Business Connection March 2013

march 2013

Keith Kunz motorsports operates racing team from base in columbus

Driven to win

a publication of

2 The Business ConneCTion MARCh 2013

Comments should be sent to Doug showalter, The Republic, 333 second st., Columbus, in 47201 or call 812-379-5625 or [email protected]. Advertising information: Call 812-379-5652. ©2013 by home news enterprises All rights reserved. Reproduction of stories, photographs and advertisements without permission is prohibited.

also inside

Chamber Connection . . . . . . . . . . . . . . . . . . . . . 12

Tax collection legislation . . . . . . . . . . . . . . . . . . 14

Morton Marcus column . . . . . . . . . . . . . . . . . . . 15

Business leads. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Business indicators . . . . . . . . . . . . . . . . . . . . . . . . 16

Around the watercooler. . . . . . . . . . . . . . . . . . . 18

on the move. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Mark Mcnulty column . . . . . . . . . . . . . . . . . . . . 22

contents

on the coverKeith Kunz stands among chassis being transformed into the cars that his team will run this season. Photo by Joe harpring. story page 4.

lessons in leadership page 8 assisted living facilities page 10

Williams bros. health care page 6

MARCh 2013 The Business ConneCTion 3


Keith Kunz Motorsports won the USAC national midget racing title for car owners last year. The team ran three cars all season and won 14 races, including eight of 15 dirt races.

A great season for sure, but not all that unusual for KKM. Since Keith Kunz and Pete Willoughby teamed up in 1997, their drivers have won roughly 90 USAC races and five USAC national midget titles, including four of the last seven.

KKM is also the “factory” team for Toyota Racing.“And nobody even knows we’re here,” said Kunz.“Here” is the team’s 12,000-square-foot facility near

Columbus Municipal Airport. That’s right, one of the country’s

A race to the topKeith Kunz Motorsports on track to grow with success of its cars and drivers

by Doug ShoWalter n photoS by joe harpring

Keith Kunz pushes a midget chassis through the shop.


most successful racing operations is headquartered right here in Columbus.

Drivers who have raced for KKM over the years include Tony Stewart, Sammy Swindell, Kasey Kahne, Ryan Newman and Jason Leffler. The team builds its own Bullet dirt-car chassis and also sells them to competitors.

But like most dirt tracks, the road to the top for KKM has had its share of potholes, bumps and slick spots.

“There’s been some lean times, but we’ve gotten through them,” Kunz said.

The 49-year-old Springfield, Ill., native got into racing as a kid when his father bought a race car in 1975. He helped with the car for a few years before climbing behind the wheel for a couple of years in the mid-1980s.

“I crashed one night, and my dad said, ‘That’s it; you’re done. I’m not raising your kids.’ And I was fine with that.”

Besides, he knew his real talent was on the mechanical side, especially setting up the cars. He had quite a bit of success with a few different teams throughout the 1990s.

Willoughby, 55, followed his father into racing in 1976. He drove late model dirt cars until 1983, when he stopped to focus on running his family’s trucking business in Columbus.

In 1993 he got into kart racing as something he and his son could enjoy together. The following year he and a friend started Magnum Chassis Co. to build karts.

In 1997 he sold the kart business to concentrate on building a new midget team. A mutual acquaintance brought him and Kunz together. Kunz came highly recommended.

“They told me he was the best in the country,” Willoughby said.

Willoughby owned the team until 2000, when his trucking company went out of business.

“Neither one of us had a job, but we had race cars,” he said. “We just decided we would race until we couldn’t race anymore and had to get a job. The first weekend we went out and won $17,000. I think when we went out we had $300 in our pocket.”

Thus was formed Keith Kunz Motorsports. The name takes advantage of Kunz’s reputation and connections in the sport.

“As an owner, the deals I got were because of Keith,” Willoughby said.

early successIn the early days they were just racing. Chassis companies

were giving them cars, and engine companies were giving them engines.

“It didn’t cost us much to operate, and we could work off our winnings,” Kunz said. “We were probably one of the top two or three teams in the country.” In 2004 they decided to start building their own cars.

“We just started making things ourselves to keep our team going,” he said. “Then it got to where other people wanted our cars because they were winning races.”

Today, customers can still purchase a Bullet chassis from KKM (roughly $8,000 for a kit). However, that portion of the business has slowed.

“It’s gotten really competitive,” Willoughby said. “Some cars are even being built in China. We just can’t compete on price.”

“A couple of years we produced 60 to 70 cars a year,” Kunz said. “Some of the bigger companies produce 250 a year.”

see KKm on page 9

Tail sections of cars are lined up at Keith Kunz Motorsports.

Making a custom adjustment to a midget car, Kris Brown fits the vehicle to a driver’s size and driving style.

One of Kunz’s latest successes: the 2012 USAC Midget Car owners title.


The essence of the Williams Bros. ethos can be dis-cerned from the abundance of how-to-create-custom-ers-for-life posters displayed in the storeroom of the company’s Columbus location. “We want to be our

customers’ one-stop shop, from the time they’re little until they’re retired,” says store manager Daniel Stearns. “We have some local competitors in certain product categories, but no one else has the full range of what we offer.”

Williams Bros. Health Care Pharmacy is a chain, head-quartered in Washington, Ind., and encompassing outlets in the southern part of the state and southeastern Illinois, but the impression left by observing operations at the Columbus store is that of an independent business. The current three Washington-based Williams brothers are fourth-generation owners, but their style is to let each store form its own identity.

“Since we opened this location in 2006, we’ve shaped our product line accord-ing to what customers tell us they want,” says Stearns. “There’s not a cookie-cutter model among the stores.”

The Columbus store is actually not a pharmacy. Its offerings include wheelchairs, both manual and motorized, lift chairs, respiratory equipment such as nebulizers and oxygen concentrators, wound care supplies, bath safety items, exercise equip-ment and walking aids. Its staff includes a full-time respiratory therapist. The respira-tory area is “really our bread and butter,” according to Stearns.

Other staff positions include a delivery driver, a service technician, a retail sales clerk, a customer service representative, and someone who performs operational checks and cleaning of equipment. “The team we have now is a family of sorts,” says Stearns. “We have each other’s backs.”

Tracy Beckemeyer’s customer service function involves insurance verification, interacting with doctors’ offices, and ensuring that a patient’s documentation is in order. “I consult

with families on what would help reduce their costs and make sure they know how things are going to happen,” she says.

Jim Wilson, the service technician, finds it rewarding to go to patients’ homes and install lifts, repair their equipment or just help them understand more thoroughly how to operate it. “It’s

surprising how much difference it makes in their lives,” he says. “They let you know.”

Stearns came on board as a delivery driver shortly after the Columbus store opened. Within a year he’d become the manager. He speaks highly of Williams Bros.’ own corporate management, as well as the training programs of the company’s suppliers. Along the way, he has become a certified fitter for orthotics and shoes for diabetic customers.

“I’ve had plenty of mentors,” he says. “The company provides great resources. I can call any of the stores or any of the Williams brothers when I need information or advice.”

The Columbus staff set up its own store when it opened and stocked its own shelves. The next step was to build the busi-ness “one customer at a time,” as Stearns puts it. “We turned a corner around the five-year mark,” he says. “We didn’t feel

like we were ‘new’ anymore. We felt we’d established brand awareness. By then there was a steady flow of walk-in business and phone calls.”

The June 2008 flood, which saturated Eastbrook Plaza, where the store is located, was something of a reboot. “We were

a system forrespiratory servicesWilliams Bros. supplies health care equipment for Columbus patientsby barney QuicK n photoS by joey leo

Jim Wilson, a service technician at Williams Bros. Health Care in East-brook Plaza, tests the electrical current of a scooter. Below: A rack of oxygen tanks lines a wall in the warehouse.


down for about eight weeks,” recalls Stearns. “We lost all our inventory.”

The marketing function originates from the Washington corporate office. The Columbus and Bloomington stores share a marketing director. Marketing takes form as newspaper ads, county fair booths, in-service presentations at assisted living facilities and fundraiser sponsorships such as golf scrambles.

The store experienced a 100 percent increase in sales in its first three years. Stearns says the market continues to expand as an aging population becomes eligible for Medicare.

“There have been changes to Medicare that reduced our margins,” he notes. “We’ve offset that with retail.”

Staying abreast of industry trends is a high priority for the Williams Bros. employees. They participate in webinars, travel to trade shows and read trade publications.

The modern-day company operating as Williams Bros. Health Care Pharmacy was founded in 1988 by Charles, Mark and Jeff Williams, but it has its roots in the pharmacy Charles C. Williams started in 1899. The Williams Bros. network now includes 10 retail stores, six retail pharmacies and two long-term care pharmacies. Each unit serves a 90-mile radius.

Stearns attends the annual corporate strategy meeting, at which goals and tactics for a few key company-level areas of focus are outlined. He then determines how to coordinate that with his vision for the Columbus store.

“We’re building a culture here based on exceeding expecta-tions,” he explains. “There is a marketing effort, but it’s really about winning one customer at a time.”Products are displayed in the front window.


leSSonS in leaDerShipJim harbaugh displays successful leadership traits that can be emulated across a wide range of organizations, such as:

n Making decisions and taking responsibility for them.

n Giving credit to his players in public while presumably dispensing criticisms in private.

n inspiring passion among his players with his sideline outbursts.

n understanding the difference between leading the 49ers and simply managing them.

n offering his players a unified vision of where he wants to take them.

by Dan nakasosan Jose Mercury news

On the football field he’s a superstar coach, but in business school classrooms Jim Harbaugh is an MBA MVP.

Leaders from the boardroom to the battle-field can steal a page from Harbaugh’s play-book, experts say, because the fiery head coach of the San Francisco 49ers displays universal leadership traits that work well off the field.

“There are different styles and approaches to managing different situations and types of people,” said Chester Spell, who teaches orga-nization and management at San Jose State University. “But showing people that you care and understanding the work and getting out of the way are qualities of most good leaders.”

At Santa Clara University, leadership profes-sor Barry Posner uses Harbaugh as an example for his MBA students of the kind of leader who uses his intensity to fire up those around him and isn’t afraid to make tough decisions.

“The stuff we’re teaching about leadership isn’t just about sports,” Posner said. “It applies in families. It happens in volunteer organiza-tions.”

Harbaugh is clearly confident in his leader-ship skills, which he demonstrated as an NFL quarterback and as a college coach in San Diego and at Stanford before taking over the head coaching job with the 49ers in 2011.

up and say, ‘I’m going to make a judgment,’” Reckmeyer said. “He’s working as a leader and not as a manager and certainly not as an administrator.”

That kind of confidence will help the lead-ers of any volunteer group, company or orga-nization.

“In a situation where teamwork is of the essence — whether it’s a community organiza-tion like a PTA or an academic setting or a cor-porate boardroom — Harbaugh’s leadership style is transferable to almost every situation,” he said.

But how would Harbaugh’s fiery outbursts on the sidelines play in the corporate world or at a PTA meeting?

“It’s the passion that matters,” Reckmeyer said. “Ultimately people are really attracted to people who are really passionate about what they are doing.”

Spell agrees. Harbaugh’s angry reaction to referees’ calls “shows the people he’s lead-ing that he cares. … He’s showing that he wants this as badly as the players do,” he said. “What’s important is showing the people you lead that you care.”

Successful leaders can be quiet or loud, or anything in between.

The key to successful leadership, Reckmeyer said, “is realizing that it’s all about people, people, people.”

“Harbaugh very clearly has a strong sense of who he is,” said Bill Reckmeyer, a professor of leadership and systems at SJSU. “While I don’t know what goes on in the locker room, it’s also clear that his players have an awful lot of respect for him. If people are willing to run through a brick wall for you, there is really good leadership going on. If not, you have bad morale and passive-aggressive behavior.

“Leaders recognize that it’s all sitting on their shoulders, and they’re willing to stand

AssoCiATeD PRess

San Francisco 49ers head coach Jim Harbaugh protests a non-call during the second half of the Super Bowl Feb. 3.

49ers coach shows path to leadership


Today they build roughly 25 cars each year, with about half that number going to other people. Their Bullet chassis is strictly a dirt car. For pavement racing, KKM purchases cars from other builders.

At this point they want to focus their efforts on their own team and use their knowledge to their own advantage.

“It’s part of our racing and our success,” Kunz said.KKM moved into its current facility in 2001. Today it has

two employees besides Kunz and Willoughby, though the team has employed as many as eight before.

“We would like to have another one or two, but it’s hard to find people willing to work these kind of hours for that kind of pay,” Willoughby said.

Kunz said what they look for is passion. “You have to love it. The stuff has to be ready when it’s time to go racing.”

“It doesn’t matter what the clock says,” Willoughby added.In Columbus, Kunz said, he’s the shop guy, while Willoughby

runs the business side of things. “I tell him what I need, and he gets it here, and he gets us where we need to go. But on race weekends he’s part of the team, out there working on our cars.”

In fact, Kunz, Willoughby and just one other person run three cars.

“We look like a Chinese fire drill,” Willoughby said. “We’ve figured out how to do it with fewer people.”

“The other car owners all have businesses to fall back on,” Kunz said. “This is a hobby for them. For us this is our pay-check. We do it on a lot less budget than your ordinary team does, because it’s our dollar.”

talent scoutsWhile Kunz and Willoughby enjoy winning races, they also

love watching young drivers develop their talents. In 2005 and 2006 they ran a driver development program funded by Chip Ganassi Racing. That, said Kunz, upped their visibility with people in Indy Car and NASCAR.

“People don’t realize how much these people look at the USAC scene,” he said. “There’s been so many drivers come out of these series.”

One KKM alumnus, Cole Whitt, now drives in NASCAR for Dale Earnhardt Jr. Another is Kyle Larson, who was 17 when KKM hired him in 2010. He was so successful that at the end of 2011 he signed with Chip Ganassi Racing and is now racing stock cars.

So how do Kunz and Willoughby feel about developing young drivers only to have them leave for bigger and better things?

“That’s what we’re here for,” Kunz said.“That means we did our job,” Willoughby added. “When

you do something like we did with Kyle, that’s the most reward-ing thing to me. I think the last couple of years have been among the most fun.”

Besides, the success of young drivers like Larson is good for business. Kunz said the team is starting to reap the rewards of all its hard work.

“When you see what all we have here, imagine we started with two cars and no money,” Kunz said.

“We had a used pickup, and we borrowed a trailer,” Willoughby said. “Now we’ve got a hauler that hauls six cars and all us guys.”

KKm continued from page 5


Taking it easy

by greg Seiter n photo by Doug ShoWalter

Taking up residence in an assisted living facility may never be quite as appealing as living in one’s own home. But many industry changes and innovations are helping senior adults become more comfortable

with the idea.In fact, with private apartments, transportation options,

expanded amenities and on-site health care now commonplace, today’s assisted living facilities are more like “home sweet home” than ever before.

“A lot of people near or beyond retirement age fear what was typically referred to as a nursing home facility in the past because that’s all they know,” said Vicky Koenig, executive director at Greentree Assisted Living in Columbus. “Things are much different now.

“A lot of people who move into an assisted living facility like ours are looking for socialization and stimulation, so what we offer is kind of like having a city within a residential building. There’s entertainment seven days per week, and all they have to do is open their door to visit someone.”

Milissa Downs, general manager at Rosegate Commons on the southside of Indianapolis, agrees.

“We are designed to bring their home here, and there are all different styles of living,” said Downs, who has worked at Rosegate for eight years. “We have restaurant-style dining,

housekeeping and even laundry services.“Residents are encouraged to bring their own things from

home when they move here, and they can even paint their rooms if they want to. We have a lot of different amenities, and we’re always trying to increase and update what we have.”

For many older people, transportation is a major concern.“There are a number of transportation services available,

whether someone has a medical appointment off site or just wants to go shopping,” Downs said. “We’ve taken seniors to places like Michigan for overnight trips, too.”

And with the community-style set-up that many facilities are now incorporating, getting around while “on campus” has even been simplified, whether a resident needs to get to another building or is, perhaps, visiting a spouse who is located else-where.

“If someone is in rehab here and they need to get from their place of residence to that area, we can escort them on a scooter, in a wheelchair or even by bus,” Downs added. “In the past, it was difficult for married couples who were housed in different buildings to visit one another, but now, in this setting, all we have to do is get them across the parking lot.

“That type of service is a huge bonus for residents and has really worked well.”

Assisted living facilities offer updated amenities

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on the moveHaving transportation services readily available at modern-

day facilities is also helpful for families.“Now, the children of those who live here don’t have to

worry about taking care of doctor visits and trips to the grocery store when they come to see their parents,” Koenig said. “They can just enjoy a nice, relaxing visit.”

While much has changed in the assisted living industry dur-ing the last few years, the primary reasons that many senior citizens eventually transition into a care facility have remained unchanged.

“People start to experience falls at home or they’re not eating well or perhaps they’re not taking medication like they should,” Koenig said. “Those are the three major reasons we see people coming to us.”

Food and a healthy diet are of particular concern, not only to family members who want the best for their loved ones but to the seniors themselves.

“We have great food here, and we find that’s very important to senior adults,” Koenig said. “It’s important to them that they be able to have a good meal, but they also want to be able to socialize and know someone is around if they need help with something.”

Downs shares Koenig’s beliefs.“Our restaurant is open all day, and our residents can order

right off the menu,” she said. “The food is wonderful, and they especially like it because they have choices.”

With members of the baby boomer generation now begin-ning to consider a transition into assisted living, forward-think-ing facilities are already implementing services that will appeal to them, such as computer access.

“I’m shocked at how many seniors are starting to use com-puters,” Koenig said. “So, because of that, we’ve opened up wireless service for them.”

Wired residentsRosegate is also seeing more interest in computer access

among its residents.“There are computer stations here where residents are able

to keep in touch with loved ones so they can communicate with family members who live in other states,” she said. “Of course, some still have problems with technology so we offer education courses, too.”

Downs believes the most important industry innovation, however, has nothing to do with specific amenities offered or the gadgets and gizmos available to residents.

“At one time, facilities like us were promoted as places that could only offer assisted living, but now we have the ability to create individualized care plans and can offer different levels of care,” she said. “We have risk management meetings that allow us to create a care plan for each resident that is designed to keep them independent as long as possible.

“We also have nurses on staff 24/7, and we can bring in therapy service, higher levels of nursing care and even hospice, if necessary,” she added.

Ultimately, it’s all about providing older adults with an opportunity to live comfortably and happily while receiving whatever level of assistance they may need.

“I want our residents to have the best experience possible during their stay here,” Koenig said. “They deserve it. It’s time for them to sit back, relax and let us do some things for them for a while.”

chamberconnectionMonthly publication of the Columbus Area Chamber of Commerce • 500 Franklin Street • Columbus, IN 47201 • 812-379-4457march 2013

www.columbusareachamber.com

bob evansRon Edwards 221 Carrie Lane Columbus, IN 47201 812-378-0442 [email protected] www.bobevans.com

legal aid - District eleven Inc.Alaina Sullivan 1531 13th St., Suite G330 Columbus, IN 47201 812-314-2721 [email protected] www.legalaiddistrict11.org

mhart express Inc.Teresa Gearhart 315 Washington St. Hope, IN 47246 812-546-5010 [email protected] www.mhartexpress.com

National Youth advocate ProgramJulie Thomas 3544 W. Two Mile House Road Columbus, IN 47201 812-342-4220 [email protected] www.nyap.org

Register for all Chamber events at www.columbusareachamber.com/events or call 812-379-4457.

march 4 and 11 – Third House Sessions, 7:30 to 8:30 a.m., City Hall.

march 7 – TEN Meet-up, 4 to 6 p.m., location TBA.

New members

calendar

Tim Cooney will step into the role of membership director once his interim

president duties are ful-filled.

He has invested a great deal in this Cham-ber, not only as an en-gaged member, but also as an active board mem-ber from 2005 to 2011.

He served as chairman of the board in 2010. He also participates in a number of committees, such as membership and small business.

Tim has been a member of the Colum-bus business community for 34 years as owner of Advantage One Imaging Cen-

ter. He has been involved in a number of community advisory positions, including Harrison College, Community Develop-ment at the Heritage Fund, Atterbury Job Corps Business Advisory Panel and as a member of Business Networking In-ternational (BNI).

The Chamber is pleased to add some-one as enthusiastic as Tim to our team. He brings a deep understanding of the challenges members face and looks for-ward to strengthening the relationships between the Chamber, its members and the community.

Tim can be reached at 812-379-4457 or by email at [email protected].

Tim cooney named chamber membership director

special thanks to our community leadership

level Partners

chamberconnectionMonthly publication of the Columbus Area Chamber of Commerce • 500 Franklin Street • Columbus, IN 47201 • 812-379-4457 GrowING busINess. GrowING PeoPle.

www.columbusareachamber.com

Chris Schilling, director of communications for the city, performed the ribbon-cutting ceremo-ny for GuideOne Insurance, 3052 Columbus Center. Agents Ron Marcoux and Stephen Mas-ters were joined by friends, customers and members of the Chamber Action Team. GuideOne is a property and casualty insurer, writing auto, home, renters and personal excess liability coverage.

mhart express Inc.Teresa Gearhart 315 Washington St. Hope, IN 47246 812-546-5010 [email protected] www.mhartexpress.com

National Youth advocate ProgramJulie Thomas 3544 W. Two Mile House Road Columbus, IN 47201 812-342-4220 [email protected] www.nyap.org

New members

ter. He has been involved in a number of community advisory positions, including Harrison College, Community Develop-ment at the Heritage Fund, Atterbury Job Corps Business Advisory Panel and as a member of Business Networking In-ternational (BNI).

The Chamber is pleased to add some-one as enthusiastic as Tim to our team. He brings a deep understanding of the challenges members face and looks for-ward to strengthening the relationships between the Chamber, its members and the community.

Tim can be reached at 812-379-4457 or by email at [email protected].

Looking for ways to make the most of your Chamber membership? The Chamber has several ways you can be involved with its programs and events. Planning commit-tees for the Women’s Conference, Tri-Coun-ty Expo and Golf Outing are forming now.

If you are interested in assisting with these events, please email [email protected] with your specific interest. For others ways to be involved, please check out our website at www.columbusareacham-ber.com.

Tim cooney named chamber membership director

Get involved

ribbon cutting


by joyce m. rosenbergAP Business Writer

NEW YORK — Small business owners may be closer to losing an advantage they’ve enjoyed during the e-commerce boom — being exempt from collecting sales tax in states where they’re not located. And they’re wor-ried they will have to spend more money in the process.

Under federal law, a state or local govern-ment cannot force a company to collect sales tax on a purchase unless the business has a physical presence in that state. The physical presence could range from an actual store to an office, warehouse or distribution center. The sale could be conducted online, over the phone or through mail-order.

The arrangement saves money for shoppers who use price comparison websites or mobile apps, and those who spend time surfing for the best overall deal.

But Washington lawmakers currently have several bills in the works that would end all that by forcing companies to collect the tax. Businesses are split over the issue.

On one side are small retailers who say they wouldn’t be able to bear the costs of collecting the tax and filing reports and tax returns the states and local governments require. They’re worried that they’ll have to buy software, hire staffers and deal with the continual hassle of keeping up with collecting tax from states and thousands of municipalities.

Headsets.com, for instance, might have to hire two staffers to handle the administra-tive work if what’s called remote tax collec-tion becomes law, says CEO Mike Faith. The company has operations in California and Tennessee, but sells to all 50 states. Currently, federal law only requires the company to col-lect tax in those two states.

Faith expects the law would force him to hire workers to help his San Francisco-based company comply with it.

the way. They argue that the burden of keep-ing up with the estimated 15,000 different sales tax rates charged by the 7,500 to 9,600 jurisdictions made up of states, counties, cities and towns, is just too much.

They have a point. Knowing how much to tax, and where, can be complicated. For exam-ple, Elgin, Ill., a suburb of Chicago, is located in two counties, Cook and Kane. In Cook County, Elgin’s sales tax on general merchan-dise is 9.25 percent. In Kane, it’s 8.25 percent. The state’s base sales tax is 6.25 percent.

What is taxed also varies widely. In Massachusetts, baby oil is tax-free, but baby lotion and powder aren’t. In states including New York, there’s a tax on shipping charges on items. Others, including California, don’t charge if you get merchandise delivered by the U.S. Postal Service or delivery services like UPS and FedEx.

The effort to change the law intensified as the growth of the Internet increased and com-panies’ out-of-state sales volume swelled. Many sellers felt protected by a 1992 U.S. Supreme Court ruling that states could not force out-of-state sellers to collect sales tax. But the court, in effect, invited Congress to create a law that would give the states the authority to require that taxes be collected.

States have a lot of incentive to go after the revenue. The combined budgets of all the states had deficits of more than $100 billion a year from 2009 through 2012, primarily because of the drop in tax receipts during and after the recession, according to the Center on

“It’s useless employment. It doesn’t add value to the company,” he says. “It’s just another cost burden.”

On the other side are in-state sellers and larger retailers with physical locations dotted across the country who sometimes lose busi-ness to competitors who don’t have to collect the tax. Even if two retailers charge the same amount price for an item, many shoppers choose the seller that doesn’t collect taxes to reduce their overall cost.

“It’s a problem that needs to be addressed. It’s an unlevel playing field,” says David French, a lobbyist for the National Retail Federation.

And on yet another side, are the state and local governments that stand to collect bil-lions in uncollected revenue if a bill makes it through Congress. States have wanted the tax money for decades and are particularly anxious for it now because their tax revenue is down following the recession and the hous-ing crisis. The payoff could be substantial. In 2012, there was as much as $11.4 billion in uncollected taxes on Internet sales alone, according to an estimate by researchers at the University of Tennessee.

Desire for changeState and local government officials have

wanted to change the law for years, even before the catalog boom of the 1980s and the Internet boom of the ‘90s.

Small business owners have resisted along

Small businesses uneasy about tax collection legislation

see tax on page 15


Good signs in the housing market

eye on the pieMorton Marcus

The plane was ready to take off, and I could not help noticing the woman sitting next to me. She looked like the national real estate agent of the year. Her iridescent tweed outfit clung to a body that survived on Special-K alone.

“What do you do?” she asked in a voice that could marshal the hormones of an octogenarian.

“I’m an economist,” I said, flus-tered.

“Talk to me in economics,” she entreated.

“Nationally, housing is rebound-ing,” I said. “In fact, the median asking price for rental units (apart-ments and houses) is at an all-time high in current dollars at $724 per month.

“In contrast,” I said, “the medi-an asking price for owner-occupied houses and condos ($137,700) has stabilized about 30 percent below the peak of 2007.”

“You’re telling me the cost of

that figure was 65 percent. To put it differently, 30 percent of the occupied housing units we see in the Midwest are rentals whereas its 35 percent nationally. No other region of the country is more given to homeownership than is the Midwest.”

“That might be a fascinating factoid,” she purred (or was it a growl?). “Tell me,” her voice enticing my attention, “is that because we are somehow different from people elsewhere in our pref-erences or in our circumstances?”

“Wow,” I thought to myself, “this is a lady with a sharp mind.”

Aloud I said, “I don’t think we are different in our preferences. We probably want the same things as other Americans, but our cir-cumstances are different. We have an older population than you’ll find in other regions of the coun-try. Homeownership rates increase with age.

owner occupancy is falling relative to renting? That would be good for home sales,” she sighed.

“Well,” I said, “maybe. There is a difference between acquisi-tion cost and price. The price is only part of the total cost. With increased paperwork and delaying bureaucracy, the cost of home-ownership is rising more than its price.

“Homeowner vacancy rates in the Midwest and in the nation are about the same (below 2 percent). However, vacancy rates for rental housing are higher in the Midwest (9.3 percent) compared to the nation (8.7).

“Basically, Midwestern housing markets are different from those of the rest of the nation,” I said.

“Midwestern homeownership rates (that’s the percent of occu-pied dwellings lived in by their owners) were at 70 percent at the close of 2012 while for the nation

“Under age 35, the homeown-ership rate nationally is 37 per-cent. This rises to 60 percent for those 35 to 44, and to 71 percent in the next decade (45 to 54 years of age). For those 55 to 64, homeownership characterizes 78 percent of households. In that oldest group (65 plus), it reaches 81 percent.

“Since Hoosiers and other Midwesterners are by-and-large older than other Americans, we have higher homeownership rates,” I concluded.

Suddenly a hand touched my shoulder. “Please return your seat to its original upright position,” a voice said.

I looked about. The seat next to mine was empty. Was it a fan-tasy or had she left me for a more interesting companion?

Morton Marcus can be reached at [email protected].

Budget and Policy Priorities, an organization that studies tax issues.

bills introducedThree separate bills were introduced in the

last Congress that would authorize the states to require remote sellers to collect taxes. In the Senate, the Marketplace Fairness Act had bipartisan support but did not come to a vote. Sen. Dick Durbin, D-Ill., one of the bill’s spon-sors, has told The Associated Press the bill was tabled because of concerns by Sen. Max Baucus, D-Mont., about the burdens tax col-lection would place on companies in his state, where there is no sales tax.

But the burden small business owners fear may not be as bad as they think. The govern-ment would likely require that states make the process easier for small companies. And the

laws and will file sales tax returns on behalf of sellers, according to David Campbell, CEO of The Federal Tax Authority, one of the SSTGB’s developers.

Laura Zander, a retailer of yarn and sewing suppliers, is skeptical. She also has a back-ground in software development.

“It’s really easy, free software, but it’s never that simple,” says Zander, owner of Jimmy Beans Wool in Reno, Nev. “You just can’t pro-gram it as easily as they say you can.”

Zander, who had $6.5 million in sales last year, believes that compliance with the law would be expensive.

“Think about the complications — on a monthly or quarterly basis, filing and tracking payments,” she says. “That’s an extra $50,000 or $75,000 a year in programming fees, book-keeping, management. That’s a lot.”

smallest of these businesses are expected to be exempt. The proposed Marketplace Fairness Act exempts businesses that have $500,000 or less in sales from remote states. But Durbin says that number is open to negotiation.

There’s already some precedent — and a process — for making sales tax collection less burdensome. In 1999, the National Governors Association and the National Conference of State Legislatures created the Streamlined Sales Tax Agreement to make taxes easier to collect. The Streamlined Sales Tax Governing Board, or SSTGB, was formed to carry out the agree-ment. To help reduce the hassle of tax collec-tion, the SSTGB has contracted with software developers to come up with programs designed to compute the correct tax.

One such program, TaxCloud, is designed to keep track of changes in state and local tax

tax continued from page 14


— Center for Business and Economic Research, Ball State University

business indicators for bartholomew county percent changeS Dec 12/ Dec 12/ DeScription Dec 12 noV 12 Dec 11 noV 12 Dec 11

Labor Force 41,672 41,739 41,448 -0.2 0.5

household employment 38,915 39,258 38,672 -0.9 0.6

unemployment Rate (pct) 6.6 5.9 6.7 — —

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parKing meter DeciSion DelayeD

BLOOMINGTON — The Bloomington City Council has delayed a vote on a proposal to install parking meters amid oppo-sition from business owners in the college town’s downtown area.

The council voted Feb. 6 to push back its decision on the plan for six weeks to give business leaders time to prepare alternative proposals. The delay does not pro-hibit the council from tabling the issue once again in March.

Bloomington’s Chamber of Commerce had asked for 90 days to allow time for an advisory committee to form and study the impact of metered downtown parking.

Local business owners fear that adding paid meters would hurt the local economy and their businesses at a time of continuing economic struggles.

training for WorKerS 50 anD olDer

GARY — Ivy Tech Community College in northwestern Indiana has been selected to be part of a national program that will assist adults age 50 and older to learn skills in health care, education and social services.

Ivy Tech-Northwest is one of 17 colleges picked nationwide to take part in the Plus 50 Encore Completion Program sponsored by the American Association of

State ShareS timber reVenue

INDIANAPOLIS — Seventeen southern Indiana counties will receive shares of more than $380,000 as part of the state’s annual distribution of revenue from timber sales.

Brown County will receive nearly $66,000 and Clark and Monroe counties each will receive more than $57,000.

The Indiana Division of Forestry allocates 15 percent of all revenue from its timber sales on state-owned land to counties where harvests occur. Each county receiving funds shares half of the money with rural and volunteer fire departments that have cooper-ative agreements with the Indiana Department of Natural Resources.

Other counties receiving funds are Crawford ($13,501), Dubois ($13,731), Greene ($911), Harrison ($37,454), Jackson ($16,424), Jennings ($5,236), Martin ($35,258), Morgan ($15,285), Owen ($19,099), Perry ($3,611), Pike ($5,281), Scott ($4,190), Sullivan ($1,325), and Washington ($29,713).

Kimball expanSionJASPER — Hotel furniture

maker Kimball Hospitality is plan-ning an expansion of its southern Indiana operations.

The Jasper-based company says it will spend nearly $950,000 on new equipment for its factory. Kimball says that will increase the factory’s production of the

Community Colleges. The school has campuses in Gary, Valparaiso, East Chicago and Michigan City.

The college will help partici-pants complete degrees or certifi-cates in high-demand occupations that give back to the community.

Plus 50 Initiative Director Mary Sue Vickers says many adults age 50 and older need to update their skills. She says community colleges offer a supportive environment where baby boomers can train for new jobs quickly and affordably.

airport traffic DoWn

INDIANAPOLIS — Fewer passengers boarded planes at Indianapolis International Airport in 2012 than at any other time during the past decade.

The Indianapolis Business Journal reports that passenger boardings fell by 2.2 percent last year to 3.68 million. According to airport records, that’s the lowest since 2003 and nearly 6 percent below projections. Boardings at the airport peaked in 2005, at 4.26 million.

The IBJ reports fewer passen-gers and airline mergers that have reduced the number of flights have caused fares to increase.

Airport Board President Michael Wells says the airport might lease some of its own office space to pri-vate users and move its staff to less expensive space because of declin-ing revenues. The airport also is looking at ways to generate more money from its parking garage.

furniture it builds for hotel chains, luxury properties and resorts.

The subsidiary of Kimball International expects to add up to 20 jobs at the Jasper factory in the coming year. The company says it now has about 120 workers there and is hiring for production and engineering support positions.

The Indiana Economic Development Corp. says it offered Kimball nearly $250,000 in tax credits and training grants based on the company’s job creation plans.

iVy tech expanSionSOUTH BEND — Ivy Tech

Community College is drafting a $96 million plan for a series of expansions at its crowded and growing South Bend campus.

The proposal includes a large addition at the campus, a student life center and other improve-ments that would nearly double Ivy Tech’s current 258,000 square feet.

But the plan outlining upgrades that would unfold over the next 10 years requires state officials’ approval, funding from the General Assembly and a significant community fundraising drive.

Ivy Tech North Central Chancellor Thomas Coley says the South Bend campus is “crunched for space.” The number of stu-dents enrolled at the campus was 3,151 in fall 2000, but had risen to 5,090 by this fall, leaving the college crowded in its existing buildings.

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more jobS for eVanSVille

EVANSVILLE — Berry Plastics Corp. plans to add 115 jobs in Evansville this year as it expands operations in the Ohio River city.

Officials of the Evansville-based company said they plan to invest about $33 million on the expan-sion. It comes about a year-and-a-half after a previous $150 million expansion of its manufacturing operations in Evansville.

The Indiana Economic Development Corp. offered Berry up to $800,000 in tax credits con-tingent on job creation. City and county officials authorized addi-tional incentives.

Berry Plastics has about 80 plants worldwide, producing a wide range of plastic packaging products including bottles, drink cups, trash bags and prescription drug containers.

The company says it has about 1,800 employees in Indiana and about 15,500 worldwide. Berry had annual net sales of $4.8 billion in fiscal 2012.

hoSpital StartS expanSion

MUNSTER — A northwest Indiana hospital has begun a $33 million expansion of its emer-gency department.

The Community Hospital said the two-year project at its Munster campus will include a four-story addition. The project will add pri-vate rooms and expand capacity for the Neonatal Intensive Care Unit, the surgery unit and for stroke and heart patients.

The last major expansion at Community was three years ago. Community has 427 beds, about 3,000 employees and a medical staff of 600.

ipl planS expanSionINDIANAPOLIS — Indianapolis

Power & Light Co. plans to spend more than half a billion dollars to reduce mercury emissions at two of its power plants.

IPL said the planned upgrades are part of its effort to meet new federal mercury rules and will cut

production line and a rail spur to ferry ingredients to the plant.

American Licorice is one of the nation’s original licorice manufac-turers. The company produces Red Vines, Sour Punch, Natural Vines, Super Ropes and Snaps. The Bend, Ore.-based firm employs 150 Indiana residents at its LaPorte plant and 500 nationwide.

The Indiana Economic Development Corp. offered American Licorice up to $200,000 in tax credits based on the com-pany’s job creation plans. Those incentives are contingent on the company hiring Indiana residents.

flooring firm retoolS again

PERU — A north-central Indiana company that makes flooring for shipping containers has closed its doors for the sec-ond time in a year to retool its machinery.

Conforce USA recently shut its

the plants’ emissions of the heavy metal about 80 percent.

If the Indiana Utility Regulatory Commission approves IPL’s plans, construction could begin later this year at the company’s Petersburg plant. The project is expected to bring 350 to 400 construction jobs to the southwestern Indiana region.

The utility plans to spend $511 million on upgrades at the Petersburg power plant and a sec-ond plant on Indianapolis’ south side. IPL has about 470,000 cus-tomers in Indianapolis and sur-rounding counties.

area coDe hearingS Set

EVANSVILLE — Indiana regu-lators are planning 10 upcoming public hearings on a new local telephone area code for southern Indiana.

The Evansville Courier & Press reported hearings will be held March 19 at Washington Middle School in Evansville, March 20 at Vincennes Lincoln High School, and April 2 at St. Meinrad Archabbey. Other hearings will be held in Bedford, Bloomington, French Lick, Jeffersonville, North Vernon, St. Leon and Terre Haute. Each hearing begins at 6 p.m. local time, preceded by a 30-minute briefing to explain procedural details.

The 812 area code is predicted to exhaust its supply of available numbers by March 2015. The telecommunications industry has filed a petition with seven differ-ent options that include both geo-graphic splits and overlays.

More information is available online at www.in.gov/iurc/2703.html.

licorice maKer expanDing

LAPORTE — A northern Indiana factory that makes candy and licorice is planning a $10 mil-lion expansion company officials say will add 35 new jobs by 2015. American Licorice Co. plans to renovate its 285,000-square-foot LaPorte plant and install a licorice

Peru plant to tweak the machinery it uses to make its EKO-FLOR flooring. The composite flooring is used in semitrailers and other shipping containers as an alterna-tive to hardwood flooring.

Conforce began operation in May 2011 but idled all of its workers except for managers a year later to retool the flooring product. The plant reopened last August.

The company originally antici-pated employing 55 people by the end of the year and bringing on 175 workers by the end of 2014. The Kokomo Tribune reports that Conforce hasn’t indicated when it will begin rehiring workers.

tanK maKer coming to fort Wayne

FORT WAYNE — A company that makes steel storage tanks and trailers plans to open a Fort Wayne plant that could bring about 300

see Watercooler on page 21


eric a. frey ii, executive director of Administrative Resources association, has received certification as an economic development finance professional from the National Development Council. EDFP certification is a professional credential given to individuals who suc-cessfully complete NDC’s intensive economic devel-opment finance training series. The training provides individuals working in the field of economic develop-ment with instruction in business credit analysis, real estate financing, loan packaging, deal structuring and negotiating, and the creation and implementation of development programs. He oversees all aspects of ARa, a shared community and economic development department for 11 member cities and towns. He also leads ARa’s subsidiary, Southern Indiana Housing and Community Development Corp.

Shawn green of Green Signs recently won first place in the electronic message center category of the 2013 United States Sign Council Design Contest. The winning entry was a sign Green designed, manu-factured and installed for Erich K Collision in North Vernon.

ryan Doughty has joined Old National Bank as a mortgage loan officer, serving clients in Bartholomew and surrounding counties. He attended Ohio State University and the University of Cincinnati and has worked as a residential mortgage lender since 1996, most recently at Fifth Third Bank and also at Union Savings Bank and Wells Fargo Home Mortgage.

Columbus native michala p. irons has joined Barnes & Thornburg LLP’s Indianapolis office as an associate in the firm’s corporate department. Formerly of the IRS Office of Chief Counsel in Washington, D.C., she served as an attorney in the Passthroughs and Special Industries Division. She is a 2009 magna cum laude graduate of the Indiana University Maurer School of Law and a 2006 graduate of the IU Kelley School of Business.

Dr. r. andrew robertson, owner of Wellspring Pain Management, has been recognized with the 2012 Growth Award by ActionCOACH of Southern Indiana and Louisville. The award was presented by

ActionCOACH’s Mark McNulty and Tim Jones at their annual planning workshop in Louisville.

The Growth Award recognizes the owners and busi-nesses who have achieved the most significant growth in 2012. The Growth Award recognizes growth in several areas of a business, including sales, profits, new customers, team, and the addition of new products and services for its customer base.

harrison lane has joined TLS.NET as an account manager. He will cover Columbus, Greensburg, Scottsburg, Seymour, North Vernon and other cit-ies. A Columbus native, he is a graduate of Ball State University, where he attained a bachelor’s degree in entrepreneurship and marketing, with a minor in eco-nomics.

randy Scheidt of Don R. Scheidt & Co. has been elected 2013 president of the Hoosier State Chapter of the Appraisal Institute. He also has been appointed to a three-year term on the NAR Strategic Planning Committee and was elected to a three-year term as appraisal representative on the Indiana Association of Realtors board of directors.

allison Zech has joined Old National Investments as a financial adviser. In her new role, she will assist clients in reaching their financial goals through various insurance and investment products. She has over 12 years of financial services experience. She earned her bachelor of science in finance from Franklin University and holds a certificate in finance planning.

Dr. melissa Webb, owner of The Eye Place, has been named the 2012 CEO of the year by ActionCOACH of Southern Indiana and Louisville. The award was pre-sented by ActionCOACH’s Mark McNulty and Tim Jones at their annual planning workshop in Louisville.

The CEO of the Year is awarded to recognize busi-ness owners who have developed their business and team to the point where they are primarily acting in a CEO role, providing leadership and guidance to their team, enabling them to deliver service to their custom-ers independently of the CEO on a day-to-day basis.

Webb also has been named a finalist in the Young Entrepreneur Category at the 2013 Business Excellence

on The Move

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Doughty

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Webb


(812) 372-7829

Mike [email protected]

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Awards announced recently by ActionCOACH, the business coaching firm sponsoring the event. The Business Excellence Awards honor the “best of the best” results in small and medium-sized businesses from around the world and showcases exceptional results for business owners, entrepreneurs, their teams and their companies.

The Eye Place was among more than 400 compa-nies participating in the event this year.

lynn lucas, executive director of Columbus Area Visitors Center, has been elected to the board of direc-tors of the Association of Indiana Convention and Visitors Bureaus. The association advocates for tour-ism investment and promotion as economic develop-ment and is dedicated to the profession of destination marketing and leadership in the state.

Three Edward Jones branch offices in Columbus recently were ranked in the top 25 percent of offices in the country for excellence in client service. The financial advisers and branch office administrators receiving the recognition were Ken free, Sheryl nulph and amy ogilvie of the Central Avenue office; bob lewis and juli johnson of the Fourth Street office; and andy mann and Shannon ferrill of the Sycamore Court office.

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said it will occupy nearly 100,000 square feet of space in an existing Fort Wayne building that it will upgrade by 2015. The company says it will make mobile steel storage tanks and trailers used for oil and gas, environmental cleanup, construction and indus-trial applications.

Accelerated Tanks says it has developed an environmentally friendly, patent-pending design to insulate steel tanks.

The company is a division of C&J Services and Supplies, which has its headquarters in Carmel.

State pullS Support for fertiliZer plant

MOUNT VERNON — State officials have suspended their support for a proposed south-western Indiana fertilizer plant while they investigate a Pakistani

company involved in the project.The Indiana Finance Authority

issued $1.3 billion in bonds in December for a nitrogen fertilizer plant Midwest Fertilizer Corp. plans to build at the Port of Mount Vernon in Posey County. Midwest Fertilizer Corp. is part of Lahore, Pakistan-based Fatima Group.

Katelyn Hancock, spokes-woman for Indiana Economic Development Corp., says the agency learned Jan. 14 about concerns Fatima Group might not be cooperating with U.S. offi-cials worried that fertilizer made in Pakistan ends up in improvised explosive devices in Afghanistan that have killed American troops.

Hancock says the agency immediately ordered the fertilizer plant project suspended “pending further investigation.”

— Wire Reports

Watercooler continued from page 19

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Moving from good to great

coach’s cornerMark Mcnulty

In his best-selling business book “Good to Great,” Jim Collins describes the differences between large companies that are good, often very good, and the ones that are truly great.

Unfortunately, some of the attri-butes of great companies don’t scale down as well as they scale up. So small to medium-sized busi-nesses are left to figure out what they need to do if they want to move from being good businesses to being great businesses.

I look for signs of greatness in several areas, as greatness in a business is multidimensional. Let’s look at some of the foundational areas of your business and what great might look like in each area.

Sales and Marketing — Does your business attract the best pros-pects, those who will be “A” clients for life? Do you have multiple methods of marketing that bring in equal shares of clients and cus-tomers? Does your marketing sys-tem run by itself without you there to pull the levers? Do you know which marketing works best and why? What about your sales staff?

decisions? Do you have a budget for each department/division and the business as a whole? Are you working on strategies to improve both gross and net margins?

Team — Do you know what a great team looks like? Is your busi-ness good enough to attract the type of people you need to create your business dream team? Have you created a great place to work for your employees, or are you just creating jobs? Great businesses have great leaders and managers to set the vision and goals for their teams and then provide them with the tools and guidance to achieve them, holding them accountable for their actions and results.

Owner — Are you a great owner for your business? Do you take the time out to set the vision and goals, then help your team create the plan for achieving the goals, and then hold them accountable for their outcomes? Great own-ers are constantly on the look-out for top talent and mold their businesses to attract such talent. Great owners reward their teams for their successes and help them

Are they good at closing the deal with your best customers? Do they attract the type of sales you want for your business? Are they highly motivated to increase sales profit-ably? Are they converting pros-pects to customers at a high rate? Is their average sale increasing?

Products and Services — Do you have the best selection of high quality products and ser-vices? How do you know for sure? Do you have multiple offerings/options for every target market or niche that you serve? How well does your team know your prod-uct line and your clients? Is your product delivery of the highest quality every time? Is your cus-tomer service out of this world? Everyone has great service now, so how do you distinguish yourself?

Finances — Do you know your numbers inside and out? Does your financial system automati-cally generate all of the monthly financial reports that you need to make great business deci-sions? Do you and your team know your margins and how to use this knowledge to make good

overcome their challenges. John Maxwell describes the Law of the Lid, which states that every one of us can only rise to a certain level, our lid, without learning new things, without help from others. Have you hit your lid, or are you striving to be better for your busi-ness, your team, your customers?

Take a quick inventory of your-self and your business in each of these areas. Decide which areas you need to improve upon and put a plan in place to make the improvements. Being great takes hard work and time. You prob-ably can’t get there overnight, but when you know what it takes, and you break it down into a series of steps, you can get to greatness fast-er than if you just think about it.

So which do you choose to be — good or great? It is a simple choice, followed by either the easy way out or hard work.

Mark McNulty is a business coach with ActionCoach Business Coaching. He can be reached at 372-7377 or [email protected].


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Documents

Business Connection March 2013