Utah Business Blog

By Dave Young, President, Paragon Wealth Management

A couple months ago we gave Congressman Jason Chaffetz a copy of a blog post that Dave Young previously wrote titled, " Stimulus for Utah ?" This was his reply.

Dear Dave,

I agree with the points made in your blog post entitled "Stimulus for Utah? Thank you for giving a copy of the article to my staff during our recent ribbon-cutting ceremony at our Provo office. It is heartening to see citizens with an acute awareness of our current economic problems and dedication to solving those problems.

I assure you that no one is more dedicated than I to getting America back on the right track, economically and otherwise. In order to do that something needed to be done, but I have maintained since its inception that the American Recovery and Reinvestment Act of 2009 was not what we needed. This pork-laden bill may end up only putting us in the worse situation.

Your point about the return on investment for Utahans is particularly adept, as is your observation that this bill is hardly a bipartisan one. Our hope now lies in the American people; we have risen from difficulty in the past despite the oft-obstructing attempts of our too-big government to solve our problems from us. Now that the bill is passed it is my hope that Americans like you and me, can collectively solve our current difficulties and usher America into a more stable, prosperous, and responsible economic future.

Sincerely,
Jason Chaffetz
Member of Congress

About the Author

Dave Young, President and founder of Paragon Wealth Management, started Paragon in 1986. Today he continues to invest and research ways he can improve his business to serve his clients better. His methods have attracted national and local attention. He has been interviewed by BusinessWeek, CNBC, the Wall Street Journal, the Deseret Morning News and other national and local media. He has also written articles for Utah Valley Magazine, Utah Valley Business Q, Utah CEO Magazine’s blog, Paragon’s blog called Money Manager’s Live and others.

The views and opinions in this blog do not necessarily reflect those of Utah Business.

By John Pilmer, President of PilmerPR

Only ten years ago, press releases used to be one of the only ways to get your company’s name mentioned by the media. A painfully slow fax to newsrooms was the preferred way to get your press release to the media. Thanks to technology, today things are a little different and the value of press releases has significantly increased.

New services like PR Newswire and Business Wire allow companies to put their news release “on the wire” and broadcast their release to thousands of news outlets and influential blogs. Companies now enjoy more than just news clippings from papers and magazines.

A press release is a small investment that not only brings results while in print, but long after. Similar to a press release, advertising can provide a great response while an advertisement is active; however, when the ad is no longer active, the results drop. Press releases have a different life cycle. Similar to advertising, positive coverage provides valuable results, yet, long after the print or broadcast coverage; press releases continue to provide results with great SEO benefits .

One of the greatest unseen benefits of a press release is the ability to link targeted keywords within a release. By linking the keywords for which you are trying to rank, your press release can provide quality backlinks on hundreds and even thousands of pages. Many news Web sites and countless blogs take press releases verbatim from the wire and post them to their blog giving you exposure to millions of viewers.

When your press release is posted to numerous Web sites, you create countless points of contact for your message to your target market. If a potential client or customer searches for words related to your company or competitors, a press release published on a news Web site or blog may be the content that drives that customer or client to your company’s Web site.

Concise writing, selecting the right keywords and a unique message will help ensure your press release is not just an old school tool, but a powerful marketing and public relations instrument.

About the Author

John Pilmer , APR is founder and president of PilmerPR, LLC . In its 6th year, the award-winning PilmerPR team provides enterprise-level expertise at a small business price. The company is a 2008 recipient of the Provo/Orem Chamber of Commerce Arthur V Watkins award for excellence. PilmerPR was recently recognized at the National Press Club in Washington, DC for its work in Corporate Social Responsibility (CSR). Also, see KSL Channel 5 interview of the author regarding crisis communications.

This post reflects the views of John Pilmer and not necessarily those of Utah Business.

By Clark Roundy, Luxul Wireless VP of Marketing

What makes your company different from all the others that are competing for the attention of the same customers? Is it a unique product or technology? Better service? Superior sourcing capabilities? Attractive packaging? An unusually high level of expertise in a certain discipline? For some organizations, pinpointing real differentiation can be a challenge. But in a competitive marketplace, even subtle differences can be assets if properly positioned to be of value to your target customers.

Almost every company has unique traits that are valued by certain customers, but in some cases you may actually need to create differentiation. As you work to improve the appeal of your products or services, here are a few ideas to help you start with the process of identifying your company’s key differentiators:

1) Make a list of your primary competitors. Can you identify one thing you do better than any of them? Is it something a significant number of customers or a particular market segment will value? If so, perhaps you’ve identified an area of differentiation on which to focus.

2) Do a simple SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). Be completely honest and objective in your assessment. It may surprise you where this exercise leads.

3) Listen to your customers. This can be done effectively in formal settings (i.e. focus groups) or informally as part of a casual conversation. Social media also gives you a fantastic opportunity to be more in touch with customers and potential customers.

4) Rely on and trust your employees to help identify key areas for differentiation. Each will have a unique perspective that can help drive creativity. Involving employees will also increase job satisfaction and productivity—resulting in another win for you and for them.

At Luxul Wireless, one of our key differentiators is the use of a unique antenna technology called Circular Polarization (CP). There are hundreds of antenna manufacturers, but few of them use CP because it is more complicated to implement than traditional Linear Polarized antenna types. But, when implemented correctly, the technology is far superior in certain applications. Luxul didn’t create the technology. We just have chosen to make it a centerpiece of our antenna product strategy and have put significant engineering resources towards doing it better than anyone else. It’s a huge differentiator and helps set Luxul apart as a leader and innovator in the marketplace.

With a little creativity and thought, every company can demonstrate some unique characteristics. The next step is properly communicating that differentiation to the right audience that values those characteristics.

About Clark Roundy, Luxul Wireless VP of Marketing

Clark Roundy is VP of Marketing at Luxul Wireless. Throughout his 20 year career, Mr. Roundy has worked extensively with early stage and emerging companies to identify core competencies and implement key growth strategies. In his role at Luxul Wireless, Mr. Roundy is responsible for marketing strategy and oversees all outbound marketing programs as well as product and brand management.

Prior to joining Luxul Wireless, Mr. Roundy has held key executive positions at Linux Networx, Penguin Computing, Parvus Corporation, Alta Technology, and the Eyring Research Institute. Because of his diversity, his roles have included sales and marketing leadership, strategic planning, business and partner development, product management, and professional services program development. He also has an affinity and aptitude for international business, having managed and built sales, service, and supply chain organizations within Asia, Europe, and South America.

Mr. Roundy is well recognized as a key contributor to the development of the Linux cluster marketplace—a technology that has revolutionized the traditional supercomputing industry. He holds multiple patents related to Linux clustering. Mr. Roundy is a graduate of Brigham Young University.

This post reflects views and opinions of Clark Roundy and not necessarily those of Utah Business.

By Dave Young, President of Paragon Wealth Management

Investment markets perpetually cause investors to do the wrong things at the wrong time when it comes to wealth management. Most mistakenly follow their emotions and act with their heart rather than their head. Below are examples of conversations I had last week with investors searching for better alternatives.

Comment:  “I’m really nervous about my investments. I’ve never really paid much attention to them, but I have decided that I need to do something.”

Response:  “Don’t just do something because you feel the need to act. Make sure your actions are strategic, make sense, and will improve your situation over the long-term. Doing something just to do it is usually a mistake, especially when you are investing.

Comment:  “This really nice man told me about an annuity that guarantees 7 percent, but if the stock market goes up, I’ll get the benefit of that also.”

Response:  These annuities are popular right now because they provide the illusion of safety, guarantees and market upside. In other words, they provide the best of all worlds. If they really provided the benefits they claim they would be great products.

If you read the prospectus rather than the sales literature, you will find their terms extremely confusing. Their prospectus is full of disclaimers and requirements that must be met in order for them to work. Most lock up your money with surrender charges that force you to stay in them for 7 to 10 years.

Why would anyone want an investment that forces you to stay invested in it for seven to 10 years? Good investments allow you to come and leave when you want. They stand on their own merits.

Comment:  “I talked to a financial advisor at Vanguard and they told me that I should put my money in their index funds because they have the lower costs and will participate in the market upside if the market goes up.”

Response:  “Unlike the annuities mentioned above, their accounts actually should go up if the market goes up, which is positive. The negative side to it is that over the past 10 years, the S&P 500 and most other broad based index funds haven’t returned anything to investors. To get a return of “zero” for a really low price doesn’t provide much benefit. Look at the investments total net return over time, not just the internal costs.

Comment:  “I’m going to put my money into a CD because it is safe.

Response:  “Don’t lock your money up at a fixed rate when interest rates are at multi-year lows. There are much better “safe” options available. Only lock your money up at fixed interest rates when the rates are relatively high.

Bottom line… Always follow a long-term, disciplined investment strategy when you invest.

This post reflects the views and opinions of Dave Young and not necessarily those of Utah Business.

By Ryan Bingham, Partner, Spectra Management

As the forces behind the nation’s healthcare reform discussion take center stage, it is important that we track the incidental but meaningful changes that are already underway at the state level. In about a week, Utah H.B. 331 - Health Insurance Coverage in State Contracts (Dunnigan) takes effect.

Under this new legislation, some state departments, including DEQ and the Department of Transportation, must require contractors to offer healthcare to the contractors’ employees and their families.

Specifically, the bill requires state contractors with contracts valued at $1.5 million or sub-contracts of $750,000 to provide health insurance to their employees.  Furthermore the bill requires the employer to have established waiting periods for new-hires no longer than 90 days, contribute at least 50 percent for the employee and their dependents, and requires minimum benefit requirements to be equal or better than the CHIP plan.

This legislation has received little attention in the daily press. The state’s various departments are currently asking their contractors to provide a certified actuary certificate stating that their plan and contribution is in compliance.

H.B. 331 establishes enforcement and penalties for a contractor who does not maintain an offer of qualified health insurance coverage for employees during the duration of the contract; deposits any penalties collected into the Medicaid Restricted Account; and applies to construction or design contracts entered into on or after July 1, 2009.

If you are a contractor or subcontractor who has state-funded projects underway or planned, make the effort today to ensure you are in compliance. 

Spectra Management 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 post reflects the views and opinions of Spectra Management and not necessarily those of Utah Business.

By John Pilmer, President of PilmerPR

(See Part I here) (See Part II here)

The secret to effective Corporate Social Responsibility (CSR) is planning. Integrate CSR into your organization’s business model for best results. The benefits from your CSR campaign may come in the form of increased profits, an increased positive company perception, or approval from the community through increased goodwill or an improved hiring pool.

Positive outcomes for your CSR campaign require leadership, not luck. A strategic look at organizational objectives and how you plan to accomplish them will greatly facilitate the tactics planning of your CSR plan.

When determining your socially responsible objectives, consider your organization’s roots. Don’t immediately look around the world. Look in your backyard, start local. Make smaller goals and think about the community around your organization. How can you be a responsible corporate citizen? Look at the community’s needs and sincerely think about how your organization could help.

However, if your company has global reach, then the world is your community. US Synthetic recognized this when they started Yehu Microfinance.

Tactics used to help accomplish your goals can be lofty and public, but they can also be small and private. One of the most important things to consider when planning tactics is if the tactic fits the objective. Large corporations have employed publicity catching tactics, but in the end they failed because they did not accomplish the predetermined objectives.

Once you have decided on a project, goal or objective, decide how you can involve your company, employees and target markets. One of the best ways to truly make an impact on your target market and key decision makers is to show them firsthand what you have done to be socially responsible.

 Anyone can donate money to a charitable organization, but it takes time, and sweat to build real relationships that not only make a difference, but a memory. Find a way to get yourself and your employees side by side with your target markets.

With careful planning, clear objectives, and relevant tactics, your organization’s CSR campaign will not only be effective, but it will also provide a clear return on investment.

 About the Author

John Pilmer, APR is founder and president of PilmerPR, LLC. In its 6th year, the award-winning PilmerPR team provides enterprise-level expertise at a small business price. The company is a 2008 recipient of the Provo/Orem Chamber of Commerce Arthur V Watkins award for excellence. PilmerPR was recently recognized at the National Press Club in Washington, DC for its work in Corporate Social Responsibility (CSR). Also, see KSL Channel 5 interview of the author regarding crisis communication.

This post reflects the views and opinions of John Pilmer and do not necessarily reflect those of Utah Business.

By Clark Roundy, Luxul Wireless VP of Marketing

There is a Chinese proverb that states, “A sly rabbit will have three openings to its den.”  For business leaders looking for a little insurance against economic downturns or inevitable changes in their core markets, this is excellent advice about the need for diversification.

As head of sales and marketing at Parvus Corporation—a supplier of rugged mobile electronic systems products—diversification was somewhat of a challenge. The company was well entrenched in the military/DoD markets and products were highly specialized. The company was also on a solid growth curve, which made diversification less of a priority. Still, the idea of having only one opening in our den was reason for concern. Plus, there was no better time to consider diversification than when the company’s core business was on the way up. With that in mind, we looked for adjacent markets that had similar rugged system requirements and found that transportation was a solid expansion opportunity. With some creativity on the part of a couple of superstar employees, the company was able to adapt products for use in mass transit applications and made some significant inroads in a relatively short time frame. Among the beneficiaries of that effort are local UTA customers that now enjoy the benefit of having stable high speed internet access while commuting to and from work.

At Luxul Wireless, we have experienced exactly the opposite scenario that we had at Parvus. Our products can be used in multiple markets, with little or no modification.  This presents its own set of unique challenges—pursuing too many markets can be overwhelming and unproductive if not properly resourced and managed. With that in mind, we’ve been rather selective about the markets in which we choose to invest time and resources. Also key to this strategy has been the focus on aligning ourselves with the right channel and technology partners (see last week’s blog entry) that can bring value to our expansion efforts.

As you evaluate your options for market diversification, here are a few simple Do’s and Don’ts to consider:

Do:

·         Look for market opportunities with similar requirements to your existing customer base.

·         Build upon your strengths and what has proven to work elsewhere.

·         Leverage partners with specific domain expertise to enter new markets wherever possible.

Don’t:

·         Let your organization be distracted by straying too far from your core business.

·         Spread your resources too thin by biting off more than you can chew.

·         Be fooled into thinking your market will never change.

Having multiple den openings is key to survival—for the rabbit, as well as for the successful enterprise. At the same time, making sure those openings aren’t located too far apart from each other is an important aspect of creating the right balance between managing growth strategies and keeping organizational resources focused and productive. 

About Clark Roundy, Luxul Wireless VP of Marketing

Clark Roundy is VP of Marketing at Luxul Wireless. Throughout his 20 year career, Mr. Roundy has worked extensively with early stage and emerging companies to identify core competencies and implement key growth strategies. In his role at Luxul Wireless, Mr. Roundy is responsible for marketing strategy and oversees all outbound marketing programs as well as product and brand management.

Prior to joining Luxul Wireless, Mr. Roundy has held key executive positions at Linux Networx, Penguin Computing, Parvus Corporation, Alta Technology, and the Eyring Research Institute. Because of his diversity, his roles have included sales and marketing leadership, strategic planning, business and partner development, product management, and professional services program development. He also has an affinity and aptitude for international business, having managed and built sales, service, and supply chain organizations within Asia, Europe, and South America.

Mr. Roundy is well recognized as a key contributor to the development of the Linux cluster marketplace—a technology that has revolutionized the traditional supercomputing industry. He holds multiple patents related to Linux clustering. Mr. Roundy is a graduate of Brigham Young University.

This post reflects the views and opinions of Clark Roundy and not necessarily those of Utah Business.

By Nathan White, CIO, Paragon Wealth Management

There is currently a lot of talk about what the implications will be for all of the government involvement in the economy.  To help put things in perspective I thought it would be good to take a look at the current condition of the country’s finances.  I am not a doom and gloomer, but I think it is always helpful to know the facts in order to put things in perspective:

$56.4 Trillion     Current Liabilities and Unfunded Promises of the United States Government

                This equates to $483,000 for every American household and approximately $392.6 billion for Utah

$11 Trillion        Current National Debt

                50% held by foreign countries and the other half held by the public

$1.7 Trillion       Projected 2009 Budget Deficit

                The largest as a share of GDP since World War II

In order to service all of these liabilities the government will have to take more from the private sector which means slower economic growth than there otherwise would have been. 

It does not mean that we won’t grow (which is why I’m not a doom and gloomer!) but just that the growth will come at a slower pace on average. 

By John Pilmer, President of PilmerPR

(See Part I here)

Corporate Social Responsibility (CSR) is no longer the hot potato that is fun to toss around. Taken from big ideas and a sense of responsibility, CSR is now one of the standard side-dishes of the corporate offering. The Fortune 500 are doing it, and the small business down the road is talking about it. You may be surprised how many organizations have incorporated CSR into their strategic plans.

Coffee giant Starbucks is among the social responsibility leaders. A look at Starbucks’ global responsibility page reveals little content, but key CSR tools. First, Starbucks uses two elements of the triple bottom line, planet and people to immediately let their customers know they care about being socially responsible. Next, Starbucks ingeniously created their CSR reports that although extraordinarily long, can convince almost anyone that Starbucks truly does care for the environment.

Disney is another sustainable business proponent. The media giant is has created more than just an impressive CSR reporting Web site. Disney is leveraging its branded stars to communicate Disney’s message of social responsibility to even its younger audience. Teen idols Miley Cyrus and the Jonas Brothers are key celebrities of the “Friends for Change: Project Green.” Through Project Green, Disney is pledging up to a million dollars to be donated, invested and spent based on ideas from the teens that join and submit suggestions.

Disney deserves double the credit for the strategic way they designed their CSR or Green PR campaign. It is vital to communicate clearly with your target markets what your company is doing to make their world a better place. However, it is even better to involve your target markets in the implementation of your socially responsible initiatives. By allowing your target markets to take part or have a say in your CSR activities, you give them ownership of the socially responsible actions. Not only will they recognize your company as a responsible corporate citizen, but they will also be happier with themselves because they played a part.

Whether you plant a tree, give scholarships, create informative CSR reports or anything else, the “how” is equally important as the “what”. Many times companies get caught up in objectives or “what” they are going to do without spending time to carefully plan tactics or “how” to most effectively achieve those objectives. Through strategically planed tactics, your company can utilize opportunities for customer involvement, while at the same time achieving your CSR objectives.

About the Author

John Pilmer, APR is founder and president of PilmerPR, LLC. In its 6th year, the award-winning PilmerPR team provides enterprise-level expertise at a small business price. The company is a 2008 recipient of the Provo/Orem Chamber of Commerce Arthur V Watkins award for excellence. PilmerPR was recently recognized at the National Press Club in Washington, DC for its work in Corporate Social Responsibility (CSR). Also, see KSL Channel 5 interview of the author regarding crisis communications. 

This post reflects the opinions and views of John Pilmer, and does not necessarily reflect those of Utah Business.

By R. Brent Bennett, Partner, Spectra Management

Many are scrambling to make changes to their employer-based retirement plans to slow down the recent savings bloodletting. More than ever, it’s important to have an understanding of how the Roth verses traditional 401(k) plans work, including the pros and cons of each.

There is one basic yet commonly misunderstood fact that permeates the two retirement choices. While they are effectively mirror images of each other, with the traditional 401(k) you invest pre-tax dollars and pay taxes at withdrawal (eligibility for 2009 phases out between $105,000 and $120,000 for single filers and $166,000 to $176,000 for those married or filing jointly). With a Roth, you invest after-tax dollars, paying no taxes at the end when you withdraw with no income stipulations. In a pure economic sense…there’s really no difference between the two.

The Roth Edge

However, there is one minor difference that can give the Roth the advantage. While the maximum pre-tax dollar contribution for the traditional 401(k) in 2009 is $16,500, the same goes for the after-tax Roth option meaning those who contribute $16,500 to their Roth after taxes could ultimately save more money on a tax-advantaged basis for retirement—if they are disciplined enough to do so.

Investing Tax Savings

Of course, those who contribute to the regular 401(k) can reap huge tax savings. And, if the individual is financially savvy enough to invest those tax savings, they could very well duplicate the Roth’s tax-free returns on those savings, meaning the amount you end up with after taxes in a traditional 401(k) and the Roth 401(k) could be the same.

Tax Rates & Age Matter

Tax rates combined with a long-term vision of your financial portfolio do matter in deciding between a regular 401(k) and Roth. Assuming your tax rate climbs from 25% to 33% by the time you withdraw money from your regular 401(k), then you would owe more in taxes on your regular 401(k), leaving you with less than in the Roth.

Conversely, if you happened to drop from the 25% to the 15% bracket by the time you withdraw the money from your regular 401(k), then you would deduct less in taxes, leaving you with more than in the Roth.

For younger participants in their 20s and 30s who want to save because it is the right thing to do, a Roth makes a lot of sense as it allows this demographic generally in a lower tax bracket to capture their employer’s matching contributions and protects them from the pitfalls of premature distribution (if they withdraw savings before the age of 59.5) and taxation if they should leave their jobs, move employment, or find themselves in need of extra income.

Whether you foresee a higher tax bracket in your future or not, choosing between a Roth verses a traditional 401(k) shouldn’t be an “either or” decision. You can contribute to both and give yourself the tax-deferred and tax-free flexibility required to satisfactorily manage your taxes well into retirement.

R. Brent Bennett of Spectra Management is a Registered Representative of and offers securities products and advisory services through Royal Alliance Associates, Inc. Member FINRA/SIPC, a registered broker-dealer. Spectra Management is not affiliated with Royal Alliance Associates, Inc. This information is not intended to be a substitute for specific individualized tax or legal advice. Please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.

This post reflects the opinions and viewpoints of Brent Bennett and not necessarily those of Utah Business.