Utah Business Blog

By Utah Business Staff and Mark Adams

Every Friday on UtahBusiness.com, on our UB Blog you will find one or two posts titled, “Venture Friday.” Venture Friday posts will be from entrepreneurs, who will write about their experiences, challenges, and successes in starting a new business.

We invite all entrepreneurs in the state of Utah to write a blog post and submit it to our assistant editor, Jared Preusz, at jared@utahbusiness.com. Please make sure the blog post is an attached document no longer than 400 words. The post must not be promotional in any way, but instead informational. We prefer entrepreneurs to write about important issues in starting a business such as the challenges they face, a trend they see, the successes and failures, and so on. If you have any questions about this blog, please send your inquires to jared@utahbusiness.com.

One of our contributors for Venture Friday is Mark Adams and he wrote the following note as a way of introduction:

Greetings all! Welcome to the very first installment of Venture Friday about my experiences in entrepreneurship. Before I jump into things, I thought it would be a good idea to introduce myself.

My name is Mark Adams. I am a local entrepreneur. I started my company, Fruition Design, in 2008. Prior to starting my own business, I spent the last ten years of my career working for a large medical device manufacturer. I am a mechanical engineer by trade, receiving my BS in mechanical engineering from Northeastern University in 2000.

I am also currently attending the University of Utah, where I am working toward my MBA in the evenings. When I am not running a business or going to school, I love to spend time with my family (son Tyler, wife April and dog Brutus) and play in the beautiful Utah outdoors.

While the focus of my business is on medical device development, I believe a lot of the trials and tribulations of running a small business are common, regardless of whether you are running a flower shop or a tech company as I do. When I was a freshman in college, a professor once told me that, for the most part, college is teaching you how to learn. Learning the specifics of your trade are secondary. Similarly, I strongly believe that one who perfects the art of running a business, regardless of the type of business, will be more successful than any master craftsman who doesn’t know how to manage his business. Of course, the holy grail of business if you will, is the business or business person who perfects their specific craft and their business skills.

With that said, I hope that what I share with you on a weekly basis will transcend the specificity of my business, and help you, in your endeavors. My goal for this blog is to share with you the lessons that I have learned over the past year, as I have transitioned from being employee number 1,003,208 at a fortune one hundred company, to employee number 1 at, what I hope will someday be another fortune 100 company.

This week’s UB Radio podcast gives a review of the iQ Awards event this week, which was a ceremony that honored Utah’s most innovative companies. The podcast includes an interview with the Green Business award recipient, Willowstick Technologies as well as two recordings from the event. At the end of the podcast is a review of the week’s top headlines.

By Dave Young, President of Paragon Wealth Management

For many, a down economy typically translates into a downer mentality. This volatile market can be overwhelmingly discouraging, which leads people to sit at the kitchen table with their head in their hands, saying, “Tell me when it’s over.”

The good news is it doesn’t have to be this way. A less-than-ideal economy can lend itself to a better-than-ever situation. All you have to do is plan for it.

There’s no denying the economy is in trouble or that people are seriously struggling. The market has been obliterated over the last few months, coming in at levels it was 11 years ago. The world has been turned upside down.

The market, essentially, has gone through nature’s equivalent of the “100 year flood.” Meaning, that this downturn was one of the worst in the past hundred years—-excluding the great depression. And because of that, it’s more important than ever to be alert and proactive. That deer-in-the-headlights mentality isn’t going to do you any favors.

Stocks have gone down, and they’ll go back up. We just don’t know exactly when. So it’s essential to evaluate your options and look to the future.

The market is often described as psychology in motion. It’s all based on confidence. For example, going into the election, consumer confidence was down. The politicians were telling people how bad things were, and they were scaring everyone to death.

Then we elected the new president, and consumer confidence went up 11 points—that day. President Obama didn’t do anything yet — but the perception of what he might do positively impacted the consumer confidence numbers.

The bottom line, is when confidence leaves the system, everything comes to a standstill. People stop spending because they’re scared — despite the fact that they still have a job and their paycheck hasn’t changed. The right move, however, is to do the opposite. Normally, we have to scour for the kind of deals you can find in today’s market. But now the situation is akin to someone pulling up with a dump truck full of bargains and leaving it there for the taking.

Taking advantage of the incredible bargains requires strategy and forethought. You can leave it to random luck, or you can strategically position yourself for great returns. This may be the way to make lemonade out of lemons. Now is the time to position yourself in a way that allows you to capitalize on an opportunity that rarely comes along. UB

By Richard Bayer

The holidays have come and gone, and unfortunately, there’s one gift that few of us received—job security. That’s right. With jobless claims at a 26-year high and the unemployment rate relentlessly climbing, many Americans will enter 2009 with jobs that may not exist two, four, or six months down the line. What’s worse, no matter how many hours you log at the office, you can’t shake that feeling that you’re working on borrowed time. That’s the bad news. But according to Dr. Richard Bayer, the good news is there are things you can do right now to help you keep your job and prepare for the worst in case your fate ends in a layoff.

“Many people are returning to work after the holidays to companies that are in limbo,” says Bayer, chief operating officer of The Five O’Clock Club, a premier career coaching network, and author of The Good Person Guidebook: Transforming Your Personal Life . “They’re doing everything they can to survive the recession, and layoffs may be part of the equation. If you think your company might go this route, you do have options: work hard and prepare for the just-in-case scenario of being forced into the job market.”

As COO of The Five O’Clock Club, Bayer knows all about helping people deal with job loss and changing careers. The Club is the only career program in which members meet with professional coaches and peers on a weekly basis in a friendly, club-type format. It offers small group career coaching across the U.S. and Canada.

“The Boy Scouts motto, ‘Be Prepared,’ should be your motto as well in this difficult economic period,” says Bayer. “Whatever you decide, whether you want to wait things out at your current job or search for greener pastures, you can’t be complacent. You should either be looking for opportunities to stand out at your current job or searching for another job that provides you with more job security. Knowing that you are prepared for whatever happens should give you some comfort moving forward.”

Bayer offers some “act now” tips that will help neutralize some of your layoff fears and prepare for the uncertain employment future:

Get your ducks in a row. People who have not yet been laid off should start testing their market with a preliminary job search, advises Bayer. It shouldn’t be an aggressive job search, but you need to go through all of the initial steps. And this is especially important if your company has just downsized—after all, just because you were spared the ax this go-round doesn’t mean you will be next time.

“Go ahead and take a look at the opportunities in your area and industry,” he says. “Update your résumé. And keep an open ear regarding your company’s future plans. True, all of this may be for naught if your company doesn’t have any more layoffs, but just knowing in the back of your mind what your options are will help you focus on your current work—which in turn helps you stay in the good graces of your higher-ups.”

Link yourself into important projects. (And remember, this is no time for false modesty!) The best way to protect yourself at your current job is to take assignments that are important to the future of the company. These projects will help you boost your status at the company and stay in front of those who hold your job’s fate in their hands. That said, don’t just quietly do the work—make sure higher-ups know you’re doing it.

“Don’t be afraid to talk up your hard work,” says Bayer. “When you run into your boss’s boss in the elevator, and he says, ‘John, how are you doing?’ the correct answer is not, ‘Fine. How are you?’ Instead, say, ‘Terrific. We’ve been working 70 hours a week on the ABC deal and it’s going great!’ Not only will you remind the big boss of your importance at the company, the news will likely draw him into a conversation with you. In one elevator ride or quick stop in the hallway, you’ve taken the opportunity to leave a good impression and you’ve separated yourself from the pack.”

Shine a glaring spotlight on customer satisfaction. Seems obvious, but it’s worth repeating: If you have a job that puts you directly in front of customers, do everything you can to make them happy. Ask them to take customer surveys so that you know where you and the company can improve your service. If a customer seems particularly pleased, ask if she wouldn’t mind putting in a good word for you with your boss. Go the extra mile to handle customers’ concerns or complaints and stay informed about what is going on in their worlds. Ask them how their businesses are doing and find out if there is anything your company can do to ease their burdens.

“Providing this kind of excellent customer service will not only please your customers, it will encourage them to spread the word about how great your company is,” notes Bayer. “They’ll likely refer any interested parties to you, and your client base will grow at the company, making you ever more important in your boss’s eyes.”

Get your résumé in order. The easiest thing you can do to get prepared for a possible layoff is to update your résumé. Be sure to include very specific information about the projects you’ve worked on. Remember, you need to know your résumé like the back of your hand. The best job applicants also have a great ability for talking about themselves.

“Once you’ve updated your résumé, start practicing what you would say about each experience listed,” says Bayer. “Think about how you can articulate your importance in each project, and if possible, sit down with a friend to do a mock interview. Having a strong familiarity with your résumé will be a great bonus for you in the future whether you use that knowledge as the result of a layoff or whether you use it because you want to make a career change.”

Don’t actually look for a job, but do make some “practice runs.” Make an extensive list of the companies where you would want to work. Put together a list of contacts and start making some cold calls. Start with the companies you are the least interested in so you’ll have a chance to practice your elevator speech before you get to your favorites. Say something like, “I am safe where I am, but a sensible person has to know what’s going on in the marketplace. I have been interested in hearing more about your organization and wanted to make sure they know who I am.” Ask if you can set up a time to ask them a few questions and tell them you just want 20 minutes of their time.

“Remember, you are not job hunting,” says Bayer. “You are just exploring the market. If they ask why you are leaving your present employer, your answer is, ‘I may not leave at all. I may stay there forever. I just thought it would be a good idea for us to meet.’ You can then contact companies you are more interested in and tell them you are not really looking but thought you ought to touch base with them just to be sensible given the current market. Who knows? These contacts may lead to great job offers that you don’t want to turn down!”

Keep in touch with your newfound contacts. After your initial meeting or phone call with these companies, stay in front of them. Give your contacts there a call every six to eight weeks. Let them know how you’re doing and how much you enjoyed your meeting them. These follow-up calls are also a great opportunity to remind them of your credentials.

“Tell them that you’re still not actively job hunting but you think it’s a good idea to stay in touch with top employers,” says Bayer. “These will be valuable contacts to have when and if you do start actively looking for a new job.”

Network, network, network. (Did we mention network ?) In addition to your “possible employers” list, keep building and nurturing your list of other business contacts. Go to trade association meetings to keep up with changes in your industry. Join social networks like LinkedIn to cast a wide net for contacts. In fact, says Bayer, you may even want to put together a luncheon or business dinner for people at your level or higher in companies in your industry or industries that interest you.

“These events are relatively easy to organize,” says Bayer. “And doing so puts you in a prominent position and ensures that many more people will remember you and want to stay in touch with you. Building a strong network is a great asset whether you’re trying to build your client base or whether you’re thinking about entering the job market.”

Master the Job Offer Juggle. First, try to get three offers from organizations on your C list. Keep those offers going while you quickly contact organizations on your B list. Tell those companies that you already have three offers but didn’t want to accept any of them until you first spoke with them. Then start contacting the companies on your A list. Tell them you have received X number of offers but did not want to accept any of them until you had the chance to talk with them.

“This is an amazingly powerful technique that helps you up your status in the eyes of your potential employers,” says Bayer. “It’s human nature to want what someone else wants—and to want what looks hard to attain. The Job Offer Juggle lets you use this reality to your advantage.”

Consider doing freelance work. If you’re worried about losing your job, doing some freelance work—writing, graphic design, accounting, or any other project-based business—is a great way to build your contact list, bring in extra income, and provide you with a safety net if you lose your job.

“This extra business will help you keep your skills sharp and provide great references when and if you enter the job market whether you are forced into it or decide to enter it on your own,” says Bayer.

Sound like a lot of work? It is, admits Bayer. But not only will this plan help you avoid the layoff list—or, at the very least, prepare you for the job market if you’re forced into it—it will act like rocket fuel on your career.

“It is never a bad thing to create a strong foothold within your industry,” he says. “Having a name and face that industry colleagues recognize will help you propel yourself forward regardless of the state of the economy. And if you’ve found yourself losing interest in what you do for a living, these steps will reinvigorate you. Even if you end up staying at your current job, you may well find yourself filled with new enthusiasm for your work. For that reason alone, the plan is worth setting into motion.”

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About the Author:

Dr. Richard Bayer is an ethicist and economist and Chief Operating Officer of The Five O’Clock Club, a national career coaching and outplacement organization. He is a frequent guest on radio and TV, having appeared on the Today Show , CNN, Good Day New York , and in Fortune magazine, Bloomberg News, and other major media. Dr. Bayer has a background of 22 years of teaching at the University level in economics and ethics. He has authored a book on labor economics (Georgetown University Press, 1999), 18 articles in scholarly journals, and numerous popular essays on topics concerning ethics.

By R. Brent Bennett, Partner, Spectra Management

Utahns who struggle to afford their employer’s health plans have resources…it’s just a matter of finding them. If you happen to find yourself in a job transition or looking for ways to make your healthcare dollars go farther, there are various solutions.

A viable option for consideration is a Utah-based healthcare premium subsidy program. Until recently, this Utah-backed program called Utah Premium Partnership (UPP) was utilized by only a small percentage of Utah families due to simple lack of awareness. However, this is changing. While seemingly few advertising dollars have been allocated to the program, awareness is starting to take hold with the help of proactive HR staff and individuals dedicated to researching all their healthcare finance options.

The beauty of UPP is that it is for everyone. UPP is for adults and children who do not currently have health insurance. It can also help you pay your monthly premiums when you enroll in your employer’s health insurance plan. Depending on family size, income and if your employer’s health insurance plan meets basic guidelines, your employees and their family members could be eligible. In fact, those who apply and get accepted by UPP could get reimbursed up to $150 per adult and up to $100 per child every month.

Just recently, 2008 legislation made the UPP program more flexible to join making it possible for individuals to enroll in work-sponsored coverage year-round. Enrolling yourself and your children is made easy and accessible via the UPP online application . However, make sure you fall into the right income bracket, based on the following “Maximum Income Per Month” chart, before taking the time to fill out the application.

*Effective March 1, 2008

Types of income reviewed by UPP include wages that you and your spouse earn, child support, alimony, and Social Security. Also, it is important to note that to qualify for UPP the employee’s portion of their health plan must also be at least 5 percent of their gross income (before taxes).

You might be wondering how employers benefit from UPP. The main benefit for employers who promote UPP is that it increases group health coverage participation. Health insurance carriers require a certain percentage of employees to participate in coverage in order for an employer to offer group coverage. So, the more people on the plan, the better and more extensive the coverage. And, healthcare benefits support employee loyalty, retention and productivity, which is especially important in today’s tough economic times.

To enroll in UPP, you can again apply online at http://health.utah.gov/upp or call 1-888-222-2542; paper applications are also available by request or can be downloaded online.

Spectra Management www.askspectra.com is redefining employee benefits in Utah. Originally established in 1986, the company has a track record of providing local businesses with innovative health insurance, savings and retirement plans that make sense today–and for years to come.

This UB Radio podcast includes an interview with Steve Spencer, president of Twelve Horses. The company is one of 30 finalists in the 2nd annual iQ Awards ceremony, which will take place next week in Salt Lake City. Winners of each category will be announced at the ceremony. Twelve Horses is a finalist in the business services category.

UB Radio is a new podcast that Utah Business magazine will publish every Friday. It will include a review of the week’s top headline news stories, a few announcements from Utah Business and interviews with one or two business leaders in the state of Utah. Listen to our very first UB Radio podcast!

By Linda T. Kennedy, Associate Editor

With the country’s economic recession, fresh business issues are emerging daily, and long-standing issues in Utah’s business community are exasperated by the crisis. At the same time, surprising social and consumer trends are igniting enterprising business concepts.

Periodically, Utah Business magazine will move in closely on one of those issues or concepts with “UB In-The-Know,” bringing new light to it, and possibly generating energy toward creative results.

As a UB reader In-The-Know, we want to hear from you about your experience, knowledge, insight and perspective regarding the topic we’re putting on the table. When we post In-The-Know blogs, we hope you’ll take a moment to join the discussion and by doing so, turn the wheels of change on Utah’s business horizon.

Utah Manufacturing
Putting it On the Line

Utah’s manufacturing industry is taking a hit on all sides—from the current recession and the fall-out from job losses in the construction industry. Manufacturing experts at a Utah Business magazine roundtable in December said the local manufacturing industry has seen losses in entry-level positions. But the retiring baby boom generation will create many vacancies in manufacturing’s high-level positions. Unfortunately, they say, today’s younger workforce is missing the technical skills needed to replace those positions and this is having an overwhelming impact on Utah’s manufacturing industry.

Tom Bingham, president of the Utah Manufacturers Association, said skilled workers are in such demand that some industries are outsourcing out of state to get the help they need. “I suspect we still have a shortage of people who can handle some of our equipment in the plastics injection molding industry,” said Bingham. “And when they have to hire out of state for the employees they need, that’s downtime and that’s expensive.” Bingham adds there’s also a need for machinists and welders and while the demand is not as critical as it was with a new unemployed work pool, manufacturing in Utah is still left wanting.

Manufacturing leaders said Utah has to do a better job of getting the younger generation technically trained. The experts also said that 76 percent of the jobs in Utah do not require a baccalaureate degree, and believe there should be a better system to match public education with the specialized skills that are needed in manufacturing jobs. Do you agree?

Some leaders, at the roundtable, though, said the issue largely resides with societal beliefs associated with baccalaureate degrees and succeeding in the workforce.

As the writer covering this roundtable event, this rang as a strong possibility to my ears. I think it’s very possible Utah parents are not having dialogue with their children such as “And then son/daughter, you will grow and graduate from high school and then work in a factory running machines that can make things.” If so, why? What is the social status associated with manufacturing positions in Utah?

According to the Utah Employer’s Council, someone can enter into a skilled position (welder, machinist, etc.) in Utah making around $35k to $50k per year. Generally, one can move into management positions making $70k to $100k per year (which include bonuses).  Apparently, salaries are very competitive with salaries in other fields requiring baccalaureate degrees. But, socially speaking, is success in manufacturing positions equated as the same as in other positions, earning comparable salaries, in our business environment?

Perhaps you are in the know about other factors.

Lovely work environments are all-the-buzz now—what’s it like in a manufacturing factory?

If you are a college student, did you ever consider a career in manufacturing but didn’t choose it and if so, why not? Also, would learning about the salary possibilities change your mind?

As a parent, would you encourage your child to pursue skilled training for a career in manufacturing versus a baccalaureate degree? Why or why not?

While there are many fields bringing in similar salaries and greater social recognition, when one roundtable member commented something to the effect, “Regardless of how society sees it, stuff still has to get made,” I thought, yes, without the equipment, most professionals wouldn’t be able to do their job, including me posting this blog on a computer assembled by someone in manufacturing.

Also concerning was a comment by David Sorensen, executive director of the Manufacturing Extension Partnership who said manufacturing was 12 and-a-half percent of the gross domestic product in the state and now it is just over 10 percent. “Relative to the economy, we’ve lost 20 percent as far as manufacturing,” said Sorenson, “This is 28,000 jobs down if we just kept up with the economy- that’s $1.6 billion in wages in manufacturing.”

Who’s responsible for letting this economic engine slide, especially at a time when people need jobs and Utah’s manufacturing industry has places for them? Society? Government? Or is it simply the nature of skilled trade turning younger eyes towards other industries?

UB In-The-Know.
-Linda T. Kennedy

By Cindy Kelly

Assistant Vice President, Business Development

Family First Federal Credit Union

Much has been reported on the news to suggest that the availability of outside financing for small businesses has tightened or dried up completely. Despite the slowing economy and the tightening of the credit market, entrepreneurs still have plenty of ways to raise funds for their companies. Financing still exists for companies with a solid performance and longevity. Small business owners just need to know where to look.

Credit unions offer the best chance for many small or young companies to start building a banking relationship. Credit unions can be flexible with their lending options, which will benefit small businesses.

As we begin 2009, many small business owners will be looking at the various financing options that are available and determining what fits their needs. If you are looking for small business funding, you should consider these options:

• SBA 7A Loans – This is a federally insured loan program designed to help small businesses that has no alternative funding available. It is often considered the loan of last resort. It provides some flexibility considering terms to custom fit the business needs. To be eligible a company must be a small business as defined by the SBA and meet all requirements.

• SBA 504 Loans – If you are interested in Commercial Real Estate this is an option for you. Again SBA compliance is a must. SBA 504 allows a smaller down payment for the borrower which allows more reserve for cash flow. Usually there is a very competitive interest rate for SBA portion of the loan which is fixed the entire life of the loan.

• Business Visa Awards – The entire line of credit can be used just like cash with the same interest rate applying whether you use cash advance or a credit card purchase. Use it to purchase necessary equipment or whatever fits the company’s needs. Another excellent benefit to a small business line of credit compared to a regular loan is that the card holder is only charged interest on the money the business actually uses. Pay purchase balances off in full within 25 days, and the user won’t have to pay any interest. Other benefits are that the business can extend payments over time to better manage cash flow, earn airline miles or hotel points, and no annual fees.

Borrowers need to explore all their options. Sharing what is going on in your business and why you need to borrow money is a must. Business owners should be proactive rather than reactive when it comes to financing needs.

In general, to qualify for a loan, lenders require both a track record and confidence that a borrower can pay back the loan. As an overall benchmark, lenders want to see companies with cash flow that is 1.5 times their payments on debt.

Remember that good companies are definitely going to make it through the tough times and credit is still available for small businesses that are in a healthy financial position. Entrepreneurs will need to stay nimble during this time and be wise when it comes to finding additional funds for their businesses needs.

Cindy Kelly is the assistant vice president of business development for Family First Federal Credit Union. Family First has branches in American Fork, Pleasant Grove, Orem, Springville, Payson, Lindon and a Home and Business Loan Center in Orem.

This podcast is a recording of a panel of leaders at Wells Fargo during an event held on January 6, 2009, to release the Wells Fargo 2009 Economic/Investment Outlook report. Those in attendance asked questions of the panel and the panel members answered those questions in this recording.