Local SCORE Chapter to Offer Classes on Business Basics

New Vision is teaming up with our local SCORE business counseling chapter to offer four basic business seminars for entrepreneurs and small businesses.  The classes are designed for folks thinking about starting a buusiness or for those who have just launched a new enterprise.  We have worked with SCORE to offer these seminars several times and they have become an effective and popular way for people to learn what it takes to launch and successfully operate a small business.

The classes start on Thursday May 17th and run weekly during the lunch hour over the following three weeks.  The first class covers the realities of running a small business and acquaints people with the traits and practices of succesful business owners.  The second class (on May 24th) covers business plan basics.  The last two seminars cover financing and marketing a business.  All seminars start at 11:30 and run until 1:00.  Click here to visit our calendar and learn more about each seminar.  You can register online through our calendar of events OR you can contact our office at 509-575-1140 or newvision@ycda.com to register for one or all of the seminars.  Cost for each class is $10 in advance or $15 at the door.  Registration covers a lunch that is provided during each seminar.

Expanding Companies Grow Jobs in Yakima Valley

Peninsula Packaging Company, LLC, a leading provider of thermoformed plastic packaging products, announced recently that it has acquired the agricultural thermoforming division of Berkley Operations, LLC, doing business as Packaging Plus in Yakima. acquisition strengthens Peninsula Packaging’s position as a leading packaging supplier to the fresh produce and bakery industries. Peninsula Packaging will now serve its customers through four strategic locations located on the West Coast and East Coast.  As part of the acquisition, Peninsula will expand into the former Ace Hardware distribution center on River Road in Yakima.

Ed Byrne, CEO of Peninsula Packaging, said: “The Packaging Plus transaction expands our geographic footprint and increases the breadth of our product offering. We are very excited to be in Yakima and will be adding new equipment and employees to the operation almost immediately.”

Peninsula is a great company and we are pleased to see them expanding in Yakima and creating 25 new jobs.  They are a perfect fit for our area given the magnitude of our agriculture industry.   

More About Peninsula Packaging, LLC
Peninsula Packaging is a leading provider of custom thermoformed plastic packaging products targeting the fresh produce and bakery markets. The Company has fully integrated operating platform, which includes extrusion, thermoforming and labeling at its two production facilities located in Exeter, California and Wilson, North Carolina. Peninsula provides custom tooling design services, responsive customer service and rapid order turnaround to customer group of leading produce growers, bakery companies and grocery retailers. The Company’s products are environmentally friendly, using recycled materials and renewable energy. For information about Peninsula, please visit  www.penpack.net.

January 24, 2012 and March 16, 2012 by Dave McFadden

Ways New Vision helps Local Industry

New Vision responds to the needs of local manufacturers, key businesses and entrepreneurs recognizing that they are a significant source of new jobs, investment, and wealth creation within our Region.  Whether it is helping a new company locate in the county or working with an expanding manufacturer, we can assist in many ways:

• New Vision staff proactively contacts 40-50 key companies annually to gauge their health and offer tailored assistance as necessary.
• Staff works with expanding companies to ensure they are aware of any tax credit, workforce development or infrastructure assistance programs.
• New Vision is helping emerging businesses and entrepreneurs.  We work with partners to offer seminars for start-up enterprises.  We also stage the Enterprise Challenge, a business plan contest that helps identify and reward the region’s most promising new ventures.
• New Vision also provides leadership on community issues affecting the regional economy.
• New Vision helps local employers recruit technical and professional employees to the region.  Our talent attraction initiative is anchored by our new websites, www.liveyakimavalley.com and www.workyakimavalley.com.  We also train ambassadors to work with new residents and organize receptions to introduce new residents to local leaders.
• New Vison administers the Yakima County SIED fund that helps fund public utility improvements that support expanding companies and pave the way for new business facilities.
• New Vision is actively involved in redeveloping the former Boise Cascade mill site as well as other industrial/commercial sites in Yakima County

We can also provide information on:

• Exporting;
• Government-backed loans;
• Industrial revenue bonds;
• Job skills training and education;
• Licensing;
• Relocation;
• Targeted jobs tax credits; and
• Sources of goods/services for manufacturing.

New Vision has helped 18 companies locate or expand operations in Yakima County since 2005.  These companies have invested over $75 million in new facilities and added over 600 new jobs.

Farewell Message – Reflecting on Past Five Years with New Vision

As I wind down the final days at New Vision and prepare for a move back to Spokane and a new job, I’ve been reflecting on what I’ve learned over the past five and a half years.  It’s hard to sum up the friendships, business experience and professional accomplishments, but really the main reason New Vision is so successful is due to the leadership of President Dave McFadden and Board of Directors.  I have been blessed to work for one of the most talented and respected leaders in Dave.  He has the ability to stay ahead of the curve and be on the cutting edge of economic development initiatives.  I’ve also been fortunate to get to know so many community leaders both in Rotary and our Board members; I will miss this community!

Over the past five years, I was fortunate to work in different capacities for New Vision, getting a quick and steep learning curve on them both.  When I started in Marketing and Recruitment, we dove in full steam ahead with a video project and website redevelopment and then when I moved in to Business Development, we took off with a new entrepreneur initiative and it never slowed down.  I’m proud to have been a part of the team that brought the Enterprise Challenge Business Plan Competition to fruition.  I’m also very pleased to see our Industry Roundtable back in action.  The relationship building and collaboration between our industry leaders is exactly what we hoped to see.

It’s also been an exceptional experience to have been involved with start-up ventures like Yakima Craft Brewing, Liberty Bottleworks and Jenny Mae’s Gluten Free Bakery, to name a few.  In addition to working new companies, it has also been neat to work with expanding companies who choose to stay in the Yakima Valley in large part because of the business climate and people.  Finally, working with entrepreneurs and local industry on workforce training and business development has been very rewarding – over the past three years, we have held numerous classes and workshops to help our local businesses.

When I first moved to the Yakima Valley in 1994, I had planned to stay a year or two, a common saying among transplants.  What I found is that many of the same attributes that make this a wonderful business climate were also key factors for me in staying here.

• The weather and abundant sunshine!  I will miss the heat, even 100+, the Indian Summers and the mild (except this year) winters.
• Farm country.  I love the drive to the lower valley where the fields are laid out like a patchwork quilt.  There is nothing like the first sign of spring when you see a herd of cows and new calves.  And of course the wineries and being able to visit with the proprietors on a lazy summer wine tasting day.
• Proximity to Seattle, Spokane and Portland.  No more quick day trips to the Mariners.
• Quality of life.  This is a great place to raise a family!  I also love how you can be in the mountains in an hour or fishing.  There are so many gems in this community like the Yakima Symphony, the Museum, the Greenway, the Warehouse Theater and more.  I would disagree with people who think there isn’t anything to do here because it’s not a large metro.
• Traffic…or lack of.  It really is true that in Yakima, we think a traffic jam is if there are three cars in front of you.

Thank you New Vision and the Yakima Valley for a lifetime of experience and fond memories. It’s been a great ride.

 

Four Simple Principles Navigating Horizon Air

Glenn Johnson, President of Horizon Air, was the keynote speaker at the New Vision annual meeting last week.  Johnson talked about Horizon’s transformation and provided some valuable business advice that is relevant across the board.  In addition to providing insight on the airline industry, and discussing strategic changes that Horizon has made over the past two years to adapt to challenges facing the entire industry (and smaller markets, like Yakima), he enlightened the audience with four simple principles that guide Horizon Airlines.

1.  Don’t buy things you can’t afford;

This seems like such a simple statement but look at how many companies (and people) get into hot water because they overextend their credit or get in over their heads.  Many an entrepreneur has planned on not taking a salary until they get the business up and profitable…a great concept, but unless money is not an issue, you somehow have to be able to live and pay bills.

2.  Don’t borrow money you can’t pay back;

Same simple idea as the first one, but also important to remember.  Some entrepreneurs are so desperate to get their businesses up and running they run into challenges, whether revenue is slow to take off, payments come in late, customers don’t pay or they have to purchase inventory to start selling and making money.  I can’t tell you how often I’ve had people calling because they need a loan to start their business.  This is one reason we strongly encourage entrepreneurs to do a business plan, or at least if not a full plan, figure out how much start-up capital they will need, and prepare a month to month cash flow projection for at least two years.

3.  Don’t do deals you don’t understand; and

Whether it’s setting up a business structure, borrowing money from a family member or leasing a building, make sure you clearly understand what you are getting into.  If your great aunt offers to loan you some money and says pay it back when you can, she might mean, when you can…starting next month or with 20% interest.  It is also important to conduct your due diligence when it comes to business structure, building improvements and equipment leases.  If you are not sure of what something means or how things work, it is wise to contact a business advisor, your accountant or attorney.  A fee up front can save you in the long run.

4.  If it doesn’t seem right…it probably isn’t.

Likewise, if it seems too good to be true, it probably is.

We appreciate Mr. Johnson’s insight into how Horizon has stayed true to its guiding principles and taken advantage of opportunities as they have risen.

 

Quick Guide to Doing Business in Yakima County

If you are thinking about starting a business in Yakima County and Washington State, here are some tips to get started. You may want to take a quick self-assessment to identify if you are ready to start a business. Many entrepreneurs hope that they can start a business and work part-time and make loads of money, but in my experience talking with emerging companies, it is the opposite. They bootstrap funds to get the money together, work long and hard developing their idea and business plan and then work even longer hours to get their venture off the ground.

Here are some things to consider if you are thinking about starting a business in Washington State and Yakima County:

• Are you thinking about starting a business?  Are you an entrepreneur? Take a quick online self-assessment.
• Writing a business plan will help guide you and assist you in financial preparations. Need help getting started?
• How will you finance the business?  Determine how you will finance and how much money you will need.  Please keep in mind that grants are a nearly impossible to get, and many lending institutions are hesitant to loan money for buying or starting a company.  We encourage Bootstrap Financing – which means using your own money, borrowing from friends and family, or saving enough until you are ready.  There are some additional financing options such as Employee Share Ownership Program, owner-financing, lease to own, etc.

Before you start:

•  Determine Business type: LLC, Partnership, Sole Proprietorship, Corporation, etc.  If you’re not sure what is best, it’s wise to talk with an attorney or your accountant.  It can be very costly if you set your business up one way and then have to change it.
• Register with Secretary of State (if required)
• Get your Federal ID Number (also called Taxpayer ID number).
• Determine your business location and check with whatever city you will be locating in or Yakima County to make sure it is zoned properly and allowed. This is VERY important if you are a home-based business!

Getting licensed in Washington State

•  Check to see if you need to register your business with Washington State.
• Perform a Trade Name Register and Search (Does someone already have the name you want?)
• Apply for a State Master Business License—Online at www.bls.dor.wa.gov

IMPORTANT: You need to check with each city you will be doing business in to find out about licensing requirements in addition to the state license.

Additional licenses—some professions require additional licenses.

• If you plan to sell, serve or produce alcoholic beverages, you need to work with the Liquor Control Board.
• If you are a contractor, you need to register with Labor & Industries
• Food related businesses have special requirements, contact the County Health District FIRST!

Understanding Regulatory & Business Tax Requirements

• Internal Revenue Service (Income, Social Security & Federal Unemployment Taxes, Medicare). www.irs.gov
• Washington Department of Revenue (Business & Occupation, sales, & other taxes)
• Washington Department of  Labor & Industries (contractor licensing, worker’s compensation, wage & hour laws)
• WA Employment Security Department (unemployment tax). www.esd.wa.gov

Need help? If you’re not sure where to start, please contact us today!

Supervisory Training Producing Positive Results

We recently started a three part training series for new supervisors in manufacturing.  The attendees range in experience levels from six months to 20 years, and work for manufacturers throughout the Valley of different shapes and sizes.  The training is a mix of classroom instruction and exercises and students were given the opportunity to practice what they learned from the first session.  The group of 26 new and seasoned supervisors reported back this week that they were able to begin using some of the tools they learned in the first session and felt their confidence was boosted by the new information.

The Supervisory Training sessions have been very well received and is something that stemmed out of our contact with local manufacturers.  With changes in the economy, many employers are promoting from within, rather than bringing new supervisors onto the payroll.

Diana Welch, Human Resource Management Solutions, has covered a lot of material ranging from communication and positive reinforcement to improving work habit and best behaviors of managers.  Participants like the interactive nature and exercises and as one participant noted, “The training really turned the focus on me.  If I focus on improvement, everyone around me will improve by my example.”  Welch stresses communication, addressing issues before they turn into bigger problems, and seeking out the root cause of an employee’s poor performance.  For example, if an employee doesn’t take initiative or put forward any extra effort, what is the root cause?  Are they lazy?  Maybe no one has encouraged that type of behavior.  Or perhaps maybe they don’t speak up because they don’t want to be made fun of by fellow employees for being helpful.  Or it could be something entirely different.  Finding out the root cause can help supervisors identify and address poor performance.

One supervisor reported that she felt more confident in talking with an employee who needed a coaching session and tends to place blame on others.  She commented that because of what she learned in the first class, she was able to keep the conversation focused on the topic at hand, and not get sidetracked by the employee deflecting the issue by pointing out a co-worker’s poor work habits.

Here are two easy tips for all supervisors to begin doing or improving right away.

1. Communicate. 

This seems so obvious, but is so important.  Regular communication with staff is a vital component to good employee relations.  Welch recommends ‘walking the floor’ or getting out and talking to people, to say more than just hello, can pay big dividends.  She also says that just asking employees how things are going or for suggestions to improve production or process can be enlightening.  Homework assignment:  What is one thing you can do this week to improve communication?

2. Recognize your staff.  You need your employees more than they need you. 

If you, as a supervisor, were to miss work, how much of your work would get done?  Would the plant go on?  If one of your employees calls in sick, how does it impact your work, and that of production?  Diana commented, “You don’t typically lose your poor performers, but good employees will leave because of them.”  She encouraged the class to make extra efforts to recognize those high performers and make sure they know they are valued.

Two supervisors from one company shared that they wanted to reward one of their hardest working team members. They prepared a proposal for management to award this particular employee a paid Friday off, and their management team not only approved the request, but decided to implement a bonus system company wide for extraordinary efforts.

Homework assignment:  What is one thing you can do this week to recognize good behavior?

We look forward to hearing back on how the participants have done on their homework assignments and personal work plans.  If you missed the series and would like to be alerted to upcoming workshops, please email or call us.

Resources to Grow Markets or Start Exporting

Over the past year export promotion activities have gotten a big boost from the public sector. To revitalize our down economy, both Washington state and the feds have put sizeable investments into helping businesses export products and services. As these business assistance programs take root new evidence suggests that exporting makes a difference.

In a recent survey of manufacturers in our state, Impact Washington found that companies involved in international trade were definitely faring better than their counterparts. These results jibe with a study published by the Institute for International Economics that found US companies that export not only grow faster but are less likely to go out of business than non-exporting companies.

Research also shows that international companies pay better wages. Jobs supported by the export of goods and services pay 15 percent more than the average non-export-related job. For export-supported manufacturing jobs, the average wage increase is even higher – 18 percent.

Opportunities for businesses to grow market share seem most promising within international markets. Ninety-five percent of the world’s consumers now live outside the United States. The fastest growing markets are now abroad in countries like China, India and Brazil.  Even though international opportunities abound, relatively few domestic companies have international customers. The reasons why businesses do not export vary, but the most common issue is a sense among businesses that there is not a market for their products outside the United States. This may be accurate for some companies, but export promotion experts suggest most companies simply lack the ability to research and identify foreign market opportunities.

Current export development initiatives are trying to help companies pursue international business. Washington state is offering dozens of classes on exporting this year. These classes orient businesses to exporting and are usually a gateway to more detailed support services for companies that want to actively pursue international business. The state also just unveiled a new $1.6 million Export Washington initiative designed to increase the number of small businesses that export, as well as to increase the value of goods and services currently being exported by SBCs. The Export Voucher program is a key element of Export Washington. This program will reimburse eligible businesses up to $5,000 for pre-approved expenses, such as training, marketing campaigns, trade show and mission expenses, business travel expenses, etc. to increase export sales. SBCs are required to provide a minimum 25% cash match, or up to $1,250 for a full $5,000 Voucher.

With a vast array of help available, it is a fantastic time for businesses to explore exporting or to further beef up their export sales. If you are in business and want to learn about international market opportunities feel free to contact Tammy Everts in our office at 509-575-1140 or tammy@ycda.com.

Posted by David McFadden, President

ADDITIONAL EXPORT RESOURCES:

There are numerous programs available for export assistance if a company wants to:

• Determine export readiness;
• Begin exporting;
• Expand or find new markets;
• Develop an export plan and more.

Washington Small Business Development Center

The Washington State University Small Business Development Center network has two Export Readiness Centers to serve the informational needs of the potential and new-to-export business community.   The Trade Advisors can help assist with the Export Voucher Program, the State Trade and Export Program (STEP) and can also help clients develop an export plan.

As a direct result of assistance from the SBDC, Export Center clients reported new revenue of more than $1 million in 2011 with substantially more growth planned in 2012 and beyond.

Washington State Department of Commerce

The Department of Commerce also offers assistance to companies that want to explore or expand exports.

• China Accelerator program
  This program provides financial assistance to help Washington State companies expand their sales in China.
• Export Voucher program
  The Export Voucher program is a key element of the Export Washington initiative. Eligible small businesses can apply for reimbursement of up to $5,000 for pre-approved expenses related to increasing the company’s export sales: such as training, marketing campaigns, trade show and trade mission expenses, business travel, and other pre-approved business expenses. Download the Guidelines and Application.
• Certificates of Free Sale.  You can obtain a Certificate of Free Sale Department of Commerce, contact Julie Bennion at julie.bennion@commerce.wa.gov or 206-256-6132.
• Export Business Planner  The SBA Export Business Planner is a free, customizable tool for small business owners who are exploring exporting.
• Export Controls  and Export Documents, Licenses, and Requirements
• Export Finance Assistance Center of Washington.  Get help understanding and finding export financing for your business.
• Loan Programs for Exporters.  The Small Business Jobs Act 2010 increased SBA loan limits. In the first week of the Jobs Act, SBA provided nearly 2,000 loans totaling nearly $1 billion in lending support.
• North American Free Trade Agreement (NAFTA) Information about exporting under the North American Free Trade Agreement (NAFTA).
• U.S. Trade Delegations:  View upcoming trade missions from the U.S. Department of Commerce.

Washington State Department of Agriculture International Marketing Program

If you are a small agricultural or food processing company that would like to start or increase your exports to the Chinese, Mexican, Taiwanese or Japanese market, WSDA’s International Marketing Program has an exciting opportunity for you.

In April and August of 2012, there will be market advising clinics and buyer’s missions from each of these markets in Washington State.

Please contact New Vision, the Yakima County Development Association if we can provide more information on the listed programs or how to get started.

Local Industry Leaders Weigh in on Statewide Manufacturer’s Survey

The kick off meeting of our Business & Industry Roundtable was a big success last week.  There was a great mix of business leaders at the Roundtable from companies of different sizes and shapes.  While the company mix was diverse all employers shared common issues such as rising health care costs, hiring and retaining key employees and government regulations.

We heard from Patric Sazama and Michael Schneider from Impact Washington regarding the results of a recent statewide survey of manufacturers. Impact Washington is a non-profit consulting organization that we partner with to help our local companies.  This is the second year that Impact Washington has commissioned the survey and the survey and ensuing discussion was very informative.  The bottom line is that business owners and CEO’s surveyed feel the state business climate and regulations are still headed in the wrong direction, however companies remain cautiously optimistic, many are confident going forward and some even are planning on hiring in 2012.

Our roundtable discussion got especially heated when the group  reviewed a list of the top concerns among manufacturing executives.  Not surprisingly, rising health care costs, taxes and regulations were all the top concerns of those surveyed, and our group of executives agreed.  Health care also came out as the top incentive as a means for attracting and retaining employees, even above wages.

The health care discussion continued with Sazama pointing out that even in light of this, according to the survey, only 58% of firms offer a health care plan to their employees.

Of other interest to the attendees was the increase in trade and export opportunity. Washington State Department of Commerce has some funding available to companies that want to enter new markets or develop an export plan.  We continue to keep tabs on these type of programs and will make sure to keep our manufacturers informed.

We are very pleased with our first Industry Roundtable for 2012 and look forward to the ongoing networking and interaction with our industry leaders.  If you would like more information on the Industry Roundtable events or local training opportunities, please contact us at 575.1140 or via email, newvision@ycda.com.

Read the full report here. PDF

Four Building Blocks for Downtown Revitalization

We recently organized a workshop on Downtown Revitalization for leaders of our smaller communities throughout Yakima County.  We were fortunate to have George Sharp, Executive Director of the Olympia-Lacey-Tumwater Visitor and Convention Bureau and Sarah Hansen with the Washington Trust for Historic Preservation, coordinator of the Washington Main Street Program, share with our group some keys to revitalizing downtown development.

George started with an overview of what makes a successful redevelopment project and really emphasized seeing the community through a visitor’s eyes; and even recommends doing a little ‘secret shopping’ to gauge visual appeal, and customer service.  He stressed the importance of having strong partnerships with local agencies and the business community and celebrating small successes.

Sharp also mentioned the importance of communication, especially taking advantage of the internet and technology.  He used the example of the dinosaurs throughout Granger, commenting, “How neat would it be to have a kiosk at each one that was set up with a QR code so visitors can use a smart phone to learn more about the community or find out more about each dinosaur?”.

Ms. Hansen told us a little bit about the Main Street program – there are programs in 44 states and over 2,000 designated Main Street Communities throughout the United States.  “Communities have not only put a huge financial investment into their downtowns”, she says, “But downtowns are the heart and soul of a community.  They are worth saving.”  In her work with other communities working to re-energize, redevelop or just retain a core downtown, she noted four essential things to a successful downtown program:

 1.  Organization:  As both George and Sarah mentioned, coordinating all parties and having a sense of organization is essential to drive a revitalization effort.  Determining who is doing what, playing upon each groups strengths and getting everyone on the ‘same page’ is important – if one group wants parking and another doesn’t, this could be a problem.  Coming to a consensus and arriving at a compromise may be necessary to move forward.

2.  Promotion:  Both speakers also spoke of the importance of promotion, both within the community and to visitors.  Whether it is having a user-friendly, up-to-date website, common signage, a business directory or something unique to the community, promoting events, the downtown and the community as a whole can have positive results as well. Having a common brochure or map of shops and restaurants can invite visitors to stay longer and enjoy lunch at a local cafe, or visit with a specialty shop owner that they might not have otherwise known about.  Hansen commented that, “It takes 15 seconds for a customer to see what is in your store”, not a lot of time to make a positive first impression.

3.  Design:  The element of design can involve many factors such as:

• Maintenance; (Are garbage cans overflowing? Do shopkeepers keep the sidewalk neat and tidy?)
• Signage; (Is there a common theme for signs?  Are signs visible and inviting?)
• Window Display; (Do shops have eye-catching and inviting?  Are windows clean or cluttered with graffiti or outdated posters?)
• Public Improvements; (Has the community invested in roads, infrastructure, sidewalks, etc.?)
• Building Improvements.  (Are owners encouraged to invest in their property, i.e., painting, awnings, etc.?)

4.  Economic Restructuring:  Many communities struggle to make improvements to downtown infrastructure or signage, and business owners face the same challenges – they would have more customers if they could make investments in their business, but they need more customers (and income) before they can invest in improvements.  Sarah talked about some options and incentive programs that downtown programs can take advantage of.  For example, the Main Street Program has different tiers of membership and participation levels that offer various levels of non-financial support; cities that are designated Main Street Programs can take advantage of a tax incentive; some cities have received Federal block grant funding to offer building improvement programs; and finally, some cities pursue grants for infrastructure improvements to help offset planned costs.

We were thrilled to be able to offer this high quality and interactive workshop as part of our Entrepreneurial Friendly Cities Program.  Both speakers presented some excellent tips for our community leaders.  It’s important for communities to work together, find out what makes their city special and work on ways that they can revitalize and retain a vibrant, thriving downtown core, which in many of Yakima County’s smaller cities, is the lifeline to the community.

 

 

 

 

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