Why Chad Perce was chosen as your 2012 Small Business Leader of the Year (SBLY)

By Wendy Bautista

Chad Perce, CEO and co-founder of iMethods (www.imethodsinc.com) and your Small Business Leader of the Year for 2012, began his business education before he could drive when he launched his first startup—a neighborhood lawn care empire in his hometown of Lake Mary. Even then, at the age of 15, he learned about the importance of delivering for the customer. “It was quickly apparent to me that the best way to earn and keep clients was to work hard and pay attention to the details,” says Perce.

Those early insights have served him well. Since founding iMethods’ original iteration, Medical Methods, in 2004, Perce and his business partner Clint Drawdy have grown the company from a clinical staffing firm with two full-time employees to an award-winning Information Technology (IT) recruiting and consulting corporation with a sizable staff and projected revenues of more than $10 million for 2012.

A push start

“I would love to say that iMethods was born out of a long and highly scientific market study, but it really grew out of a confluence of skills, experience and opportunity, given an extra push by a dare,” says Perce. “Clint and I had strong combined backgrounds in IT and recruiting and we’d dreamed of starting our own company since the late 1990s.”

Perce says iMethods might still be a dream if their wives didn’t challenge them to “put up or shut up” at a family barbecue, which was also about the time an existing client helped him identify a need for clinical staffing in the medical field.

Energized by the opportunity and the challenge, Drawdy and Perce started Medical Methods in January 2004, recruiting physical, occupational and speech therapists for national and local clients.

Based on their existing relationships with Baptist Health and Brooks Rehabilitation Hospital, Medical Methods was ahead of the demand for contract therapy services, which put them on the leading edge of the market and well in front of their larger competition.

“Our good timing, positioning and newfound expertise in the medical therapy market allowed us to launch nationally with clients such as RehabCare, Heartland and Tenet,” says Perce. “We achieved annual revenues of $415,000 our first year with just two employees—myself and Clint—doing all the selling as well as operating and delivering for our clients. Three years later, that business reached its peak at $3.6 million in annual revenues.”

Making changes

As the market matured and competition pushed margin and supply down for contract therapy services, they diversified their footprint and transitioned away from the now-sluggish clinical skill sets business model to a faster, more agile model in technology.

“It was a wonderful chance to reconnect with old friends in the IT world and continue building our business,” says Perce. “We launched our new IT recruiting business, iMethods, in 2007, well aware that the shift in focus would slow our near-term growth, but believing it would be of great benefit down the road.”

Like many businesses, the recession was a big problem. Perce states that the recession may have affected them earlier than some because demand for recruiting services is an early indicator of economic health.

“The cherry on top of our recession sundae was the fact that we’d made a strategic decision to shift away from clinical staffing to IT services in response to competition and a changing marketplace,” says Perce. “We were in new territory, the economy was crashing around our ears, and the going got pretty tough for a while.”

But iMethods’ growth was noteworthy: revenues for the newer company grew from $1.5 million (2008) to $2.1 million (2009) to $2.8 million (2010). In the fall of 2010, they sold Medical Methods in order to focus exclusively on iMethods and develop the structure of the present corporation and map out the road ahead.

The right decision

For Perce and Drawdy, the decision to refocus on technical staffing was the right one. iMethods has been ranked in the “Inc. 500” (399)/”Inc. 5000” (3,790), placed sixth in the Jacksonville Business Journal’s “Fast 50” in 2008, and was designated twice as one of the community’s  “Companies that Care” by Jacksonville Magazine.

Of the various recognitions, the value-driven Perce particularly cherishes the five “Best Places to Work” awards from Florida Trend and the Jacksonville Business Journal. “I am passionate about the culture of our company,” he says. “If our internal relationships are strong and we stick to our values, our external performance is better and our work is more fulfilling.

“We have diligently worked to create a culture that supports individual growth, healthy relationships and the highest good for all concerned, but we’re well aware that sometimes even the best intentions can erode in the face of the daily struggle to succeed.

“The fact that we’ve been able to preserve a sound culture while garnering positive results for our clients, employees and job candidates is a source of daily satisfaction.”

And with that, iMethods is now an award-winning, values-driven IT staffing and consulting company. Its premier healthcare IT consulting division pairs world-class experts with leading healthcare providers to provide customized consulting options. Its local IT recruiting division identifies and employs top technical professionals in specialties ranging from desktop and network engineering to .NET and application development.

Today, iMethods’ two divisions are expected to exceed $6 million for 2011.

Looking forward

iMethods has been blessed with tremendous growth, which Perce believes has stemmed from strategic thinking, visionary planning, innovative management, and unwavering adherence to their core values—with a healthy dose of outside wisdom and serendipitous timing thrown in.

“I have set and implemented strategies for its growth ever since its inception, successfully anticipating and responding to market trends in a way that has made iMethods nimble and profitable—even in the worst economic recession of our lifetime,” says Perce.

“While our path hasn’t always been easy, our constant commitment to lifting up our employees, recruits and the community has resulted in success beyond our fondest dreams. It has also allowed us to make a positive difference in the lives of individuals and our community. We are truly on a mission!” Perce continues.

“This business was founded on faith, and Clint and I have adhered to our mission and values since day one. By matching skilled professionals with the needs of business, we create value for our clients, ourselves and our candidates, and we are proud and honored to have the opportunity of providing meaningful work for individuals and helping to grow the economy of this community we love.

“Although in different roles, Clint and I have worked together from the beginning,” says Perce, “and any recognition of my leadership is also recognition of his contributions. Our business partnership is a primary ingredient to our success.”

Wendy Bautista is the editor of Advantage Small Business Magazine. She can be reached at Wendy@advantagebizmag.com or 904-222-8140.

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Business vitals

Owner: Chad Perce and Clint Drawdy

In business since: 2004

Projected growth: “My role has been to set strategy and direction for both divisions in anticipation of—and response to—market trends; then successfully execute that strategy. I believe our growth has stemmed from strategic thinking and strong adherence to our core values, with a healthy dose of great advice and fortunate timing thrown in.

“By utilizing the expertise of a volunteer advisory board, playing to our strengths and planning at least two steps ahead for the future, iMethods has been on the leading edge of contract medical services and electronic medical records while meeting the ongoing need for high-quality IT recruiting.

“In the process, the company has grown from a clinical staffing firm with two full-time employees and first-year revenues of $415,000 to an award-winning IT recruiting and consulting corporation with a sizable staff and projected revenues of more than $10 million for 2012.

“Our Big Hairy Audacious Goal (BHAG) for the next three years is to exceed $20 million in revenues,” says Perce.

How you can do it

“My partner Clint Drawdy and I are quick to admit we don’t know everything about running a business. Fortunately, we know a number of people who collectively know everything we don’t—and five of them have generously agreed to serve on our volunteer advisory board,” says Perce.

The volunteer advisory board, which has met frequently since just before Perce and Drawdy formed the original company, provides wise counsel, holds them accountable for results, and is generally a blessing to them throughout the life of the business. With intellect, experience and expertise, they provide a sounding board for strategy; answer questions about banking, legal matters and operations; and perform a host of other valuable functions.

“They are anxious to help and have greatly shaped and influenced our business for the better,” states Perce. “Creating the board may have been the single best step we took in planning our business development!

“When we first formed Medical Methods, Clint and I were experts at sales and delivery, but encyclopedically ignorant on just about every other aspect of running a business,” says Perce. “The advisory board’s expertise and wise counsel has been critical to iMethods’ ability to transcend challenges.”

A book titled, “Now, Discover your Strengths” by Marcus Buckingham and Donald O. Clifton ended up being another critical success element. Perce recalls how the message of the book—working to address your weaknesses wastes valuable time and energy and how you should play to your strengths instead—profoundly affected the way they viewed themselves and their workforce.

“When we altered some employees’ roles in accordance with this idea, they blossomed,” says Perce. “They gained greater satisfaction from their work and became more productive as well. We continue to apply the ‘strengths’ principle on many levels with excellent results. In fact, we apply it to our interview process, requiring promising candidates to complete a ‘strengths profile’ to confirm they’re the right match for a specific position.”

Perce and Drawdy also account iMethods’ survival, growth and subsequent success with their commitment to trying at least one or two new ideas each year. “Our wheels are always turning, especially when it comes to creating close or synergistic lines of service that could increase our footprint in the marketplace,” says Perce. “We operate on the theory that baiting multiple hooks increases your chance for a good catch, even in the rough economic waters we’ve all had to navigate over the past several years.”

Giving back

Because of iMethods’ focus on service, it’s not surprising that it has been active not just on behalf of its clients and employees, but to the larger community as well. Upon founding the business, Perce started an internal Mercy Ministry to support the employees and the community in times of need.

To date, that ministry has conducted numerous food and clothing drives and provided monetary support for individuals and families in crisis. The company has also supported numerous local charities, including the Boselli Foundation, The Sulzbacher Center, Make a wish Foundation, Heart for the Heartless and the MS Society.

Its major community focus, however, has been its association with Baptist Health Foundation, primarily through activities to benefit Wolfson Children’s Hospital.

“I am the founding and current chair of the One to Grow On Ultra Marathon, which raised more than $1.1 million to date, I served on the 2011 committee for The King of the Court Tennis Challenge, and we all participate annually in Wolfson’s Red Wagon Parade,” states Perce.

Along with the rest of the committee that conceived and implemented the Ultra Marathon, Perce made a three-year commitment (through 2013) to the race, with a goal of raising $1.5 million toward the purchase of a 3 Tesla MRI, a piece of equipment that will reduce the need for invasive exploratory procedures on children. This equipment will be installed in the new tower currently under construction at the hospital’s downtown campus.

“Learning the stories of children who have received care at Wolfson’s has been incredibly touching, and I am honored and proud to be associated with this incredible organization,” says Perce.

Another event connected with One to Grow On is Run 5 to Keep Kids Alive, a five-mile race that takes place during the overall event. iMethods is the title sponsor for the 2012 run and was the Internet Sponsor for the overall Ultra Marathon in 2011.

In the local business community, iMethods is a member of the Chamber’s Jacksonville IT Council (JITC) and is also active in multiple technology groups such as the Jacksonville Developers User Group (JAXDUG). Many of the JITC members are active in JAXDUG, which provides opportunities for developers to learn from each other through speakers, forums and mentoring, culminating in an annual educational intensive called “Code Camp.”

“We have supported this event in numerous ways over the years and enjoy the opportunity to share knowledge with our colleagues in the region,” says Perce.

Business planning

“For many years, we have followed Verne Harnish’s process for developing an annual One Page Plan for our business. As part of the Gazelles organization, Verne mentored us through a three-year entrepreneurial Master’s program hosted by MIT in Boston.

“While the plan is only one page, creating it is a complex exercise that helps solidify the company’s core values, purpose, and actions. The plan defines a one-year goal, a three-year target, key performance indicators (KPIs), and other valuable guideposts that keep us on track.

“Complementing the One Page Plan is our standard meeting rhythm, which follows the metrics outlined in the plan. Our teams have daily, weekly, monthly, quarterly and annual meetings that focus on communication and progress toward our stated goals,” says Perce.

“While this may sound like over communication, quick and effective meetings with well-defined agendas have been critical to iMethods’ success and momentum.”

Think differently to save cash instead of saving taxes this year

By Greg Crabtree, CPA

Every business owner knows the drill; you made a profit this year so you need to spend your cash to save on taxes. Try to think differently this upcoming year to “save cash” not “save taxes.”

The inherent flaw in spending your cash is that you have to spend a dollar to save 40 cents in tax, which just seems like a bad idea. You come up with excuses to spend money you think you would have spent anyway—you buy new computers, some extra supplies, a new vehicle because you heard you can “write it off.”

The point is that if you did without those costs up to December, maybe you did not need to spend it after all! Most successful entrepreneurs spend a dollar at the last possible moment it is needed.

Build wealth or save taxes?

You can only build wealth from “after tax” income, so every attempt to lower your taxes lowers your ability to create wealth. The number one key performance indicator of wealth creation is “how big of a check did your write to the IRS.”

If you did not write a big check, you either cheated or you did not make any money—both are bad. Do not pay more taxes than you should, but you should be focused on building wealth above savings taxes.

What if I am cash basis?

For those who are a cash-basis businesses, you can easily fall into the trap of draining your cash paying off vendors at year end. While this seems enticing, you eventually take it to the illogical extreme and have such a huge amount pushed forward it causes you to make sloppy decisions at year end.

Here are just a few of the issues that you could encounter:

•Bank financing. Your year-end financials are more important than ever these days. By focusing on taxes instead of good business fundamentals, you distort your balance sheet at year end and spend the next year explaining why your balance sheet looks bad at December so you can get your line of credit or bonding renewed.

•Missed opportunities. Because you dumped all of your cash in December, it takes longer than you think to build it back in January and February. By not having cash available to start new projects, you delay or miss out on new opportunities. To delay acting on an opportunity wastes a day of potential productivity that can never be recovered.

•“Deferring Taxes” versus “Saving Taxes.” Did you really save taxes or did you just defer them? Be honest with your language when you spend your year-end cash. It is not saving taxes unless you are saving at a high rate this year and you pay a lower rate in the future.

Not likely to happen. Most entrepreneurs defer taxes at year end and push their rates down into the lower brackets to end up paying at a much higher rate in the future when they have kicked the can as far down the road as they can.

•Borrowing money to finance that year-end equipment purchase. This is the ultimate tax trap. You borrow $100,000 to buy that new piece of equipment (that could have been delayed) and you end up taking the expensing election on the equipment. Inevitably, this purchase pushes you down into the 20% or lower bracket.

The only way to repay debt is to make after-tax profit. To make enough profit to repay the loan, it pushes you into the higher brackets and you end up paying close to 40% tax to generate enough cash flow to get out of debt (if you are lucky).

A better way to think

You need to approach taxes as the logical outcome of a profitable business that is your primary wealth-building engine. These are the keys to make this happen:

•Owners wages. Set your wages out of the business at a market rate for the job you have in the business. Then live off of that wage. Do not fall into the trap of consuming the profits of the business.

•Get profitable with the business you have. Once you properly set your wage as an owner, your net income gives you a true picture of the profitability of your business. If you are not profitable, the key is to make all labor productive and eliminate any labor that does not add value. You have to get your current business model profitable before you grow.

•Grow your own capital. Once you are profitable, retain after tax business profits until the business is fully capitalized. One definition of being fully capitalized is having two months of operating expenses in cash with nothing drawn on a line of credit. A business that has two months of cash can act on opportunities as they come up and you do not need to “get permission” from your banker.

•Get shareholders healthy. Once the business is fully capitalized, you can then take distributions to get your personal finances healthy. Get out of debt first (yes, that means all debt… including your home!), and then build up your emergency fund.

•Strategically redeploy profits. Once your business and personal finances are stable, then you can make strategic decisions about the after-tax profits of the business and decide if you want to grow the business larger or just continue to harvest the profitability of the business.

•Beware of “consumption cancer.” Everything you buy owns a piece of you and creates a financial drag. If you learn to live off your wages and leave the profits of the business for wealth creation, you have mental clarity of what produces wealth, what is investing and what is consumption. If you set a lifestyle target before you have the income to act on it, you will stand a better chance to control consumption.

It is time for entrepreneurs to get back to fundamentals and build profitable businesses that do useful things and grow your own capital. Stable businesses are the ones that create jobs that last and build a strong economy that can weather the storms of the market.

Greg Crabtree has worked in the financial industry for more than 30 years and founded Crabtree, Rowe & Berger, PC, a CPA firm dedicated to helping entrepreneurs build the economic engine of their business. In addition to serving as the firm’s CEO, Crabtree leads the business consulting team—helping clients align their financial goals with their profit model and their core business values. He is the author of Simple Numbers, Straight Talk, Big Profits! He can be contacted through www.seeingbeyondnumbers.com.

While it may be something we all played in our childhood, kickball is more than that for Keith Johnson, CPA, owner of Keith E. Johnson CPA PA.

“I think the last time I played kickball before I started playing in this league Jimmy Carter was president,” jokes Johnson. “But I find it a great way to stay fit and the people are great. I may be the slowest person on the team, so it’s not a pretty sight when I am up at bat, but I have a great time playing.”

Johnson got involved with adult kickball about four years ago through a website called MeetUp.com, which is where people can “meet up” with other people with a common interest, such as wine tasting, flag football, happy hour groups, small business networking groups, book clubs, etc.

“I started back in 2007 with one group and through that I got an email about a kickball group. I emailed back for details and decided to go,” says Johnson.

Let’s kick it!

That meeting ended up segueing into the World Adult Kickball Association or WAKA (www.kickball.com). “Basically, it was a practice—but I had such a blast that when they asked if I wanted to join the league, I couldn’t say, “No!”

The leagues are made up of four to 16 teams of co-ed adults (ages 21 and over) of all skill levels and thegame is played just like the elementary school game—with the big red playground ball. Each team has somewhere around 20 people and the rules state that you have to have at least four guys and four girls to play and you can play up to 11 on a team.

“One other fun aspect are the team names,” says Johnson. “They are usually clever and a little risqué, but still off a kickball theme. My first team was called ‘New Kicks on the Block,’ while one of my more recent team names was ‘Pitches Be Crazy!’”

Time out

Johnson especially likes that kickball doesn’t really take a lot of his time. A WAKA kickball season generally consists of eight regular season games and a league championship tournament with qualifying teams from each league being eligible to compete in the annual Founders Cup World Kickball Championship held in Las Vegas.

“There are three leagues a year—summer, fall and spring—but I don’t/can’t do the spring season because of tax season,” says Johnson. “There is usually only one practice a week, but basically you show up on Thursday night ready to play.”

Johnson’s team meets at Carver Park, where the game is designed to be played for six innings or within one hour. “You remember playing it as a kid and it being competitive and good natured, and here you are playing it again with adults, a referee, scoreboards, schedules, league standings, and playoffs,” says Johnson. “But at the same time, we all know there is a lot more to life than kickball.”

Competitive edge

This past season, WAKA split the league into a competitive side (a little tougher and a sidearm ball pitch) and a fun side (slower ball pitch), of which Johnson chose the competitive side. “I want to be competitive; I don’t want to be a wimp. I’m out to win!” jokes Johnson. “The thing about the leagues is, yes, everyone wants to win and, yes, you want to be competitive, but it’s really about the social aspect that is more important.

“I started doing this in ’07 and I’ve noticed that it is tougher to play now than it was when I started,” says Johnson. “Physically I can tell I am older now than I was just a few years ago, but I intend to keep playing as long as my body holds out.”

Keith E. Johnson CPA, is owner of Keith E. Johnson CPA PA in Jacksonville, Fla., a full-service CPA firm providing accounting, auditing, consulting, and tax services to individuals, businesses, and non-profits. He can be contacted at 904-727-0077 or kejcpa@comcast.net.

Five ‘musts’ for creating a great first impression for your employee

By Polly White

To paraphrase an old saying, employees are not your greatest asset—great employees are your greatest asset. Whether your organization is large or small, make sure you set the stage for their success by creating a positive first impression by implementing these five “musts”:

1. Have a plan. The difference between a worker who becomes productive quickly and one who languishes is often how well they are oriented to their new company. The first hours and days of an employee’s new career are the time when they become acquainted to the requirements and expectations of their job, the culture of the organization and where and how they fit into the company.

You can greatly increase the speed at which your employees become fully productive by having a personalized orientation plan in place for their onboarding. The plan should balance time spent learning about the organization and their coworkers’ responsibilities with his or her specific job duties.

It is not necessary that their first hours be spent filling out the myriad of employment-related forms. This may be convenient for HR, payroll or accounting, but does not create the best first impression. While the employee will eventually need to fill out certain forms, most federal and state requirements allow the new employee and your company several days to complete the task. Spending your first hours creating a friendly, comfortable and productive experience for the employee is a better use of time.

2. Have a place for your new employee to call their own. Whether the employee will have a desk, a locker, a workstation, or a peg on the wall, you should have it labeled, clean and stocked with all of the equipment the employee will need to do his or her job. Nothing says, “We really want you to be happy and productive” like a well-appointed workstation.

When desks and workstations are left empty for any length of time, two things happen. First, any useful equipment, office supplies or gadgets seem to walk away. Second, the empty desk becomes a dumping ground for stacks of papers, files and other debris. The day before the new employee is to arrive, take a few minutes to restock the workstation and clean off unnecessary clutter.

3. Introduce them to their co-workers. Most businesses provide new employees with the standard tour and introduction. While this is a step in the right direction, there are ways to increase the benefit to the organization. Spend at least part of the first day celebrating the arrival of the new employee.

Have coffee with everyone on the team, allowing time for socializing and rapport building. If possible, add a donut or other snack into the mix. There is nothing like food to help with bonding and creating great memories.

4. Choose carefully when involving others in the onboarding process. Watch out for the “curmudgeon buzzard”— the longer-term employee who feels obligated to swoop in on your new employee and explain to them in great detail why coming to work in your organization may be the biggest mistake of their career. They peck away of the employee’s confidence regaling their new colleague with stories of times when management was unfair or unkind to the rank-and-file.

The curmudgeon buzzard carries a great deal of baggage with them that must be unloaded on the unsuspecting newbie. They are only effective, however, if they can poison the new employee before he or she has fully formed his or her opinion of the company.

Keeping the buzzards away from your new hires during the first few hours or days of their employment will allow the new employee to form a favorable impression of your company—one that will be hard to change. Coach the new employees yourself or assign them to employees who will represent your company in its best light. The rewards will be long lasting.

5. Outline what the new employee needs to accomplish to succeed—then set them up for success. Finally, explain to your employee what you want them to accomplish in his or her first days on the job. Understanding exactly what you want them to do and how you will measure their success will increase the new employee’s confidence and the likelihood that you will get great performance.

Make sure the tasks you select are ones that 1) will be part of the employee’s routine assignments, and 2) are very doable. Remember, you want the employee to succeed in the early days so that they will be eager to take on the more difficult work that lies ahead.

Polly White is a principal at Whitestone Partners. She has more than 20 years of experience working with companies to improve the skills, behaviors and attitudes of their workforce. Her career has included roles in administration, human resources, curriculum and employee development. She is a noted author, speaker and instructor and has worked for companies ranging from small start-ups to Fortune 100 corporations. She can be reached through www.whitestonepartnersinc.com.

5 ways to achieve greater success from your employees

By Jolly Backer

Employee performance is an issue that concerns every entrepreneur. While a high employee-turnover rate can be costly to a business, so is having employees who don’t work up to their potential, or who have lackluster job performance. Just about every business across the country can benefit from taking measures to improve employee performance.

By improving employee performance, businesses will have a much easier time meeting the goals they have set, as well as reducing employee turnover and improving employee satisfaction rates.

Here are five ways to improve employee performance:

1. Change the environment. Often, employee performance is in line with the environment of the company. Making sure the workplace environment is positive, goal-oriented, and supportive will help to motivate employees. Start by looking at what needs to be improved in your workplace environment.

2. Improve communication. Whether the boss isn’t listening to employees enough or isn’t providing feedback, there may be room for improvement in communication. Those who communicate well with their employees will automatically motivate them to do more.

3. Provide training. Not having enough training costs companies a lot of money. The money that is invested in proper training and tools to do the job will be well worth the investment. When you invest in employees, they are better able to do their job, and will invest more deeply in meeting the company’s goals.

4. Get healthy. Obesity and health issues cost employers an estimated $73 billion or more per year in increased healthcare costs and lost productivity. Helping employees get, and stay, healthy will also help improve productivity. One way to do that is to ensure there is access to healthy snack and food options in the workplace.

5. Share goals. Employees will have a difficult time helping their employer reach business goals if they don’t know what they are. All businesses should have goals for growth or service, and should share them with their employees, which will likely motivate them to help the company reach its goals.

Taking steps to help improve employee performance will pay off. In an effort to help employees get healthy, many workplaces are replacing old, unhealthy vending machines with new ones offering healthier options. Doing this provides more nutritious food options, which will give workers a healthy energy boost while at work, while also helping them reach fitness goals, which will improve overall work performance.

Jolly Backer is chief executive officer of Fresh Healthy Vending, a company that is revolutionizing vending machines by filling dual-climate-controlled machines with healthy, natural food options, such as 100-percent juices, fresh vegetables, fruits, smoothies, and yogurts. She can be reached through www.freshvending.com.

With the new year upon us, we wanted to know if you are making any changes in 2012.

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“After 5+ years, I’m opening an office; adding specialized marketing, branding and consulting services, and more interns; and partnering with trusted colleagues on items I am not always able to work on, but some clients may ask for. So excited and ready for great things in 2012!” —Camille Clement Gregg, CEO, chief excitement officer at Outside The Box Consulting, LLC

“2012 policies and procedures are all around digital media and online communications. We will be helping more small businesses (SMBs) implement social media guidelines and online monitoring programs, as well as building out social media campaigns this year. I see SMBs doing a lot more in this space in 2012, but they first have to be informed about the possibilities of engaging with buyers online. What’s held them back to date is a sense of overload, in particular fear of the resources required to meet the expectations of social media users.” —Ilona Olayan, marketer, researcher, strategist, and social media zealot

“For 2012, I will be focusing on client communication—especially making sure clients get called back, which is always a challenge for me. My New Year’s resolutions are to simplify and recover.” —Keith Johnson Principal, Keith E. Johnson CPA PA

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“I have a number of new implementations, but since I am fairly fresh out of the gate owning my own business (no solicitors please), there are plenty of implementations I need to continue working on.”—Tommy Hobin, digital marketing consultant at Mind Jar Media

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“We will be implementing social media for 2012.” —John Gray, human resources director at England-Thims & Miller, Inc.

“I will ensure that all calls to clients will be returned within a 24-hour period.” —Pat Council, host of “Designing Your Life, Today” Radio Show at True Thoroughbred Enterprises

One of these 11 business leaders will be named the overall 2012 Chamber Small Business Leader of the Year Jan. 19. Stayed tuned to meet the winner!

“We congratulate our 2012 Small Business Leader of the Year winners,” said John Bryan, director of the Beaches Division and Chamber Councils. “They are exemplary leaders who have achieved great success in their respective fields and outstanding representatives of the Chamber’s membership.”

The 11 Northeast Florida business leaders were selected for the honor by the Chamber Councils, the Beaches Division and the Entrepreneurial Growth Division. One of these 11 business leaders will be named the overall 2012 Chamber Small Business Leader of the Year at the JAX Chamber’s Annual Meeting Jan. 19, 2012.

The 2012 Small Business Leader of the Year (SBLY) winners are:

Tara Yvette Forrest, Florida Imageworks and Promotions (www.floridaimageworks.com), Mandarin Council

Yvette is president of Forrest Florida Group Inc. dba Florida Imageworks & Promotions, a company that provides screen printing, embroidery, signs, printing, and promotional items from its manufacturing and retail location in Ponte Vedra. Yvette takes care of your apparel, promotional, sign, and marketing needs and is only limited by your imagination. She takes pride in branding your company in new, energetic, and creative ways.

Dr. Joanna Frantz, In Motion Physical Therapy (www.inmotionjax.com), Beaches Division

Joanna is owner of In Motion Physical Therapy, which provides physical therapy, massage therapy, post-surgical and cancer rehabilitation programs to the Jacksonville community. She works with local doctors to address the patient’s musculoskeletal diagnosis to correct their movement impairments. Along with medical services, she provides high-quality, injury specific rehabilitation equipment as appropriate for individual needs.

Ann Freeman, River City Security Services, Inc. (www.rivercitysecurity.com), Entrepreneurial Growth Division

Ann is president and CEO of River City Security Services, Inc., a woman-owned contract security guard and patrol agency providing armed and unarmed security services to customers in Jacksonville, Orlando and Ocala including non-profit organizations, select residential and special or seasonal security needs customers. She offers turn-key service for first-time security service buyers, with the majority of her customers being seasoned purchasers of contracted security solutions.

Sandy Knowles, Coordinated Benefits Group (www.jaxbenefits.com), North Council

Sandy is account executive at Coordinaed Benefits Group, Inc., an employee benefits and insurance solutions company that is small enough to care and know its clients, and big enough to serve its globally distributed employee population. Sandy researches and develops benefits packages for small to large businesses, implements and manages the company benefits, and provides human resource support, as well as claims and billing assistance.

Jennifer Marko, Bottle Snugglers (www.bottlesnugglers.com, Arlington Council

Jennifer is president of Marko Holdings, Inc. dba Bottle Snugglers, a plush animal designed to support a baby bottle at the proper feeding angle during baby’s feeding time, providing the feeder a free hand to tend to other tasks. She manufactures the patented baby bottle holders and sells them on her website and in stores, as well as on other retail websites in the United States and a few other countries.

Diana Otwell, Spectrum Signs and Graphics (www.spectrumsignsfl.com), South Council

Diana is president and owner of Spectrum Signs and Graphics, Inc., a full-service provider of signs and graphics products to local, regional and national companies. She provides quality sign manufacturing including wide-format digital printing, indoor and outdoor signs, ADA signs, trade show displays, channel lettering, custom banners, dimensional letters, engraved signs, menu boards, magnetics, illuminated signs, directories, routed and sandblasted signs, vehicle/fleet graphics and more.

Chad Perce, iMethods, LLC (www.imethodsinc.com), Jacksonville IT Council

Chad is CEO of iMethods, LLC, an award-winning, values-driven Information Technology (IT) staffing and consulting company serving both the healthcare industry and the broader business community. In the process, he also supports other businesses and entrepreneurs and provides meaningful opportunities for the skilled professionals he recruits. His highly personal, detail-oriented approach to client needs is rooted in his commitment to excellence and integrity.

Sandy Polletta, Edgewood Bakery (www.edgewoodbakery.com), West Council

Sandy is owner and vice president of Edgewood Bakery Inc., an award-winning, full-service bakery that has diversified its product line and structure to now include a breakfast and lunch café, full-service corporate and social catering, an on-premise banquet hall, an evening upscale bistro, outdoor courtyard dining and an online bakery with shipping for corporate or personal use. Her mission is to provide customers the best quality naked goods and food with the best customer service possible.

Ann Sabbag, Health Designs (www.healthdesigns.net), Jacksonville Health Council

Ann is founder and CEO of Health Designs, a company aimed at improving the health, well-being, and productivity of its clients’ employees. She helps companies improve employee health, contain health care costs and build a healthy and productive workplace by providing worksite health assessments, health screenings, and face-to-face health coaching that motivates participants toward positive lifestyle changes.

Kirsten Schneider, Dinners Direct (www.dinnersdirect.com), Professional Women’s Council

Kirsten is executive chef and owner of Dinners Direct, a delivery-only meal service that provides prepared, ready-to-cook meals. Customers order online from a monthly changing menu, and meals are packaged, labeled with cooking instructions, frozen and delivered to their home or office. Her mission is to help busy individuals and families put a nutritious meal on the table and reduce mealtime stress.

Jepp Walter, Marlin Technology (www.marlintech.us), Downtown Council

Jepp is owner of Marlin Technology, a technology based business supplying Information Technology services of many kinds, including but not limited to computer sales and support, PC help desk, network design and support, website design and hosting, telephone system sales and support, and data and telephone cabling. Jepp does this by helping customers understand their IT needs and desires and speaking to them in a language they can understand—not “techie.”

Why now is the time for your business to embrace remote working

By Cindy Bates

When was the last time you fielded a work call from the sidelines of your child’s sporting event or while in line at the grocery store? Chances are it wasn’t too long ago, considering the fact that an increasingly mobile marketplace is slowly but surely unraveling the sense of “office hours” and making it possible to conduct business in far more places than ever.

Not only has it become possible for you to work anytime, anywhere, but the ability to work remotely has actually become a business imperative, even for small and medium-sized businesses (SMBs).

A recent survey conducted by Microsoft and Ipsos Public Affairs gauged the opinions and attitudes of 1,285 information workers in 15 U.S. markets toward telework at their businesses. The results indicate that telework is becoming more than just a corporate perk for SMBs.

More than half of SMB information workers (59%) say their companies provide access to tech support for working remotely. Additionally, 39% of respondents report that their company has a formal telework policy, and 72% of those surveyed indicate a positive preference for remote working.

A crucial ingredient for success

The statistics point to a growing acceptance among SMB decision makers that their success depends in part upon their ability to mobilize employees. Indeed, failing to embrace remote working and the technologies that support it could result in lost business opportunities, not to mention dissatisfied employees, clients and customers.

Millennials in particular have come to expect flexible work environments, and this means SMBs will face increasing expectations of telework options from their employees, while external audiences will demand more real-time responsiveness and access to information.

Yet, SMBs do have some catching up to do when it comes to capitalizing on flexible work arrangements and making the most of technologies that support remote working. On average, SMB information workers work remotely 3.2 days per month, even though they would prefer to do so eight days per month.

A win-win situation

When SMBs embrace remote working, it’s rare that one side gains more than the other, since telework provides a host of benefits to employees and employers alike. The primary reason to telework, as cited by the survey respondents, is to counteract transportation challenges, such as escalating fuel prices and long commutes.

Additional reasons for and benefits of remote working included striking a better balance between work and home priorities, increasing productivity and needing to complete unfinished work.

Employers who support remote-working scenarios also stand to gain, since they acquire access to a larger talent pool that stretches beyond their immediate geographies and reap the benefits of more productive employees. Employers also might find that remote-working policies enable them to reduce overhead costs, since having fewer employees in-house can significantly reduce office space requirements and energy expenses.

Furthermore, giving employees the ability to conduct business outside the office often means getting more face time with customers and partners, a bonus that can sharpen an SMB’s competitive advantage.

Developing your telework plan

Each business’s remote working policies and arrangements will vary, depending on the nature of an organization’s services and products. For example, a coffee shop will always need employees present during business hours, as the functions of food service demand the physical presence of employees. But, with the right technologies in place, coffee shop employees also could easily conduct behind-the-scenes tasks, such as accounting and marketing, from remote locations.

Therefore, as you begin or refine the process of developing your business’s remote-working strategy, consider the following, while also keeping in mind that every business is unique and there is no one-size-fits-all remote working scenario:

Does your company have a formal or consistent policy around telework? If not, make steps to form one. Establishing telework policies will help employees better understand their privileges and limitations and will also set a foundation for technology implementation.

What are your business’s internal and remote technology capabilities? For instance, how easily can your employees communicate and collaborate with one another inside the office, and do they experience the same capabilities outside the office environment? Incorporating internal collaboration tools and leveraging cloud-based software that’s accessible anywhere that employees have Internet connectivity will enable them to conduct business with greater efficiency and speed both in and out of the office.

How secure are your internal and remote systems? In an effort to increase accessibility and enable instant collaboration, many business decision-makers err by relying on public networking or social media platforms, even though these solutions are not appropriate venues for the exchange of sensitive ideas and information. Therefore, invest in communications technologies with heightened security protocols, always prioritizing the integrity of your business’s information rather than getting sidelined by free solutions that can’t guarantee the protection your business needs to succeed.

For today’s SMBs, the good news is that technologies that support telework are rapidly advancing and are also becoming increasingly affordable. There’s never been a better or more pivotal time for SMBs to capitalize on the new world of mobile work.

Cindy Bates is vice president of Microsoft’s U.S. SMB organization where she is responsible for the company’s end-to-end SMB sales and marketing efforts, including SMB strategy; business development; regional field sales; and national distribution sales, channel marketing, and customer marketing. Bates is an 11-year Microsoft veteran and blogs regularly at www.microsoftbusinesshub.com, where you’ll find technology tips and resources related to remote working.

Why you need to think outside the GAAP

By Chris Bryan

Are you struggling to see the benefits of your lean initiatives? If so, you’re not alone. You started your lean journey with the expectation that the benefits would flow to the bottom line. Unfortunately, the early financial numbers may not be what you expected.

Many companies abruptly take an exit from their lean journey when early indications don’t show expected benefits. Implementing the principles of lean is a long-term initiative, however, and will ultimately provide a significant competitive advantage—but it will test your vision and leadership mettle.

Lean principles

The goal of implementing lean principles is to find and eliminate waste along the value stream. Most companies appoint a lean champion. Employees are trained and lean teams are formed to map key production processes. This process is called value stream mapping.

The objective is to identify steps and resources that add no value to the consumer of your product. Once non-value added steps are identified, the value stream map is redesigned and waste in the process is eliminated. Production planning changes dramatically. Manufacture-for-stock is reduced or eliminated in favor of manufacture-to actual-demand. When a lean team has redesigned the process, an implementation event, or kiazen event, is planned to execute the changes.

Kiazen events usually take one to several days of intense work. When the event is complete, production resumes using the new lean production flow. It is common for lean teams to shorten manufacturing times, free floor-space, reduce in-process part movement and shrink (or eliminate) inventories. Compelling evidence shows that firms, large and small, benefit from implementing lean principles.

Nothing rivals the excitement and energy generated during the early stages of a lean journey. You will feel great about gathering your employees for training, forming lean teams and redesigning your value stream maps, and everyone will be eager to participate in the initial kiazen events. The optimism is intoxicating. Soon, however, you will face the task of measuring the progress of your lean initiatives.

Challenges measuring lean initiatives

Looking to your standard financial statements in the first few months of a lean journey is likely to give you a confusing picture. Unfortunately, standard accounting methods don’t reflect the progress made by lean teams in the early stages.

Costs associated with training employees, reconfiguring production space, relocating inventory, and conducting kiazen events all hit the profit and loss statement immediately. Liquidating excess inventory, an important initiative in lean, may hit profit margins and increase trade accounts receivable in the short-term.

Worthwhile lean projects that may not result in significant costs, such as clearing production floor-space and establishing point-of-use inventory locations, may not result in immediate cost decreases (rent or depreciation).

If that isn’t enough, standard production cost accounting methods actually reward operations managers for over-producing. Often, manufacturing overhead allocations are based on direct labor hours and other activity-based metrics.

When lean teams work to reduce excess inventory, production quantities may decline, direct labor hours and other metrics may decline and create unfavorable absorption variances. When new, lean production processes are implemented and production is limited to actual customer demand, unfavorable variances may persist.

The good news is that variable manufacturing costs can be reduced immediately; however, it takes time for you to reduce semi-variable and fixed costs that make up the manufacturing overhead pool.

When your generally accepted accounting principles (GAAP) financial statements and traditional product cost reports don’t represent the early progress being made, it’s easy to be distracted from the ultimate goal. To keep your direction and focus, develop a system of specific measures that will ultimately drive broader measures of performance.

Use specific measures to motivate

It is necessary, especially at the beginning of a lean journey, that you implement a system of measurements that can be communicated back to your lean teams. Specific measures and short-term incentives based on achievement are key tools to motivate your lean teams to exert extra effort, develop creative ideas, and to challenge inefficient but deeply entrenched processes.

These measurements will encourage you and your staff to keep driving the right events even when your financial statements do not yet show the fruits of your labor. The benefits of implementing lean principles will, in time, improve your financial statements and become a testament of your leadership skills.

Considerations in measuring lean

Shareholders, owners, partners and other financial stakeholders all rely on your financial statements to measure the performance of your operation. It’s a great advantage when you can link the benefits of your lean activities directly to improving numbers and trends from your audited or reviewed statements.

This is especially true if your business needs to acquire new, more efficient equipment through financing. Consider preparing a three-tiered reporting pack that links production-floor activities to broader performance measures that drive financial metrics.

The first tier reporting can be used to summarize each kiazen event. The summary should include a brief description of the event and how the changes implemented are expected to benefit either the profit and loss statement or balance sheet. (For example, the event may reduce costs or lower inventory.)

The expected cost and benefit of the event can be estimated with your accountant, but the estimate need not comply with traditional accounting rules. One of the benefits of documenting specific kiazen events is that it allows lean champions to later revisit the event and check if the results are meeting or exceeding the estimate.

The second tier can present monthly lean team metrics that don’t show up on financial statements, but will drive the top-tier metrics directly derived from the financial statements. Examples of middle-tier metrics to support inventory reduction metrics include takt time, consigned inventory value, and JIT supplier performance.

The top tier should contain four to six broad measurements of business performance that can be derived with at least one key piece of information from the financial statements such as sales per employee, inventory turns, return on net assets, return on sales, profit to operating cash conversion ratio, and gross profit margin.

Your vision and focus will become evident over time. One of the most significant and often immeasurable benefits of implementing lean, however, is the ability to take advantage of market opportunities in your industry. Lean initiatives can provide your company with additional capacity to capture new customers and make solid gains in market share.

This reporting pack proposal will help you concentrate on the proper metrics early in your lean journey. If you maintain focus, your business will gain a substantial advantage against your competition through operational excellence and market leadership.

Chris Bryan is a CPA and CFE with Christopher S. Bryan CPA, Inc. offering CFO services and fraud prevention services to local and national clients. He is a six-year veteran of measuring and reporting the lean journey. He can be contacted at 904-437-7022, cbryan@christophersbryancpa.com or through www.christophersbryancpa.com.

How your business may still be in the dark ages

By Pete Lamson

The digital age is in full force and ledger sheets, receipt books and cash registers are a distant memory. Today, small businesses have shifted to accounting software, customer relationship management applications and point-of-sale devices to accelerate operations, improve accuracy, and ultimately to ensure their business runs as smoothly as possible—generating tons of valuable data about their businesses.

Unfortunately, this shift means all this important data is vulnerable to viruses, malicious hackers, physical damage or simply leaving your laptop behind at the coffee house.

The risk of losing your company’s most valuable asset—your business data— is real. And running your business is competitive enough without the hassle of lost files. Losing your data means potentially losing your business. Yet surprisingly, 86% of small businesses are relying on antiquated backup methods (Carbonite Inc., December 2010 SMB Data Backup Study).

Data is vulnerable

A 2011 study conducted by Carbonite Inc. uncovered that 48% of small businesses have lost digital documents or other records—up from 42% since 2010.

These businesses noted that the major ways they lost information were hardware or software failure (54%), accidental file deletion (54%), computer virus damage (33%), and theft of computers or stored data (10%).

Data catastrophe also can occur from fire, hurricane, flood, tornado or earthquake. While buildings are replaceable, lost information about your finances, your inventory, your customers, and even your email often is not.

Protecting business data

Your business’s data is its lifeline and this vital information must be backed up. Though many of you are backing up in some manner today, the reality is that copying your files onto physical devices like external hard drives or USBs is not a complete solution and does not ensure you can retrieve your files if and when needed.

When using devices like external hard drives, CDs, DVDs or USB/flash memory sticks, the backup is actually only the first step. All these drives or disks must also be removed from the business premises every night and returned every morning.

If not, anything that should happen onsite—from fire to theft—could wipe out both your original files and the backup. Even if these steps keep your backups current and separate from the originals, those hard drives and memory sticks are still vulnerable to theft, tampering or loss.

Backup with the cloud

Fortunately, technology has developed a solution, and it resides in the “cloud.” For a small fee, commercial services enable you to store copies of your files online—on tightly secured servers operated by companies dedicated to backing up business files. These services offer more than just storage; they make backing up convenient and time-efficient.

Easy-to-use, cloud-based methods aren’t vulnerable to the problems associated with those antiquated backup methods. Once you realize you need to better protect your data and ultimately your business, you need to choose the right online backup solution.

Choosing the cloud solution for your business

Here are six key capabilities to look for when trusting your files to online services for backup and restoration in case your computers crash, burn or just die:

1. Affordability. The best services may cost only $229 a year to back up an unlimited number of computers in your company. This is a predictable, sustainable cost you can plan for. It’s really the lowest insurance premium you’ll keep on your books, and it protects the most valuable asset in your business—your data.

2. Automatic backup. The files on your business computers should be copied and stored on a cloud-based server without you needing to do anything but register with the service. As you create new files or edit existing documents, the files should back up automatically.

3. Easy restoration. With online backup, you no longer need to worry about transporting your backup files daily. The cloud-based servers are far removed from your location, so if something unfortunate did happen onsite, you could retrieve the data you created on your computers. The service you choose should enable you to simply boot up a new computer, connect to the Internet, visit where your files are stored, and download your files. The best cloud-based backup services will even place your restored files in the same folders in the same locations as they were on your original computer.

4. Anywhere, anytime access. You don’t need to suffer a disaster to be saved by online backup. The best backup services allow you to retrieve whatever files you need by accessing it from your laptop computer or smartphone. Now, when you are with a customer offsite and realize you urgently need a particular file to document an action you have taken or an invoice you sent, you can have it on hand.

5. No extra equipment. You should only need to register and download a small piece of software that lets you retrieve or restore your files. Everything else should happen automatically.

6. Security. Most cloud-based backup companies encrypt every byte of data throughout the complete process—uploading, storing and downloading a file from the cloud. It’s the same secure technology that banks use for their online operations.

Once you have an online backup service in place, you will have safe, certain, anytime-anywhere access to your files. If your business expands, you can extend your backup service to more computers or locations.

Knowing that your company’s data is backed up properly can provide you with the peace of mind you need to focus on running your business. You have a responsibility to your business, your employees, your customers and yourself to consider the impact of data loss and to take action to implement a backup procedure that fits your company’s needs. You can get started in minutes and be protected from whatever lies ahead.

Pete Lamson is senior vice president and general manager of the small business group at Carbonite, a leading provider of online backup solutions for consumers and small- to medium-sized businesses. More than 1.1 million subscribers in over 100 countries rely on Carbonite to provide easy-to-use, affordable, unlimited and secure online backup solutions with anytime, anywhere data access. For information on Carbonite, visit www.carbonite.com.