 and all the details can be found at www.leadershiplynchburg.com small business awards In May, during Small Business Week, we will recognize many of our small business members at our 2016 Small Business Awards. Over 50% of our membership is small businesses. They are not only the heart of our Alliance, they are the heart of our regional and national economy. We hope you will come and celebrate with us.
upcoming opportunities to engage april 3, 1:30 p.m. – 5 p.m. Jr. First LEGO League april 5, 5:30 – 7 p.m. Business After Hours and Lynchburg Life Magazine Unveiling
april 20, 11:30 a.m. – 1 p.m. and 2 – 4 p.m. Administrative Professionals’ Luncheon/Workshop may 5, 11:30 - 1 p.m. Small Business Awards Luncheon
april 6, 11:30 a.m. – 1 p.m. Lynchburg Area Women in Technology (LAWIT) Luncheon
may 11, 7:30 – 9 a.m. Business at Breakfast Speed Networking
april 12, 5:30 p.m. China Trip Information Session
may 24, 1 - 6 p.m. Connection Expo
april 19, 6 p.m. Alliance Night at LU Baseball
June 1, 1 - 7 p.m Lynchburg Regional Business Alliance /CVIC Golf Tournament
contact info: To learn about the benefits of membership in the Lynchburg Regional Business Alliance contact Mike Lewis at 434.515.3365 or MLewis@LynchburgRegion.org
2015 Memorial Avenue, Lynchburg, VA 24501 Phone: 434.845.5966 | Fax: 434.522.9592 | Info@LynchburgRegion.org www.LynchburgRegion.org | www.YesLynchburgRegion.org
434-200-9567