Business Monthly - January 2012

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JANUARY 2012

CEDAR VALLEY BUSINESS MONTHLY

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Skin in the game Employee ownership plans have a lot of advantages, experts say

By JIM OFFNER jim.offner@wcfcourier.com

WATERLOO — Retirement is becoming a major concern for baby boomers approaching retirement age having socked away relatively little money.

Data show many workers nearing retirement age have saved nowhere near the amount they need. Fifty-six percent of workers say they have less than $25,000 in savings, according to a survey by the Employee Benefit Research Institute.

Financial advisers are seeing an increasing number of workers and new retirees with no savings and no plan to dig out of debt.

But some area firms are helping their employees by giving them a financial stake in the company through employee share ownership plans, or ESOPs. ESOPs aren’t a comprehensive strategy, but they can help workers save for retirement, financial advisers say.

“It can be a good way to accumulate dollars, but it’s one piece of the mix; it’s not your end-all,” said Casey McLaughlin, a broker with McLaughlin Investment Services in Waterloo. “It’s a nice out-of-sight-out-of-mind routine, and the discipline is easy.

It’s a way to accumulate equity in the company. As long as the company is well-managed and is going in the right direction, it’s always a good thing.”

RICK CHASE / Courier Staff Photographer

Tyler Krout, an employee at Hy-Vee’s new store on Ansborough Avenue in Waterloo, puts price tags on dairy items. West Des Moines-based Hy-Vee has been an employee-owned company since its founding in 1938.

One notable example is the program at the VGM Group, a Waterloo-based company founded in 1986 as a national buying group for independent home medical equipment providers. It has since grown to more than 20 business units, mostly related to the HME industry.

VGM introduced its ESOP in

CONTENTS

www.cvbusinessmonthly.com

Volume 6 ● No. 2

Cedar Valley Business Monthly is a free publication direct-mailed to more than 6,500 area businesses.

Contact us at (319) 291-1527 or P.O. Box 540, Waterloo, IA 50704.

2005,and three years later became 100 percent employee-owned.

“Being an employee-owner means how effective and efficient we are usually means how well off we’ll be in retirement,” said Emily Harken, who works in talent development and serves on the ESOP Communication Committee at VGM. “We try to

understand enough about this in what we do and value in who company, of all businesses of we become,” she said.

VGM, so we can refer different VGM also offers a 401(k) retireinquiries to different areas.” ment program.

But the ESOP is a differenceOwnership stake a key maker, said Mike Mallaro, VGM’s Having an ownership stake in chief financial officer. the company encourages good decision-making, Harken said.

“I think ownership puts pride See ESOP, page 4

STAFF DIRECTORY

ADVERTISING Wartburg College Tara Sieble Wartburg, Waverly, Waverly Chamber establish incubator project ............. page 7 tara.sieble@wcfcourier.com (319) 291-1403 University of Northern Iowa Jackie Nowparvar Waste Reduction Center offers training for jackie.nowparvar@wcfcourier.com environmental managers ................ page 9 (319) 291-1527 Sheila Kerns Community Foundation Corporate citizens: Business leaders know sheila.kerns@wcfcourier.com giving back is good business ....... page 15 (319) 291-1448

SPONSORS EDITORIAL CONTENT Nancy Raffensperger Newhoff nancy.newhoff@wcfcourier.com (319) 291-1445 Jim Offner jim.offner@wcfcourier.com (319) 291-1598

ON THE COVER Ellen Harken of VGM Group.

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CEDAR VALLEY BUSINESS MONTHLY

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JANUARY 2012

Financial wisdom in this issue can provide a guide through mystifying times “Time is money,” goes the old adage.

It’s also a good working definition of finance.

The world spins on an ability to borrow, invest and even donate. Timing and interest rates often determine profits for Jim Offner companies, even is Courier business editor. retirement benContact him at efits for workers. jim.offner@ This issue of wcfcourier.com. the Cedar Valley Business Monthly is about finance. a topic on the

mind of entrepreneurs and their employees in a persistently sluggish economy.

There’s plenty of insight available in the following pages. Contributors include some of the most savvy business people in the Cedar Valley.

Finance is about more than money. If cash cures all debts, time is the salve for debt crises.

Elementary economics teaches us that our financial world operates in cycles. We’re currently in a down cycle, and have been for several years. Reflected in that is corporate downsizing that has dominated the headlines.

Most layoffs that have attracted

attention have not been caused by recessions but because companies in shrinking industries have downsized. Perhaps the most obvious example is the automotive sector, with Ford, General Motors and Chrysler all having to basically reinvent themselves.

So are many banks, which were part of the consolidation as the financial industry shrunk after the 2007 credit crisis.

Another notable case is the U.S. Postal Service, which has cut 90,000 people in three layoffs over the past two decades. It has said it needs to cut another 28,000 people soon because the service loses billions of dollars

each year. Technology and competition have besieged the postal system. It is easy to make the case that USPS layoffs will continue for several years.

On the other hand, the Cedar Valley has continued to enjoy a resilience compared with national economic calamity. Unemployment has hovered around 5 percent compared with a national rate of around 9 percent. Deere & Co. is coming off a record year of profits. Grain prices are riding high. Area banks say they are ready and able to lend.

We seem to be living in a time of economic paradox. The national headlines report calamity, and

the local reports are more positive. What does one make of all of this?

Well, that’s one of the assets of this issue of the Cedar Valley Business Monthly. The pages that follow contain wisdom on an array of financial issues.

Tough times always prove temporary. The advice you’ll find in this Business Monthly may help you find ways to shorten them.

Wisdom is all over these pages.

Listen to the experts who share their expertise. Their words may help spark an idea, a path to greater success or even reinforce your own notion you may be headed in the right direction.

ESOP From page 3

obviously it’s a retirement program for employees and because it’s invested in bank stock the participants get the growth percentage, which even in bad times outstrips the market,” he said.

“Even in the worst year we’ve had, it has been 7 percent.”

Participants hold shares in that 21 percent, with the greater holdings going to long-tenured, higher-salaried employees, Tscherter said.

“From a management standpoint, you can utilize that to motivate employees to make decisions like every dollar is their own,” he said. “You have a vested interest, and that should result in better decision-making throughout the organization.”

230-store chain.

A profit-sharing plan, based on purchase of company stock, emerged in 1960 and has held to this day, Comer said.

“We really consider employee ownership has been a key to our success,” she said. “It has been a tremendous difference in employee engagement, their

buy-in to the company. Employees are empowered to make decisions to feel like what they do matters to the company’s overall growth and well-being.”

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You can take it with you Employees are vested after six years, after which they can take their earnings with them, Tscherter added.

“It builds a portable retirement fund,” he said.

Perhaps the most widely noted employee-owned company in Iowa is West Des Moines-based grocery retailer Hy-Vee Inc., which was launched in 1938 as a partnership among 16 investors.

“All the original people were employees, so they had ownership shares in various stores and traded those shares for stock in the corporation,” said Ruth Comer, spokeswoman for the

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“Upon retirement the company basically purchases back that account from you, and that’s how your monetize it,” Mallaro said.

“We like to say there’s a couple different ways you’re going to accumulate that account. You’re going to have an annual contribution; if you work for 25 years, you get 25 years of contribution. But you also get the appreciation of that stock. So early in your career if you had a low stock value, as the account value increases, your value increases.”

That is an edge over the stock market, which tends to fluctuate more, Mallaro added.

“We’re talking about a relatively small privately owned company, and the stock value is not subject to any of the whims of the marketplace,” he said. “It’s entirely a result of the performance of the company. As one of 475 employee owners, you have a big impact on that valuation, which directly impacts your retirement account and how much you have for retirement.”

Reinbeck-based Lincoln Savings Bank has a “partial” ESOP, which amounts to a 21 percent share of parent holding company Lincoln Bancorp stock, said Steve Tscherter, the bank’s CEO. “I think the foremost benefit is

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JANUARY 2012

CEDAR VALLEY BUSINESS MONTHLY

THE COURIER

PAGE 5

Learn the fundamentals of utilizing credit wisely No matter your age or ďŹ nancial position, it’s never too early or too late to get smart about credit. Learning the fundamentals of credit provides you with a foundation that will prove invaluable throughout your Josef M. Vich life. is chief executive Here are some ofďŹ cer of simple do’s and Community National Bank in don’ts of credit: Waterloo. Contact â– DO pay at least him at 291-2000. the minimum due and contact your creditor if you have trouble making payments. This will help you avoid late fees and a rising interest rate. To pay off your balance more quickly, pay more than the minimum due. If you are unable to make the minimum payments, let your bank know so they can work with you to create a more manageable payment plan. â– DO be wary of anyone who claims they can â€œďŹ xâ€? your credit report. No one can legally remove accurate information from your credit history. The only thing that can ďŹ x a credit report is time and a positive payment history. â– DO read the ďŹ ne print. The application is a contract, so read it carefully. This is particularly important when selecting a credit card company. Credit card issuers are very competitive so interest rates, credit limits, grace periods, annual fees, terms and

conditions may vary. ■DON’T feel pressure to get a credit card. Under the new CARD Act 2009 consumers aged 1821 cannot be solicited for credit.

If you no longer wish to receive prescreened offers, opt out by calling (888) 567-8688 or visit www.optoutprescreen.com. â– DON’T ignore the warning signs of credit trouble. If you pay only the minimum balance, pay late, use cash-advances to fund daily living expenses or transfer a lot of balances, you might be in the credit danger zone. Talk to a ďŹ nancial counseling organization like Consumer Credit Counseling or Family Management Credit Counselors in Waterloo to regain control of your ďŹ nances. â– DON’T share your credit card number. Never give out credit card, bank account information or personal information if you have not initiated the transaction. Be aware of identity theft and phishing scams. If you suspect that your identity has been compromised, ďŹ le a complaint with the Federal Trade Commission by calling (877) 438-4338; TDD (202) 326-2502, or go to www.ftc.gov/idtheft.

The economic crisis sent an urgent message that ďŹ nancial education can no longer be an option or a privilege. Education and hands-on money experience are critical in building a generation of smart money managers.

For more free information, go to www.getsmartaboutcredit.com

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CEDAR VALLEY BUSINESS MONTHLY

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JANUARY 2012

Americans feel less confident about retirement You may find your unease about financing your retirement is beginning to increase as the outlook on our economy stays gloomy, and according to a study commissioned by Ameriprise Financial, you are not alone. The New Retirement Mindscape 2011 City Pulse index examined the 30 largest U.S. metLarry K. Fox ropolitan areas to is a private determine where wealth adviser are with Ameriprise consumers the most prepared Financial Inc., Waterloo. for and confident Contact him about retirement. at 234-7000.

The results show that while three-quarters of Americans say they’ve taken steps to prepare financially for retirement, the economic uncertainly that has persisted over the past year may be taking a toll on people’s emotions. A mere 18 percent of respondents surveyed say they believe they’ll achieve their dreams in retirement, down significantly from 21 percent who shared this sentiment in 2010.

Likewise, when asked how they feel about this stage of life, more Americans express negative feelings than did so last year, including the number who say they feel worried (24 percent vs. 21 percent), anxious (21 percent vs.

17 percent) and depressed (10 percent vs. 8 percent) when they think about retirement.

While it would be great if a boost in confidence came easily, the best way to feel secure about your financial future is to

prepare well for it. Though the options and advice available to you can seem overwhelming and complex, there are several simple steps you can take if you’re feeling wary about your post-career years: START WITH THE BASICS. Deciding to make a plan is the first important step, but before you get too carried away, determine what you will absolutely need to maintain your lifestyle during retirement. Include basics like groceries, mortgage payments and other financial obligations. You may want to make a list of things that you could live without if you hit a roadblock in the future. It’s also important to consider things like rising healthcare costs and costof-living increases. Plan for at least 20 years worth of expenses.

The resulting number will be the absolute minimum you’ll need to save to finance your retirement.

CONSIDER YOUR LIFESTYLE. One of the most enjoyable parts about planning for retirement is deciding how you might spend your extra free time. Though you could just be looking forward to relaxing, you may also decide to move to a different area of the country, travel, volunteer or spend more time with family and friends.

Your plans can always change, but creating a list of activities you may pursue is a proactive way to begin your planning process.

DETERMINE EXPENSES. Many people get hung up on this step, as it can come with a tough reality check, but the earlier you tackle it, the more time you have to save for your retirement goals.

Calculate how much each of the

activities you’ve planned for retirement will cost. Think about and include any hidden costs. For example, spending more time with family can include things like buying more gifts as your family grows, travelling to see family during holidays and even things like helping fund a grandchild’s tuition. Be honest with yourself and accurate with your predictions to get the best idea of what your retirement will cost.

SET GOALS. With your list of activities and associated costs, you can determine how much you’ll need to save for retirement and what kind of income needs you will have after you leave the workforce. Remember that though it’s important to be aware of the “big picture,” try not to let yourself get caught up in numbers with commas. Break your retirement income needs down into smaller goals that can be prioritized. Though you may find you have to make some decisions along the way, knowing what your retirement will cost and being able to work toward several achievable goals to begin with will help you feel more at ease as you continue to plan.

TRACK YOUR PROGRESS. Like with all goals, it’s important to set milestones and continue to check in and reflect as you go.

Keep in mind that a little time and organization goes a long way.

Set one day each month to sit down with your finances. Even if your goal still seems far away or if you’ve experienced a setback, you likely won’t regret spending the extra time to review your progress.

If you still find yourself over-

More offices blocking employees’ ability to shop online Los Angeles Times

LOS ANGELES — The era of sneaking in online shopping at work may be coming to an end.

A recent survey by Robert Half Technology, a company that helps businesses find information technology professionals, found

that 60 percent of more than 1,400 chief information officers interviewed said their companies block access to online shopping sites — up from 48 percent last year. And an additional 23 percent of CIOs said that although their companies do allow access to shopping sites, they monitor

employees for excessive use.

Online shopping can add up to some serious time. CIOs who work for firms where online shopping is not blocked said on average they expected employees to spend four hours a week surfing the Internet for deals during the holiday season.

whelmed or needing help to stay on track, consider meeting with a professional financial adviser who can help you budget your finances now and plan for the

future. Remember that while it may be a bumpy ride to retirement, the surest way to feel confident about what’s to come is to do all you can to plan for it.

Helping you help your community.

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CEDAR VALLEY BUSINESS MONTHLY

Wartburg, city, chamber hatch incubator project A new business could start blooming in Waverly by this spring, thanks to an innovative community partnership.

Wartburg College, the city of Waverly and the Waverly Chamber of Commerce Saul Shapiro is director of news have established a and community business incubator project. relations at “While the conWartburg College.

Contact him at cept of business (800) 772-2085. incubation isn’t unique to our region, this particular model is,� said Emily Neuendorf, executive director of the chamber. “The growth, maintenance, and success of Waverly’s incubator will rely on the city as a whole, not just one entity. We’re a prime community for such a model.

The synergy exists in our region to launch such a program.�

Timothy Ewest, associate professor of business administration, said the project will tap community resources to launch new businesses and assist existing ones. “Waverly not only talks like a community but acts like a community,� Ewest recently told a gathering of chamber members. “So let’s do something together.

We want to provide and coordinate the resources for an individual to start a new nonproďŹ t or for-proďŹ t business or rejuvenate an existing one.â€?

Ewest and Scott Fullwiler, associate professor of economics, are co-directing the project.

They have worked with city and chamber officials to establish a nonproďŹ t 501(c)(3) entity that would oversee the small incubator projects. The nonproďŹ t status allows tax-deductible in-kind contributions that could include mentoring services, office space and equipment. “The program would follow an eight-step process that would

guide a new business or make an existing business more market savvy,� Ewest said. “We’ll do this in a unique way because of the 501(c)(3) designation.

We’re requesting resources from the community, including onsite incubator space; training resources; ďŹ nancial resources; and office equipment, such as a computer or copier.â€?

The Waverly Development Fund can provide some ďŹ nancial support, Ewest said. State economic development grants are another possibility.

The eight-step process would include an inventory of community resources, a market needs assessment, assessing the entrepreneurs, mentoring, training, business plan, site choice and launch assistance.

A full-time director will be hired to oversee the operation.

As an illustration, Ewest explained a bookstore might be incubated within an existing coffee shop. The bookstore could complement the coffee shop while beneďŹ ting from the retail space and mentoring provided by the coffee-shop owner.

Ewest said some partnerships already exist. Bike Tech of Cedar Falls is utilizing space in the Crawdaddy Outdoors store while testing the market for a more permanent business in Waverly.

Ewest said the incubation program could reduce retail or service business leakage in Waverly. “These would be the types of businesses where it seems like every time somebody needs the product or service, they have to go out of the community,� he said.

The goals of the incubator plan include creating “a wealth effect,� and maintaining community values and talent, while increasing employment and the tax base.

See INCUBATOR, page 8

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PAGE 7

I was raised on a farm near Postville, IA. My parents taught me some key values that my years at Wartburg reinforced.

These values have served me well. My appreciation of a liberal arts education at Wartburg has grown over the years.

When I first entered the workforce, I thought grads from larger universities had a greater advantage due to name recognition and a larger alumni base of connections. Over time, I have seen a number of doors open because of my Wartburg connections! It is amazing how many people with whom I have contact who know about Wartburg College.

Wartburg was instrumental in shaping me as a person and a professional and I enjoy giving back wherever I can. — Reid Koenig, ’75, BA VP, Customer Operations CUNA Mutual Group

This is my Wartburg story.

What’s yours? www.wartburg.edu/ourstory For more information, scan this code using a QR code reader app on your smartphone.

Leadership. Service. Faith. Learning.

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CEDAR VALLEY BUSINESS MONTHLY

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JANUARY 2012

INCUBATOR From page 7

Are you ready to care for aging parents?

“The wealth effect is that you want to keep the money in the community,” Ewest said.

“That’s why certain communities do better than others.

“You also want to stop gentrification, where values from outside the community are brought into the community, changing its values,” he added. “When you create new businesses and remake existing ones, it allows for the heritage values of the community to carry forward.”

Another benefit, he said, is that “you take the new generation or the existing generation that is about to be displaced economically and say ‘Not today, you’re going to stay, we’re going to keep you here.’ Then you don’t have students who have to move out of town or out of state.’”

The incubator project has a board including members from the city, chamber and financial and retail sectors.

Four businesses are currently interested.

“We have a lot of conversations going on right now,” he said. “There’s a lot of excitement. We also have people who want to step up to the plate and help with this.”

One of the most stressful jobs around today isn’t found in corporate America. Rather, it’s a job that one in every four Americans wakes up to each morning.

Can you guess what it is? It comes with the title “family caregiver” — a role that brings significant rewards Candy and equally significant Diercks is franchise owner challenges. of Home Instead Every day we encounSenior Care in ter these family caregivWaterloo. Contact ers: people who love and her at 235-5999 want the best for their or candy.diercks@ homeinstead.com. aging family members, but don’t know how to fit it all in. For these compassionate people, stress is a constant companion, wondering about the cost of care and the type of care needed.

A large number of seniors and their adult children have failed to educate themselves on the most personal sub-

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jects, much less make adequate plans for the future.

Talking with your parents or other relatives about their health care preferences may be uncomfortable, but if you wait until they need care it is too late. I see families all the time who are thrust into an emergency situation and are unprepared to handle their parents’ health issues. The time to prepare is when things are calm. During a crisis, siblings could disagree about medical care, finances and living conditions. And if a parent is incapacitated, his or her own preferences are unlikely to be heard or followed. Home Instead Senior Care has a free “Senior Emergency Kit,” which offers a checklist of basic information that adult children should know about their parents, such as physicians names, medications and doses, allergies and how to access advance directives. Go to CaregiverStress. com to locate your free kit and you will find a number of resources to get

these conversations started, including techniques for diffusing the emotions in such discussions.

After obtaining the information you need from your parents, determine who in the family will be responsible for maintaining it. That person should develop a system for keeping it organized and updated. If you live far from your parents, learn about the medical facilities and nonmedical options in their town and the services provided.

One of the most common surprises for boomers whose parents become ill is the limited amount covered through Medicare. “What do we do now?” Is a question often heard. Along with long-term care insurance, other options for financing end-of-life care are available. Contact your lawyer or financial planner to assist you with making the right preparations.

There may be no way to prepare emotionally for your parents’ health crises, but preparing intellectually can make all the difference.

JANUARY 2012

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Training program offered for Iowa’s environmental managers For over 20 years, the Iowa Waste Reduction Center’s specialists have been providing environmental assistance and information to help small businesses meet the needs of maintaining regulatory compliance, reducing waste, and running effiLea Hensel cient operations. is marketing IWRC specialists coordinator for are now working the Iowa Waste on developing a Reduction Center training program at University of to educate busiNorthern Iowa. nesses’ environContact her at mental managers 277-4668. across the state on environmental and regulatory information that is relevant to their business.

Through the IWRC’s existing programs like on-site reviews, Iowa small businesses are able to obtain environmental and regulatory assessments to help meet small businesses’ environmental needs. The IWRC often gets requests from these businesses for some type of training to further understand the environmental impacts of their business and make improvements. Currently the options for this type of training are costly and limited.

However, with the development of the Iowa Environmental Managers Training Program, environmental managers will be equipped with education and training that will help their business remain up to date on current environmental regulations

as well as learn procedures to implement pollution prevention and waste reduction practices.

The Iowa Environmental Managers Training Program will focus on the information IWRC specialists refer to when conducting environmental assessments. This includes relevant material from the Clean Air Act, Clean Water Act, Resource Conservation Recovery Act, and the Emergency Planning Community Right to Know Act, as well as topics such as storm water and wastewater.

In an effort to make the program as efficient and effective as possible, the training will be available entirely online rather than in a traditional classroom setting. This not only saves on travel expenses, but also allows the environmental manager the ability to go through training at their own pace and refer back as often as needed.

As regulations change and new strategies are developed for waste reduction and pollution prevention, course updates and new information will be added to ensure environmental managers are always receiving up-to-date information that can help make their business more efficient in the short and long-term.

The full program will be launched in October, but in the meantime interested individuals can visit www.IowaEnviroAssist.org/EnvTrain for more information, interactive features, and sneak peeks that will be released throughout the year.

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CEDAR VALLEY BUSINESS MONTHLY

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JANUARY 2012

It’s time for your yearly financial checkup people have a majority of their investments in some sort of retirement plan like a 401(k) or IRA. There are several questions to ask about your investments.

Are your investments keeping up with your goals? This should include your short-, intermediate- and long-term goals. Do your investments meet your investment risk tolerance? As we get older, our risk tolerance tends to decrease. Is your portfolio changing as risk tolerance changes? Are your investments set to rebalance themselves at least annually? Rebalancing allows your investments to reset to keep up with your risk tolerance. All three of these questions are important to your investment portfolio. You should meet with your financial adviser annually to help you answer these questions.

Most 401(k)s have an adviser that is taking care of the plan, and that adviser should be able to help you set your plan up to meet your goals.

Step 3 is insurance. Is your coverage (life, disability, longterm care, homeowners, auto, umbrella liability) accomplishing what you want it to accomplish?

Are your beneficiaries up to date?

Has anything changed in the past year, such as getting married, new child, divorce, bought a

home, changed jobs? Am I “overinsured” or “under-insured?” A person making $50,000 a year who has $100,000 of life insurance with a mortgage, children at home and several car loans may have enough as long as they do not plan on being dead too long.

Then again that person may have more than enough if they are debt free, have no children at home and a sizeable retirement plan. For homeowners insurance, can you really replace a 2,000-squarefoot home for the $175,000 you have it insured for when it can cost between $125 to $150 a square foot to build a house?

Do you realize that employerprovided disability insurance is generally taxable if you become disabled? If so, after taxes you are only replacing 45-50 percent

of your income. Is that enough?

All of these questions should be asked of your adviser.

Step 4 is to check your legal documents. You should be in touch with your attorney anytime you have a major life change such as getting married, buying a home, having children or losing a family member. Some of the questions you may want to ask them are: Are our wills up to date? Do we need a trust in our will for our minor children? Do I need a durable power of attorney for medical and financial? Is a revocable trust something we should consider? Are our assets titled properly (joint tenancy or tenant in common?) Is my estate big enough that I need to make changes in ownership or in our wills? These are all questions an

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UNI grad attends youth entrepreneur summit CEDAR FALLS — Ben Frein, a University of Northern Iowa 2009 graduate in finance and computer science from Garner, was selected to be a member of the U.S. delegation to the G20 Youth Entrepreneur Summit (YES) in Nice, France, earlier this fall.

The event was hosted by French President Nicolas Sarkozy for 400 young entrepreneurs from around the world.

Frein was selected based upon two regional wins in the Global Student Entrepreneurs’ Organizations annual competitions.

Frein owned several businesses operating out of the UNI John

Pappajohn Entrepreneurial Center’s Student Business Incubator while a student at UNI. The young entrepreneurs from G20 countries created and submitted an “Entrepreneurs’ Declaration” to the G20 global leaders. They also attended lectures and presentations with renowned business owners and Nobel Prize winner Muhammad Yunus.

The UNI John Pappajohn Entrepreneurial Center is a division of UNI’s Business and Community Services. The UNI JPEC provides a range of innovative programs and support services designed for student entrepreneurs.

attorney should be able to help you with.

Step 5 is to consider any milestone birthdays. Did you turn 50? If so, did you take advantage of the “catch-up” provisions in your retirement plans? Did you turn 59 ½? If so, you may now take withdrawals from your IRAs without penalty. Did you turn 62? If so, you are now eligible to take Social Security, but does it make sense to take it early? Did you turn 65? If so, you are now eligible for Medicare. Did you reach 70½? If so, you now must start taking required minimum distributions from IRAs and 401(k)s. Roth IRAs do not require a distribution.

Don’t forget to do this simple five-step financial checkup with your advisers at least once a year.

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As tax time rapidly approaches, now is a good time to do a personal financial checkup with an eye on limiting your tax liability for next year.

What is a financial checkup?”

Basically it is taking a snapshot of your current financial situation and determining if it meets your curThomas M. Kneeland rent objectives. is an investment Everyone should do this once a year, adviser representative with and what better Financial Decisions time when you are Group. in Waterloo. already looking at Contact him at your income and 233-8476. taxes. There are several important steps to a financial checkup including net worth statement, investments/retirement plans, insurance, legal documents and birthday milestones.

The first step should be calculating a net worth statement.

Doing a net worth statement annually shows you are moving forward toward accomplishing your short, intermediate and long-term goals. It is not what you make that counts; it is what you keep that counts.

Step 2 is reviewing your investments/retirement plans. Most

JANUARY 2012

cvbusinessmonthly.com

CEDAR VALLEY BUSINESS MONTHLY

Employees’ child care arrangements impact employers’ bottom line As employees begin their work each day they may bring with them more than the talents and skills for which you hired them.

For those who are experiencing some difficulty with their child arrangeNancy Dunn care is business & ments, there is community liaison an 80 percent with the Iowa Child chance they will Care Resource & lose work time Referral Agencies, until they are Region 2. Contact satisďŹ ed with the her at care their chilnancy.dunn@ episervice.org. dren receive.

Simply looking at price alone — the average annual fees for child care in Iowa are approaching the average annual tuition fees for an Iowa public four-year college ($7,154) — parents have every right to want satisfaction with their child care arrangement.

Yet, left alone, ďŹ nding a successful child care arrangement — which is as unique as each and every child — is quite challenging. The myriad options and considerations can be overwhelming for parents, and an increasing number of grandparents as well. There is no one size ďŹ ts all, and no one who is responsible for choosing quality child care is able to escape the daunting task. Determining who will care for your child includes considerations of access, quality, regulation, health, safety, education, environment, interactions, and — yes — how much will it cost.

With the highest percentage of working parents in the nation, 76 percent, Iowa employers are certainly impacted when employee child care arrangements break down. Sometimes a small investment of your time

and/or resources can make a big difference in your employee’s ability to arrive at work and stay, satisďŹ ed their children will be well cared for. Research shows ďŹ rms that institute assistance with child care are rewarded with an enhanced ability to recruit employees, lower labor turnover rates, higher levels of labor productivity and improved community relations.

An investment in supporting your employees with their child care needs could reduce unproductive and lost work time while improving your bottom line.

Child Care Resource and Referral professionals are resident experts in working to meet the increasing challenges of supporting families, child care providers, communities and employers with child care needs.

Specialized child care materials, parent education supports and child care needs assessment services are now available to employers in the Cedar Valley. The addition of these business and community services complement the CCR&R services offered to parents with child care referrals and child care providers with technical assistance and consultation.

Successful child care requires an investment from all those involved in the partnership.

CCR&R is ready to support you with supporting your employee’s child care needs. CCR&R of Northeast Iowa will help you review your employees’ child care needs and develop with you strategies to support those needs. Access to quality child care has the potential to provide each child the foundation for lifelong learning and leadership opportunities as well as make a positive impact on your bottom line well into the future.

PAGE 11

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JANUARY 2012

Smaller banks anticipate big changes in 2012 It’s no great revelation that technology and innovation are prevalent in our lives today. Consider a few common tasks you do every day: ■ Shopping for gifts or clothing.

Do you hop in the car and drive to Angela Evans the mall or do you is vice president of marketing for shop online?

Lincoln Savings ■ C o n n e c t i n g Bank in Waterloo. with friends and Contact her family. Do you call at 433-3777. or write a letter, or do you send a text message, email or Facebook them?

■ Looking for directions. Do you pull out a map, or do you consult the Internet or turn on your GPS? ■ Searching for an answer. Do you go to the library or pull out the encyclopedia? Or, do you get on the Internet and “Google” your question?

■ Paying for purchases: Do you write a check, or do you use your credit/debit card?

Consider your answers to these questions 10 years ago. Technology and innovation are great unless you sell encyclopedias or maps. In banking and finance, big changes have come in terms of payments, convenience and the rate at which financial institutions adopt new technologies.

A change that has been underway for some time that affects most people’s behavior is checks versus electronic/debit card payments. Nearly 80 percent of all noncash payments are done electronically.

Customers demand convenience from their banks. A recent survey of banking customers showed that only about 20 percent of consumers prefer to use their bank branch. This is a dramatic change in how banking is conducted. Those results vary to some degree by culture and geography, but for many, gone are the days when a stop at the bank was a regular errand. To meet customer demand, banks have undergone significant change.

■ Online banking — Online banking has transitioned from

viewing balances to transacting online, even transferring money among different financial institutions. Many banks are investing and upgrading their online channels to offer features to meet changing demand.

■ Mobile banking — Mobile technology has come a long way with the advent of smart phones.

With the right bank, consumers can receive an alert on their mobile device that their balance is low, log on to their mobile banking site and act to fix it .

■ Integrated personal financial management — PFM, or account aggregation, was originally offered by independent companies. The features were great, but for customers it meant another site and another password. There has been a trend to

offer PFM as an integrated part of online banking allowing customers to link all their accounts — credit cards, bank accounts, even investments — and monitor them from within the secure environment of online banking.

■ Online applications — Most consumers have become accustomed to using the Internet to research and purchase products. Retailers — from onlineonly giants like Amazon.com to main street businesses — have embraced online shopping as a way to sell, and engage new markets. More and more banks offer the convenience of true online applications, allowing for the “purchase” of their financial products and services.

Banks absorb the cost and risks of implementing secure online

applications to offer greater convenience and serve more customers.

These are just a few examples of how the financial services industry is changing to meet the needs of today’s consumer. Local community banks have a great opportunity to offer the types of technology and convenience once available only through the “big banks,” and do so while still being your hometown bank. It is exciting to consider how technology will evolve over the next 10 years. Social media, near-field communication devices and mobile systems for merchants could become standard for payments. In a few years, you might be using your smart phone to pay for lunch through your Twitter account.

MACHINE SHOP

Employers find a perfect fit hard to find McClatchy Newspapers

Business surveys increasingly note that employers have job openings they can’t fill.

There are millions of job hunters — but most lack the precise skills or experience for openings.

According to the Society for Human Resource Management, more than half of 2,280 randomly selected hirers surveyed in eight industries said they couldn’t find the right people they need.

Engineering, high-skill medical, science, information technology and manufacturing firms were most likely to say they’re finding skill gaps between the applicant pool and their requirements.

“It follows logically that if key jobs cannot be filled in organizations, then other less-critical

jobs requiring less skill cannot be created either, because the organization’s growth is stunted,” said SHRM Vice President Mark Schmit.

SHRM said the most basic skill gaps were in the ability to write or speak English well, to do basic math and to read with good comprehension.

Workers without high-schoollevel skills will have a hard time competing for any job, especially when MBAs and college graduates are vying for work.

But many well-educated workers with a solid work history are also having trouble getting hired.

Most employers don’t have the time, money or interest to train someone who is nearly right for the job. They want someone who comes in the door as a perfect fit.

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JANUARY 2012

CEDAR VALLEY BUSINESS MONTHLY

Living healthier lifestyle more than a resolution It’s another New Year, and with that brings the ever-popular question, “What’s your New Year’s resolution?� At the American Cancer Society, we believe the answer should be more than just a Kelly Warren New Year’s resois community lution; it needs relations director to be a constant with American lifestyle.

Cancer Society/ Because there Midwest Division is a direct link Inc. in Waterloo. between weight Contact her and the chances of at 272-2880. developing cancer, it is crucial to maintain a healthy weight.

One of the hardest parts about having a healthier lifestyle is the lack of time. One of the best tricks to a healthier lifestyle is being organized. Plan your days and think ahead about when you will exercise and what you will eat. The American Cancer Society recommends 45-60 minutes of moderate to vigorous exercise at least ďŹ ve days a week. Nutrition guidelines to decrease your chances of developing cancer can be found on cancer.org.

A simple and budget-friendly tip for a healthier life is to stop buying pop, candy, chips, and high sugar snacks. A soda pop once in a while is OK, but consuming it on a daily basis is a lot of sugar and empty calories — even diet pop. Water is free, and has zero calories. Also, if you smoke or chew — quit. The habit is not only expensive, but it also shaves years off your life. Making better decisions in the grocery store and changing daily habits is a must for healthier living.

Next, join exercise classes, or start walking during the day. If you pay for an entire session of workout classes upfront, it is more likely you will go because each class is already paid for. How many of us have a gym membership taken out of our checking

account every month, yet we don’t go to the gym? Putting on your workout clothes and showing up is half the battle.

According to Russ and Kristi O’Connell, developers of a ROC FIT, a popular exercise program, “It’s important to develop long lean muscle tissue to not only lose weight, but to improve overall health and to maintain physical changes on a long-term basis.

You will start to see positive results for your health, ďŹ tness and attitude.â€?

Taking these simple steps is far better than setting a weight-loss goal to start with. It is hard at ďŹ rst, but to decrease your chances of developing cancer and having a longer life it is well worth it.

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PAGE 13

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■Don’t buy soda pop — you’ll be healthier and save money at the same time. ■Don’t skip breakfast. ■Don’t expect to see immediate results. ■Don’t smoke or use tobacco products. ■Don’t go more than four hours without eating a meal or snack. ■Don’t go to bed without having a plan in mind for how to accommodate some kind of exercise and healthy eating into tomorrow’s schedule.

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â– Pack your gym bag, snacks, and plan meals every night to help you prepare for the next day. â– Pay for workout sessions up front or all at once, it will motivate you to go. â– Eat ďŹ ve to six smaller meals a day; it is better for your metabolism than two or three big meals a day. â– Indulge sometimes, but in small portions. Allow yourself one meal a week to eat what you crave. â– Call the American Cancer Society for more tips on healthy lifestyles at (800) 227-2345 or visit cancer.org.

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CEDAR VALLEY BUSINESS MONTHLY

cvbusinessmonthly.com

JANUARY 2012

Still on sidelines? How to get started with mobile banking Mobile banking is quickly evolving into one of the most popular services offered by banks, with reports indicating more than half of all cell phone users have a smartphone. It can offer many of the benefits of online banking with the conveShirley McKenzie nience of bankis vice president of ing from virtupersonal banking ally anywhere. If at First National you haven’t tried Bank in Cedar mobile banking, it Falls. Contact her is it something you at 266-2000. should consider.

Here are some reasons consumers have found mobile banking beneficial: ■ Mobile banking is available 24 hours a day, so you can handle your finances on your schedule.

■ Mobile and online transactions, especially electronic bill paying, are generally faster than mailing a paper check ■ It can help reduce clutter by eliminating paper bills and statements. And using less paper is environmentally friendly “Mobile banking is faster, more convenient and more secure than ever,” said Christa Leary, First National Bank’s marketing director. “Many customers appreciate the convenience of banking and paying their bills on-thego, in addition to instant access to account information, which helps them manage their money more effectively.”

If you are looking for a more convenient way to manage your money, here are suggestions to get started.

■ Check with your current bank. Talk to your banker or go to

your bank’s website to find out if it offers mobile banking services and whether there are any fees.

■ Review the options you have with mobile banking. You can use traditional mobile banking with any smartphone or Internet tablet, you can try an app for an Android or iPhone or you can use text message banking with any traditional mobile phone.

■ Check out the reviews.

Android and iPhone apps allow customers to make comments and reviews about their apps.

You might be able to tell which option is best for you by using these reviews.

■ Learn as much as you can about how to bank safely.

Before you try mobile banking, become familiar with what will be expected of you. “We offer tips to help keep customers safe on our website,” Leary said. “But

checking your account often is the best way to stay protected, which is why mobile banking is such a great product.”

What kinds of security measures should you take? You should secure your smartphone or tablet by using a password or key-code to access it. Most banks prevent unauthorized access by using encryption to scramble account numbers and other private information, but it is still important to take other precautions.

Protect your passwords and personal identification numbers by not using birthdays or other numbers or words that may be easy for other people to guess.

Also, never send a bank or anyone else an email with personal information such as your bank account, credit card or Social Security number unless the email is encrypted.

As with any banking service, be prepared to keep good records so you can help spot and reconcile an error. “One of the best things about mobile banking is that it allows you to easily monitor transactions and account balances regularly,” Leary added.

“Then, if you find a discrepancy or unauthorized transaction, you can promptly notify your financial institution.”

Mobile banking is a convenient service for customers who travel extensively and want the option of accessing their online account from virtually anywhere.

Mobile banking also provides consumers an opportunity to gain access to a wide array of banking products and services through a new channel.

For more information on safe mobile or online banking, visit www.myfnbbank.com.

Workplaces growing friendlier to gay employees, report finds Los Angeles Times

LOS ANGELES — The corporate world — especially law firms and big banks — is a much better place for lesbian, gay, bisexual and transgender employees than it was a decade ago, according to a new report from LGBT advocacy group Human Rights Campaign.

When the Corporate Equality Index was first calculated in 2002 to check major companies for policies mandating equal treatment of workers regardless of sexual orientation, just 13 businesses of 319 had a perfect score.

In 2011, with even more criteria, 190 companies out of 636 participants rated 100 percent.

That included 55 law firms and 22 banks and financial services such as Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. Consulting companies did well, as did retailers and those in the food-beverage-grocery sector.

Other companies with 100 per-

cent ratings included AT&T Inc. and Ford Motor Co. Transportation and travel businesses had few perfect scorers.

Oil and gas companies, as well as mining and metal firms, also did not have many scorers at the top. Wal-Mart Stores Inc. had a 60 percent rating, as did General Electric Co. Exxon Mobil Corp. scored a negative-25 percent.

The majority of participants scored above 80 percent, with more firms now offering nondiscrimination policies that included both “sexual orientation” and “gender identity,” medical benefits that don’t distinguish between spouses and partners, and health care that factors in transgender needs.

Human Rights Campaign invited publicly traded companies from the Fortune 1000 list as well as firms in the top 200 of American Lawyer magazine’s rankings. Any private employer with at least 500 full-time U.S. employees could also ask to be included.

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JANUARY 2012

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CEDAR VALLEY BUSINESS MONTHLY

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PAGE 15

Giving back is good business IS THE ROAD TO Business leaders today recognize the importance of corporate citizenship.

Giving back to the community is an essential part of a conscientious business model. It creates consumer confidence, attracts and Ali Parrish retains employis director of development at ees and builds the Community goodwill.

The CommuFoundation of Northeast Iowa in nity Foundation Waterloo. Contact of Northeast Iowa her at 287-9106 works with busior aparrish@ nesses to create cfneia.org. corporate charitable solutions for years. Through charitable contributions, businesses gain stature in the community, earn the loyalty of customers and employees, and take leadership roles to address community issues. There are signiďŹ cant tax advantages available to businesses through philanthropy as well.

According to the 2010 Giving USA report, corporate giving accounted for $16 billion of a total $291 billion donated in 2010. Corporate gifts were up more than 10 percent from 2009.

Clearly, numerous corporations and businesses are committed to rebuilding and enhancing their giving programs after the economic downturn.

Many businesses do wonderful things to give back to our community, but there are a lot of options to consider when creating an effective corporate giving plan. The Community Foundation of Northeast Iowa is a resource to help local businesses to create corporate giving programs that meet the needs of the business.

Here are some ways to get your business started: â– Start a matching gifts program. This allows your company to add to employees’ donations designated for nonproďŹ t organizations. Encourage charitable giving while showing appreciation for your workers. â– Encourage volunteerism.

Show employees you care about their causes. Consider allocating volunteer hours, as you would sick time or vacation time. â– Give to nonproďŹ ts. Businesses align giving with nonproďŹ ts that match their values and to community causes they care about.

Research local charities whose work and philosophy align with your business goals and passion. â– Build a corporate fund. The Community Foundation works with businesses to establish corporate giving funds. We provide professional investment and charitable gift program management. A committee of leaders from your organization recommends where gifts from your fund are distributed, or you can leave your gift unrestricted, allowing the Community Foundation Board to address the community’s most pressing needs. Your organization receives immediate tax beneďŹ ts, even if you distribute the funds at a later date. â– Set up corporate scholarship funds. Your organization can support students studying in your ďŹ eld with scholarships, or support students from a particular high school or attending a particular university. â– Network with other businesses about philanthropy. There are many professional groups and educationalopportunitiesoffered in the Cedar Valley, including the Community Foundation’s new Business in Philanthropy series.

Sometimes, the best way to build a corporate giving plan is by learning from one’s peers. Businesses in the Cedar Valley have been committed partners to local nonproďŹ ts for decades.

Giving through the Community Foundation also provides special tax advantages. By establishing a permanent endowment fund or giving to an existing fund, your business is eligible to receive a 25 percent state tax credit on the donation through Endow Iowa.

This is in addition to the normal federal deductions.

Creating a world-class community includes investing in it and the people who live here. Giving back is just good business.

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CEDAR VALLEY BUSINESS MONTHLY

cvbusinessmonthly.com

JANUARY 2012

New year a good time to think about retirement If you find yourself in the midst of a job change or retirement, you’re probably excited and a little anxious. Is the timing right?

Is this the right choice?

What about your retirement plans?

Decisions Kelly regarding a preGoreham vious employer’s is with Financial Resource Advisors retirement plan are critical and in Waterloo.

Contact her can impact your at 232-6122. financial future.

Do not leave room for error or cause tax implications for which you didn’t plan. If you are contemplating a withdrawal from your retirement plan, be sure you understand the rules pertaining to taxes and penalties. Age makes a huge difference in what you may or may not be eligible to withdraw. In addition,

circumstances such as hardship, higher education expenses, medical expenses, first-time home purchase, etc., can entitle you to a break the otherwise applicable penalties for early withdrawal.

If you are contemplating reinvesting a previous employer’s retirement plan or 401(k), visit with a financial professional regarding your rollover opportunities to be sure you make the right choices. Perhaps you feel confident in the choices you are about to make. However, if you diagnose your own illness without being a doctor, is there a chance you may misdiagnose?

Deciding if you need a financial adviser largely depends on how well you can do the job yourself. The most important part of retirement planning is investing. As long as you have a general knowledge of asset allocation and time to research and pick the appropriate funds for your situ-

Deere spent $374,000 lobbying Congress during third quarter MOLINE, Ill. (AP) — Deere & Co. spent $374,000 to lobby Congress and federal regulators during the third quarter to protect the signal for GPS systems and express concerns about farming regulations.

The Moline, Ill., company is the world’s largest maker of agricultural equipment. The amount Deere spent on lobbying is more than the $350,000 it spent in last year’s third quarter and more than the $340,000 it spent in this year’s second

Find all your latest news in

quarter.

Deere said in a report filed Oct. 20 that it lobbied Congress and the Federal Communications Commission about the use of spectrum rights for communication because it is worried that LightSquared’s proposed new nationwide Internet network could threaten the GPS signals many Deere tractors use.

Deere also said it lobbied on financial reforms, crop insurance and efficient water use standards.

ation, you shouldn’t have much trouble building a portfolio. The problem with doing everything on your own is if you make a mistake it may cost you a lot more than you would have saved by not using professional help.

A recent study demonstrates this well; AON Hewitt, a consulting firm, and Financial Engines, an advice firm, looked at 401(k) returns of 425,000 savers from 2006-10. They found the median annual return of savers using professional help was 3 percent higher than self-managed savers, even after fees. The study indicated a major reason for solo investors’ lower returns was they were far more likely to be too aggressive or too conservative over time. Do-it-yourselfers were far more likely to act upon emotion and cash out of

stocks at the most inopportune time, like after the 2008 crash.

This resulted in low returns as the market recovered quickly in 2009. In addition, without professional help people were far more likely to put more money in the market at the top of the market.

Getting better investment returns is not the only reason to get professional help. Financial planners help you stay disciplined and make sure you are setting aside enough money every year for retirement; a typical rule of thumb is to set aside 15 percent of income every year. Planners can help free up your budget if you are not saving enough and are having a hard time fitting it into your budget.

While saving for retirement there are plenty of free tools to

guide you, but as you near the end of your career the stakes go up. Turning your savings into reliable income is essential and can be an intimidating task on your own. MetLife conducted a study that found that 40 percent of pre-retirees believed that they can spend 7 percent or more each year of retirement without depleting their savings.

Most advisers would advocate for a lower withdrawal rate to help ensure you have a better chance to not outlive your savings.

Get a second opinion from a professional. There may be opportunities available to you of which you’re not aware. After all, next to health and family, your financial future is one of the most valuable assets you have. Be sure you are giving it the utmost attention and care.

WWW.CEDARVALLEYALLIANCE.COM

JANUARY 2012

WWW.GREATERCEDARVALLEYCHAMBER.COM

PAGE 17

Greater Cedar Valley Alliance & Chamber Microsoft Community Connection - Focus on Your Business Series Do More in Less Time Simplify IT Wednesday January 18, 2012 7:30 - 9:00 am

Wednesday February 29, 2012 7:30 - 9:00 am

Location: Mudd Advertising, One Mudd Centre, 915 Technology Pkwy., Cedar Falls Join us for an informative technology event featuring step-by-step demonstrations designed to get the most from Microsoft Office in your day-to-day work. You’ll learn how to: Get through everyday tasks more quickly / Overcome email overload / Create professional documents and presentations with more impact / Get insight into your data / Easily connect and share with customers and colleagues. Facilitated by ACES - Advanced Computer

Engineering Solutions. $20 for each session. Space is limited so be sure to register today! RSVP deadline is January 11, 2012.

To register, please contact Bette Wubbena at the Alliance & Chamber office 232-1156, or email her at bwubbena@cedarvalleyalliance.com.

Good Morning Cedar Valley!

Premier Sponsor:

Gold Sponsors:

Thursday January 26, 2012 - 7:30 - 9:00 am Fred Becker Elementary School, 239 Sheldon St., Waterloo (Former Black Hawk Elementary) Parking in front of school on Sheldon St. RSVP by January 19 to bwubbena@cedarvalleyalliance.com or 232-1156 Good Morning Cedar Valley is a quarterly networking breakfast, educating Alliance & Chamber investors on current events. The brief program includes Mayor Jon Crews, Mayor Buck Clark and a county board of supervisors representative. Updates are also given by other community leaders. There is no cost to attend. RSVP is required.

Cedar Valley Pre-Session Legislative Reception Held at Isle Casino Hotel Waterloo The Greater Cedar Valley Alliance & Chamber, along with Cedar Valley Manufacturers Association and the Waterloo/Cedar Falls Area Rural Electric Cooperative sponsored the Cedar Valley Pre-Legislative Reception on Monday, December 5th at the Isle Casino Hotel Waterloo. There were over 100 in attendance. Investors enjoyed the casual social format, and had the opportunity to speak one on one to state legislators. The Alliance & Chamber has set their 2012 Legislative Policy Priorities:

Economic Development Incentives Pursue economic development incentives and quality of life initiatives that ensure Iowa communities and regional markets are able to secure significant investments in a global economy.

Talent and Workforce Provide and fund 21st century education and training programs to prepare Iowans to fill available and newly developed jobs in information technology and financial services, advanced manufacturing, bio-ag products, logistics, education innovation, health care, and higher education, both now and in the future.

Taxes Support initiatives to bring fairness and equity to commercial and industrial property taxpayers.

WWW.CEDARVALLEYALLIANCE.COM

PAGE 18

WWW.GREATERCEDARVALLEYCHAMBER.COM

JANUARY 2012

GREATER CEDAR VALLEY ALLIANCE & CHAMBER ANNUAL AWARDS The Greater Cedar Valley Alliance & Chamber’s annual awards will be presented at the Annual Celebration held on March 29 at Five Sullivan Brothers Convention Center. Nomination deadline is February 10. To nominate a business, individual or organization, please contact Bette Wubbena at 232-1156 or bwubbena@cedarvalleyalliance.com.

Legacy Award

“Recognize an individual for their continued leadership and noteworthy contributions to the Cedar Valley through philanthropy and volunteerism; working to create a positive environment for business expansion and community growth and enhancing the quality of life for talent recruitment and retention.”

Fulfilling the Vision of One Award

“Recognize an outstanding contribution by an individual in the private sector for leadership in creating and strengthening regional collaboration and cooperation for economic and community development.”

Business of the Year Award

“Recognize the efforts of a Greater Cedar Valley Alliance & Chamber investor in promoting the quality of life and offering leadership within the Cedar Valley, achieving a major business accomplishment or making an outstanding contribution to the Cedar Valley community, economy and citizens.”

Harold Brock Innovation Award

“Recognize the efforts of a private sector firm (a Greater Cedar Valley Alliance & Chamber investor) for innovation in technology, advanced manufacturing or talent development.”

Treating Capital Well Award

“Recognize the efforts of a private sector from (Greater Cedar Valley Alliance & Chamber investor) for a significant investment in the Cedar Valley that most emphasizes the attributes of the Cedar Valley.”

Cedar Valley Partner Award

“Recognize the efforts of an education institution, non-profit organization, service club or human service agency (a Greater Cedar Valley Alliance and Chamber investor) in promoting economic growth and employment, quality of life, offering leadership or making an outstanding contribution to the Cedar Valley and its citizens on a continuing basis or with a specific project.”

CEDAR VALLEY BUSINESSES SURVEYED ON PROGRAM, BUSINESS CONDITIONS Responses to a recent, detailed survey of 70 Cedar Valley businesses and community leaders presented strong indications that the Cedar Valley economy has held its own during the downturn of the past several years. The survey was conducted by Convergent Nonprofit Solutions, on behalf of the Greater Cedar Valley Alliance & Chamber.

Survey respondents indicated that the recent favorable business results are attributed to strong manufacturing and agriculture sectors, particularly John Deere’s strong performance and demand for components and services in the U.S. and globally, low unemployment in the Waterloo-Cedar Falls MSA, and overall business expansion in the Cedar Valley economic area.

Additionally, survey respondents reported an increasing scarcity of available workforce possessing the technical and other industrial skills in demand.

Respondents indicated continuing reliance on economic development and educational leaders to address the tightening constraint to growth.

In addition to gathering economic and workforce information during the survey, an outline of proposed development strategies was presented for review. Those businesses interviewed reinforced the three strategic goals of the Greater Cedar Valley Alliance & Chamber. Ȉ Develop and strengthen a technology and innovation-based economy; Ȉ Act as the recognized catalyst and focal point of effective regional action on economic and community issues of importance to Cedar Valley businesses and institutions; Ȉ Increase the effectiveness and impact of Greater Cedar Valley Alliance & Chamber organizations.

The Greater Cedar Valley Alliance & Chamber works to increase wealth and economic vitality through collaborative economic and community development throughout The Cedar Valley economic area.

WWW.CEDARVALLEYALLIANCE.COM WWW.CEDARVALLEYALLIANCE.COM

JANUARY 2012 DECEMBER 2011

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ALLIANCE & CHAMBER INVESTORS CELEBRATE TRC SUCCESS! Total Resource Campaign Top Producers!

Tim Bradford Shannon Farlow Maria Murphy Next Generation Wireless Waterloo Center for the Arts Clarion Inn University Plaza The Greater Cedar Valley Alliance & Chamber Total Resource Campaign for 2012 was a success! Many thanks to the campaign co-chairs Corey Clark, Lincoln Savings Bank and Chris Fereday, Pedersen, Dowie, Clabby & McCausland Insurance. Thank you also to our Investors for your commitment to help make The Cedar Valley a great place to live, and do business. 40 volunteers offered businesses a menu of sponsorship opportunities. New businesses were also encouraged to become Investors. Businesses appreciate the ability to view the Alliance & Chamber event and sponsorship menu all at once and plan their marketing budget for the entire year. "I want to thank the many volunteers who have given so much of their time to our Total Resource Campaign. As of November 18th, they have secured thousands of dollars in sponsorships for many of the Alliance & Chamber projects. The response of our investors has been extremely positive and while thanking the volunteers, I also want to thank the businesses that have engaged in the process. It's been an exciting project and a very worthwhile endeavor, " said Bob Justis of the Greater Cedar Valley Alliance & Chamber.

Thank You to the many volunteers who gave so much of their time to the Total Resource Campaign!

Bachman, Ginger - Liberty Bank Bangtson, Al - Community National Bank Barker, Andrea - Wheaton Franciscan Healthcare Bash, Philip - MidWestOne Bank Beach, Sue - American Red Cross Bentley, Stacey - Community National Bank Berning, Patty - Bridges Senior Lifestyle Living Bradford, Tim - Next Generation Wireless Burton, Brian - ACES Clark, Corey - Lincoln Savings Bank Crouch, Jessica - Organized for You!

Dall, Amy - Hy-Vee Erikson, Marli - Community National Bank Fadiga, Dustin - Northwestern Mutual Financial Network Fain, Mike - First Security State Bank Farlow, Shannon - Waterloo Center for the Arts Fereday, Chris - PDCM Fratrik, Ira - College Square Mall Gronoski, Kari - Lincoln Savings Bank Harringa, Joan - Liberty Bank Hartnett, Rick - Lincoln Savings Bank Heilskov, Kim - Wells Fargo Bank, N.A. Hinton, Erin - Lockard Realty

Hoppenworth, Kade - Lincoln Savings Bank Howie, Abby - MidWestOne Bank Husome, Glenda - Waterloo Exchange Club Jedlika, Amber - Friendship Village Keller, Niki - Hy-Vee Ledvina, Tonya - YWCA McCausland, Kent - PDCM McCombs, Mark - LSB Financial Miehe, Christa - VGM Murphy, Maria - Clarion University Plaza Purdy, Sheri - Wheaton Franciscan Healthcare Reyhons, Mike - Bravo Printing

Rottinghaus, Cathy - VGM Sadler, Bonnie - NuCara Pharmacy Samec, Teresa - Liberty Bank Schmidt, Emily - MidWestOne Bank Schmitt, Steve - Schmitt Telecom Partner, Inc. Smith, Patrick - Wells Fargo Bank Thede, Tracy - Lincoln Savings Bank Twinde, Jerry - Wells Fargo Bank Vandeventer, Dave - Oakridge Realtors Wilson, Bill - PDCM

GREATER CEDAR VALLEY ALLIANCE & CHAMBER SELECTS NEW AMBASSADORS The Ambassadors are the goodwill arm of the Greater Cedar Valley Alliance & Chamber. They conduct ribbon cuttings for new and expanded Cedar Valley businesses along with new Alliance & Chamber Investors. To schedule a ribbon cutting, please contact Bette Wubbena, 232-1156 or bwubbena@cedarvalleyalliance.com.

Congratulations to the following who were recently selected as Greater Cedar Valley Ambassadors: Aram Susong - Facets by Susong Brady Gruhn - Lockard Companies Bill Roths - MidWestOne Bank Matt Miehe - NAI Iowa Realty Commercial Bonnie Sadler - NuCara Pharmacy/NuCara Home Medical

WWW.CEDARVALLEYALLIANCE.COM

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JANUARY 2012 PAGE 21

WWW.GREATERCEDARVALLEYCHAMBER.COM

Ribbon Cuttings for New Businesses in The Cedar Valley !

Bamboo Ridge 4550 Hess Rd., Waterloo

Cookie Crave 4305 Orchard Hill Dr., Cedar Falls

Elite Chiropractic & Wellness 226 Brandilynn Blvd., Ste. D Cedar Falls

KT's Indoor Inflatable Park 1125 College Square Mall Cedar Falls

New Years Resolution Investor Check list

Shaw Electric, Inc. 905 Cedar Bend St., Waterloo

The Write Place 5301 Marius Dr., Cedar Falls

Alliance & Chamber Administrative Assistant We are pleased to introduce our Administrative Assistant, Mary Jo Albright. She grew up in Grundy Center; lived in Cedar Falls and Evansdale while attending college; and currently resides in La Porte City. She was previously employed at Allen Occupational Health. She has enjoyed working with the Alliance & Chamber Investors, community leaders and staff. She looks forward to continuously helping current and future residents of The Cedar Valley.

This year as an Alliance & Chamber Investor I will take advantage of INVESTOR FREEBIES! Ȉ Post my business coupon to the Alliance & Chamber website. Ȉ Post my one minute business promotional video to the Alliance & Chamber website. Ȉ Post a 50 word business description to the on-line investor directory on the Alliance & Chamber website. Ȉ "Like" the Greater Cedar Valley Chamber of Commerce Facebook page. Ȉ Proudly display my Investor window cling. Ȉ Attend at least 3 Alliance & Chamber sponsored business networking opportunities.

Interested in joining the Greater Cedar Valley Alliance & Chamber?

Investor benefits include: Logo, video, coupon and business description posted on the Alliance & Chamber website; networking opportunities; listing in the annual buyers guide; access to Alliance & Chamber mailing labels; cost effective marketing options with the e-newsletter - the EXTRA, Cedar Valley Business Monthly, and Knowledge Spillovers.

Contact our investor representative today to learn how your business will benefit!

Bette Wubbena - bwubbena@cedarvalleyalliance.com. Call us at (319) 232-1156

WWW.CEDARVALLEYALLIANCE.COM

PAGE 33 2012 JANUARY

WWW.GREATERCEDARVALLEYCHAMBER.COM WWW.GREATERCEDARVALLEYCHAMBER.COM

January 2012 Calendar of Events

Welcome New Greater Cedar Valley Alliance & Chamber Investors!

Adrenaline X Laser Tag Contact: Mark Mayfield 6301 University Ave., Ste. 1120 Cedar Falls, IA 50613 Phone: 319-939-7279 Category: Entertainment www.adrenalinexparty.com

Rainsoft Contact: Terry Bonik 3130 Marnie Ave. Waterloo, IA 50701 Phone: 319-233-2038 Category: Water Conditioning/ Treatment

Bancroft’s Flowers Contact: Philip Batchelder 416 W 12th St. Cedar Falls, IA Phone: 319-266-3521 Category: Florists-Retail

The Write Place Contact: Alexis Thomas 5301 Marius Dr. Cedar Falls, IA 50613 Phone: 319-242-8074 Category: Writing, Editing & Layout www.thewriteplace.biz

Iowa Public Radio Contact: Mary Grace Herrington 2111 Grand Ave. Des Moines, IA 50312 Phone: 515-725-1700 Category: Radio Stations

NOVEMBER 2011 PAGE 21

Jan. 3 Tues.

Jan. 4 Weds.

Jan. 10 Tues.

Jan. 11 Weds.

Jan. 13 Fri. Jan. 18 Weds.

TechWorks Board Mtg., 400 Westfield Ave., 3:00pm Alliance Board of Directors Mtg., Veridian Credit Union, 400 Westfield Ave., Waterloo, 4:00 pm Cedar Valley Leadership Institute, 8:00am - 4:00pm Strictly Business Task Force Mtg., Cabin Coffee Co., 2040 Kimball Ave., Waterloo, 8:00am Investor Relation Mtg., Cedar Falls office, 8:00am Ambassadors Mtg., Clarion Inn University Plaza, 5826 University Ave., Cedar Falls, 4:00pm Diplomats Mtg., Public Market, 327 W. 3rd St., Waterloo, 9:00am Government Relations Mtg., Cedar Falls office, 7:30am Microsoft Community Connection - Do More in Less Time, Mudd Advertising, One Mudd Centre, 915 Technology Pkwy, Cedar Falls, 7:30am Finance Committe Mtg., Alliance Board Room, 8:00am Good Morning Cedar Valley, Fred Becker Elementary School, 239 Sheldon St., Waterloo (Former Black Hawk Elementary), 7:30 - 9:00am

Decorating Den Jan. 19 Thurs.

Contact: Julie Meyers Jan. 26 Thurs.

221 E. Bremer Ave. Waverly, IA 50677 Phone: 319-352-9055 Category: Interior Decorators/ Designers/Supplies www.local.decoratingden.com/ jmeyers/ Thank you Premier Members - for your investment in the The Cedar Valley Wilbur & Eloise Adams Days Inn & Suites-Waterloo Junior League of Waterloo Agape Therapy Den Herder Veterinary Hospital /Cedar Falls, Inc. B & R Quality Meats, Inc. Eichelberger & Associates, L.L.C. Ronald King Sandy Benak State Farm Insurance Energy Systems of Iowa, Inc. L & N Transportation Services, Inc. Benton’s Ready Mixed Concrete Famous Dave’s Bar-B-Que Lincoln Savings Bank Bethlehem Lutheran Church Far Reach Technologies Lindgren Glass Products, Inc. Black Hawk County Abstract & Title First Security State Bank William Maiers, D.D.S. Black Hawk Economic 1st Insurance Services Main Street Waterloo Development, Inc. /The Accel Group Martin Bros. Distributing Company Brummel Madsen Insurance Glass Tech MidWestOne Bank Casey’s General Stores Godfather’s Pizza Donna Miller Cedar Falls Utilities Gosling & Company, P.C. Mod Hair Color Salon & Beauty Cedar Valley Orthodontics Donna Harman Store Cedar Valley Real Estate Solutions Hawkeye Stages, Inc. Nagle Signs, Inc. Chase Auto Parts Heartwood Investments, Inc. Northeast Iowa Medical Education Community Auto Group Heaton, Adams & Co., P.C. Foundation Community Auto Plaza HR Green Northern Iowa Endodontics, P.L.C. Community Foundation of Humble Travel Service, Ltd. Oster Partners L.P. Northeast Iowa Interior Viewpoints Pedersen, Dowie, Clabby & Con Agra Foods J’s Homestyle Cooking McCausland Insurance Michael Crall, D.D.S., M.S. Willard & Kay Jenkins Peoples Savings Bank Days Inn & Suites-Evansdale Jennifer’s on Main Peregrine Charities

Prairie Lakes Church Professional Lawn Care LLC Craig Ritland Landscape Architects Scharnweber Water Conditioning, Inc. Secure It Storage Service Roofing Co. Skogman Homes Speer Financial, Inc. Standard Distribution Co. Sturgis Falls Celebration, Inc. UA Plumbers & Pipefitters Local Union #125 Vanderloo Chiropractic Waterfalls Car Wash Waterloo Cedar Falls Board of Realtors Floyd Winter Michael Wirth, D.D.S. Young Plumbing & Heating Zwanziger & Boe Orthodontics

PAGE 22

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CEDAR VALLEY BUSINESS MONTHLY

cvbusinessmonthly.com

JANUARY 2012

What lies next for the American economy?

Prior to writing this year’s economic forecast I reviewed my thoughts for 2011 to see if they were accurate enough to warrant another prediction: ■ Barring a serious default in Europe, I predicted a slow, steady recovery continuing throughout 2011 with unemRick Brimeyer ployment remainis president of ing stubbornly Brimeyer LLC, an independent high. Check.

■ I expected local management consulting firm in and state govAmes. Contact ernments to trim him at spending, but was (515) 450-8855. skeptical of any meaningful results at the federal level. Right on.

■ Businesses were anticipated to remain cautious in their spending, as the memories of painful layoffs and the fears associated with getting close to the financial ledge were still fresh. Not bad.

■ A fundamental change in consumption was predicted as

the Great Recession bred a new generation of savers. Still open for debate.

OK, so at least three out of four.

Had my high school batting average (and fielding average, for that matter) approached those numbers, perhaps I would have been a character in “Moneyball” rather than a reader.

Overall global growth is expected to slow in 2012. Germany is likely already in recession and a series of defaults in Europe still remains a strong possibility.

China and other emerging economies are trying to slow their growth rates.

So exports will probably not provide as strong of a tailwind during 2012. Long term, however, shipments to growing economies present a huge opportunity.

Also, many companies are now questioning the “invoice cost is everything” philosophy that led to outsourcing, and some are bringing work back home. This is especially true for products with high variation and those for which quick response is critical.

Companies will continue to play it safe, especially when it comes to adding employees.

Temporary hires will be the norm for nonskilled jobs. Capital investments will require an attractive, low-risk return on investment. The majority will be geared toward productivity improvements (again stunting hiring) rather than expansion unless the company’s products/ services own a clear competitive advantage. Well-founded fears of future inflation may tend to discourage expansion investments since future dollars earned will be worth less than invested dollars.

Inventories are approaching pre-recession highs, suggesting little additional opportunity for a boost here. Overall, I expect the contribution from businesses in 2012 to remain neutral with 2011.

Government spending is always anyone’s guess, since actions are driven by politics rather than logic. A possible reaction to a series of European defaults would be the realization by our

own Congress that the road for kicking the can down is not infinitely long. Timing is impossible to predict, but I believe government spending will decrease long-term.

Now for the other wild card — consumers. Last year I saw an increase in the personal savings rate as proof that a fundamental shift away from consumption was occurring. So how to explain the fact that the savings rate has been steadily falling again from a post-recession high of 5.8 percent in June 2010 to 3.5 percent in September 2011?

I suspect the drop in the savings rate reflects the impact of extended months of 9 percent unemployment and 17 percent underemployment. A national car fleet averaging over nine years old is no doubt driving replacement purchases.

With the exception of college debt, personal balance sheets continue to improve. But with roughly 3.5 million homes still in danger of foreclosure, a rebound in the housing industry is still at

least a year away. Bottom line, I don’t expect a lot of help from consumers in 2012.

Overall, the economic pie will continue to grow over the next decade, but at roughly two-thirds the rate of that experienced during our credit addiction of the past 25 to 30 years.

Iowa will fare better than most states due to the strong ag economy and the fact that we have less excess to work off (e.g., our foreclosure rate is less than onethird the national average and one-tenth that of Nevada).

So what does all this mean to you?

■ Jobs are precious. Earn your keep daily with customers and employers.

■ Expect less help from the government; plan your business and retirement accordingly ■ Education, interpersonal and financial-management skills will impact future success (and that of your children) like never before; make education a priority with your children and never stop learning yourself.

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JANUARY 2012

CEDAR VALLEY BUSINESS MONTHLY

PAGE 23

THE COURIER

CEOs of big companies foresee no pickup in hiring WASHINGTON (AP) — Twothirds of chief executives of the largest U.S. companies say they don’t plan to increase hiring or will cut staff in the next six months, mainly because of sluggish growth in the United States and financial turmoil in Europe.

The Business Roundtable reported last month that about one-third of its member CEOs expect to add employees and spend more on large equipment in the next six months. That’s little changed from three months ago. More than 40 percent plan to keep workforces steady. About a quarter expect to cut jobs.

The group predicted in its quarterly outlook survey that the economy will expand 2 percent in 2012. That’s not enough to produce job growth. Instead, existing employees will be expected to handle any increased business.

“We’re right at the point where the economy is growing, but not enough to offset productivity and create jobs,” said the group’s chairman, Jim McNerney, CEO of the Boeing Co. “Everybody’s doing things more efficiently.”

New and smaller companies, more than the big multinationals surveyed by the roundtable, tend to drive job creation, particularly in economic recoveries.

Businesses with fewer than 500 employees have created about 65 percent of jobs in the past 20 years.

Europe’s financial crisis is a major concern for the roundtable’s members, McNerney said.

About 14 percent of revenue for the 500 biggest U.S. companies comes from Europe, Standard & Poor’s estimates.

“Most of us feel that the political leadership in Europe will not let it get out of hand,” McNerney said. The roundtable’s outlook index was essentially unchanged, at 77.9, compared with 77.6 three months ago. The group surveyed 130 members in the first half of November.

In September, the roundtable’s members feared high oil prices, Europe’s growing debt crisis and political gridlock over U.S. budget policy. That made the business and economic environment more uncertain, the group said at the time. Only one-third of the CEOs said then that they expected to hire or spend more in the next six months.

Small businesses, by contrast, have grown more optimistic in recent months. The National Federation of Independent Business said in its December report that its small-business optimism index rose for the third straight month in November, to 92 from 90.2. Still, that’s 8 points below its pre-recession average.

Government figures show the job market is improving a bit. In the past three months, job gains have averaged 143,000 a month.

That compares with an average of 84,000 in the previous three months.

In November, employers added 120,000 jobs, and the unemployment rate fell to 8.6 percent from 9 percent. About half that decline occurred because many of the

unemployed gave up searching for work. When people stop looking for a job, they’re no longer counted as unemployed.

At the same time, fewer companies are cutting jobs. The number of people applying for unemployment benefits has fallen to its lowest level in nine months, the Labor Department said in its mid-December report.

Companies are hiring more as the economy shows signs of improvement. Factories are expanding, and consumers are spending more. In October, Americans’ incomes rose by the most in seven months.

Still, the job market’s recovery remains sluggish. Employers posted fewer jobs in October than the previous month, though the decline was modest, the government said in December.

Job openings have risen by about 35 percent since the recession officially ended in June 2009.

But they’re still about 25 percent below pre-recession levels.

The ManpowerGroup reported Dec. 15 that more U.S. employers plan to hire in the first three months of 2012, according to its

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it’s been since 2008, when the recession took root. But that’s still far below the 20 percent that the index averaged from 2003 to 2007.

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PAGE 24

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CEDAR VALLEY BUSINESS MONTHLY

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JANUARY 2012

Workplace of the future will look much different

By CINDY KRISCHER GOODMAN McClatchy Newspapers

Stephanie Bedenbaugh dreamed of escaping the chaos and cold of Washington, D.C., and retreating to a slower-paced life near the beach. But when she arrived in south Florida, she found the job market more difficult than expected. She turned to consulting work, and after completing an assignment for a former contact in the D.C. area, the CEO offered her a job — no relocation necessary.

For the past three years, Bedenbaugh has worked from her Delray Beach, Fla., home, handling human resources for Prizim, a Maryland company. “It’s about having a manager or boss who views things differently,” she said.

Viewing things differently will become key in the workplace of the future. “A revolution in working practices is on the way,” said Alison Maitland, coauthor with Peter Thomson of “Future Work: How Businesses Can Adapt and Thrive in the New World of Work.”

Imagine a company where cubicles are gone and the work space resembles a Starbucks, barista included. Imagine another where no one has a personal office and people can work anywhere in the building, including the roof terrace, and any hours.

These workplace designs are being embraced by companies rethinking business strategy.

I recently participated in conversations about how workplaces, physically and culturally, are changing at the Work-Life Focus: 2012 and Beyond Conference in Washington, D.C., sponsored by the Society for Human Resource Management and the Families and Work Institute. I heard discussion of flexibility and the shift toward rewarding productivity rather than time. I also heard frustration about the business world’s sluggish reaction to the trends forcing change.

Murray Martin, CEO of Pitney Bowes, put it well when he

told Maitland: “The corporate response is one that doesn’t really want to hear it. But then these corporations can’t understand why they’re losing their best talent.”

In most workplaces today, face time still reigns. Employers cling to a rigid model of fixed working times and presence suited more for the industrial age than the digital age. Workers put in long hours as a badge of honor and work weekends in hopes of advancing their careers. Working from home is seen as an employee benefit, a perk for a few individuals.

But Maitland is convinced that we are about to see a radical change that will give workers more choice over how and when they work. The change, fueled by the explosion in communications technology, will be the result of business needs — a desire to cut real estate costs, a drive to improve customer service or enter a new market faster, or an effort to reduce high rates of employee turnover. Maitland believes that almost any job contains tasks that can be done flexibly from outside the workplace.

Some big changes ahead: ■ The office will look different. Some companies already are shifting the physical office layout from workplaces to meeting places, where employees go to collaborate.

At Microsoft’s building in Amsterdam, the Netherlands, there is no reception desk or fixed phones. The first floor is the community floor, full of sofas, booths and a busy restaurant to encourage collaboration. No one has a set office, and there are no filing cabinets — all corporate information is stored digitally.

The second floor is quieter with small workstations and client meeting rooms.

Employees are directed to find the ideal work space depending on what they are doing that day.

The company said productivity has increased following the move to the new building and adoption of the philosophy “anytime,

anywhere.”

■ Workers will make their own schedules. Maitland has discovered some companies already are asking their teams to devise their own working patterns to resolve a business need. For example, Sainsbury, a supermarket chain, discovered customers wanted fresh baked goods all day instead of just in the morning. It involved its staff in working out a schedule to meet that demand — allowing workers to come up with their own rotating shifts that took into account their personal and family commitments. The bakers became enthusiastic about the change.

■ Arrangements will go beyond traditional flexibility. Younger generations increasingly will enter the workplace hyperconnected, expecting to use their devices and do their jobs the way they work best. “They will challenge the need to commute daily,” Maitland said.

At Cisco, an international producer of networking equipment, 85 percent of its employees telecommute, and no one except call-center operatives has a set work schedule.

Without office meetings and interruptions, most say they are more productive.

Going forward, Maitland predicts more people will work at least part of the time from home or work hubs built closer to the suburbs, enabling them to connect without having to make long commutes. And remote working will become a way for businesses to move into new cities without upfront costs.

■ Culture will become integral.

Because these changes are driven by business strategy rather than accommodation, this new way of working must be embraced throughout the company.

At Southern California Gas Co., the utility was facing the end of its lease at its downtown Los Angeles offices and realized its workers were spending 90 minutes commuting to work.

Its solution was to downsize its physical space and set up work-

ers in home offices, a new model Erika Wendt, project advisor for championed by the CEO. “We organizational effectiveness at had to overcome the thinking Southern California Gas Co. that the teleworkers would not be the leaders of the future,” said See WORKPLACE, page 25

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JANUARY 2012

cvbusinessmonthly.com

CEDAR VALLEY BUSINESS MONTHLY

Most people remain mistrustful of online information, study says NEW YORK (AP) — Over the past decade, Americans have witnessed the rise of social networks and mobile technology that’s put the Internet at an arm’s reach, day and night — yet a new study has found that people are even more distrustful of the information they find online.

Three-quarters of Internet users find the Web an important source of information, but most people still don’t deem the content they see online reliable, according to a report out this week from the University of Southern California.

Such are the deep chasms among Americans’ attitudes about the Internet.

In 2010, 15 percent of Internet users said they find only a small portion of online information reliable. That’s greater than the 7 percent who were likewise skeptical of the vast majority of information they come across on the Internet.

The mistrust is especially true for social networks. That said, people don’t look to social networks for reliability. Rather, they visit the sites to socialize

and share photos, updates and videos.

Trust grows when it comes to established media outlets and government websites. In 2010, 79 percent of Internet users said they found content posted on government websites reliable, about the same as in 2003, the first year the center looked at that question.

Jeff Cole, author of the study and director of USC Annenberg School’s Center for the Digital Future, said Americans tend to be more trusting of government and big media.

“Other countries are better at distinguishing good information from (the) unreliable,” he said. In repressive regimes where media is closely tied to the government, citizens grow adept at filtering truth from propaganda.

When it comes to privacy online, Americans are actually more concerned about businesses than the government, the report found. Nearly half of U.S. Internet users said they are worried about companies watching what they do online, compared with 38 percent who said the same for the government.

Looking ahead to the next decade, Cole expects tablet computers and other touchscreen devices to largely replace personal computers and with them, the clunky computer mouse.

The center has surveyed more than 2,000 U.S. households each year since 1999. The latest report is a look back at the past decade of Americans’ Internet use. The margin of error is plus or minus 3 percentage points.

WORKPLACE

said Kyra Cavanaugh, president of workplace consulting firm LifeMeetsWork.

■ Companies will create virtual opportunities to bond or have face time. With social media exploding, progressive employers are incorporating it into their business strategy. They are building their own social networks, behind firewalls, to create communities of employees with similar hobbies, expertise or interests.

The networks give employees a virtual place to connect, regardless of where they work. Smaller businesses are using social media to collaborate on documents, share knowledge or mentor others and identify experts within their own business.

Deloitte, an accounting firm, built its own Facebook-like social network, and thousands of employees use it: “We’ve given them a virtual way to feel like they’ve visited someone’s office,” said Patricia Romeo, a social media leader at Deloitte.

■ Bold leaders will act sooner.

“I think leaders have no option, the wave of change is inevitable.

It’s about being strategic and staying competitive,” Maitland said.

ABOUT THE WRITER: Cindy Krischer Goodman is CEO of BalanceGal LLC, a provider of news and advice on how to balance work and life. She can be reached at balancegal@gmail. com. Read her columns and blog at worklifebalancingact.com/.

From page 24 Having the CEO behind the effort “gave the initiative credibility with employees and managers,” she said.

■ Managers will undergo more training. Managers who successfully supervise teams in the future will move from controlling to enabling, Maitland said. They will have to overcome the fear of losing control and trust that their employees are self-motivated.

That’s where manager training comes in and guidelines to measure output instead of hours.

“It builds better managers with good communication skills,”

Survey results ■ SURVEY SAYS: Three-quarters of Internet users find the Web an important source of information, but most people still don’t deem the content they see online reliable.

In fact, the study has found that people are even more distrustful of the information they find online.

■ WHERE TO TRUST: The mistrust is especially true for social networks. Trust grows when it comes to established media outlets and government websites.

■ ABOUT THE STUDY: Researchers at the University of Southern California have been surveying Americans annually since 1999.

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Friendly boss needs ‘presence’ presence” — the ability to comfortably relate to people from a position of authority. Managers who feel uneasy about having Q. As a supervisor, I have always had a friendly, noncon- power often try to minimize the distance between themselves frontational leadership style. and employees by acting like I have a dry sense of humor one of the gang. As a result, and enjoy joking around with they seem more like a peer than my staff. Recently, one of my a boss. employees told me that she Your “nonconfrontational” feels the others are very disrespectful towards me. I was sur- approach may come across as a reluctance to deal with difficult prised, because I never viewed issues, especially if you fail to their bantering as disrespect. address performance problems In the past, my manager has or allow yourself to be intimialso suggested that employees dated. Employees won’t respect may not respect me because I you as a manager unless you act am too nice and friendly with like one. them. I disagreed at the time, The recipe for success is to but now I think she may be increase your supervisory selfright. How can I overcome my confidence while retaining the history and get more respect? amiable, fun-loving aspects of A. Before undertaking a leader- your personality. You don’t have to become aloof and boring in ship style makeover, you must order to be respected. correctly identify the change ABOUT THE WRITERK Marie you need to make. The problem G. McIntyre is a workplace here is not that you are a nice, coach and the author of “Secrets friendly, jovial person. After to Winning at Office Politics.” all, no one wants to work for a Send in questions and get free supervisor who is humorless coaching tips at www.yourofand mean-spirited. ficecoach.com, or follow her on The more likely difficulty is Twitter @officecoach. that you lack “management

By MARIE G. MCINTYRE

McClatchy-Tribune News Service

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JANUARY 2012

Gender gap exists in the ways professionals network

By REX HUPPKE Chicago Tribune

I recently received an advance copy of a book that has the word “SEX” in the title in big, red capital letters and, because I’m a sucker and a guy, I opened it and started looking for pictures.

Finding none, I grunted and settled for second-best — looking at the words. Turns out they are quite interesting, and not in the way you might imagine.

The book is called “Business Networking and Sex,” and it’s a fascinating examination of the ways professional men and women interact and network.

Based on data culled from about 12,000 online surveys and interviews with an array of experts, the book provides refreshingly pragmatic takes on why women and men interact differently in the working world, as well as suggestions on how to improve those interactions.

Here’s the bottom line: Most men approach their business dealings like men, most women approach their business dealings like women, and neither side seems particularly interested in understanding why there’s sometimes a disconnect.

“The biggest thing we found, I think, is that we’re really not that far apart, men and women,” said co-author Hazel Walker, a networking strategist. “We want the exact same things. We’re headed to the same destination. We just use different techniques and tactics to get there.”

The book explains how men tend to use a “transactional” approach to business — very direct, cut to the chase, close the deal, with a good amount of highlighting one’s accomplishments mixed in.

Women more often use a “relational” approach — getting to know people, building a relationship first and then getting down to the business at hand.

“If you think about the history of mankind, men were the hunters, women were the gatherers,” Walker said. “Women were the

keepers of the fires, the builders of the community. Women understood they have to have relationships around them to survive.”

And the bad news for my fellow men is, not surprisingly, the women’s approach seems to be more effective.

“When we really looked at the data, women fared much better in the results,” said co-author Ivan Misner, founder and chairman of Business Network International. “The bottom line is women spend less time networking and still get a greater percentage of their business through referrals. Whether you’re a man or a woman, focusing on the professional relationship will get you farther than focusing on a transaction.”

To test this theory about the importance of relationships among women, Misner asked a large audience he was addressing whether they had a relationship with their dry cleaner.

“Ten times more women raised their hands than men,” he said.

“Men view something like a dry cleaner as a transaction. ‘I give them money; they clean my clothes.’ Women will get to know the people that work there better and view it much more like a relationship than a transaction.”

So why is this a problem?

“The problem is that women speak to men to relate, and men speak to women to impress,” Walker said. “Because women speak to relate, men think they’re not serious about their business, they always get personal. They’re just as serious as the guys are; they just do it differently.”

And guys acting like guys — sidestepping relational topics and getting down to business — can be off-putting to a woman.

These disconnects are often made worse by two false stereotypes — that men mainly want to stare at women’s chests and that women dress provocatively so men will notice their chests.

The book puts forth a “98/2 rule,” which says, “Two percent of the population in each demo-

ABOUT THE WRITER: Rex Why should it be any different graphic creates a reputation for Huppke writes for the Chicago in the workplace? the remaining 98 percent.”

You can learn more about the Tribune. Send him questions by “The overwhelming majority of men at a business event behave survey data and the book at Busi- email at rhuppke@tribune.com or on Twitter @RexWorksHere. appropriately,” Misner said. nessNetworkingandSex.com.

“It’s that 2 percent that do not, and that becomes the perception of the gender. Most women dress completely appropriately at business events — it’s that 2 percent that don’t that become the water-cooler discussion.

Small percentages can lead the discussion.”

And those false perceptions put up unnecessary blockades to smooth interaction.

So how can we get past the differences in our gender-specific approaches to business? (This all starts to feel a bit like a gradeschool dance, with girls on one side of the gym, boys on the other anytime. anywhere. and nobody having a clue how to break the ice.)

Walker and Misner say it boils down to the simple axiom that knowledge is power. If you’re a man, recognize that the way you approach another man in a work situation might not work as well with a woman. Ditto for women.

“The guys need to slow down, listen to her — find ways to find common ground and you will build business with her,” Walker said. “And women need to be more clear in their communication. Say what you want. Be more direct and men will respond better.”

Undoubtedly some folks — male and female —will view this advice as sexist to some degree.

And certainly the assumptions made in the book, which comes out in January, do not apply to Scott G. Parsons, LUTCF every man or woman. scottparsons@allstate.com But I think we’re better served dropping any pretense of political (319) 233-3380 (319) 277-5920 correctness and taking an honest 4807 University Ave #104 1120 W. 4th Street look at our natural tendencies.

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Small businesses follow larger brethren to wellness programs wish their company would try something like this.”

One of the reasons they don’t — besides cost — is complexity.

At a recent employment-law seminar, lawyers Debra Linder

By DEE DEPASS Minneapolis Star Tribune

What you need for your business.

See WELLNESS, page 31

Electrical

Lighting

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MCT PHOTO

Shawna Kohls of Alexandria, Minn., is an RN who monitors the health of workers at Alexandria Extrusion.

“We are getting calls. It’s kind of exciting to share our story and help others with their wellness programs,” said Deb Moorman, Alexandria Extrusion’s human resource supervisor. “It can be kind of overwhelming, thinking, ‘Where and how do we even start?’ It’s just important to take that first step.”

Trusight research manager Mary Frank said the organization, whose corporate members average about 200 workers, is getting lots of inquiries about how to launch a program and what the return on investment might be.

“We get questions about privacy and confidentiality and what our other members are doing.

They want to make sure they are setting programs up correctly,” she said.

A recent Trusight survey of 285 Minnesota companies found that most tread gingerly into the wellness arena. They host classes to help workers quit smoking (29 percent), lose weight (16 percent) or ease stress (12 percent). They change vending machine food to healthier fare or offer flu shots at work.

David Anderson, chief health officer of Eagan, Minn.-based StayWell Health Management, said wellness vendors often charge $50 to $300 per worker for a program that may offer online health-risk assessments, telephone health coaching, hospital

referrals and public health programs, or face time with nurses and dieticians at work.

Phone and online services are relatively inexpensive ways to educate workers about health risks. But they are less effective in changing behaviors permanently, Anderson said. Permanent changes require a bigger investment.

Some employers pay workers $75 for completing health-risk assessment forms. Others slash deductibles and premiums, or roll out contests, gift cards and prizes to workers who lower blood pressure, stop smoking or shed pounds. Whatever the tool, the goal is to get more employees engaged so spiraling health care costs can be brought under control.

Alexandria’s chief operating officer, 52-year-old Al Sholtz, said his health costs stopped rising and his work wellness program added years to his life when it helped him quit smoking.

Machinist Eric Johnson lost 30 pounds and returned to a healthy blood pressure with help from nurses who took his blood, weight and blood-pressure readings monthly during “lab days” at work.

Having a full menu of wellness options sparks jealousy from friends. “They are really surprised by what they offer us here,” Johnson said. “They just

WO-122311015

MINNEAPOLIS — Five years ago Alexandria Extrusion Co. invited nurses, dieticians, personal trainers — and even spiritual leaders — onto its factory floor to help workers battle obesity, diabetes, smoking and high blood pressure.

Since then the manufacturer has ramped up its wellness program, giving gym discounts, buying bikes for workers and hosting contests with prizes to bring accountability and financial rewards to both workers and the company.

Today, it spends $100,000 a year on a broad wellness program that has lowered employee medical claims by about $1,000 per worker. About 250 of Alexandria’s 300 workers take part in the program and many have since quit smoking, shed pounds and lowered blood pressure and cholesterol levels. The health improvements were enough to freeze premiums for two years.

For its efforts, Alexandria Extrusion just received two awards from HealthPartners and the 1,150-member Employers Association, now known as Trusight Inc. The burst of attention is prompting calls from nearby small- and medium-sized businesses that are trying to figure out how and where to start a wellness initiative like Alexandria’s.

Wellness programs are not new — they have long been staples at large companies such as General Mills, Medtronic and 3M. But they are less likely to be used at small firms, where Alexandria is the exception, not the rule.

According to Mercer’s 2010 national survey of employersponsored wellness plans, 43 percent of firms with at least 10,000 workers offer their employees some sort of wellness incentive. But only about 27 percent of firms with fewer than 500 workers offered wellness programs.

Eager to control rising health care costs, small firms are turning to each other, attorneys, insurers and trade groups for guidance.

and Krista Hatcher from the Fredrikson & Byron law firm in Minneapolis explained how small companies can avoid missteps.

JANUARY 2012

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Alexandria Extrusion workers warm up and stretch out before the start of the shift on Nov. 29 as part of the company’s extensive wellness program in Alexandria, Minn. Roger Hvezda (back to camera) lead the work out from his wheelchair.

WELLNESS

Someone

From page 30 The IRS expects wellness prizes, cash and gift cards given to workers to be reported as compensation. Other rules say wellness rewards can’t exceed 20 percent of employee health care premiums.

Still other employment laws suggest that firms that issue prizes to employees who quit smoking would be wise to also offer those prizes to workers who complete a smoking cessation class. Not doing so may conflict with the Americans with Disabilities Act, because smoking is considered an addiction.

“This is an area where I see employers get tripped up,” Linder said.

Some hop on the wellness band wagon with well-meaning contests, cash incentives, gift cards and even health screenings, only to discover later that their plans unintentionally violate medical and genetic privacy, disability,

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Alexandria Extrusion workers stretch out before the start of their shift. retirement or IRS rules, Hatcher and Linder said. They advise firms to first reach out to insurance companies, employee benefit pros and lawyers before venturing too far.

Moorman, from Alexandria Extrusion, said insurance broker RJF Agencies referred her company to Wellness Innovation Nursing Services in Wisconsin, which provided the nurses,

counselors, dieticians and trainers who visited the plant.

Alexandria also partnered with Active Living in Douglas County, Minn., to win $7,500 in grants for bikes, racks and contests that had employees biking to work for a day or riding the nearby park trails during lunch.

“There’s lots of help out there,” Moorman said. “You just have to know where to look.”

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SBA offers advice for starting a business

By CELESTE SMITH McClatchy Newspapers

CHARLOTTE, N.C. — The challenging economy isn’t enough of a reason to hold off on your dream of starting a business.

If anything, startups will help push the economy to a stronger recovery, according to Marie Johns, deputy administrator of the U.S. Small Business Administration.

“Small businesses are truly the pathway to job creation in our country,” said Johns, adding that it’s never been easier to start a company, thanks to today’s technology.

Johns recently visited Johnson C. Smith University in Charlotte as part of the SBA’s national Young Entrepreneur Series. The tour features panel discussions and advice from entrepreneurs on starting a business.

The tour also promotes what the SBA and federal government can do to help — from providing microloans to new businesses to counseling through local offices.

Nearly two out of three jobs created in the country come from small businesses, Johns said. And half the people working today work for a small business or in their own company.

And entrepreneurship is booming. Among those employed in North Carolina, an estimated one of five is a business owner, according to the Small Busi-

ness and Technology Development Center, a resource for N.C. businesses.

“I know there are many ideas in this auditorium,” Johns told students and local entrepreneurs attending the session. “We want to see your great ideas become great businesses.”

Johns shared some thoughts with McClatchy Newspapers on how young entrepreneurs-inthe-making can get started. Her comments are edited for clarity: ON WHETHER THIS IS REALLY A GOOD TIME TO START A BUSINESS, GIVEN THE SHAKY ECONOMY: It’s always a good time to step out on a great idea and start a business. Yes, the economy is still in recovery mode. But as history has shown, those are often some of the times when some of the most iconic businesses have been formed.

And every business starts as a small business. So with this economy, with people sometimes losing jobs through no fault of their own, people who have great skills, great resources, that’s the time for them to think about starting their own business, building on their own brand and doing their own thing. Yes, it’s a great time to start a small business. The tools are there, the economy needs the jobs, so it’s a great combination.

ON WHETHER HIGHER EDUCATION IS NECESSARY TO BECOMING AN ENTREPRENEUR:

We were excited about coming to Johnson C. Smith University. The university has a focus on entrepreneurship. We (also) have a relationship with the Department of Labor and the apprenticeship-to-entrepreneurship path. So for those young people who aren’t in a four-year institution, who are being trained for the skilled trades, whether it’s carpentry or cosmetology, they too are small businesses in the making. We want to make sure they understand the steps to starting a small business, so in case they come out of their training and want to hang out their shingle, they’re ready to do that.

ON TIPS SHE’D OFFER TO YOUNG PEOPLE THINKING ABOUT STARTING A BUSINESS: I want young people, entrepreneurs of all ages, to come to the Small Business Administration.

Often times, when you talk to people thinking about starting a small business, they ask about funding. How do I get a loan? Do I need a loan? I always advise them maybe so, or maybe not. But what you do need is the advice of a business counselor.

The Small Business Administration is a perfect partner in that regard. We have a network of small business development centers ... where a person can get advice on legal counseling, how to develop a marketing strategy, how to put that business plan together, any kind of information

that a small business may need as it relates to their product or their service. The business counseling is either free or at a very minimal

cost. I encourage folks to go to the SBA website, www.sba.gov, to find out about resources in your area.

Know-it-all neighbor creates cubicle quandry league is definitely overstepping her bounds. But since you’re not her boss, you appear to have Q. Whenever someone comes to only two choices. The first is to politely request an end to the me with a question, the woman interruptions. in the next cubicle yells out the For example: “Mary, I know answer before I have a chance to you’re just trying to help, but it speak. I think it is very rude of her to butt in when someone has really bothers me when you yell out an answer to someone who specifically asked for my opinis asking me a question. I would ion. How should I handle this? appreciate your giving me time to respond. If I don’t have the A. By trying to beat you to the information, I will gladly refer answer, your know-it-all colBy MARIE G. MCINTYRE

McClatchy-Tribune News Service

the person to you.”

Should you prefer not to have that conversation, your second option is to simply ignore her unsolicited input and continue with your own answer.

ABOUT THE WRITER: Marie G. McIntyre is a workplace coach and the author of “Secrets to Winning at Office Politics.” Send in questions and get free coaching tips at www.yourofficecoach. com, or follow her on Twitter @ officecoach.

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Social media errors require quick action McClatchy Newspapers

FORT WORTH, Texas — Carlo Galotto has gotten a crash course on Internet etiquette, such as how never to seemingly insult customers on your company’s Facebook page.

In digital meltdown, the novice pub owner, who had been drinking, groused about “spoiled Obama kids” then freely tossed expletives until a friend drove over and got 52-year-old Galotto away from his computer. The postings were deleted, but at least one person preserved a screenshot of the freewheeling diatribe to be viewed in perpetuity.

The question now: Can the Zio Carlo Magnolia Brew Pub survive Galotto’s postings that went viral, from local websites to Forbes.com?

Two public-relations professionals say the fledgling entrepreneur — Galotto is a former Lockheed Martin engineer who never ran a business before — is now doing all the right things.

And if he can deliver on promised native Italian food and distinctive, brewed-on-premises ales and lagers, he could well make it.

“Something like this can be turned around,” said Beth Hutson of Hutson Creative Group in Fort Worth. “With social media you can communicate, apologize, one on one.”

Hutson heard about the inci-

dent and organized a pro bono, damage-control “intervention.”

“It was a humbling, life-changing incident for him,” she said.

Hutson sat down Galotto and his fiancee, Luann Mancini, and lectured them on the pitfalls of social networking. Then she edited Galotto’s apology and helped him decide on a free pizza slice night — a peace offering for the first 100 people.

The public mea culpa said: “I apologize to all my friends and customers. Getting this business off the ground has been very difficult, and there have been many challenges. The last few days have been difficult, and the pressure got to me. I said many things I regret, and wish I could un-say them. ... I am truly very sorry for the way I acted and hope you will forgive me and support me. I sincerely mean this. Carlo Galotto” A chastened Galotto said he had been drinking — not his beer but cheap red wine he uses for cooking — and was sizzling over a rupture with employees. Targets of his wrath were the young workers, not the youths who frequent his pub, he said.

The clash was the latest in a series of setbacks, including replacing a new but faulty roof.

Galotto went through his life savings of $300,000, then had to sell the building and rent it back.

“I did a stupid thing to vent my anger on a business page,” he

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said. “I learned not to use Facebook or the computer when I’m not completely sober. I am not proud of myself. Facebook is too dangerous — like a car or a gun — if you don’t use it properly.”

And he doesn’t understand why he made a seemingly anti-Obama remark. He supported President Barack Obama during the 2008 election and even tried to make a political donation, which was rejected because he still holds Italian citizenship.

Dan Keeney, a Dallas PR consultant whose clients include St. Arnold’s, a Houston microbrewery, said Zio Carlo can put the whole messy episode behind it.

“I doubt much lasting damage was done by his initial comments,” Keeney said by email.

“Plenty of people patronize businesses despite, and not because of, their owners. People lined up for soup from the Soup Nazi,” he said, referring to a character from Seinfeld.

Galotto’s biggest challenge now is the continued interest, which is exposing more people to his earlier statements, Keeney said. “And this gives him further opportunities to say things he might come to regret. We call that the echo effect.

“I suspect some, like me, didn’t know the brew pub was open and will head down to check it out,” he said. “The exposure isn’t all bad.”

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Could U.S. drivers ever abide by cellphone ban? devices.

The chairman of a South Dakota trucking company said he doesn’t understand why people need to be talking on the phone while driving in the ďŹ rst place. “There’s nothing so important that they need to run somebody over because they couldn’t stop,â€? said Larry Anderson, of A & A Express Inc., a Brandon, S.D., company that hauls refrigerated products.

In New York City, Chrissy DeLuso and her mother were waiting for a cab to take them to a Broadway show. Both women agreed that texting while driving

was a bad idea and didn’t mind if the government cracked down on it.

But when it came to banning all cellphone use, they hesitated.

With a smile, DeLuso admitted she “can’t promise� she wouldn’t be talking on her cell phone even if it were illegal.

Jo Trizila, president of Dallas public relations company TrizCom Inc., said she would welcome a comprehensive ban, even for hands-free technology. “I think it would be actually good for mental health,� she said, “that you just have some down time.�

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neous results for things. They’re not willing to wait three or four hours,� he said.

McGovern, who said he uses hands-free technology 90 percent of the time, said he’s been conducting business from his car for more than 20 years, starting with an early “bag phone� that predated today’s much smaller cellphones. “It’s a total overreach of the government. It’ll be enforced erratically. They can’t even enforce the speed limits,� McGovern said.

Boston attorney Jeffrey Denner said he racks up at least 25 billable hours each week while driving. “I probably spend three hours a day on the phone in the car — minimum. In an hour, I can talk to 10 people. On my way to court, I call people to make sure witnesses are lined up. It’s become a part of my life.�

Besides, he said, there’s plenty of other distractions modern drivers deal with. “If you want to talk about distraction, you should talk about how the whole notion of technology is distracting. Let’s look at the command centers in cars right now, with the GPS, climate control, satellite radio with 9,000 options, looking down, getting directions. There are 20 different things we’re playing with in our cars all the time.�

J.R. Maddox of Minneapolis, another attorney, said it makes no sense to ban hands-free devices. “If they wanted to go that far, they should also ban speaking to anyone in the car,� Maddox said.

His hands-free device allows him to keep both hands on the wheel, maintain his ďŹ eld of vision and look over his shoulder. “The fact of the matter is we have to travel to work. It would reduce the amount of time I could actually communicate with clients and, hence, billing time.â€?

The federal government last year banned texting while driving for commercial truck and bus drivers. The ban was extended to all hand-held cellphone use last month, although commercial drivers can still use hands-free

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DALLAS (AP) — Junior Woods has a well-practiced routine for conducting business on the road: While driving throughout rural Arkansas, the electronics salesman steals a glance at his cellphone every so often, checking for text messages and emails. “I can keep both hands on the steering wheel and just look down my nose and read in 10second intervals,� Woods said in a phone interview from Rogers, Ark. “I’m actually doing that right now.�

Like millions of other Americans, Woods uses his car as a mobile office, relying on his phone almost every hour of every workday to stay productive and earn a living. So would drivers ever abide by a proposed ban on almost all cellphone use behind the wheel, even if it is handsfree? Could they afford to?

Those are just a few of the questions looming over a federal recommendation that seeks to rein in what has become an essential tool of American business.

Woods said the ban, if adopted, would devastate his sales.

Because he lives in a rural state, his minimum drive is an hour and a half. “If I have a 3½-hour drive to Little Rock, and I’ve got 100 messages to return, it’s going to turn that into a six-hour drive,â€? he said. “I’ve got no secretary.

I’m the administrative assistant.

I’m the salesman. I’m the sales director.�

The National Transportation Safety Board declared Dec. 13 that texting, emailing or chatting while driving is just too dangerous to be allowed anywhere in the United States. It urged all states to impose total bans except for emergencies.

The NTSB, an independent agency that investigates accidents and makes safety recommendations, doesn’t have the power to impose regulations or make grants. But its suggestions

carry signiďŹ cant weight with lawmakers and regulators.

Still, a decision rests with the states, meaning that 50 separate legislatures would have to act.

And many lawmakers are just as wedded to their cellphones as Woods. “I think all of us have mixed feelings on this issue. How could you not?� said U.S. Rep. Gerry Connolly, whose northern Virginia district has some of the longest, most traffic-choked commutes in the country.

Before going to Congress, the Democrat spent most of his career at the county level, driving around Fairfax County with his cellphone. Now he commutes to Capitol Hill by carpool or mass transit so he can use his phone without getting behind the wheel.

While he’s sympathetic to the NTSB’s safety concerns, he said, a blanket ban on cellphone use would be unenforceable. But he agrees that hands-free devices offer little improvement over those that are hand-held. “It’s a cognitive distraction,� he said. “The mental attention shifts ... to that other party, not to the task at hand.�

Dallas event planner Debbie Vaughan said she would abide by any ban, but her service to clients would be diminished. “I know many people are frustrated when all they get is voicemail,� said Vaughan, who spends about 10 hours a week on her cellphone in her car.

Bruce McGovern said he would have no choice but to defy the law. McGovern, who owns four Massage Envy and four European Wax Center franchises in the Dallas area, said he spends up to four days a week on the road, traveling between his businesses. “My business would go down.

We’d have problems we couldn’t solve. My employees wouldn’t be able to reach me and get timely answers,� McGovern said. “Customer issues that only I can resolve would have to be delayed. And in this day and age, customers want instanta-

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A good New Year’s resolution is to fatten retirement account The new year brings the hope of a fresh start. We often resolve to improve something in our lives when January rolls around.

Along with losing 10 pounds, financial New Year’s resolutions are common.

Many of us feel we could make Erica J. better finanFeldick cial decisions is registered representative but have no idea with Jacobson where to start.

Financial Services If you want your LLC in Cedar Falls. financial life to Contact her at 266-2445 or erica. go from good to feldick@lpl.com. great, consider one or more of the following goals as a starting point.

■ Contribute 1 percent more of your salary to your 401(k) plan this year. This small change can make a big difference in the long run. If you make $70,000 gross salary per year and contribute 4 percent of that salary to a 401(k) plan, you are contributing $2,800 per year, or $233 per month. Increase your contribution from 4 percent to 5 percent, and you’ll contribute $3,500 per year, or $291 per month.

That’s an increase of about $50 more each month. In 20 years, assuming a 7 percent rate of return, contributing 5 percent per year gives you $151,589 or $30,214 more at the end of 20 years than making a contribution of 4 percent per year.

■ Trim spending. January is a great time to take an assessment of last year’s spending and set goals for the new year. If you don’t know what you spend each month, save all the receipts for every item purchased in the last one to three months. If most of your money goes to discretionary purchases such as shopping, eating out or entertainment, decide how much you’d like to spend monthly on these items and stick to it. If you have more money left over, invest it, save it or give it to charity.

■ Supplement your retirement savings with a Roth IRA. It’s a good idea to give yourself choices on where and how you’ll take income in retirement. Some accounts, such as traditional IRAs and 401(k)s, are taxed as ordinary income when the money is withdrawn.

Roth IRA’s or Roth 401(k)s are not. The money is contributed after-tax, meaning you already paid. Instead of contributing to one or the other, it’s a good idea to contribute to both. If you haven’t opened a Roth IRA, consider doing so if you have greater than five to 10 years until retirement.

■ Start a 529 college savings plan for a child or grandchild.

These accounts can be opened on your own or with the help of a financial advisor. Money grows tax-deferred until it is withdrawn to pay for qualified college expenses. Use www. savingforcollege.com to identify and compare 529 college savings plans.

■ Invest in a financial plan.

When we visit the doctor, we go for a complete exam. Even if we think we know what’s going on with our bodies, the doctor may discover an issue we didn’t know existed. Similarly, it is a good idea to have a trusted financial professional thoroughly analyze your entire financial life, not just a portion. When given this chance, an adviser can often quickly recognize what could be going wrong and give you recommendations to help you improve your situation.

If you’re interested in making some financial life changes this year, don’t be afraid to ask for help. Just as a fitness trainer can help you achieve physical health and well-being, a financial advisor or planner can help you achieve financial health and well-being. A financial advisor can provide you with the tools, ideas, and accountability you may need to make and follow through on your financial New Year’s resolutions.

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CEDAR VALLEY BUSINESS MONTHLY

cvbusinessmonthly.com

JANUARY 2012

California startup sees entrepreneur-ship as visa solution an election year.

“Our solution is an entrepreneurial solution,” said Dario Mutabdzija, Blueseed’s president.

From cruise ships to oil rigs to military aircraft carriers, there are several examples of individuals living and working on ships. This one would accommodate about 1,000 people and be docked 12 miles southwest of San Francisco Bay, in international waters.

It would be registered in a country with a reputable legal system, maybe the Bahamas or the Marshall Islands, Marty said.

Residents would be subject to the laws of that nation.

Residents would be ferried ashore with temporary business or tourist visas, which are easier to get, to meet with investors, collaborators, partners and others. Mutabdzija said the ability to have face-to-face meetings cannot be underestimated when trying to gain trust — and secure funds — from investors.

“Yes, we live in an interconnected age with Skype and other video conferencing. But if you want to grow a company, physical interactions are of paramount importance,” Mutabdzija said.

“We’re a startup. We ran into this. Some people said if you’re not within a 20 mile radius, we won’t talk to you.”

The proximity to high-tech’s center, Silicon Valley, is also important.

“The talent, the money, the expertise and a cultural acceptance of risk. Elsewhere if it doesn’t work out, you’re a black sheep and the funds dry up,” Mutabdzija said.

The ship would be a remodeled cruise ship or barge Blueseed leases or owns. It would have all the high-tech amenities expected of a startup incubator and the look of employee-friendly Internet giants Facebook and Google, famous for their campuses complete with gourmet cafeterias, exercise facilities and an environmentally-sustainable design.

See SHIP, page 37

AP PHOTO

A drawing provided by Blueseed Co. shows their ferry docking next their cruise ship outside of San Francisco.

Blueseed Co. wants a vessel off the coast to house foreign workers.

RT A U Q T S FIR

ER

S G N I V SA

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SUNNYVALE, Calif. (AP) — You’ve heard of tech companies starting in a Silicon Valley garage. What about on a ship?

That’s the idea being floated by a California startup that wants to dock a vessel off the coast to house foreign entrepreneurs who have dreams of creating the next Google but can’t get visas to work in the United States.

Sunnyvale-based Blueseed Co. says immigration rules can sink promising ventures and torpedo innovation and job creation.

The ship aims to provide a remedy by giving foreign entrepreneurs a place to build their companies only a short boat ride from high tech’s hub.

“A lot of people say, ‘I’d like to go to Silicon Valley’ but there is no way for them to do it,” said Max Marty, Blueseed CEO and co-founder.

Marty, the son of Cuban immigrants, thought of the ship after listening to international classmates of his at the University of Miami business school lament about having to leave the U.S. after graduation.

Politicians have wrangled with the issue, but efforts to change the system have stalled.

Last July, President Barack Obama said during a Twitter town hall he wanted to make sure talented people who studied in the U.S. were able to stay to create jobs.

“We don’t want to pay for training them here and then having them benefit other countries,” Obama said.

A bill to address so-called brain-drain was reintroduced this year by Sens. Mark Udall, DColo., John Kerry, D-Mass., and Richard Lugar, R-Ind. The Startup Visa Act would allow immigrant entrepreneurs and foreign graduates from U.S. universities to appeal for a two-year visa “on condition that they secure financing from a qualified U.S. investor and can demonstrate the ability to create American jobs.”

But Blueseed founders don’t expect any real reform from a bitterly divided Congress during

JANUARY 2012

cvbusinessmonthly.com

CEDAR VALLEY BUSINESS MONTHLY

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PAGE 37

A personal, more meaningful approach to financial planning.

Whether you’re a small business owner, evaluating your estate planning strategies, or sending your kids to college, we can help you plan to reach your financial goals through personal, customized financial planning.

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AP PHOTO

Dario Mutabdzija, Blueseed Co. president, points at a passing ferry at a pier in San Francisco. He aims to give foreign entrepreneurs a place to build their companies only a short boat ride from high tech’s hub.

SHIP From page 36 A live-work space would cost about $1,200 a month.

Logistical support, including food and other supplies, would come from local businesses along the coast, helping the economies of Half Moon Bay and San Francisco, though it hasn’t been determined exactly which port Blueseed would use.

A helicopter also would be available for emergencies.

Critics deride the ship as a publicity stunt, and say investors would be better served contributing to ventures that help Americans create businesses. “I would say the whole thing is a perfect metaphor for how in corporate America the practice to grow talent and incubate business locally is drifting away — quite literally,� said Bob Dane, of the Federation for American Immigration Reform, which advocates for limited immigration.

But supporters of foreign entrepreneurship say immigrants are

responsible for some of the most successful businesses in the world and if the U.S. doesn’t try to attract them, others will. “The ship may sound like a crazy idea, but it illustrates how seriously awed the immigration system here is,â€? said John Feinblatt, who runs Partnership for a New American Economy, which advocates for immigration reform. The organization published a report in June that said 40 percent of Fortune 500 companies were founded by immigrants or their children.

Feinblatt said countries including Chile, Singapore and the United Kingdom have programs to attract immigrant entrepreneurs. “While the U.S. is driving people away, other countries are welcoming them with open arms,� he said. “If you miss out on them, you miss their talent, their ideas and ultimately the jobs that they create and the taxes that they pay.�

Christopher S. Bentley, a spokesman with the U.S. Citizenship and Immigration Services, said the agency has not seen

the proposal and it’s premature to comment.

Maritime experts say such an idea is feasible, but very costly. “A good single point mooring costs in the millions of dollars but it could restrain a ship-shape vessel in quite severe storms and in deep water,â€? said Bil Stewart, CEO of Houston-based Stewart Technology Associates, an engineering consultancy specializing in offshore and marine structures. “But it would be prudent if the vessel had its own propulsion if you had a PaciďŹ c hurricane come along,â€? Stewart added.

Blueseed’s idea has started gaining steam.

Silicon Valley investor Peter Thiel, a founder of PayPal, announced he would lead Blueseed’s ďŹ nancing search. Thiel has been a big supporter of “seasteadsâ€? — self-ruling cities on the ocean — and both Marty and Mutabdzija worked at the Seasteading Institute.

Blueseed wants to raise $10 million to $30 million over the next year and a half. The goal would be to launch in late 2013.

Larry K. Fox & Associates

A financial advisory practice of Ameriprise Financial Services, Inc.

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Find all your latest news in

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CEDAR VALLEY BUSINESS MONTHLY

Competition for pet meds could drive up vets’ prices McClatchy Newspapers

FORT WORTH, Texas — Veterinarians, who have traditionally derived about a fifth of their gross income from pet medicines, face ever-new rivals scrambling for a piece of this business in which dog and cat owners may pay markups of 100 to 300 percent on prescription drugs.

It has been years since the entry of mail-order veterinary pharmacies, which have since morphed into online merchants like Wisconsin-based Foster & Smith. But in 2010, Target launched its PetRX pilot program in more than 100 stores in Georgia, North Carolina, Georgia and Minnesota, and other retailers are getting into the business.

“Internet pharmacies are not our real competition, but rather the local discount pharmacies,” Tennessee veterinarian Ronald Whitford said in an article written for others in the profession last year. “Any time you cannot dispense with at least a 30 percent markup, you lose! And even then it is not worth the time and effort.”

But 30 percent is an excellent profit margin for high-volume chain retailers.

Target’s PetRX is now in 670 stores in 25 states, spokeswomen Erin Medsen said.

“The program has been really well-received,” Medsen said, noting that Target pharmacists can add flavors like chicken, tuna and roast beef to make liquid medicines more palatable to Rover or Princess. All Target locations with pharmacies not in the program can still dispense drugs for people and pets, she added.

Walgreens has been filling such scrips since at least 2009, when it sold 400,000 in 10 months, according to VIN News Service, which covers the veterinary medicine industry. A spokeswoman said pets can be enrolled in the chain’s family prescription plan, but stores mostly carry

crossover drugs suitable for people and some pets.

In the past year, Kroger grocery stores quietly rolled out their own pet med program, frequently undercutting veterinarians’ prices, particularly on drugs in its $4 generic program like common antibiotics for animals and people.

Now a bill before Congress would make it easier for dog and cat owners to get written prescriptions for use beyond their vet’s office. To some, all of the new competition has reached crisis proportions.

The profession is at a critical crossroads, Lowell Ackerman, a vet with an MBA who taught at Tufts University, said in a 2011 article titled “Barbarians at the Gate.”

Ackerman said that there is no way vets can compete with $4 generics and that they shouldn’t.

Instead, he advised them to stock higher-priced, pet-only labeled drugs.

He also recommended that vets set up their own mail-order business, sell pet health insurance, keep the inventory lean and expect to be paid on a professional basis for professional services.

Pet meds are “a very competitive marketplace,” said Ralph Winston, a Kroger patient-care staff pharmacist in Fort Worth.

Kroger’s marketing and pharmacy teams decided to market the items in April after managers said patients were asking whether the stores filled pet prescriptions, spokesman Gary Huddleston said. But Kroger apparently hasn’t lavished big marketing dollars on the program, with some stores putting up hand-lettered signs to inform customers.

Such drugs as the steroid prednisone, the antibiotic amoxicillin, and tramadol for arthritis and pain relief are human-pet crossover drugs that sell for $4 as generics, Huddleston said.

See PET MEDS, page 39

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cvbusinessmonthly.com

JANUARY 2012

JANUARY 2012

PET MEDS From page 38 One Fort Worth veterinary office said it sells the same medicines for $23.

For dog and cat lovers unaware that they can have prescriptions ďŹ lled elsewhere, or are too embarrassed to ask their vet to write a scrip to be ďŹ lled by busi-

cvbusinessmonthly.com

CEDAR VALLEY BUSINESS MONTHLY

ness rivals, Democratic Rep. Jim Matheson of Utah would like to make it easier.

H.R. 1406, which he proposed in April and remains in committee, would obligate a veterinarian to write out each prescription whether or not the customer requests it. It also prohibits the vet from charging for the scrip and from making the customer sign a waiver absolving the practice of liability.

THE COURIER

iManufacture Northeast Iowa Manufacturing Conference iManufacture, the 2012 Northeast Iowa Manufacturing Conference, is hosted by Hawkeye Community College and Geater Machining & Manufacturing, Co.

We want to hear from supervisors and decision-makers about: Â&#x2021; 0DUNHWLQJ WKH PDQXIDFWXULQJ LQGXVWU\ WR WKH SXEOLF Â&#x2021; /DERU QHHGV DQG UHFUXLWPHQW WUHQGV Â&#x2021; 1HZ WHFKQRORJ\ HTXLSPHQW DQG WUDGHV LPSOHPHQWHG LQ WKH DUHD

'DWH Wednesday, February 1, 2012

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WO-122311039

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%ULWWDQ\ -XQJFN $GYDQFHG 0DQXIDFWXULQJ &RRUGLQDWRU EULWWDQ\ MXQJFN#KDZNH\HFROOHJH HGX

Jack Jennings, CCIM

Dustin W. Whitehead, CCIM

Warehouse

Flex Space

1508 Jefferson Street, Waterloo t $1,100/mo. gross includes utilities t 2,400 sf available t Zoning: M-1 Light Industrial

t 12â&#x20AC;&#x2122; Overhead Door t Radiant Heat t Small Office & Restroom

35 Fletcher Avenue, Waterloo t t t t

$399,000 $4.50/sf NNN 14,600 sf 6 overhead doors & 1 dock

Light Industrial

$425 000 $425,000 $6.00/sf gross + share of utilities Building size: 8,000 sf Available space: 4,000 sf Zoning: C-2

t EExcellent ll opportunity i ffor an owner-occupant t Extra ground across the street for parking

t Zoned for light industrial but great for office/retail t Can be divided t In CURA and NMTC districts

Warehouse Space

128 Sycamore Street, Waterloo t t t t t

Brady A. Gruhn, CCIM

311 B Avenue, Grundy Center t $2.00/sf NNN t Up to 38,905 sf available in two buildings t Can be leased separately t Can be divided

t Nice, clean, easily accessible warehouse space t 18-20ft. ceilings, docks and overhead doors t Radiant Heat

For information on these and other commercial listings, call:

(319) 277-8000 www.LockardOnline.com

All information contained herein is given by sources deemed reliable. While we have no reason to doubt its accuracy, all information is provided without representation of warranty.

WO-122311054

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