When LA Fitness decided to expand in Florida, it found that “all roads lead to Portofino Pools.” So, the fitness club chain approached the Jacksonville-based pool maintenance company about servicing its facilities. Portofino has since gradually taken on dozens of LA Fitness clubs across Florida.

Renowned for its service, Portofino is also known for its prominent owner. Jack Manilla is a thought leader within his industry, serving on influential association boards, elevating training standards, and advising some of the country’s preeminent companies on pool maintenance. “All my life experience is contributing to the industry raising the bar,” Manilla said.

As Manilla and other local business owners can attest, being a thought leader creates brand awareness, credibility, and opportunities that might not otherwise exist–like LA Fitness seeking out Portofino Pools. In another example, Royal Caribbean Cruise Line sent Manilla to the Asia-Pacific for five weeks so that he could train and certify the officers and crews of its ships on disinfection, operation, and maintenance of on-board pools. While at sea, his fourteen ports of call included destinations in China, South Korea, Taiwan, Japan, Hong Kong, Australia, and New Zealand.

Manilla had not solicited the opportunity. Rather, Royal Caribbean approached him after researching the pool maintenance industry. They asked if he would join a small, elite team to train its personnel throughout the world. “They said I had a good reputation,” Manilla recalled. Manilla’s reputation emanates largely from his training programs. After becoming a certified aquatic facility operator, he required his employees to do likewise. Then, he eventually became a certified instructor and launched Portofino University to train his technicians and others. He is now a sought-after speaker and instructor, traveling across the country to address pool maintenance. “That’s all I do. I know pools,” Manilla said.

The Florida Swimming Pool Association has even asked Manilla to author an 80-hour training course as part of its push to require servicers of residential pools to be licensed. “They’re really coming to me as the thought leader in the industry for education,” he said. Manilla has assumed increasingly influential industry positions, serving as a member of national, state, and local boards of directors, including for the Association of Pool & Spa Professionals, APSP® Career Institute, and Florida Swimming Pool Association.

Local entrepreneur Haim Ariav has had a similar experience in the photography industry. As founder of Glossy Finish, a six-year-old Jacksonville Beach-based youth sports action photography company, Ariav has gradually become more prominent within his industry, since he first spoke at a national conference three years ago. He spoke to members of Sports Photographers Association of America about the lessons he had learned in creating an innovative business model centered on technology, a mobile photo lab, and an efficient sales and delivery process.  The SPAA invited him back to speak the next two years, as well. Then, based upon strong audience feedback, the Professional Photographers of America asked him to speak at one of the industry’s biggest events, its Imaging USA conference in Atlanta, this past January. “There are people out there who respect what we’re doing and appreciate us sharing information about it,” said Ariav, who is also on the SPAA’s steering committee.

Ariav’s reputation as an industry innovator has helped Glossy Finish land contracts to shoot photographs at some of the most prestigious youth sporting events, and enabled the company to gain experience working with the largest organizers of such competitions. “It helps us open doors and close opportunities,” Ariav said.

Jacksonville-based Seal Shield, LLC has leveraged the reputation that it established as a leading manufacturer of dishwasher-safe keyboards by expanding into other electronics, such as remote controls and smartphones. “People recognize that our mission is infection prevention,” CEO Bradley Whitchurch said. “Our technology makes a difference.”

Whitchurch credits the company’s position as an industry leader partially to lessons that he learned through his involvement in peer-to-peer mentoring groups such as Vistage International. “When you start a company, you have entrepreneurial spirit to go along, but you reach a place where you benefit from having best practices,” Whitchurch said. “As an entrepreneur, those solutions might not be immediately visible to you.”

Whitchurch recommends that entrepreneurs and aspiring thought leaders plug into peer groups so they can obtain more information from outside their companies. “You don’t have to come up with this stuff alone. You can stand on the shoulders of giants,” he said.

Brad Hams, founder and president of Ownership Thinking, an international consulting and training firm, recently invited Whitchurch to join a peer group comprised largely of CEOs from Fortune 1000 companies; or, perhaps viewed another way, a preeminent group of thought leaders. “The more outside information you can get, the more you can implement, and the more successful you are,” Whitechurch noted.

From Working Class to First Class

Born to a working-class family in a blue-collar steel town in Western Pennsylvania, Jack Manilla has thrived in a white-collar world; but not without getting some dirt and grease under his fingernails.

Told by a high school guidance counselor that he was destined to work in the mill because he was “not college material,” Manilla, instead, spent decades climbing the corporate ladder, leading high-performing sales teams and turning around divisions and companies. The reputation for first class service that Jacksonville-based Portofino Pools enjoys today flows largely from Manilla’s ability to combine his engineering acumen, management experience, and corporate training, with his willingness to do the dirty work that has to be done.

Manilla did not have any experience in building or servicing pools when he bought Al Jackson Pools, seventeen years ago. So, he dove in headfirst. With a single employee, a group of subcontractors, and his wife keeping the books, Manilla set about building pools just like Jackson had been doing since 1956. Two years later, an idea for an alternative business model hit him like a splash of cold water in the face.

In reviewing his financials, he was struck by how relatively little cash was left after building a pool for four to six months. He determined that he would fare better and get paid quicker for doing repairs and maintenance, like remodeling and resurfacing. He also noticed that while there were many pool contractors and builders listed in the Yellow Pages, only a handful of service companies were listed. According to Manilla, the pool cleaners were the lowest of the low in the industry’s view.

But soon, Manilla started knocking on doors, asking homeowners to allow him to service and maintain their pools. Trained as an engineer, he serviced the pools himself until he had 40 homes on a route. At that point, he would hire a technician, train the technician to work the route, and then Manilla would start knocking on doors again.

Portofino’s reputation for servicing residential pools eventually created commercial opportunities. About twelve years ago, the company started maintaining the “world-class pool water” at The Bolles School, and it continues to do so every day. Portofino now services the “crown jewels of northeast Florida pools,” Manilla said, including those at Jacksonville Country Day School, the Ritz-Carlton Amelia Island, Ponte Vedra Inn & Club, and The Lodge & Club in Ponte Vedra Beach. Portofino also remodeled one of the oldest pools in Florida, at Flagler College.

Portofino’s motto is “We do the work. You enjoy the water.” For a blue-collar worker, Manilla has created substantial enjoyment.

Fighting the Good Fight

Right place. Right time. Wrong product.

Such were the origins of Seal Shield, LLC.

In 2005, a study by University of Arizona Professor Charles Gerba found that there were up to 400 times more bacteria on a computer keyboard than a toilet seat. This research generated strong demand for a washable keyboard that Bradley Whitchurch was selling for a manufacturer from the United Kingdom. “My phone started exploding with calls from hospitals that wanted this keyboard,” he said.

Unfortunately, the product did not work effectively, so its potential went largely unrealized. However, convinced by the demand, Whitchurch went on to create Jacksonville-based Seal Shield in 2006. When Seal Shield launched the first dishwasher-safe keyboard and mouse in 2007, it proved so popular among hospitals that the company expanded its line of waterproof electronics to include TV remotes, cell phones, and other advanced washable antimicrobial solutions.

“When we came out with the waterproof keyboard, we had to evangelize it,” said Whitchurch, CEO of Seal Shield. “Now, just about everyone is using it in some capacity.” A shift in hospitals’ approach to infection control has helped. In the US, 1 out of 20 hospital patients incurs an infection. At an average treatment cost of $57,000, hospitals have sought alternative infection prevention solutions, according to Seal Shield. At one time, hand-hygiene stations were the popular form of sanitation used, but hospitals have also come to address the threats of environmental contamination, such as bacteria-ridden keyboards. Seal Shield has expanded its products, as hospitals have sought new ways to prevent infections. “Anywhere there are hard-to-wash electronics that are exposed to contamination, we’re going to make a solution,” Whitchurch promised.

Right place. Right time. Right product.

Imitated But Never Duplicated

Not only is Haim Ariav a thought leader, he’s also a “disruptive thinker.” Increasingly associated with innovators, the latter term suits Ariav, if it applies to anyone. “People see we’ve definitely put the industry on its head,” he said. A pioneer in youth sports action photography, Ariav’s Jacksonville Beach-based Glossy Finish has introduced such concepts as the mobile photo lab and an application that allows customers to view and order pictures from their smartphones and tablets. Glossy Finish also quickly prints photos, posters, and similar memorabilia so that customers leave the fields with their order in hand.

“It’s more than printing on site. There’s a whole model around it,” Ariav said. For example, customers must place a deposit if they want a photographer to shoot pictures of their young athlete. This allows Ariav’s photographers to get the best shots possible and helps the company maintain an above average sales price. “I see others trying to replicate us, but there is a cost to entry,” Ariav said. “There is also a lot of process that money can’t buy.”

Glossy Finish has worked more than 350 events since Ariav launched it six years ago. He and his team have learned much from working some of the country’s biggest youth sporting events in that time, including regional tournaments and national championships. They have honed their methods for such vital tasks as tracking photos and processing orders, while shooting millions of images. Ariav insists, though, that he is just “trying to stay ahead of the curve.”

While Glossy Finish is as close to a market leader as any company in the highly fragmented youth sports action photography industry, it faces fierce competition from “weekend warriors.” No longer content with just team photos and posed portraits of their young athletes, parents armed with smartphones and digital cameras often shoot the action themselves, instead of hiring photographers. “I spend a lot of time trying to figure out what we can do to be different and unique,” Ariav said.

That’s a common trait for thought leaders and disruptive thinkers alike.

By Jim Molis

Jim is an contributing writer for Advantage Business Magazine. He can be contacted at jmolis@creatwoodpr.com

Tradeshow Tip!

Use these helpful tips to make your time at the JAX Chamber Annual Trade Show on April 23rd a success!

The Ultimate Greeting–Your Handshake

By Carolle Vargas

We all know how important first impressions are: how we carry ourselves, our body language, dress, and appearance. When you meet someone for the first time, you are assessed before you utter a word. What people see, hear, feel and, yes, even smell, impact their first impression of you. All of this information is downloaded in seconds, and is not easily erased, if at all.

The handshake is a personal thing because we actually touch someone—the only time in business we actually touch another person. This ultimate greeting is conveyed with warmth and respect.

Be prepared. Your handshake is an extension of your personality. Polish this skill and truly shine when you present yourself.

8 Tips for a Great Handshake:

1. Be genuinely pleased to meet, greet, and shake hands. People see these sincere feelings in your eyes and smile, and they hear it in the words you use to greet them. Letting your eyes fall away while greeting with a handshake implies that you are not interested or something else is more important. It is disrespectful and people never forget how they feel when this happens. Anything missing from this important presentation will diminish, if not prevent, a great first impression.
2. Be prepared to offer your hand first. Keep your right hand free and ready. Business events are gender neutral; no need to see if a woman offers her hand first. Women, this is no time to be demure. Get your hand out there! Be aware of cultures where handshaking is not customary.
3. Squarely face the person you are greeting. Obtain a solid grasp by extending your hand–fingers forward and straight, thumb pointing to the ceiling. Aim for the palm of the hand and connect web to web (that space on your hand between your thumb and forefinger). Apply firm, but gentle pressure. Give two quick shakes from the elbow and release.
4. Take a cue and determine the best time to release if the person you are greeting lingers for a moment before releasing your hand. Remember, it’s just creepy to hang onto a hand too long.
5. Move around any obstacles so nothing stands between you and the person you are greeting. This gesture tells others they are important to you, and will win you points!
6. Shake hands when saying goodbye. Say a few words such as: great talking to you, it’s been a pleasure to meet you, hope we can meet again. Use warmth in your voice and eyes and you will be someone people will look forward to seeing again—soon.

Don’t Be This Person:

1. Bone crusher: this is not a sporting event or contest of strength. Not nice.
2. Dead fish: limp hands, fingers only, or otherwise wimpy handshake. Yes, it is perceived as wimpy.
3. Two-handed or gloved handshake: okay to use only when offering condolences. This can appear patronizing and will diminish your credibility. Best left to religious leaders and politicians.

Keep These Important Points in Mind:

• Hands Must Be Clean, Groomed, Warm, and Dry:

1. Clean hands are expected unless you are in the middle of a project that has you in dirt, grease, bread dough (hey, it could happen!), or the like. Not only should hands be clean for aesthetic purposes, but also for health reasons. Seeing someone sneeze into his or her hand and then offer a handshake is… well… disgusting. Clean includes fingernails.
2. Groomed hands mean hands that are manicured, professionally or done at home. If you have a condition that lends to warts or other scabs (yuck!), seek remedies, as these are definite turnoffs. Be sure nails are trimmed and hands are moisturized.
3. Warm hand, cold heart–or is it cold hand, warm heart? I say warm hands feel good! Unless you have just come out of the cold, be sure to offer up warm hands. That means keeping cold drinks (which also make your hands wet) in your left hand.
4. Dry hands are up there with warm hands. A wet handshake is as welcome as the “dead fish” handshake. Wet hands can come from cold drinks, ineffective hand drying, or excessive perspiration. Carry cold beverages in your left hand and grab an extra towel to ensure dry hands. If your hands tend to perspire, consider applying antiperspirant to your palms before an event.

• Rings: Zealous handshakes can make for painful handshakes when wearing overly large or multiple rings.
• Injuries: Shaking hands with someone wearing a cast or bandage is awkward and can be a turnoff. If your right hand is injured, offer your left hand. The other person will understand and appreciate the gesture. They will also be happy to not worry about hurting you.

Carolle Vargas is a business etiquette and international protocol consultant and owner of Your Etiquette Style. She is certified by The Protocol School of Washington®.  With more than 20 years in the customer service and training industry, Carolle brings to her clientele in-depth knowledge on what it takes to stand out in today’s market.

Carolle has extensive experience in the telecommunications industry where she developed and presented seminars in leadership and coached management teams. She worked domestically and internationally with colleagues and clients to promote successful and profitable relationships.

Top Five Things You Can Do to Legally Protect Your Company

By Jennifer A. Mansfield

Social media has had a vast and positive effect on business marketing. A quick tweet or Facebook posting can reach billions of consumers at almost no cost to the company.

Below is a list of the top five things your company can do to protect itself legally in this new communications world. This list is by no means comprehensive. But it can provide a useful jumping off point for getting your legal social media house in order–and potentially saving your company millions in liability.

1. Have a Security Plan–and Follow It.

New media present new means for a company’s employees, through wrongdoing or inadvertence, to release confidential or sensitive information. Hackers are also a constant threat. The improper release of confidential information can lead to unwanted publicity and legal exposure. Make sure your computer data is protected.

The FTC has taken the position that if a company is not taking reasonable steps to protect personally identifiable information (PII) in its possession, it is participating in a deceptive act under federal law. Are your company’s data–including laptops–encrypted? If the PII of your customers is too easy to access, you may be facing the FTC in the future.

Thus, due diligence in selecting and monitoring your IT security vendors is essential. Establish policies on how PII is handled and be sure the policies are followed. Technology continues to evolve at a rapid pace. Consequently, your company should review its IT systems and vendors on a regular basis.

2. Have an Emergency Breach Plan.

Notwithstanding all the efforts your company may make, hackers will always exist and people will make mistakes. Since a good defense is often a good offense, the company should plan for the worse case scenario–a breach. The plan should include a checklist of who should be contacted internally at the company, and who legally needs to be contacted outside the company. Create an emergency response team, including key personnel from IT, risk management, legal, and PR. Have key contractors in place BEFORE you need them, and a list of critical steps that must be taken to both mitigate the breach and complete the required legal notifications.

Having a plan developed before a breach could save both time and money later in the event a breach occurs.

3. Have Terms of Use and Privacy Policies for Your Websites.

Government regulations concerning advertising or communicating to others via social media can impose restrictions and regulation, as well as safe harbors from liability. Terms of Use and Privacy Practices govern not only how your company interacts with its website users, but are also tools to ensure that your company is complying with applicable regulations.

When drafting Terms of Use or Privacy Policies, keep in mind that according to the FTC, your Terms of Use and Privacy Policies are contracts between you and your website users. So, be honest and realistic. It might sound like great advertising to boast that you have the most up-to-date data security programs and procedures to protect your clients’ data, but is that a promise you can keep? How often would you be required to buy more software or hardware to keep that promise? If you have a breach, would an investigator conclude that your system was the “most up-to-date” available at the time of the breach? Terms of Use and Privacy Policies are not marketing tools; they are contracts. Careful thought must be taken when deciding what a company can promise to its social media users.

4. Have Employment Policies That Address Social Media

Employers are increasingly using social media to support their recruitment efforts and to research job candidates. But sometimes employers will receive information via social media that they cannot lawfully consider when hiring, such as race or religion. If the employer receives that information anyway, it must take steps to ensure that it does not base hiring decisions on the protected status. Company policies should be implemented setting out what information can be considered when hiring, and whether or when an Internet search will be conducted on candidates.

Social media posts on company sites also provide fertile fodder for disparate treatment claims. A mid-level manager’s discriminatory animus or statements could support a discrimination claim against the company. While employers should not be held liable for comments made on non-work related social media sites they don’t know about, they are potentially liable when they learn about harassing posts, but do nothing to stop the conduct.

Workplace use of social media can also bring federal labor law claims. Even in right-to-work states like Florida, the law protects employees’ discussions of the “terms and conditions of employment.” For this reason, the National Labor Relations Board has ruled in a number of cases that employers have violated the National Labor Relations Act by firing employees for their social media posts reacting to the terms and conditions of their employment. Likewise, the NLRB has found employee policies that violate the act when they can be interpreted to prevent or punish employees for speaking about the terms or conditions of employment with their coworkers. Therefore, even non-unionized companies should consult an attorney before firing someone over a social media post or implementing social media policies.

Companies should implement clear policies that address which employees can use social media in the workplace, what types of materials they may post, and that the company expects all employees to safeguard proprietary and private information at all times.

Employee policies should also include the proper use of intellectual property. Many people have the mistaken impression that if they find a photograph or video on the Internet, it’s okay to reuse it. But the copyright to any creative work on the Internet presumptively remains the property of the creator or the creator’s assignee. Companies, therefore, need to be careful before lifting material off the Internet and using it for themselves.

5. Train Your Employees Regularly

The above steps will be meaningless without training your employees. Company managers should be trained in employee privacy rights, laws against discriminatory communications in the workplace, federal labor relations laws, and other legal issues protecting employee communications. Appropriate Internet use on company time should become a regular part of new-employee training, and should be reinforced through company in-services and written internal communications.

With proper training and risk management, social media can provide a low-cost and reasonably safe environment for companies to expand their businesses and engage their consumers.

By Jennifer A. Mansfield

She is with the Data Security and Privacy Team and National Media Practice Team of Holland & Knight LLP and is resident in the firm’s Jacksonville, FL office.

by Michael Jones

Expansion, prosperity, contraction, recession.  The world’s economies move in great economic cycles that have continued their pattern since markets began to form.  Expansion, prosperity, contraction, recession.  Sometimes they move quickly, at others times more slowly, but always moving.  Expansion, prosperity, contraction, recession.  As often as these cycles occur, why don’t we understand them better than we do?

Large quantities of business innovation tend to occur during times of recession more than any other time in an economic cycle.  Is that because people are more creative when everything is crashing down around them?  No.  If you look at the research, there is little to no change in the rate at which new ideas are generated over time.  So what causes innovation to occur in patterns if idea generation is relatively constant?

Why does business innovation tend to occur in patterns?

During periods of prosperity, most would expect business innovation to be at its peak: money is flowing, confidence is high. But as it turns out, reality is somewhat bleaker.  During periods of prosperity, employment is also high.  The labor markets favor the employee, and the cost of innovation is very expensive.  At the same time, goods are in demand, production schedules are maxed out, and everyone is busy.  There is no time to focus on innovation.  Then the economy changes.

The economy rolls into a period of contraction.  The money supply starts to dry up; companies become concerned about cash flow.  Labor costs are still high, but buyers are starting to cut back on their purchasing.  Profits fall rapidly.  Innovation is the first thing on the chopping block.  No one is buying anyway, why create something new?  Then the economy changes.

We slide down the slippery slope into recession.  Purchasing collapses, weaker businesses fail, stronger ones cut costs and layoff personnel, unemployment is high, labor markets crumple, capital markets are dead. More companies fail.  The companies that remain are beaten down and many are struggling day-to-day to survive.  They have tightened their belts and reduced staff to the bare minimum for keeping the doors open.  They are time-broke.  There is no one left to innovate.  However, in the midst of all of this pain, we have a group of entrepreneurs that see the world differently.  Costs are low.  Labor is cheap.  Production schedules are looser.  Innovation is on sale.  What a fabulous time to develop all those new products that, during the good times, no one ever had a moment to consider.

Another group of entrepreneurs emerges. Rather than be unemployed, theses individuals decide to follow their long-postponed dream and start their own business.  They finally have the time to focus on it and costs are low.  They pour creativity into their business, developing new products, growing slowly, getting all of the bugs worked out waiting for the perfect opening when they will make their mark on the world.  Then the ecomony changes.

The economy expands, there’s light at the end of the tunnel, hope blooms, products start selling again, consumers start seeing all of these new products on the market and excitedly purchase them, market share shifts to the innovators that have caught the market’s attention. Revenue for the non-innovators falls, business models fail, more companies collapse.  What happened?  In the middle of an economic resurgence, how can long-standing companies be run over by young startups?

Innovation!  Innovation is about moving away from the safe and comfortable past and creating your own future.  As companies and products begin to slide, you have to reinvent yourself or die.  In order to innovate, you need to break out of old patterns and change the way you think.

How can companies change the way they think?

Breaking old patterns is hard–true innovation, harder still.  However, if we are to avoid the decline into product and company death, we have to be able to embrace and drive change and innovation throughout our companies.  We must transform our business models to capture the hearts and minds of our customers.  How then do we create a culture that excels at innovation?

Reward failure.  This may seem counterintuitive, but if your employees are out pushing the limits, trying to create change and innovation, they are sometimes going to fail.  The fastest way to stifle innovation in a company is to punish failure.  No one will ever take a chance again.  Instead, celebrate failure publicly and help everyone to learn from it and not make the same mistakes in the future.  This also encourages everyone to be honest about the effectiveness of their projects so that you aren’t pouring good money into bad ideas.

Fail faster.  The faster you can identify and stop a dead-end project, the less time, money, and other resources you will waste.  This means you should be constantly assessing and evaluating whether the projects you are working on are still good prospects.  Markets change, needs change, new information is discovered during the development of a project. Any of these factors can make a project no longer viable.  This isn’t to say that when a project becomes difficult, you should stop. Just take a step back, assess and ensure that you are still on the right track.

Get outside your box.  Businesses can become inbred in their thinking.  Reviewing your business from an outside perspective uncovers ideas that would never occur to those within.  Inbred thinking has many causes, but some of the most common include:

• Promoting only from within. There are good reasons to promote from within, however, periodically bringing in fresh ideas, by hiring experienced personnel from the outside, can help companies become more innovative.
• Only hiring from within your own industry. While direct experience can cut training time and learning curves, this is because everyone in an industry tends to look at issues the same way.  Hiring experienced personnel from outside your industry will bring in innovative ideas.
• Hiring industry consultants. Bringing in cross-industry consultants, who spend a good deal of their time in other industries, can bring a new perspective to the issues you are trying to solve.
• Lack of external perspective. Innovation starts at the top.  If the top leaders of a company can gain new perspectives on how other industries are addressing similar issues, they can ask much better questions and better drive innovation at home.  Consider joining a peer advisory board.  Cross-industry advisory boards have long provided a forum for business leaders to gain constructive, innovative advice before they start spending time, money, and other resources chasing issues someone else may have already solved.

Where do we go from here?

The economy is changing continuously.  How you respond to that change will determine how well your business prospers.  As Stephen Epner (John Cook School of Business) once noted,

“If we do not change, we will fail.

If we wait to change, we can only follow.

If we embrace change, we can succeed and lead.”

Where do you want your business to be?

The economy is changing, are you?

Michael Jones is the Owner of CEO Focus of Jacksonville, which provides business coaching, professionally facilitated peer advisory boards, and other support services to the Northeast Florida business community.  Previously, Mike worked as a consultant and a coach in many different industries in both the for-profit and nonprofit communities.

By Sarah Boren

Small businesses in the U.S. spend more than $60 billion a year on energy.  30% of $60 billion is $19.8 billion dollars that could be spent elsewhere in operations, retaining or hiring new employees, or buying a more energy-efficient piece of equipment.  That is a chunk of change.

Without sacrificing service, quality, style, or comfort, small businesses can save as much money, reduce pollution, improve their bottom line, and help with energy independence, per square foot, as large corporations, according to the U.S. Department of Energy.

So how do you cut utility costs by 10-30%?  EASILY!!!

First, look at your energy consumption over the last year (preferably two years if you have the data) and begin to figure out when and where you use the most energy.  If JEA is your energy provider, all you need is your account number and an email to set up free online access on their website which connects you to two years of data with graphs under “check usages,” and a free online energy audit assessor.

Second, obtain your Energy Star (ES) number so you can understand your consumption in relation to other businesses in your sector.  You can obtain an ES number in two ways: a) ES Target Finder or b) ES Portfolio Manager at www.energystar.gov.  To learn more, attend the free greenWORKs workshops on April 25^th and May 20^th (see sidebar for more details).  EXTRA INCENTIVE BONUS: If you do steps one and two and attend a greenWORKs workshop, your company will be recognized at the U.S. Green Building Council North Florida Chapter’s Annual Awards Party on May 23, 2013!

Third, perform a basic energy audit to figure out where to focus your efficiency measures.  You can do this in two different ways: a) appoint a green champion in your office to assess your energy usage by using tools and services provided for free in the community (e.g., free energy walk-through by your utility—all utilities by law are required to offer this; check out a free Home Energy Evaluation Kit from any Duval county library that has a “how to” guide and tools like watts up meters to assess energy usage; use your utility’s online energy audit assessor; search online for how to perform your own Energy Audit) OR b) pay for a professional audit [if you are in an old building, this may be prudent in the beginning of the process because the audit will provide prioritized actions and recommendations.]

Fourth, start with easy, no/low cost measures.  While there is no substitute for a comprehensive energy audit and analysis, you can start saving right away with the following measures:

• Turn lights and equipment ALL the way off when not in use.  Sleep mode still draws energy.
• Purchase energy-efficient products like ENERGY STAR qualified office equipment.
• Install lighting occupant-sensors in proper locations.
• Tune-up heating/air-conditioning (HVAC) system with an annual maintenance contract.  This will save on average 10% on your bill a year.
• Regularly change or clean HVAC filters
• Install a programmable thermostat (~$30 at a hardware store)
• Replace incandescent light bulbs with LED (preferably) or ENERGY STAR qualified compact fluorescent light bulbs (CFLs) wherever appropriate.
• Install light-emitting diode (LED) exit signs.
• Control the direct sun through windows in both summer and winter to prevent or encourage heat gain.

Fifth, continue to measure and track energy performance.  A free and easy tool to use to measure, set goals, benchmark, and track energy use and savings is the ENERGY STAR Portfolio Manager (www.energystar.gov/benchmark).

Start saving now!

By Sarah Boren, MEM, LEED AP BD+C and LEED AP Homes

Executive Director, U.S. Green Building Council North Florida Chapter & Green Team Project

www.usgbcnf.org

The Jacksonville Cannons are the newest professional franchise of ultimate to be added to the national roster of the American Ultimate Disc League (AUDL). Originally referred to as ultimate Frisbee, this exciting, fast paced game is a non-contact team sport of endurance, athleticism, and aerial passing skills played with a flying disc on a rectangular field.  With diving layouts, hammer throws, and sky catches, it is a spectator sport at its best. Locally, teams are currently playing at the youth, college, and club levels through The Jacksonville Ultimate League (JUL), a local, nonprofit sports league. But the Cannons are the only professional ultimate team in the area.

“Ultimate Frisbee is no walk in the park,” reported CNN. “It’s a fast, furious, and fiercely competitive sport.” With a skilled turn of the wrist, a disc is launched into motion ending in a leaping, one-handed grab, driving cheering fans out of their seats to witness ultimate at its finest.

Cannons owner, William Kilgannon has history playing ultimate, from his days at Bentley University in greater Boston, to his current participation in JUL and Jacksonville’s coed traveling club team, JacksOnJill. He has a personal desire to see the sport of ultimate become an integral part of the sports community in Jacksonville. “It is my mission to offer a fun, affordable, first class entertainment experience to the people of Jacksonville. The success of this franchise will be because of the devoted staff and fans,” he noted. Kilgannon is working closely with the staff of the AUDL and the city to build a dynamic organization.

The AUDL has an active northeast division consisting of eight teams who began their inaugural season in the fall of 2012, in Columbus, Ohio. The Cannons are eagerly anticipating their kick-off season in the spring of 2014, aiming to hold eight home games at a yet-to-be determined facility on Saturday evenings from April through August. “I am thrilled to be working with players and community partners, and can’t wait to meet and welcome the new fans of the Jacksonville Cannons,” Kilgannon shares.

The Factory released today that it’s startup companies are ready for customers and demonstrating their software products at the One Spark Festival next week. They’ll be located at 140 West Monroe Street, Jacksonville, 32202.

The Factory, a tech startup incubator in St. Augustine founded by software engineering company feature[23], offers a hands-on commitment to tech entrepreneurs in a collaborative workspace, a mentor-driven curriculum, partner networks, software tools, and community activities.

“There’s a lot of work that went into building this the last 18 months. Now, we have a validated, actionable plan. It’s a qualified conversation for both startups and investors,” said Jeremy Vaughan, Principal at feature[23] & Co-founder of The Factory.

The Factory’s model has a well researched approach. They assist these startup companies in not only connecting with resources, but also helping them refine their products — leading to much less waste, faster time to market, and higher quality products.

They’ve ran three (3) startups thus far through a “pilot class”:

Rod Dornsife, co-founder of Restroom Alert, comments: “Starting a new venture is hardly a slam-dunk, but it was clear from the start that The Factory intended to support Jacksonville’s entrepreneurial ecosystem. Working with a group of highly motivated entrepreneurs, like those at The Factory, certainly stokes the passion in our team and keeps us on our toes.”

Eric Ordway, co-founder of ProfileGorilla, is excited about the support his team received during the whole process: “ProfileGorilla needed passionate partners. The Factory got the technology, but they also understood that it takes much more to make things happen. You need a brand, you need marketing, you need advice and help. That’s where The Factory really hits it out of the park. They understand that a collaborative community is what makes things happen.”

Another The Factory success story is Redeploy.me, an “employee marketplace” web application that recently launched.

Learn more about Tech start up companies. View the video below.

DesertMicro Builds Upon Recurring Revenue Model

By Jim Molis

Photos by Ken McCray

You may not be able to please all of the people all of the time, but DesertMicro, Inc. has learned to please more customers, more of the time. The Jacksonville-based provider of software for waste management, recycling, and logistics companies has expanded its customer base, and created recurring revenue by selling services based upon its clients’ needs and resources. A Microsoft Certified Partner, DesertMicro offers implementation, data conversion, on-site training, and technical support staff.

Established in 1997, DesertMicro initially wrote route accounting software that allowed businesses to track costs and activities associated with their commercial vehicles, such as trucks for landscaping, HVAC maintenance, and food delivery. Eventually, it developed a niche in serving large waste management and recycling companies across the United States. However, the company’s market was somewhat limited because its software sold for $50,000. “That cost was typically prohibitive for companies with less than 100 vehicles in the field,” President Barry Grahek said.

Seeking to expand its customer base by maintaining the functionality of its software, while lowering its price, DesertMicro took it to the cloud. It rewrote the software in 2005, in the nascent days of cloud computing, so that it could offer it as a web-based subscription model. Moving to the Software as a Service model (SaaS) allowed DesertMicro to sell access to its $50,000 enterprise resource planning solution for a monthly fee that smaller companies could afford. The monthly subscription allows customers to spread out the software’s cost, which can improve cash flow and budgeting. “The customer gained a much more reasonable entry cost, and we gained five to six times the customer marketplace that we had previously,” Grahek said.

DesertMicro now serves companies with five vehicles to more than 4,500 vehicles. Its software package, The Manager, provides comprehensive, integrated waste management and transportation logistics solutions, including for routing, processing, and GPS. Clients can use this software to better run their businesses by using individual modules or groups. For example, customers use DesertMicro’s software to optimize delivery routes, monitor vehicle performance, and identify inefficiencies, like if vehicles are left idling too long.

“Our customers can now choose the most economic module for them,” Grahek said. A smaller company that may not need to file paperwork with the Department of Transportation doesn’t pay for that service, while a larger customer that would benefit from software that facilitates compliance may pay more each month for that capability. Customers pay for only what they need and want, and grow into other modules.

According to Grahek, residual recurring revenue, generated by thousands of customers paying to use the company’s software modules, now accounts for more than 60 percent of DesertMicro’s sales. Overall, annual revenue has increased at an average of 18 percent for the past five years, with sales to existing customers averaging a 22 percent increase. “As customers buy more vehicles to put in the field, they need more software and users,” he added.

Grahek expects to maintain steady growth due to the gradual improvement in the economy. “As our customers scale up, we can scale up with them,” he said. And DesertMicro can scale up quickly, without adding employees in advance of growth, but capitalizing on the increased demand as it arises. “It has been a tremendous amount of growth to adapt to,” Grahek noted.

That may be most pleasing of all.

Customer Feedback

DesertMicro offers customers its Software as a Service (SaaS), as well as a traditional model for purchasing and maintaining software. The company works closely with customers on installation and training. Industries DesertMicro serves include waste management, hazardous waste, medical waste, paper and plastic recycling, oil and solvent recycling, concrete and construction, electronic and eWaste, propane and heating oil, and petroleum distribution. The following comments from customers are from DesertMicro’s website:

“For the past five years we have been happy with the performance of [DesertMicro’s] product and have recommended it to fellow haulers… Our customers love the online invoicing and bill pay option,” Ray Scott, Price Environmental Services.

“I feel more confident using RouteManager, and if my computer crashes, I know my data is backed up properly,” Stacy Engebretson, Engebretson & Sons Disposal.

Numbers Worth Watching

DesertMicro tracks the following closely:

• New-customer sign-ons
• Existing customers increasing their sign-ons
• Customer attrition

Fingers On The Pulse

Before it offered its Software as a Service (SaaS), DesertMicro could not tell how a customer was using its software, or even if a company stopped using it all together. For example, a company may have been sold and thus would not pay for more software. With SaaS, DesertMicro tracks usage so that it can proactively work with customers to adapt to their current needs. “Those metrics of the whole customer lifecycle are much more visible to us,” President Barry Grahek said.

If a company is paying for a service it is not using, DesertMicro will determine if the customer does not need the capability, or if they are not using it properly. If it’s the former, DesertMicro can make adjustments so the customer does not pay for unneeded services. If it’s the latter, it can train the customer to obtain full use of its software. Either way, the customer is less likely to stop subscribing all together. “We protect that revenue stream,” Grahek said. “If they’re not using it, it’s not likely that they will continue with that portion.”

DesertMicro strives to maximize utilization among customers by monitoring the modules that they are accessing. If, for example, its data shows that multiple customers are underutilizing a module, they may offer a free training webinar for user groups. If the underutilization is confined to a single company, it will help them determine their vision for the software, and identify training needs that will make them more effective. “The macro data guides our strategic vision, and the micro usage data guides our tactical decisions with that customer,” Grahek said. Helping customers use their software properly, so as to fulfill their needs, strengthens the relationship thereby creating recurring revenue.

How You Can Do It

DesertMicro still sells software in a traditional model, where a customer purchases and maintains all software, databases, hardware, and services onsite. But its subscription-based Software as a Service (SaaS) is increasingly popular.

Administered and hosted by DesertMicro, SaaS provides customers access to comprehensive and tightly integrated DesertMicro solutions–without the worries of technology and infrastructure maintenance, or hardware and software costs.

Customers have embraced the convenience and flexibility that SaaS offers. “We have simple, easy to use, almost self-taught route accounting software now,” President Barry Grahek said.

DesertMicro, in turn, has generated recurring revenue from monthly subscription fees. “The key to any service company or technology company is to transition into that residual revenue stream like we have,” Grahek said. Companies can do so by determining the lifetime value of their product or service and replacing it at that time, while continuing the residual. For example, companies can sell phone systems or copiers on a residual basis, updating the product at the end of its lifecycle. “They’ll get a closer, longer relationship with their customer because they have more contact with them over a longer period of time, and will generate more revenue in the process,” Grahek said.

“Though it might be easier for technology companies to create recurring revenue models due to the nature of their products and services, other types of businesses can do so, as well,” Grahek said. “Any company has an opportunity to create residual income just by looking at their longest customer relationships, understanding what those customers purchase from them, and turning that from individual purchases into continual monthly purchases and services. Doing so also helps customers budget because they have predictable costs,” Grahek added.

Grahek cautions companies who are considering converting to a monthly model to set realistic expectations. “A new customer may have lower profit margins at the beginning, but price it out so that, over a three to five year cycle, the gross margins achieve the target goals.” DesertMicro’s software has an average lifecycle of seven to eight years, so it works with customers to project their needs and deliver solutions that extend into another cycle, thereby extending its relationship and increasing its residual income.

Photos by Ken McCray

By Jim Molis

Jim Molis is a contributing writer for Advantage Business Magazine.

He can be contacted at jmolis@creatwoodpr.com

By Wally Conway

In a previous life, I was a Navy pilot. It was a great life, and I worked with wonderful people who were doing brave, fantastic things around the world. In a complex and dangerous environment like an aircraft carrier, you need to have teams of people working as one, or bad things begin to happen in large quantities.

The people onboard aircraft carriers are divided into two groups: those that make the ship float and those that make the planes fly. Those that make the ship float are known as ship’s company, and those that make the planes fly are with the air wing. During one tour of duty, I was assigned to the air wing staff.  The air wing staff coordinated the activities of the ten aircraft squadrons deployed aboard the aircraft carrier. It was while working for our air wing commander, Captain Jerry Norris, that I learned what has become my most valued rule as an entrepreneur.

Jerry Norris on the day of his 1000th aircraft carrier landing.

Captain Norris was quite a character. He was a fighter pilot with all the fixings: tall, handsome, and enough confident charisma to handle any situation… in the air, on land, or at sea. But the truth was, none of the eight officers on the staff considered Captain Norris to be the sharpest knife in the drawer, including me.

It wasn’t that things were not going well for the air wing or Captain Norris. It just seemed strange that an individual so apparently simple and relaxed could lead so effectively. You must understand that Captain Norris was in charge of the operations of nearly 3,000 men and almost 100 of the most complex flying machines on the planet. But fly we did, and we did it well. Our air wing was often singled out for acts of excellence.

It was during a short visit to Cannes, France that Captain Norris was to give me my lesson. Like so many of life’s lessons, the lesson was unintended. If there is one thing that flying fellows enjoy more than flying, it’s the telling of tales while ashore. And it seems nothing gets the mind flowing like the flow of beer. Our cups runneth over, as did our mouths!

The topic of the evening turned to how smart each of us was compared to our fearless leader. We were even so bold as to assert that he was only fearless because he did not understand what was going on around him. When in fact, we did not understand what was going on around us!

The good captain had been sitting quietly within earshot, and had heard every one of our comments on his lack of intellect. And as the confident, charismatic commander approached our table, we were certain that if we were shown mercy, we would merely be court-martialed. We feared that if the captain chose not to be merciful, we would be shot right on sight!

Speaking had gotten us into this predicament, so silence seemed the best choice now.

Captain Norris spoke. He acknowledged our belief that as his staff, we had among the finest minds in the entire Navy, in our specific specialty. He complimented those things that each of us had done since beginning our assignment with his air wing. Captain Norris offered that he had hand selected each one of us from the entire fleet, having to call in favors, make threats, and impose demands, just to have each of us work with him. We were there because he believed us to be the best, and he wanted only the best.

Seems he held us in the same regard that we held ourselves.

Then, Captain Norris spoke to the issue of intellect, specifically our perception of his lack thereof. He said, “The mark of a true leader is not one who gives orders, or feigns knowledge, but rather, one who plants the needed seed in a fertile mind so gently, that the subordinate believes the idea emerged from within.”

Continued silence.

Captain Norris was in complete control of our actions and always had been. He chose each of us knowing with certainty that in our specific areas of expertise, we were well beyond him. And knowing that in his area–that of building teams of the best and brilliant and then allowing them to take ownership of ideas–he was the expert.

Captain Norris asked what we had learned. My response: “I should never hire anyone dumber than I am.”

“You’ve got it,” he said. “Must have just emerged from within.”

By Wally Conway

Wally Conway is a graduate of the U.S. Naval Academy, retired Navy Pilot, licensed contractor, home inspector, energy auditor, media expert and entrepreneur who is the founder of HomePro Inspections. He can be reached at Wally@gohomepro.com

Trademark Protection

By Jack Gibney

A common mistake among business owners is failing to protect the assets of their business. There are physical, tangible assets, and then there are the more abstract, but just as important, intangible assets. One of the most frequently overlooked intangible assets is the trademark. There are trademarks for physical items, and service marks for service companies. Oftentimes, a business will use both types of marks without realizing their importance to the overall business plan or marketing strategy.

Most business clients that I represent have a variety of different marks that they may wish to protect. Additionally, many business owners unintentionally overlook the value of trademarks or service marks, and their importance. Trademarks are typically used for marketing purposes, and are used to associate a particular product with a consumer. Iconic examples are McDonald’s, Coca-Cola, Apple, and Windows, to name just a few. These trademarks are protected to prevent competitors from piggybacking on their efforts in order to sell their product. If you engage in any type of marketing plan, you want to be sure that your competitor will not be able to use your marketing efforts to their advantage.

There are many issues related to trademarks, but trademarks are typically used to build brand recognition. If your business is to build a brand, and most businesses want to do that, then you need to at least evaluate whether or not you need trademark protection for certain items. The trademark process itself is a relatively simple one in terms of the process of protection, but the first and foremost concern is whether or not the mark that you want to use is currently in use, or is so similar to an existing mark that the consumer would be confused. Your mark may not be identical to an existing mark, but if the examiner at the Trademark Office deems it “confusing,” the mark will be rejected.

There may be two marks that are currently in use, but if they are not promoting the same product or service, they are not regarded as confusing. Two examples of this are Delta for faucets or Delta for the airline, and Trident for gum or Trident for the submarine. A third example is the trademark Trump. Donald Trump owns the word Trump that he uses for gambling services, but there is another entity that uses the word Trump for a mobile barbecue. Because the marks are directed to different groups of consumers, no confusion is likely, and the marks were both approved.

Trademarks can be a single word, a phrase, a word with artwork, a design or logo, a jingle (the NFL owns the trademark for that familiar Monday Night Football introduction), or a smell. The evaluation of whether or not a mark is deemed viable is performed through a trademark search. The vast majority of searches are currently done online, and the Trademark Office has a database you can access easily and quickly for that purpose. A search can be done literally within hours.

Once you have decided that the mark is not currently in use and not so similar to any existing marks, the Trademark Office requires that you file the mark and show how the mark is to be used. The use of the mark should be specific to a product and cannot simply be used in advertising materials. In other words, it needs to be displayed on the can of Coke or the Windows box. Additionally, another consideration in receiving a trademark is to avoid the merely descriptive or generic. As a business owner, you are attempting to create something unique; a simple, generic mark runs counter to that idea.

It is not uncommon for a business to own multiple trademarks in order to protect multiple brands or services. A trademark is theoretically valid for the rest of time, with appropriate renewals of the mark being filed. The process to register a mark usually takes between nine and twelve months.

Once a mark is approved, the owner of the mark can then require competitors who want to use the mark, or a similar-looking mark, to cease all activity related to the mark. Unlike other types of intellectual property, a mark can be in use for many years and never be registered. If you are using a mark and fail to register it, and someone decides to register the same or similar mark after you have been using it, it will most likely restrict your ability to expand the use of the mark beyond a very limited geographic area.

The Trademark Office uses its own jargon, and it is important to obtain appropriate legal advice to help in deciphering the process. It is always advisable, when considering a trademark, to get an evaluation by an experienced trademark attorney, who may suggest changes to the mark. This will prevent wasted spending on brochures or advertising material if you find out that the mark cannot be used.

L. Jack Gibney is a native to Jacksonville and attended local school.  He accepted an appointment to United States Merchant Marine Academy and graduated from that college in 1979 with a B.S. in Engineering.  After graduating from the Academy he worked as an engineer and then returned to law school.  He graduated from FSU law school in 1984. He has been a Florida Bar Member since 1984, a Georgia Bar since 1985 and a Patent Bar since 2001.  Jack has been a sole practitioner since 1988 and currently concentrates his practice in the areas of intellectual property (primarily patents and trademarks) and private adoptions.

By Marguerite Mumford

For all businesses, disaster preparation is an essential part of the overall master plan. However, putting these plans in place is challenging. Many simply think they will never face a disaster. Still fresh in everyone’s mind is Superstorm Sandy. Events like these are a huge wake-up call and underscore the importance of being prepared. In the wake of Sandy, those without a plan, who were within a half-mile of the coast where the event occurred, are unlikely to be in business any longer.

Closer to home in the Jacksonville area, businesses are under the threat of hurricanes from June through November, and severe thunderstorms anytime. There are no shortages of reasons for having a disaster plan. In most organizations, the responsibility of disaster planning falls on property or facility management. Professionals in this field need to take the lead long before disaster strikes. Often, large portions of disaster or business continuity planning efforts are aimed at ensuring the protection of electronic data files, and access to uninterrupted electricity, telecommunications, and other utilities. However, a building’s structure, physical assets, and other contents must be accounted for, as well. Proper protocols must be in place to quickly recover from any structural damage to a property portfolio. This also includes establishing relationships with individuals who are experts at stabilizing damaged buildings, and post risk management.

Such experts should be able to mobilize workers, equipment, and have self-sustained power to get businesses back in operation as quickly as possible. The rationale for this is simple—a business that is down loses revenue, opportunity, and market share. Additionally, the facility’s leadership team can be supported by large-loss emergency services professionals who specialize in structural clean up and damage repair to commercial buildings.

With close to 50 years of experience in the residential and commercial property damage restoration field, Paul Davis Restoration is uniquely qualified to assist both in the planning and recovering from disasters. According to Marguerite Mumford, owner of Paul Davis Restoration of North Florida, whose staff works with many northeast Florida businesses, “Facility managers and their teams have an important role in disaster planning and response. They should have a thorough understanding of the emergency disaster plans of their local municipality to ensure compatibility.”

Mumford has definitely seen a shift in activity when it comes to taking this issue seriously. A large amount of Jacksonville area businesses have plans in place, but there are still many who don’t. For a disaster recovery plan to be successful, Mumford recommends that facility managers complete all necessary documentation, train staff, plan for the safety of building occupants, maintain contact information for all parties involved, and understand and communicate with insurance carriers. Disasters cannot always be avoided, but with a disaster recovery plan in place, damage and harmful effects can be minimized.

For more information, contact Marguerite Mumford at (904) 739-6047 or email marguerite@pdrjax.com. Visit the website at www.pdrestorationnf.com.

Marguerite and Michael Mumford – co owners of Paul Davis Restoration of North Florida since 1.1.99 – we have grown this franchise to be one of the 10 largest in the Paul Davis network across the country. Prior to purchasing this business Marguerite was the VP of Marketing Operations with Blue Cross Blue Shield of North Carolina and also has extensive sales and marketing experience in the computer industry.   Parents of two.    With the business are actively involved in the community.

By Craig Linn Ames

The People’s Court. Florida Statutes provide for a forum to air small claims in the County Court system before a Magistrate or County Judge. Sometimes the Small Claims Court is referred to as the “People’s Court.” This term of common usage harks back to a bygone era when business transactions and disputes among neighbors could be resolved by a justice of the peace using relaxed rules of civil procedures.

Small claims court is most often used to collect a small money award or to obtain the return of property. Equitable relief is available, but it is often not requested. A party may request a trial by jury, but this is usually impractical due to the cost, time delay, and the fact that juries are more unpredictable than judges. Court reporter services can be used to preserve the record for appeal, but it is costly. Typically, in a small claim, one does not want to pay for this service. So, the consequence of foregoing a court record means that the court’s decision is not appealable as to factual issues, since there is no record for the appeals court to review.

Filing a Small Claim. A small claim is limited to $5,000. Any person who is wronged may file a lawsuit without the aid of an attorney. When a case is filed by a layperson, the judge is not allowed, by court rules, to assist parties on court procedures to be followed, presentation of material evidence, and questions of law. The court may not instruct any unrepresented party on accepted rules of law.

Awards, Legal Representation, Recovery of Costs and Fees. Due to the court formalities and rules restricting court assistance, legal representation can be important. The biggest mistake claimants make in small claims court is failing to follow the specific instructions of the judge concerning what evidence will be needed at trial. Also, there can be a fatal technical flaw in the basics of the case which includes the elements needed to be proven. Attorneys can represent a party over the phone, without appearing in court, if the judge permits. If an attorney is used, the last claim in the complaint should be for attorney fees. The claim should state the plaintiff (the party bringing the lawsuit) has retained an attorney and is obligated to pay a reasonable fee for his/her services. The court can award actual damages, costs, and attorney fees.

Decision of Bringing a Suit. One must decide if it is worth the time, effort, and cost to go through the process. A person may end up paying damages to the other side. The court can rule the other way for many reasons. A case requires evidence acceptable in court, and proof of liability under an acceptable legal theory. In more complicated theories, such as negligence or implied warranty, a person can win only if the facts fit into legal definitions of negligence or implied warranty. Contracts may limit legal rights, provide for various conditions and terms, and may limit rights as to bringing suit. Various papers may have no legal effect.

Courts may allow recovery even if papers are lost or destroyed. Witnesses must have an objective opinion for admissibility. If there is a chance the claimant will be countersued, then advice of an attorney needs to be considered. Even if a case is won, the award must be collectible and actually received from the other party. A claimant should not sue anyone unless there is a meritorious or valid claim. If a suit is filed frivolously, the other party may place a judgment against you for all of the other party’s attorney’s fees and court costs.

Craig Linn Ames has over 40 years legal experience. He holds degrees in biology & law. He is a certified Risk Manager having served as Director of Risk Management of a Fortune 50 international company. He is principal of the Stacknik & Ames Law Firm with offices in Jacksonville & Tampa. www.craigthelawyer.com

Istart creates tomorrows companies

By Jim Molis

Judges evaluated each Startup Weekend entry on the following criteria. Would you come out a winner if you applied them to your new product or existing business?

Business model: What will you sell and to whom? How will you profit? Develop your pricing structure and financial models early so that sales and profits move in tandem—preferably upwards.

Customer validation: Is your product actually selling or do you expect that it will sell? An investor in a startup wants to see that it’s working now.

Ability to execute: Do you and/or your team have the necessary skills, experience, and resources? Lots of participants brought ideas to Startup Weekend, but experts in such essential areas as sales, marketing, finance, and legal matters were harder to come by. Seek help where needed.

Putting Ideas Into Action

A good idea is not worth the paper upon which it is printed. Unless, what is printed is a detailed, executable business plan, replete with proof of concept, customer validation, revenue model, and financial projections. This is an important lesson for aspiring entrepreneurs and seasoned business owners alike, according to organizers of Jacksonville Startup Weekend 2013.

“Taking an idea from inception to concept to company is an arduous process, even with a relative abundance of technology and resources, and the support of talented professionals,” said Manjunath “MJ” Charmani, lead organizer for Jacksonville Startup Weekend, and founder of iStart Jax, a nonprofit

Photo by Austin Weaver

business accelerator for technology-based startups in northeast Florida. “Entrepreneurs must establish that markets exist for their products, and they can serve these markets efficiently and profitably. To do otherwise is to risk time and money.”

Startup Weekend, which was held January 25-27, at the University of North Florida, offered valuable tools to budding entrepreneurs and established business owners alike. Even a seasoned entrepreneur, working on his fifth company—but the first post-Internet—said that he learned much about what is needed to build a company during the event.

The weekend began on a Friday evening with 115 participants, 45 of whom pitched ideas for businesses to the larger group, which included marketers, software developers, and other support professionals. Then teams were assembled to pursue 18 of those ideas. Five ideas were chosen as winners by a panel of judges on Sunday evening. Prizes included ongoing professional support, and opportunities to pitch to investors at the Florida Venture Capital Conference, which was held January 31 through February 1, at Sawgrass Marriott Golf Resort in Ponte Vedra Beach.

Winning entrepreneur, Karthik Kadirvel greatly advanced his idea during Startup Weekend, but in presenting to investors at the Venture Capital Conference, learned that his company still has much to do to secure funding.

“It was a good experience for us in that it taught us maybe not right now but maybe in the future,” said Kadirvel, product developer for Moojic, which he co-founded with his wife and two business partners in Mumbai, India. Moojic is developing an application that will allow individuals to use their smartphones and tablets to choose the music that plays in gathering spots like bars and coffee shops (think a modern day jukebox—to go). During Startup Weekend, Kadirvel’s team helped him to develop potential revenue streams, and to prove that customers would pay for the application by surveying shoppers at St. Johns Town Center.

“Established companies could benefit from using a similar means of developing and testing ideas, perhaps by holding their own mini-Startup Weekend for employees,” Kadirvel said. “All of the various elements are available. If you bring them together for two days, it might be a model for them to come up with innovative ideas.” Such bottom-up innovation from the grassroots of the company is not uncommon at technology giants like Google and Facebook.

Local entrepreneur and investor Myron Pincomb helped Startup Weekend teams advance their ideas as a coach. “Most of them thought they were farther along than they were,” he noted. Almost half of the teams that Pincomb worked with did not have financial projections before the weekend began. “The weekend made them put a business plan behind the idea,” he said.

As managing partner of The Pincomb Group, Pincomb urged companies to calculate financial projections, develop prototypes, and to seek

customer input at the onset, to see if there were markets for their product. “If you don’t involve the customer, you’re going to shoot yourself in the foot,” he said.

An associate at The Pincomb Group, Hunter Hayden, was a member of a Startup Weekend team. He surveyed shoppers at St. Johns Town Center and directors of fitness centers to validate demand for CardioBoost, a technology that would create competitive games within exercise classes.

Hayden is a former procurement and contract specialist who is now pursuing a master’s degree in business administration at UNF, while also assisting companies with finance and business development through The Pincomb Group. He stressed the importance of developing a business plan before launching a product or company. “It’s not a plan based on what you think is good. You need facts, you need studies, and you need statistical data to prove that your gut feeling is correct. Just because it seems like it’s a good idea doesn’t mean it is one,” Hayden said. Yet, entrepreneurs often hesitate to put ideas into writing, perhaps because they fear their plan won’t succeed. “But it’s much easier to get it right the first time,” Hayden said. “If your whole business is developed around a strategy, and you stick with that strategy, the likelihood of success is much greater.”

Particularly if you put that plan to paper.

Music For the Masses

Be the DJ, wherever you go. That’s the promise that Moojic offers.

Photo by Cathy Coates

Bars. Restaurants. Coffee shops. Wherever people gather, Moojic wants to be there to provide the soundtrack. Started by Melbourne, Florida entrepreneur, Karthik Kadirvel, his wife, and two business partners in Mumbai, India, the company is here to revolutionize the music experience at public locations.

The company is developing technology that will allow the owner of a location to upload songs to a customized tablet. Customers will then be able to choose songs they want to hear via an application on their smartphones.

Prior to winning Jacksonville Startup Weekend 2013, Moojic was mostly an idea. But the company has since been busy building upon its experience and implementing improvements offered by the team of volunteers that assisted Kadirvel.

“One of the greatest benefits of the weekend was proving that there would be demand for the technology,” Kadirvel said. Seventy shoppers were surveyed at St. Johns Town Center, and most said they would customize the music at a location if they could, and that they would specifically choose to go somewhere that they could do so. A local bar owner offered his business as a beta site when the technology is ready. “Businesses can use the application to build brand loyalty and draw customers during non-peak hours by offering specials,” Kadirvel said.

Startup Weekend also provided Kadirvel ideas for generating revenue, such as allowing users to pay to move their selections up in an establishment’s queue of songs, or to dedicate songs, or send gifts at locations. His team also received feedback on possible pricing.

Kadirvel expects to spend the next 3 to 4 months finishing product development and lining up beta customers. His goal is to launch Moojic at 10 to 15  “mom and pop” stores within six months, and then take it to small regional chains within 12 months.

Starting Up, Moving Ahead

World Cup… Summer Olympics… Global Entrepreneurship Congress… it all happens in Rio de Janeiro, Brazil.

Though it may lack the luster and prestige of its two more famous counterparts that are coming within the next few years, the Global Entrepreneurship Congress could be just as impactful in its own way, when it convenes in March. And Manjunath “MJ” Charmani, lead organizer for Jacksonville Startup Weekend and founder of iStart Jax, a nonprofit business accelerator for technology-based startups in Northeast Florida, will partake in what the GEC describes as “an inter-disciplinary gathering of startup champions from around the world.”

Charmani will join entrepreneurs, government officials, investors, researchers, thought leaders, and policy makers from across the world in working to bring ideas to life, drive economic growth, and expand human welfare. He plans to use the opportunity to develop relationships and access resources that will allow Northeast Florida to continue to feed the ecosystem with new energy.

While it’s true that Northeast Florida has come far as a breeder of companies and ideas, it still lacks the fertility of more established southern brethren, like Atlanta and Miami–much less the prodigiousness of entrepreneurial breeding grounds such as Silicon Valley.

* Startup Density of Florida is : 50 Startups per Million

* Startup Density of Georgia : 44 Startups per Million

* Startup Density of Texas: 36 Startups Per Million

Momentum is building locally though, and Jacksonville has now hosted two Startup Weekends. The five winners from each can participate in Startup Weekend NEXT, which will be held in the second quarter. The six-week program will provide advanced, hands-on training to help entrepreneurs further develop their companies.

Charmani’s iStart Jax is also helping teams accelerate through workshops on such topics as protecting intellectual property in development, and creating a fundable business plan. “Entrepreneurs need free resources and a little bit of a push off to get that first round of funding,” he noted.

Then they can work on taking the company to the next level, perhaps taking Northeast Florida along with them.

Social media can mean many things to many people, but for employers, it can be an invaluable tool… and a source of great frustration. There are more than 480 million daily users of Facebook and billions of tweets a week. With such large numbers, it is not surprising that a growing number of employers use these platforms to grow their brand, recruit new employees, and keep tabs on the competition. Unfortunately, employers are also discovering the downside to social media and the difficulties managing not only their reputation, but also employee actions on the job and online, without violating federal laws and regulations.

A Recruiting Tool
More than eight in ten Fortune 100 companies use LinkedIn to attract and recruit talent. When spread across all companies, more than 55% are using social media in their recruiting process.

Targeted recruiting, along with identifying passive candidates, is made easier with social media.  Companies also promote their cutting edge brands, and increase awareness of their organizations by developing marketing strategies geared toward new employees, using all forms of social media. Employers also increase the quality of their new employees through social media.

It might seem simple to just log on and look up a potential employee on Facebook, but there are risks that must be considered. While looking for information on the candidate, a hiring manager may come across information or photos that are not job-related. When this information is used in the hiring decision, there is a greater risk of employment discrimination. The Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA) prohibit discrimination in the hiring process. The problem with social media is that this protected information can be readily available to hiring managers.

To protect themselves, some companies will use outside social media data brokers to compile and report data on candidates, removing potentially discriminatory information from the report before it gets to the employer. Another law comes into play at this point: the Fair Credit Reporting Act. These data brokers are covered under the FCRA, much like a credit reporting agencies or a third-party company performing criminal background checks. Last year, Spokeo, a data broker, was fined $800,000 by the Federal Trade Commission for failing to protect consumers (candidates for employment) as required under the FCRA. The employer also has a responsibility to inform and gain consent from the candidate prior to requesting such a report.

A Marketing Tool

Social media has also become a vital resource for companies in building brand recognition with their customers, and gaining a greater online presence. Company Twitter accounts, LinkedIn profiles, and Facebook pages have exploded. But with this growth, companies have also found that a lack of planning on the front-end can cause huge headaches when an employee leaves the company, or posts something under the company name without authorization.

Planning must begin prior to creating a social media account. Factors to consider when creating a company sponsored social media account include:

• Who owns the account—the company or the individual who created it?
• How is the password maintained and who has access to it?
• Who is authorized to post under the account name?
• Who has access to the list of “followers,” “likes,” and “connections?”

Jumping into the social media realm without thinking through these issues can create a monumental public relations nightmare. Take the company PhoneDog, for example. A Twitter account was created by an employee, who used his name and the name of the company in the Twitter handle. This employee did a great job of building a following online for the company, and grew his number of followers to over 17,000! (Don’t we all wish we could do that?)

As sometimes happens, this employee left the company, and in the process, took his Twitter account and 17,000 followers with him. The company demanded the account password and access to the account, but the employee refused. PhoneDog then sued the former employee claiming:

• Misappropriation of trade secrets (taking the password)
• Conversion (another term for theft—claiming the list of 17,000 followers was a customer list)
• Tortious interference with prospective advantage (intentionally damaging the company).

The problem was that when the account was created, there was no policy about who owned the account, who had access, and what happens to the account if the employee leaves. The employee who managed the account claimed the account was a personal account and the company had no right to the account, the password, or the list of followers.

After sitting in the courts for a couple years, it was finally settled out of court for an undisclosed sum, but not until after a great deal of money was spent by both sides in attorneys’ fees. By the way, the employee’s list of followers has since grown to over 23,000 (under a new Twitter handle).

A Social Interaction Tool

According to a report last year by Proskauer Rose LLP, 52% of employers allow their employees to access social media sites (for non-business use) while at work. However, reports from the Society for Human Resource Management indicate that less than half of employers have a formal social media policy.

Without clear direction and guidelines, employers increasingly find themselves battling not only employees, but also federal agencies such as the National Labor Relations Board (NLRB). Employers can limit their employees’ access to social media when using company owned equipment. However, when they do allow it, and when an employee accesses social media on a personal device and off the clock, restricting what an employee can and can’t say is difficult at best.

The NLRB protects employees’ rights under the National Labor Relations Act, particularly in Section 7. Among other things, this section allows employees to discuss among themselves the working conditions at a company, also known as Protected Concerted Activities.

When an employer reads that two employees are talking about their salaries, or the hours they have to work, on a Facebook post, and then takes disciplinary action against those employees, he or she has probably violated these Section 7 Rights. The NLRB has taken a harder stance against employers when it comes to social media and the policies employers create.

Protecting the Company

It is becoming more difficult for employers to protect their own brand and image, but there are steps companies can take to reduce the risks.

First is to establish a social media plan. This plan should involve more than just the marketing department, but also human resources, and legal counsel. The reach of social media has an impact much greater than simple Facebook posts and promoting new products.

Second, create a social media policy. This policy should discuss employer monitoring of accounts, what is confidential, the privacy of others, ownership of the online identities, rules and guidelines about using the company sponsored accounts, how to report violations, and a disclaimer about the employees’ rights. This policy won’t mitigate the intent of Section 7 of the NLRA, but it can be effective if developed the right way and uses the right language. Of course, these policies should be reviewed by a professional, and should be updated as the laws and regulations become more clearly defined.

Social media has become a strategic and integral part of business. By developing a plan and clearly outlining and communicating a social media policy, employers can minimize their risks, and instead focus on the benefits of their new online presence.

Chad V. Sorenson, SPHR, is President of Adaptive HR Solutions and a Co-Founder of Talent Development Inc.  He works with organization to grow leaders and develop their workforce.  Chad is also President Elect of SHRM Jacksonville and can be reached at csorenson@adaptivehrs.com.

Small business will explode! Is your culture ready?

By Bob McKenzie

Many years ago, I saw a training video in which the moderator introduced himself as a “Futurist.” Instead of watching and listening to the video, my mind was then consumed by how I could get such a job. Now, about twenty years later, I remember the job title of the moderator, but nothing about the topic of the video. And with an extra twenty years of experience, I think I have a good idea of how the future of business will be.

The deep recession of the past five or six years has resulted in many businesses changing their direction or focus. “Too big to fail” is slowly but surely turning into “too big to work for.” Disenchanted with big business, many people are looking to either start their own business or work for smaller companies where their contributions are more visible. Many are staying away from the behemoth corporations all together. They are attracted to small firms where they have more of a feeling of being in control of their destiny. In addition, small business owners are typically much more passionate about their work, and put their heart and soul into it— every day of the week and every hour of the day. We all like to work for passionate people.

Therefore, my prediction is that small businesses will flourish, and we will see this change very soon. We are already seeing a significant uptick in small businesses being formed. Small businesses have always led in the creation of new jobs in the country, and they will be the catalyst that will drive the unemployment numbers down throughout the rest of the year and beyond.

Changes in the Demands of the Workforce— It’s All About the People

Many think it is our product or service that generates money. Nothing can be further from the truth. It’s the people we employ who will make us succeed.  It’s about the culture of our organization; one that demands respect, open communications, and a little flexibility.  In today’s business world, employees will stay and grow with an organization where they feel comfortable, have fun, and enjoy a feeling of independence, while being a part of a team that contributes to the success of the organization.

A Little Wild and Crazy Will Succeed

Most of us have heard of Zappos. It is a web-based shoe and apparel seller. CEO Tony Hseih led Zappos to be a company with over a billion in sales in just ten years. In 2009, it was sold to Amazon.com for $1.2 billion. All of the credit for this amazing growth is given to the rather offbeat culture in which the employees have fun and are actually enthused about going to work every day. Take a look at the Zappos values that are listed directly on Zappos.com. All of the people at Zappos live and work by these core values:

As we grow as a company, it has become more and more important to explicitly define the core values from which we develop our culture, our brand, and our business strategies. These are the ten core values that we live by:

1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and a Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning (http://about.zappos.com/our-unique-culture/zappos-core-values/pursue-growth-and-learning)
6.  Build Open and Honest Relationships With Communication
7.  Build a Positive Team and Family Spirit
8.  Do More With Less
9. Be Passionate and Determined
10. Be Humble

Zappos Value #2— Embrace and Drive Change

Here is an excerpt from Zappos’ explanation of this value:

“Although change can and will come from all directions, it’s important that most of the changes in the company are driven from the bottom up– from the people who are on the front lines and are closest to the customers and/or issues.

Never accept or be too comfortable with the status quo, because historically, the companies that get into trouble are the ones that aren’t able to respond quickly enough and adapt to change. We are ever evolving. If we want to stay ahead of our competition, we must continually change and keep them guessing. They can copy our images, our shipping, and the overall look of our website, but they cannot copy our people, our culture, or our service. As long as embracing constant change is a part of our culture, they will not be able to evolve as fast as we can.”

Read the last two paragraphs again and make sure all of the words sink in. Change is the key word here, and embracing change is critical for all employees. Without change, there is no progress. Resting on one’s laurels must be a thing of the past, as it will put you behind your competition. An atmosphere of continuous change will keep the competition wondering what you are doing.

Zappos Value #3— Create Fun and a Little Weirdness
When you go to Zappos’ HR page, this is the first thing you see:

“This ain’t your mama’s HR! Recruiting, Benefits, and Employee Relations keep this cruise ship afloat with fun, inventive ways of getting employees motivated and educated about the Zappos Family of Companies, their benefits, and the other fun stuff going on around here! They also take Core Value #3 very seriously.”

How many people can actually say they have fun at work?  Zappos is successful because of their culture and the willingness of all of their people to continually develop new and better ways of operating their business.

Fast and Furious Change

One obvious phenomenon is the lightning quick speed of change in today’s business world. Technical and social changes are made at an astounding rate.  This is another reason for small businesses to flourish. Changes must be made quickly. Companies that are too big to fail are also too big to change quickly. Who wants to work with a dinosaur company? It is amazing to know that many of those larger companies are still using DOS based computer programs. Too big to fail may also mean too expensive to make necessary changes.

The Solution— Ask Questions

It is time to take a good hard look at your company and answer these questions:

What is the “fun factor” at your place of work?

Is your culture one that engages employees continuously in your business results?

Are you stuck in top down business mentality that stifles creativity, teamwork, and open communication?

Do you really have open communications with your employees?

Can they speak to owners and managers about improvements in an open and honest way?

Do you have a set of values? If so, do they guide how you manage your business on a daily basis— or are they just a bunch of feel good words posted on your bulletin board?

Do your people work in a cubicle all day, being micromanaged?

Do you get the fact that your people are your only competitive advantage?

Tony Hseih gets it, and, more importantly, he got it over 15 years ago. Maybe his job title ought to be Futurist rather than CEO.

Stop Stereotyping

We often hear that this young generation, or Generation Y (or Generation Why?), does not have a good work ethic. This could not be further from the truth. All people, regardless of their age, will work hard when they like what they do. The thing that is different about this Generation Y is if they do not like what they are doing, they will quit. So, when they leave, say “thank you.” After all, why would you want someone who hates his or her job working for you?  And, if you have a high turnover, maybe you should take a look at how people are treated.

It’s going to be a different workforce, and the change will come quickly. Are you ready?

Only time will tell if I can truly be called a futurist.

Bob McKenzie is certified as a Senior Professional of Human Resources (SPHR) and has over 35 years of human resources management experience. He currently is a member of the Society for Human Resources Management and is actively involved in the Small Business Resource Network and other community organizations. He can be reached at bobm@mckenziehr.com.

Like every business owner, when you start your own business, you are automatically enrolled in the School of Hard Knocks. And just like in any other school, you will learn a great deal about a wide variety of topics, you’ll get to hang out with some really cool people, and you’ll spend a lot of time, money, and resources paying the cost of tuition. Additionally, if any of your failures are public enough or spectacular enough, you may also lose your reputation and standing in the eyes of your target market.

Peer-to-peer advisory boards (also known as mastermind groups) are one of the best ways to lessen the cost of this tuition. Advisory boards are designed to give privately held companies many of the same advantages as a board of directors, without the governance components. Advisory boards are moderated by a professional facilitator, and typically meet once a month. A company owner presents information to the board about the different challenges and opportunities he/she confronts, and the board gives advice or feedback.

When business owners form boards on their own, they typically must pay the members a salary, equity, or some combination of both. And, they seldom have a professional facilitator. An advisory board allows the business owners to sit on both sides of the table: as CEO of their company, presenting to their board, and as a board member on each of the other companies’ boards. By forming shared boards, everyone gains the same benefits. They learn from each other and there is no cost other than the shared cost of the facilitator.

Additional benefits of joining a peer-to-peer advisory board include:

Better decision making for better results

It is well known that during the decision making process, the more diverse the talent base of the people involved in a decision, the better the results from that decision. Large corporations solve this problem with sizable, diverse senior management teams, and a board of directors made up of senior executives who have ownership interests in the company. Smaller companies, without these resources, must find other ways. By participating in a trustworthy, proven network of peer business owners, you can receive the diversity of input you need to make better decisions and obtain better results.

Improved clarity of direction and focus

As a business owner, you are constantly pushed and pulled in different directions. Customers, vendors, and staff are all trying to get their piece of your time. This can result in you getting buried in your business, instead of rising above and focusing on the strategic necessity of working on your business.

Membership in a peer advisory board ensures that a certain percentage of your time is dedicated to the strategic goals of the company. By sharing these strategic discussions with your board, you are forced to clarify your strategic direction. The board serves as a sounding board on which to test your strategy, before you start spending significant amounts of time, money, or other resources.

Increased accountability

Each month in a peer advisory board, you would discuss what you had planned to accomplish in that month, what you actually accomplished, and why there is a difference. This alone provides a level of accountability that otherwise is unlikely to exist.

For example, if you tell your board that over the next month you are going to update your business and marketing plan for the coming year, they are going to expect you to present the results of that exercise at the next meeting. Most of the members who were surveyed on this topic agree that it is easier to accomplish the task itself, than it is to admit to your board that you didn’t complete it.

Reduced isolation and increased confidence

Owning your own business can be a daunting challenge. You are frequently faced with opportunities and obstacles that can leave you uncertain and insecure. And yet, it’s difficult to find someone with whom you can confide. Your employees are looking to you for confidence, surety, and direction. They don’t want to see uncertainty and insecurity

The old adage “It’s lonely at the top” is never truer than in these times. However, you don’t have to go it alone. While peer advisory boards are definitely not a networking group, they do provide you with the opportunity to connect with your peers, in a professional setting, completing useful work. They give you a group who can share in your concerns and provide valuable feedback, without damaging your position as a leader.

Improved work/life balance

It’s easy to see that the best way to improve your life is to improve how your business is performing.  Entrepreneurs frequently get consumed by their business, and once buried, find it difficult to dig their way out on their own. Peer advisory boards help you cut through the challenges that are holding you back, and find a clear path to developing a more efficient and effective business. Improved business effectiveness results in your having more time available to enjoy your life.

At the end of the day, it comes down to results. Is your business producing the kind of results that you would like to see? Does the idea of having a support system of fellow executives who can help pull you out of the trees, so you can see the forest, appeal to you? Come join your fellow business owners in discovering a better way to solve these problems. Join a peer advisory board today.

Michael Jones is the Owner of CEO Focus of Jacksonville, which provides business coaching, professionally facilitated peer advisory boards, and other support services to the Northeast Florida business community. Previously, Mike worked as a consultant and a coach in many different industries in both the for-profit and non-profit communities. Mike has an undergraduate degree in mechanical engineering from the Ohio State University and an MBA from the University of North Florida.  Northeast Florida business owners can learn more about Mike’s peer advisory groups by calling him at (904) 504-7770.

For Super Savvy Landlords and Tenants Only!

By Wally Conway

Back in the commercial real estate buying boom, it was common for investors from across the country to purchase property in Jacksonville. It was also common for many investors to purchase buildings sight unseen. Due diligence concerning the building and grounds came in the form of a Property Condition Assessment (PCA). Property Condition Assessments are essentially more detailed versions of home inspections, and have similar value propositions.

It was during that boom time that I first met David Lee. David was a third generation commercial real estate investor from Studio City, California. He retained my company to perform a PCA on a 15,000 square foot building that was being used as a retail store. He used the PCA as a negotiating tool during the purchase of the building, and as an initial punch list for repairs and completion of deferred maintenance after closing.

David used the PCA much like scores of other commercial building buyers that I’ve worked with over the past 20 years. But then, David did something different!

When negotiating the lease with his prospective tenant, David used the PCA to benchmark the condition of the property. In a triple net lease, the tenant is responsible for all maintenance and repair expenses. It was important to David to have an objective documentation of the property condition at the start of the five-year lease. He felt this was a very simple way to protect not only his interest, but also be fair to the tenant. The tenant agreed and the lease was signed.

Using a PCA in negotiations between landlord and tenant is a risk and liability management tool that protects both parties. Why a tenant would ever enter into a triple net lease without a PCA escapes logic.  An unexpected expense for a new tenant, who oftentimes is also a new business, can crimp cash flow and cripple a business.

David showed his brilliance again, five years later. He retained my company once again to perform a second PCA on the same property in preparation for renewal of the lease. He intended to use the PCA to determine if the tenant had honored the terms of the lease regarding maintenance, repair, and condition. If the building was in as good or better working order then when originally occupied, David would reward the tenant with a favorable rent rate. If the PCA revealed that the tenant had damaged or failed to care properly for the property, David could demand repairs, increase the rent, or refuse renewal of the lease. The PCA put David in control.

Yes, there was an expense for the PCA, but it paled in comparison to the expense of litigating a disagreement or repairing disputed damages. David is certainly a savvy investor and landlord.

Could a tenant also be so savvy as to use a PCA for lease negotiations? Certainly.

Would documentation of the condition of the property before the lease was signed make for a superior negotiating position? For sure.

Could the PCA be used to reduce surprises and cost over-runs during tenant build out? Absolutely.

When it’s time to negotiate your next lease, as either landlord or tenant, consider a Property Condition Assessment. And remember this, the person who brings the information to the negotiation is the person who controls the negotiation.

By Wally Conway

Wally Conway is a graduate of the U.S. Naval Academy, retired Navy Pilot, licensed contractor, home inspector, energy auditor, media expert and entrepreneur who is the founder of HomePro Inspections. He can be reached at Wally@gohomepro.com

By Amy Calfee, Chief Listening Officer, Temerity Creative, LLC

I’m a providential entrepreneur. After two layoffs early in my career, I was literally pushed into the life of entrepreneurship. I’ve been “working in my bunny slippers” for decades, helping other entrepreneurs, small business owners, and organizations market their benefits. I’ve listened and learned, advised and consulted, cheered and applauded.

These hundreds of individuals have taught me about intention, motivation, purpose, and vision. Just like me, starting their business was the easy part. Like a new relationship, everything was shiny, full of potential, and energy was abundant—even if we didn’t know exactly where we were headed.

Working the business day-to-day becomes like a dance. I call it the “3-2 Cha Cha.” As your business becomes known, it pumps up confidence and a predictable cash flow: three steps forward. A focus on working in the business tactics versus working on the business strategy usually leads to longer sales cycles, more no’s than yes’s, or worse, saying yes to the wrong customer because cash flow is no longer as predictable: two steps back.

We’ve learned to be champion problem solvers. Resolve the dispute. Renegotiate the contract. Cover the phones. Close the deal. Make the customer happy—whatever it takes. There’s not much about our business that we don’t know. Yet, over time, original intention can be misplaced; isolation threatens motivation; clarity of purpose is replaced by “why am I doing this?” and vision–big picture thinking–lives in a secret notebook entitled “how am I going to get out of this?”

The business owner—you, me, and the guy faking the big smile next to you at last week’s networking event—can become T.R.A.P.P.E.D. by the business. For some, this condition is fleeting. For others, it can feel like a recurring roller coaster ride. Ignoring symptoms have produced a chronic condition. The cure begins with acknowledging what is, and then acting on what you know. Let me give you some examples of what I mean by T.R.A.P.P.E.D.

Tactical (vs. Strategic): Being strategic about marketing begins with a plan. The process requires you to “walk outside your own store” in order to see yourself through the eyes of your customer. Then you’ll know what they want, when they want it, and how they prefer to find out about it. One of the best examples of tactical thinking is buying just one ad with a weak offer in a discounted media outlet. This may sound silly, but business owners do this all the time “just to see what they’ll get.” They always get an invoice for the ad, that’s for sure.

Resistant (vs. Understood): Change can be difficult, especially when change happens to you. Some personalities thrive in ambiguity and are able to adapt on the fly. Others resist change because it requires more mental agility. An example would be the business owner who expects his/her sales team to make cold calls because a cloud-based CRM (customer relationship management) system is “too complicated.”  Ironically, poor productivity is more comfortable than changing processes and procedures for technology one doesn’t understand. Maybe it’s time to embrace change by learning something new and then leveraging the benefits.

Aimless (vs. Clarity): What you think about, you bring about. So decide where you want to go and set a course to reach just beyond your destination. Write it down. Make it measurable and specific. Be accountable to your team. Keep track of your progress and report it often. In a recent survey of participants in my marketing planning program, every respondent said that committing to a goal was one of their most empowering and clarifying decisions.

Prideful (vs. Confident): Allow me to step on my own toes here as a reminder. We don’t have to be the smartest person in the room. In the world of business, especially high-end and technical services, we often conflate knowledge with leadership, projecting a false sense of pride and calling it confidence. Yes, we like to do business with confident people and visa versa. But my assertion is that for many business owners, saying “I don’t know” doesn’t make you weak (to your team or your customers), it makes you honest. People like, trust, and admire honesty.

Possessive (vs. Engaged): A bumper sticker comes to mind: “If your competition doesn’t know what you do, neither do your prospects.”  I’ve noticed how business owners often hide their greatest advantages for fear their competitors will copy them. In a recent conversation with a local landscaper, he discussed with me his special method of trimming flowerbeds. He knew none of his competitors were achieving the same results. He carefully trains his crew, and actively promotes this difference to prospects. Guess what? He retains nearly all of his customers.

Excuses (vs. Sustained): After back surgery last year, my doctor released me to swim. I joined a local masters’ swimming program that meets three days a week, 5:30 – 6:30 a.m.  I eventually trained my way up to 3600 yards per week. Yet, after four months, I quit because I became “self-distractive” with no plan to keep the work (and the early morning motivation) fresh and relevant. Thinking strategically helps us create processes and systems that can be integrated throughout our day-to-day operations. Consider an incremental approach to implementing your marketing strategy. Train yourself up.

Debt (vs. Systems): When you started your business, were you thinking about how you were going to get out of it? Why would you? This was something about you, your passion, big idea, or expertise. Now what? If you relegate the marketing function to the expense column, without a strategic system to back it up, you could be missing opportunities, or worse, accumulating debt. Consider marketing as an investment to be monitored and measured, to add real value to your brand and eventual selling price. Marketing is an integral part of your exit strategy or succession plan. Steven Covey called it “starting with the end in mind.” You can start today.

So whether you’ve recently jumped into the entrepreneurial sand box with the rest of us kids, or have grown your small business to a multi-million dollar enterprise, you can avoid and even escape being T.R.A.P.P.E.D. by your business. Listen carefully to your customers and act on what you learn. You may even need to exercise a little courage. Your next bold move doesn’t have to be big and audacious, it just has to be the next, best step.

Amy is Founder and CLO (Chief Listening Officer) of Temerity Creative, LLC, a marketing coaching and consulting practice for entrepreneurs and small business owners who are ready to be bold, be themselves, and build a meaningful brand.

You can request a connection with Amy on Linked In: www.linkedin.com/in/amylynncalfee. Include “business advantage” in your message.

By Mary Fisher

Your company’s success on the Internet is closely tied to how well you understand and implement Search Engine Optimization techniques. Google Juice is the value that Google assigns to each element on your website, that helps position it on the search engines. While there is no perfect recipe, knowing the proper ingredients to Google Juice will give you the greatest shot at a high-profile presence on the Internet.

Let’s look at some of the ways in which you can optimize your site for better search engine ranking without paying thousands of dollars to Google.

Google Rules When It Comes to SEO
Search Engine Optimization, or SEO, is the art of pushing your website ranking higher on the search engines. Google makes the rules on the Internet, since 70% of all Internet searches are done using Google search engines. And so, we must follow the rules or subject ourselves to banishment from rankings. If you employ SEO techniques Google doesn’t approve of, they may simply delist your website entirely, and then no one can find you in Google. This can happen to any business. If you don’t want to be in Google purgatory, it is imperative you have an experienced and knowledgeable company handle your SEO.

Google likes to mix it up and regularly change the way in which it ranks websites, without telling us what it is doing. One thing is for sure, however, linking your website via the other websites that Google owns—YouTube, Google Places (maps), and Google + (Google’s answer to Facebook), has become increasingly important.

Your Domain Name (URL)
Include good keywords and avoid acronyms or hard-to-spell words. The suffix “.com” is preferable to any others. Use words in your domain name that people would use to search for your company, and it will provide the most Google Juice of any technique listed (such as www.JacksonvilleRacingBikes.com).

The Page Title
Every single page of your website needs a unique title containing important keywords that pertain to that particular page’s content or main topic. This ensures that every page of your website can be seen by the various search engines.

Lots of Backlinks
These are links to your company’s website from other websites, particularly those that are pertinent to your industry. A lot of Google Juice is given to backlinks (sometimes called inbound links) that come from popular websites that have a high number of visitors, and are relevant to your business. Have your website listed on directories like Manta, Merchant Circle, Hotfrog, Bing Local, Yahoo Local, and Google+ Local.

Internal Cross Linking
Create hyperlinks from keyword phrases from one page of your website to another.

Keyword Rich Text
Use keywords and phrases in your text that the average person would put into the search engine to find your site, such as your products and services. Target different keyword phrases on each page. Don’t forget to include, on your homepage, the geographic regions you serve and your current business physical address. (You would be surprised how many addresses are not up-to-date.)

Bold Subheads

Each and every page of your website should use properly coded bold subheads in the verbiage using important keywords. Good examples for a retail fish market are:  We Sell Only Fresh Mayport Shrimp, Fresh Oysters Available on Fridays, Retail Seafood Sales, and Fresh Seafood Daily.  Also, make sure your Webmaster codes your bolded subheads as <h1> headers.

Photo Alt Tags
Place alt tags on every photo on each page of your website. For example, an alt tag on a photo that shows an interior designer measuring a wall might read, “Measuring a wall for wallpaper.” That way, if someone entered that description into Google, that company’s photo would appear in Google results and someone might click on it.

Meta Description
This is a short description of your business, which shows up in Google’s search. It must be succinct as Google will only show about 140 characters. For example, if you Google my company name, the meta description you will see on Google is:  Mary Fisher Design, 24-year-old Jacksonville, FL, graphic design, web and advertising agency. Brochures, logos, web sites, search engine optimization.

Refresh Text Often
Update your website regularly with changes such as new awards, staff changes, testimonials, news releases, and new services.  Adding a blog to your site and posting often is a great way to keep it fresh.

Link to Social Media Sites
Internet users expect to see links to main social media sites such as LinkedIn, Facebook, Twitter, and Google+. Update your contributions to these sites three to five times per week, and your spot on Google and Google Places will reflect it by moving you higher in rankings.

Slow-Loading and No-Loading Pages
Make sure your site is fast-loading since it helps populate quickly and rank higher, particularly on mobile devices. Google now down-ranks slow-loading websites. Also, you never want to design your website, or any part of it, using Flash.  Not only does Google have a difficult time cataloging a Flash website, but the site cannot be viewed at all on iPhones or iPads.

A Warning on Graphics
Do not put important text inside of graphic elements on your website. Here’s why: Google cannot read them, and so it cannot help your rankings. If you can highlight copy with your mouse on your website, then it is text—which is good. If you cannot, then it’s most likely within a graphic element—which is bad, and needs to be changed.

Expect about two to three months before you see results of your efforts on Google.

Mary Fisher is CEO of Mary Fisher Design, a 24-year-old marketing, design and web development firm. She is a past president of AIGA (the Professional Association of Design). Fisher was named “Women in Business Entrepreneur of the Year“ for 2007 by Women Business Owners of North Florida.

By Jim Molis

Lightning might not strike twice. But fire sometimes does.

Just ask Myers-Seth Pump, Inc. CEO Teresa Myers and her team. The Jacksonville manufacturer and distributor of pumps and dewatering equipment was beset by two fires in two months—at one of its busiest times. Though painful to endure, the adversities strengthened a company built upon faith and commitment.

“We were a team before, but we really pulled together,” reflected accounting manager Melissa Gilbert.

The first fire, in early August, would close the manufacturing wing of MSP’s 40,000-square-foot building on Dignan Street for a week. But employees arrived early the following Monday ready to do whatever it took to keep running, according to Gilbert.

Whether pulling pump parts, cleaning soot from office furniture, or forwarding calls to their cell phones, employees pitched in wherever needed, regardless of their departments or titles. It was a natural reaction that had been forged through years of similar collaboration.

“We’re a company of solutions, not only for our customers, but for ourselves,” said service manager, Willie Threatts. “If we have an issue, we put our heads together, come up with a solution, and keep going.”

Preparing for adversity is a byproduct of MSP’s team-first approach to setting goals and tackling problems. Building trust in one another day-to-day emboldens the team of twelve to act decisively when challenged.

In recounting the fires, a month after the second broke out, Gilbert assured her boss that the team never doubted they would make it through the “bumps in the road.”

Gilbert told Myers, “You’ve never given us a reason not to trust you. You’re upfront and honest. Every crisis we’ve come across, you get us through it and we go on.”

The first fire was a crisis of unprecedented proportion. It was an early morning in August when an employee first smelled smoke. Gilbert called Myers at home, and the CEO told her to call the fire department immediately. Two fire trucks responded and ten firefighters spent an hour searching for signs of a fire—to no avail. Before they left, they suggested that MSP contact an electrician to see if they could find the source of the smoke smell.

MSP’s regular electrician could not get to the building right away, so the normally frugal Myers told Gilbert to call the electrician with the biggest ad in the telephone book and request that they arrive at once. “This is a time you don’t worry about money,” Myers said.

But the manufacturing wing was soon ablaze and the electrical fire would eventually cause more than $1 million in damage.

The fire knocked out water and electricity in the manufacturing wing, and phone service throughout the building. All calls were transferred to Gilbert’s cell phone for a week so that customers would not worry about MSP’s ability to fill orders. Myers worked from her truck with her cell phone and iPad, despite the sweltering summer heat.

In such a desperate state, Myers could have folded, but fought instead, emboldened by her team’s faith in her, as well as their desire for her to lead. Employees connected with her vulnerability as she literally watched her business go up in smoke.

Myers drew courage from her team’s collective response and their faith in her, particularly after the first fire. So she fought. “You have more of a chance to come out stronger and further ahead by fighting, than if you roll over,” she noted.

Just when business had returned to some normalcy, fire struck again on a Monday in early October. This time, a service truck inexplicably caught fire while parked in the rental department’s wing of the building.

Though the damage was not as extensive, the fire could have been demoralizing. The wing had just been cleaned and restored after smoke wafted through during the first fire. Yet MSP’s team simply cleaned up again and kept moving forward.

Appreciating the positives—such as that no one was injured in either fire—provided emotional boosts for the company. Myers knew that focusing on the damage and disruption wrought would only be discouraging.

“Proper perspective helps gives you strength and gets you moving again,” Myers said.

Myers holds the things that cannot be replaced dearest—like one’s name, character, and family and loved ones—and has encouraged her team to do likewise.

She also shares her faith in God with her team, and both Gilbert and Threatts acknowledge that this too helped them through the fires. The consistency with which Myers lives her life inside and outside of the office has imbued Gilbert with confidence in her own faith, as well as trust in her CEO’s leadership.

“She’s the same everywhere,” Gilbert said.

That sense of stability within the company was essential in overcoming the fires, and has since grown. “Whatever adversity we’re in, we’re all in it together,” Gilbert said.

Myers, for her part, focuses on the journey—not the destination. “It’s not for us to understand the why, just the how.”

Lessons in Adversity

When her company had to overcome two fires within two months, Myers-Seth, Inc. CEO, Teresa Myers, responded in the following ways:

• Focus on what you have left, not what is lost.
• Remember that without testing there’s no faith.
• Accept that the road to success is always under construction. Bumps are inevitable.
• Stay strong for one another.
• Find some way to keep busy. That’s the best medicine to avoid self-pity.

Leadership by Example

As a business owner, knowing that your team trusts you and that you trust them can be invaluable in surmounting challenges that your company might face.

Myers-Seth Pump, Inc. CEO, Teresa Myers, has cultivated a culture of mutual trust among employees by sharing her drive for continuous improvement and knowledge. She still hungers to learn, even after more than a dozen years of growing Myers-Seth Pump, and leading it through the recession.

“If you don’t invest in yourself, who’s going to invest in you?” asked Myers, who did not speak English or understand American culture when she immigrated to the United States from Vietnam decades ago.

A voracious reader, Myers devours books on leadership, moral principles, self-improvement, and other topics. “As a leader, you can’t limit yourself to one category,” she said.

Myers takes copious notes and shares them with employees. She also distributes books, and even gave accounting manager Melissa Gilbert a set of encyclopedias and her first iPad.

Service manager Willie Threatts will receive Myers’ second iPad when she gets her next, and he has asked her not to delete her books and notes.

In addition to feeding them knowledge, Myers also provides employees with food. She cooks up meals for employees in the large kitchen at MSP’s Dignan Street building, often using ingredients bought from a nearby farmer’s market.

“When you treat employees right they feel they have value in the company, and they look at the business the same way you look at it,” Myers said.

Well-fed and read, MSP’s employees help set the company’s goals.

“Whatever goals we set, we set together and we go in one direction,” Threatts said. “It’s easy to have faith in it because everyone’s a part of it.”

Employees work across departments and job lines to achieve their goals. Titles mean little.

“Wherever I’m needed, that’s what I’m doing,” Gilbert said.

Myers accepts that mistakes will happen, but expects employees to learn from them, so that they do not repeat their errors. She wants each employee to develop to his or her full potential.

“Learn to earn” is her motto and she trusts employees to keep up. She also knows that when they trust her, there is nothing they can’t do for her, even when disaster strikes.

When Disaster Strikes

Teresa Myers never thought that she would watch her business burn. Fortunately, Myers-Seth Pump was adequately insured.

As CEO, Myers had switched insurance agents less than a year before the August fire would cause more than $1 million in damages at MSP’s Dignan Street building. Her new agent had worked extensively with Myers to save the company money without sacrificing coverage.

In addition to property damage, MSP was covered for content replacement and lost income. “There are many components that make up their insurance needs,” said Kerri Henderson, MSP’s insurance agent.

An account executive at local agency JP Perry Insurance, Henderson had recommended some coverage that MSP did not previously have. She was in a meeting away from her office when the fire broke out at MSP on a Friday afternoon, but arrived quickly after her account manager notified her via email.

The account manager had immediately filed a claim after MSP had called, and Henderson called the claims adjuster while en route to the fire. She confirmed that the adjuster was coming from Tampa and would be on site early the following morning.

Upon arriving at MSP, Henderson contacted a board-up company to cover holes in the building’s roof to prevent further damage. She also helped MSP choose between two restoration companies, and notified the company that was not chosen.

MSP chose Paul Davis Restoration based upon previous experience and reputation. The company set about restoring MSP’s building early Saturday morning and finished a week later.

Henderson worked feverishly in between, coordinating with MSP, the insurance company, the claims adjuster, and the restoration company. “Someone has to keep that wheel moving and keep the spokes all together,” she said.

The MSP fire has been the largest claim that Henderson has handled, and she credits Myers and her team for maintaining a positive attitude and persevering through the process. “Sometimes great people do everything right, but still, bad things happen,” she said.

Myers-Seth Pump, Inc. CEO, Teresa Myers, recommends taking these three steps before, and if, a fire breaks out:

• Find the best insurance company. Seek expert advice on the coverage you may need, such as property and business interruption insurance.
• Find the best insurance agent. It helps to have a knowledgeable agent that communicates well.
• Check the reputation of a restoration company before hiring it to do repairs.

“Prepare for the ‘what if’ so that when the ‘what if’ happens, you don’t have to lose sleep over it,” Myers said. “It’s invaluable to your peace of mind.”

By Jim Molis

Jim Molis is a contributing writer for Advantage Business Magazine.

He can be contacted at jmolis@creatwoodpr.com

Photography by David McCormick

pviphotography@gmail.com