feb. 8, 2013 ubj

UPSTATE FITNESS BUSINESSES GAIN STRENGTH DESPITE STRUGGLING ECONOMYPAGE 21

PUMPED

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BusinessJ O U R N A L

febrUArY 8, 2013Upstate

INSIDE THE CSI TAkEOvER

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LOCAL BUSINESSES FIGHT THE FLU

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JOYNER CONTEMPLATES NEw BRAND

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2 UPstatE BUsinEss JoUrnal February 8, 2013

5Take It OutsideMore hotel guests seek

outdoor exercise optionsBy LEIGH SAvAGE

contributor

10Digital Maven

Learning by failing: Is there any other way?

By LAURA HAIGHT contributor

7Liberty Fellowship Enters 10th Year

By JENNIFER OLADIPO contributor

11Statehouse Report

When church politics rises to the level of pure pettiness

By ANDY BRACk contributor

8Wanted: ‘Big and Bold’

Ideas for Workforce DevelopmentBy JENNY MUNRO

contributor

18Create. Innovate.

Celebrate.Your friendly neighborhood

Butcher ShoppeBy JIM HENDRIx and TIM REED

contributors

9Courthouse

Development Moves Forward

By JENNY MUNRO contributor

23The Takeaway

Always be the most passionate person in the room

By DARLENE FUHST contributor

Table of Contents

Women work out at Pure Barre on Augusta Street in Greenville.

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February 8, 2013 UPstatE BUsinEss JoUrnal 3

UBJUBJ

Dear Journal FaithFul,

ThREE MONThS AgO, WE INTRODUCED ThE FIRST and only weekly business publication dedicated to the Business of the upstate. We now are delivering more than 50,000 copies every week directly into your hands, and the hands of readers like you. ¶ Many of you have asked about our digital products. Please be patient. We are busy designing a digital experience just as unique as the printed product. We are not reinventing the wheel; we are just making it spin faster.

Over the past six months, I have been talking with, listening to and taking notes from the business owners and thought leaders we are so fortunate to have in this business community. UBJ is the outcome of those conversations. I do want to tell you, Greenville: As you already well know, this busi-ness community is on fire!

Change and opportunity is the takeaway. Many organizations are experiencing changes within their industry, creating big op-portunities to take action. Com-munication is the change agent to economic growth. We feel that if we here at UBJ do our job, we will communicate and facilitate these opportunities, changes and suc-cess stories – allowing us not only to all grow, but to grow together.

I am excited to introduce the newest member of the UBJ team this week, Richie Swann. Richie will be responsible for the produc-tion, design, and presentation of

the Upstate Business Journal. He comes to us from Southern Living magazine, and previously Garden & Gun. We are positioning not only the content, but also the presentation of UBJ to give you the most addictive business read in the Upstate.

Remember, we need your help. A conversation works two ways. We know to engage the public, it’s important to listen and partner. We are counting on you, just as you are counting on us. Our time is now, Upstate. We are the change agents.

You can reach me at [email protected]. I look forward to hearing your sugges-tions on how we can continue to deliver what this market needs and deserves.

Cheers,

Ryan l. Johnstonassociate Publisher

40th ClassNow Accepting Applications

Apply today at greenvillechamber.org

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Mr. ValentineFor Valentine’s Day, you might think of giving � owers, special candies and a sweet card expressing the love and admiration for your special someone… and that is a great start! Maybe you’ve made reservations at that new restaurant or purchased tickets to the main event downtown. You have planned for the day—but did you ask yourself, what am I going to wear? Don’t just think about the logistics of the day—follow through and dress for the occasion. I bet the woman in your life will feel special that you did. How you dress is an important form of expression. Your special someone will notice that you’ve thought about the date from buying the gi� , booking the reservations to paying special attention in choosing how to dress --especially for her.

You might have planned a casual, more intimate evening to spend with your Valentine. � e thoughtfulness of a low-key evening doesn’t mean to neglect your attire. So dress the part. A handsome sweater over a button down shirt matched with a comfortable, yet sporty pair of pants could just be the look that you desire. If you know that you will be attending social event, take that into consideration and chose a suit or fun sport coat and trousers coupled with an unforgettable dress shirt and tie. Dress with the intent to impress your special someone…she will notice! “How do you compliment the one you love…dress well.”

by the Purveyors ofClassic American StyleTailored by the Purveyors ofClassic American StyleTailoredTailored

23 West North Street, Greenville, SC 29601864.232.2761 | www.rushwilson.com

Open Mon.-Sat. 9:30am - 5:30pmWed. 9:30am - 1:00pm

J23

worth Repeating | TBA

Word is a Spartanburg company that specializes in precision cutting tools is poised to announce plans to expand operations in Greenville County, adding at least 30 jobs and growing its capabilities to serve customers in the automotive, medical, aerospace and power-generation industries…

Look for Jack Jones, vice president and general manager of Boeing South Carolina, to make his first major Upstate appearance March 21 as featured

“People see the ill effects of the decisions they’ve made, and exercise is going to be a

very large part of more people’s lives.” William Timmons, owner of Swamp Rabbit Crossfit, on the growth

of fitness businesses in tough economic times.

“i think it’s only human to have feelings of doubt. But if you are passionate about your idea, you will keep at it. You will also come to learn that failure

isn’t the worst thing in the world.” Joe Lancia, entrepreneur.

“You can have a lot of people around the table who look different, but if they think alike, you’re

not really getting a diversity of perspectives.”Jennie Johnson, executive director of the Liberty Fellowship.

“this is a pretty large move for all of us, so we want to make sure to do it right.”

earl Lee, president of the real estate affiliates network of Prudential, on the changes Greenville’s Prudential C. Dan Joyner Realtors faces now that

Berkshire Hathaway has purchased Prudential Real Estate.

tBaluncheon speaker at the Salute To Manufacturing Awards Luncheon at the TD Convention Center in Greenville. Silver Crescent Awards will be presented to winners from among 11 finalists in the small, midsized and large manufacturer categories…

The Greenville Planning Commission is set to consider the final development plan for Magnolia Park next week. Cabela’s recently announced plans to open a store there in 2014…


UBJ FOCUS: Trends

a recent survey showed that many travelers are breaking out of the hotel gym and seeking outdoor exercise opportunities, and Greenville hotels say they are in the ideal posi-tion to take advantage of that trend.

The survey, conducted by TripAd-visor, found that 87 percent of U.S. travelers choose walking as their preferred mode of exercise while traveling. Business travelers, who have been cooped up inside airplanes and conference rooms, often want to get outside to relieve stress and see more of their destination city.

In response, hotels around the country are offering more outdoor ex-ercise options, including walking paths, pedestrian maps, guided nature walks and even complimentary pedometers.

The Courtyard by Marriott Green-ville downtown is well suited to outdoor enthusiasts thanks to its prox-imity to the Swamp Rabbit Trail, said Michael Bonasia, general manager.

“We promote it as much as we can via our website, Twitter account and brochures,” he said. “There is a lot

of interest on weekends and in the spring and summer.”

In addition to offering maps to guests looking for a place to walk or run, the hotel is developing an app that will feature the trail. Courtyard by Marriott also partners with Reedy Rides to offer bikes, and when the weather is nice, “the bikes are gone every day,” Bonasia said.

The Westin Poinsett in Greenville also partners with Reedy Rides to offer bikes, and John Geddes, director of sales and marketing, said the hotel gets a number of guests who bring their own bikes so they can hit the trail.

“We do a lot of bike business,” he said. “Our fitness center is constantly used, but weather permitting, our concierge and front desk will point people outside. The trail is such a great thing to have.”

Renata Parker, a Greenville-based travel writer, is often on the road, and she’s seen hotels responding to the fitness needs of guests.

“Travelers, both business and plea-sure, want to stay fit while on the road

and are choosing hotels that offer the amenities to keep their fitness routines on course,” she said. “Thankfully, I’m finding that hotels at all price points are listening and providing guests with more than just a standard fitness room in a dark basement.”

She points out that many hotels of-fer on-site bicycles, maps and guides, and she appreciates the suggested jogging routes offered by chains such as Westin and Starwood. “I would be swayed to book another brand if there were more outdoor options like sunrise yoga or hiking trails,” she said.

Heather Meadors, director of com-munity relations for JHM Hotels, which owns the Hyatt Regency Green-ville, hopes to attract travelers like Parker by offering Saturday-morning yoga classes on the newly revamped Noma Square in front of the hotel.

“Once it gets warm, that will be the perfect spot for classes, and the community will be welcome, and of course our guests,” she said.

The Hyatt is also planning a retail area that will offer grab-and-go sandwiches and snacks as well as the opportunity to pick up a bike. “We haven’t finalized the details, but we feel like that will be a great package,” Meadors said.

The city is also working with Upstate Forever to offer a bike-share location in the North Main area, close to the Hyatt.

Libby McMillan, a content man-

take it outside

More hotel guests seek outdoor

exercise optionsBy Leigh Savage | contributor

ager for the Greenville-based travel website 10Best who oversees dozens of local experts who compile lists of the best hotels in their towns, said outdoor opportunities and greens-paces improve the guest experience and help hotels rank higher.

Business travelers especially like these amenities, she said, not just because it gets them outside, but also because it helps them explore the cities even though they are primarily there to work.

“It’s always easier to explore a city on foot,” McMillan said. “Hotels with a walking trail, or near a bike trail or rentals, are more appealing to business travelers and also to families, who can incorporate outdoor activities that serve as no-cost entertainment.”

McMillan also serves as Green-ville’s “local expert” for 10Best, which recently became part of USA Today. The site lists attractions, parks and free activities in the city, and McMil-lan said there are numerous easily ac-cessible options for travelers staying at any downtown hotel.

“They all offer access to Falls Park and Cleveland Park, which has work-out stations,” she said. “The hotels can work with the bike rental companies, offering the chance to get on a bike and hop on a trail. And since the Kroc Center opened, guests have access to a beautiful tennis facility.”

Hotel gyms will continue to be a necessary amenity, McMillan said, “but they are often small, easily crowded and not very motivating.” It makes sense for local hotels to pub-licize their outdoor options, letting guests know they can “get out on a beautiful trail to get some exercise.”

Contact Leigh Savage at [email protected].

TRAvELERS’ FAvORED SPOTS FOR vACATION wORkOUTS

HOTEL GYM52%

POOL42%

BEACH38%

HOTEL ROOM27%

FLIGHT9%

Source: TripAdvisor

walking

Swimming

Hiking

Cardio Machines

Biking

87%

46%

35%

23%

16%

TRAvELERS’ TOP PHYSICAL ACTIvITIES ON vACATION

UBJ


direct last week when Earl Lee, presi-dent of the real estate affiliates net-work of Prudential, was in Greenville to meet with Joyner’s brokers, agents, officers and managers to explain the changes and opportunities.

“In Greenville, we are very fortunate that we have a company like Pruden-tial C. Dan Joyner which meets all of our criteria, has a culture that clearly has the reputation of the kind we want to have for Berkshire Hathaway HomeServices brand,” Lee said.

Lee, Crigler and Danny Joyner, Joyner president, talked to the Upstate Business Journal about plans for integrating Berkshire Hathaway HomeServices into the businesses of more than 50,000 independently owned and operated Realtors across the nation.

Because each Realtor has the right un-der its contract with Prudential to keep that name until contract expiration, Lee said, a name change “is not something we can force on our affiliates.”

In the case of Joyner, said Crigler, the company could hold the Pruden-tial name for about 13 years but is unlikely to do so, not wanting to be the “last man standing.”

Lee said Berkshire Hathaway has a “conversion fund” to help local agen-cies rebrand. “This is a pretty large move for all of us, so we want to make sure we do it right.”

He said that on any given Sunday there are probably somewhere between

500,000 and 700,000 Prudential real estate signs on lawns across America.

In 22 other states, HomeServices already is well established with 500-600 offices and 26,000 agents.

Lee said the fact that Berkshire’s HomeServices is the principal owner of the new combined company and oper-ates its own agencies means local agen-cies will have the support of “someone who has real estate in their DNA.”

With Prudential, he said, real estate was not its primary business and did not provide the “operational savvy” that Home Service does.

For example, Lee said, the Home-Services people want to know how the new franchise name and local agency name “will look on the sign, how is it going to look on the business card. I worked for Prudential for 15 years and never once had somebody at the corporate level at Prudential say, ‘How will it look on a sign?’ They never thought about it.”

Danny Joyner said the new com-pany’s commitment to a higher level of technology and infrastructure to support local agencies is encouraging.

“Over the last four or five years, the real estate business has been a little stagnant in developing new products,” he said. “We have all the confidence that what they are going to roll out will be so appealing that we can’t pass it up.”

Contact Dick Hughes at [email protected].

name-Change Mode for Joyner

With Prudential’s merger with Berkshire Hathaway’s HomeServices, the upstate real

estate dynasty contemplates rebrandingBy Dick Hughes | senior business writer

prudential c. dan joyner realtors has been identified with the Pruden-tial name from the first days some 20 years ago when the New Jersey insur-ance giant got into the real estate franchising business.

With sale of Prudential’s real estate division to another company and that company’s merger with a third company, the Prudential franchise Joyner built into Greenville’s domi-nant agency is in name-change mode.

The dominant entity of the corpo-rate transactions is Warren Buffett’s Berkshire Hathaway HomeServices,

the brand name that soon replaces the Prudential identity nationally, but not necessarily locally. At least not right away.

“We are excited about the possibili-ties. We know it is a brand going plac-es,” said David Crigler, chief operating officer and executive vice president for Joyner’s residential market.

“We already have been considering it. We just need to know more and sit down and have conversations at the appropriate time about what it means for the business.”

Those conversations became more

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David Crigler and Danny Joyner


UBJ

now a decade into its mission, the Liberty Fellowship has attempted to tackle some of the state’s toughest issues through a cadre of leaders who work on themselves as hard as they work on society.

The Liberty Fellowship is a state-wide leadership initiative founded by Anna Kate and Hayne Hipp, Wofford College and The Washington D.C.-based Aspen Institute. The two-year program enlists community leaders age 30-45 to “move South Carolina forward” in the areas of education, environment, economic development and public policy.

Like their predecessors, members of the current class of 2014 are tasked with creating a significant project, and also pushed to broaden their perspec-tives and better appreciate the wisdom of people with whom they have little in common. The regional, racial, gen-der and religious diversity in the state are keys to its progress, said Executive Director Jennie Johnson.

“You can have a lot of people around the table who look different, but if they think alike, you’re not really getting a diversity of perspectives,” Johnson said.

Mentorship is also important, so fellows are paired with accom-plished professionals, some who have been through the program themselves. Grenville’s Mercedes Bartow, part of the current class, will work with mentor John Bauknight IV, co-owner of RJ Rockers brew pub in downtown Spartanburg and president of Longleaf Holdings, a real estate and investment firm.

Bartow worked as finance control-ler for manufacturing when BMW came to the Upstate, and later started an internal consulting group there. Six years ago, she parlayed that experience into her own consulting busi-ness. Bauknight, on the other hand, has been a serial entrepreneur who has dabbled in diverse industries.

“Our professions have been quite different, but our personalities seem to have much in com-mon. Although only a few years into her entrepreneurial journey, I can sense that [Bartow] is very driven, and that’s a key to success for any entrepreneur,” Bauknight said.

During the program, fellows com-plete reading assignments on various topics, from classical texts to writings on issues of the day, and discuss the readings in moderated seminars.

“What surprised me was that I was already so personally affected by the

readings and the facili-tated discussions,” said Bartow.

One of the sessions is a globalization seminar with the Aspen Institute, a prestigious interna-tional organization that promotes progressive dialogue. A Liberty Fel-lowship board member,

Wofford President Benjamin Dunlap, is a frequent Aspen moderator, as are Jennie Johnson and other guest mod-erators at the Liberty seminars.

Reading and talking alone won’t change South Carolina, so action is

a major part of the fellowship experi-ence. Bartow’s project will test the feasibility of a program to improve the identification and treatment of postpartum depression, using St.

Francis Hospital and Greenville Hospital System as pilot sites.

“In corporate life for 13-plus years, it was pretty much nose to the grindstone all the time,” Bartow said. “I barely looked up to see how things were going on outside of my circle of

friends, family and colleagues.” Now she will embark on a project that could impact women throughout the state.

Bauknight, a fellow from the Class of 2010, still spends 10-15 percent of his time on the project he started, which is intended to unite Spartanburg Com-munity College, USC Upstate and the Spartanburg Chamber of Commerce in a partnership to provide a platform for local entrepreneurship. It’s bearing fruit in a new business accelerator starting in Spartanburg.

The Liberty Fellowship is in the midst of evaluating its 10 years of try-ing to be “an incubator for exemplary leadership.” The organization will fol-low up on past graduates to see what has changed since the first evaluation five years ago. Johnson said finding more representation from rural areas is one lingering challenge. She hopes people in all areas will nominate the bright stars in their communities, companies or families for a spot in the class of 2016, for which she’s already recruiting.

Contact Jennifer Oladipo at [email protected].

liberty Fellowship Enters 10th Year

By Jennifer Oladipo | contributor

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the needs of regional employers and workers, but they need to collaborate.

“Every day people are trying to find jobs,” he said. “Every day businesses are trying to find workers.”

The Workforce Investment boards help job seekers identify their skills, especially from previous jobs, and help connect the employer and the job seeker, he said.

Although many people are imme-diately ready for work, employers still have jobs they cannot fill because area residents don’t have the needed skills, he said. In the next 20 years, Upstate employers will need engineers, maintenance technicians, machinists, electricians and robotics technicians.

Education was an issue addressed by the forum, and Stephen J. Wunder, president of Duer/Carolina Coil Inc., said that businesses must play a part in the discussion. In the past, South Carolina businesses have been satis-fied with workers with relatively low educational levels. Now that they compete globally, that no longer works, but businesses haven’t gotten that word out.

The challenge, several people said, is to connect business and education from kindergarten through adult education.

“We’re preparing students for a workplace that doesn’t exist right now,” said Tom Moore, chancellor of USC Upstate.

Josh Copus, vice president for the National Association of Workforce Boards, said the issue of workforce development is a local, regional and statewide issue and suggested that several boards could collaborate on various programs. Employers tend to

draw employees from several coun-ties or even regions, making it natural for boards to work together to meet the needs.

Boards also could consider col-laborative outreach efforts to let students and parents know of the jobs that will be available when young adults are seeking work, he said. The boards can reach out to businesses to find out their needs and how to help meet them beyond training and skills programs.

“We have an unemployment issue,” Copus said, “but training doesn’t create jobs.” Rather, businesses do, he said, so the boards need to spearhead initiatives to think about what it would take for a small to medium-size business to add just one more employee.

Among the challenges facing employees, businesses and trainers are drug test failures, low basic skills, poor work ethic, lack of soft skills and problems with criminal background checks, said Ann Angermeier, executive director of the Upstate Workforce Investment Board. Another problem to be resolved is a lack of motivation on the part of job seekers to improve their educational levels.

Contact Jenny Munro at [email protected].

Wanted: ‘Big and Bold’ ideas for Workforce Development

Ten at the Top forums address upstate’s growth, future needsBy Jenny Munro | contributor

challenges to training and recruiting the workforce needed by 2030 abound, but resources to meet those issues are available if residents, public officials, educators and busi-nesses collaborate to meet the need, according to participants at a work-force forum.

Ten at the Top, an organization fos-tering collaboration and partnerships across the 10-county Upstate, last week held its first 2013 forum on workforce and skill development. About 200 people attended the program at the BMW Zentrum to brainstorm ideas to address one of the most critical issues facing the region.

This and other TATT forums are designed to help come up with “big and bold” ideas to make the Upstate the best place to live, learn, do busi-ness and raise a family by 2013, said Dean Hybl, TATT executive director.

“Workforce and skills development is absolutely crucial to the future of this region,” he said. “It is important today, it will be important tomorrow and it will be important in 2030 and beyond.”

Cynthia Eason, Greenville Technical College’s vice president for corporate and economic development, agreed.

“Workforce development is the responsibility of the entire com-munity,” she said. “There are still a lot of people who are unemployed or underemployed who can become a sustainable member of the com-munity if given the right skills.”

The Upstate has four Workforce Investment Boards in addition to other organizations working with workforce development, said Dean Jones, executive director of SC Works Greenville. All are necessary to meet

“We’re preparing students for a workplace that doesn’t exist right now.”

Tom Moore, chancellor of USC Upstate.


federal officials have comp-leted purchases of land for a new U.S. Courthouse across the street from the Greenville County Courthouse on East North Street, which could eventually open the area to further retail and professional development.

The U.S. General Services Admin-istration has bought three parcels of land in downtown Greenville for about $4.07 million, moving forward a proj-ect that has been in the works for years.

Tenants in the proposed 12-story facility will include district courts and U.S. Marshals Service and U.S. Probation offices, officials said. The building also will include a Circuit Library and office space for the U.S. Attorney’s Office and the Federal Public Defender.

Plans to relocate the courts and offices from the Haynsworth Federal Building on Washington Street that houses the federal courts have been under consideration since 2005. During the years since then, vari-ous locations – including the site of the former Greenville Memorial

Courthouse Development Moves Forward

By Jenny Munro | contributor

Hirsch said.Property records show the pur-

chases include 0.213 acres on East Coffee Street at North Irvine Street for $523,739 on Dec. 31, 2012. Also, the General Services Administration, which will be responsible for the con-struction, paid $3 million for about 1.281 acres on East North Street and East Coffee streets in 2011. Another 0.254 acres was purchased on East North and North Irvine streets in 2012 for $540,000.

The existing federal building will house the 4th Circuit Court of Ap-peals, U.S. Bankruptcy Court and tenants in existing leased space.

That building was designed by Eric Kebbon and completed in 1937. The 88,861-square-foot, four-story building initially held a U.S. post office, federal courts and federal offices. When the post office moved out, many of the spaces, especially on the first floor and lobby area, were significantly modified.


“That whole project has been a question mark for a long time.

This removes the questions. It allows other developers to move forward.”

Mary Douglas Hirsch, manager of downtown development for the City of Greenville

Auditorium – have been proposed. However, traffic pattern concerns at the auditorium site caused that loca-tion to be dropped.

“That whole project has been a question mark for a long time,” said Mary Douglas Hirsch, manager of downtown development for the city. “This removes the questions. It allows other developers to move forward.”

“We see this as another anchor in downtown,” she said, adding that the city hopes the new facility would at-tract retail establishments to the area to serve employees working there. Hirsch said the city would like to see retail established on the side streets, part of Greenville’s effort to develop more than just Main Street.

Hirsch said that the city knows of

Greenville officials recommended in 2008 that a new federal courthouse be built across the street from the current county courthouse, citing ample parking with the city’s nearby garages and the proximity of legal and other law-related professional offices, she said.

no construction timeline. The gov-ernment had funding to purchase the property and to design the facility, but construction funding has not yet been obtained, officials said.

But the action, the purchase and beginning of design, “is a good sign” that the project is moving ahead,

UBJ


By LAURA HAIGHT

the only way i ever learned anything was by messing up.

Unfortunately, that is the case with most of us. Still we would be abrogat-ing our responsibilities if we didn’t pass on some cautionary wisdom gained from our experiences.

1. Get out of the data center, unlock your door, and start walking around your building. See how people really use technology. Find out from the least-skilled users how things are going and watch what they do. Those are your areas of opportunity to make a difference.

When employees ask us to write a program or set up an account here or install this application, we should not go blindly into the task just so we can add it to the complete jobs stat at the end of the month. The question that should be asked is: “What are you trying to accomplish?” IT has programs, software and capabilities that we cannot expect users to know about. And will know how to provide the best technology path to the result you are looking for.

It’s the fault of IT professionals who are often happy to stay in the mysteri-ous data center, behind locked doors, pounding away on keyboards at programs with indecipherable names (what is “Ruby on Rails,” anyway?) The combination of insular IT staff and business executives who are content for them to stay that way has cost companies untold millions in wasted effort, unnecessary expense and underused capabilities.

2. Standing at the crossroads of “nimble” and “reckless,” remember that things become clichés because they are true. Like: If something can go wrong it will.

Last week, I got an email via

Linked-In from a former employee. He had actually been on my mind recently for no particular reason and I remembered the time he wiped out our entire email database by installing a piece of software we were considering. He said he just thought it would be no big deal. Until it was.

Up until then, we had not had poli-cies and procedures for testing and deploying new software. We were a small newspaper and we ran a (very) tight budget. That disaster spurred us to develop policies, testing proce-dures and implementation checklists and timelines that allowed for proper testing. I took quite a beating for the problem, but became a lot smarter, a lot more quickly as a result.

In today’s “can-do” environment, IT is so often seen as throwing up barri-ers to success. But those procedures come from years of losing your email, overwriting the database and strug-gling through bad implementations.

3. Think operationally, not techni-cally when things do go wrong. IT guys want to know why something

happened so they can fix it forever; operational staff want to get the darn thing going so we can fix it for now!

That can put you at odds with each other, but a lot of very smart IT guys just don’t think like businesspeople. In part, it goes back to how involved they are in the business – under-standing not just the technology, but how it is used.

Crashes, hacks, and other disasters require a two-pronged attack: Get us functional first, then find out what happened, fix it and make sure it won’t happen again.

4. During a walkthrough at a new job several years ago, I was struck by a room full of dust-covered equipment. It looked new (other than the dust) and I knew it was costly. So why wasn’t it on the floor? “Oh, it never worked right,” was the response.

There was a lot of that at this location, and there may be at yours as well. Expensive technology that got sidelined rather than properly implemented. Employees generally resist change and will revert back

to the old, comfortable ways pretty quickly unless someone is champi-oning the new and making sure it’s implemented properly. That also means asking the question: How is it going? And quickly correcting prob-lems so employees have no reason not to adapt.

5. Letters after your name and on your resume don’t mean every-thing. I was always a bit of an oddball in IT. I readily admitted that I was the least technical person on the IT staff. But I was a gizmo, a very talented user, a smart businessperson who understood my industry inside and out, and a forward thinker. I could not write programs, but I understood what technology could and couldn’t do. So I could articulate business needs to programmers and technical leads – and translate the tech talk to businesspeople.

You need someone like that in your world – whether it is on staff or a con-sultant or a member of your advisory group. Certifications aren’t the only valuable skill a technologist can bring to your business.

Oh, yeah: The former employee I mentioned is now the vice president of global messaging for one of the nation’s largest multinational compa-nies. I congratulated him on making a great career. He replied: “Hard work, opportunity and the chance to learn from my mistakes.”

Laura Haight is the president of Portfolio (www.portfoliosc.com), a communications company based in Greenville that focuses on harnessing the power of today’s technology to reach new customers, turn customers into loyal clients and loyal clients into advocates. She is a former IT execu-tive, journalist and newspaper editor.

learning by Failing: is there any other Way?

Digital Maven


By ANDY BRACkStatehouse ReportUBJ

Carolina” – with rhetoric that sounds much like what happened when con-servative Democrats jumped to the Republican Party: “I didn’t leave the party; the party left me.”

It came as no surprise that since the end of last year, breakaway churches and the “new diocese” filed lawsuits to keep property and even the seal of the national church diocese they abandoned. In what was the pot call-ing the kettle black, the breakaway diocese had the gall to spin that the national church abandoned them – even though Lawrence and his

When Church Politics rises to the level of Pure Pettiness

minions voted to leave the national church as it appealed to them to stay inside the tent.

Although they departed with much bluster of cutting all ties, they

really want (you should see this coming) to keep all of the for-

merly united diocese’s money, property and land, including a popular church camp. Seems to me that when you abandon something, you leave and start anew – and that means without all of the

stuff that you signed over to the national church years ago. But

that, I guess, is logic.To rub salt into all of these self-

inflicted wounds of the past months, S.C. Circuit Judge Diane Goodstein issued a temporary restraining order Jan. 23 to keep any individual, organization or parishes that are continuing to worship with the na-tional church from using names and the seal historically associated with the Episcopal Church in the lower part of South Carolina for 300 years. Hmmm, surely seeking the order wasn’t a disruptive coincidence as it came the same week the continuing parishes were preparing to elect a new bishop.

Churches are supposed to be places of sanctuary, not places for negativ-ism and pettiness. Who knows what will happen with the breakaway and continuing Episcopal parishes in the lower part of the state? About the only thing for sure is that it looks like a lot of lawyers will get richer. And that’s not the kind of Christian char-ity that motivates people to give or go to churches.

Andy Brack is publisher of Statehouse Report. He can be reached at [email protected]

if you think politics rocks and rolls only at the Statehouse, take a look at church politics.

Episcopalians, known around the country for acceptance and tolerance, are facing mighty frustration and confusion in the lower part of the state following a schism late last year that has pitted parish against parish, priest against priest, and a bishop against the national church.

The headline-grabbing schism in what until recently was a united body known as the Episcopal Dio-cese of South Carolina today is fueled by a spiritual and historical stream of secession, a menacing aquifer of greed, disdain, money, power and sanctimony. It has spilled from the pulpit into state courts. It has caused churches and parishioners to pick between church leaders who have left the national Episcopal Church and those who remain with it.

Some see it as a bunch of ecclesiasti-cal nonsense because they don’t really care which governing organization they’re aligned with. But others see the split as a hurtful squabble brought on by conservative clerics who are negatively impacting the worship lives of church members. And some are even gloomier, viewing the break as sinful lust by those leaving to grab as much as they can by using rheto-ric, strategies and tactics worthy of the best negative political campaign that Lee Atwater ever ran.

Over the last 10 years, some cham-pions of Biblical literalism in the Episcopal Church in the lower part of the state got hot and bothered by gender politics. They went ballistic when the Rev. Gene Robinson, a gay man, was named Bishop of New Hampshire, even though the likeli-

hood of anyone from South Carolina worshipping in the Granite State was next to nil. More recently, the same zealots got bent out of shape over the blessings of same-sex relationships in other parts of the country, just as they surely got bent out of shape in the 1970s with the ordination of women and as their ancestors did over race during and after the Civil War.

Led by S.C. Bishop Mark Lawrence, many churches broke away from the national church and formed a new entity – “The Protestant Episcopal Church in the Diocese of South

The headline-grabbing schism in what until recently was a united body

known as the Episcopal Diocese of South Carolina today is fueled by a spiritual and historical stream of

secession, a menacing aquifer of greed, disdain, money, power and sanctimony.

UBJ


Schellpfeffer, medical director of Loyola University Health System Occupational Health Services. “But less obvious is how performance, or-ganization, productivity, creativity and financial stability can all be affected.”

John Challenger, CEO of the employee outsource company Champion, Gray and Christmas, said employees may think they are doing the right thing by “toughing it out” and coming to work when ill. Whether they are motivated by job security or a desire to continue making a contribution in an overbur-

dened workplace, presenteeism hurts a business, he said.

A 2007 study by the Society of Hu-man Resources Management found that presenteeism costs businesses $180 billion a year, while absentee-ism costs just $118 billion a year. Flu accounts for 10 to 12 percent of all workplace illness-related absences.

DiPietro said having an effective sick leave policy is critical to prevent-ing an office wide or companywide flu outbreak.

“Businesses have to make employ-ees feel safe calling in sick,” she said.

good business people prepare for all kinds of situations.

They have backup systems to back up their backups to guard against a nasty computer virus or server crash wiping out important computer files. They have plans in case of fire or flood.

They have insurance to pay for unexpected legal troubles or acci-dents involving cars driven by their employees and products made by their companies.

But too many businesses don’t make preparations for outbreaks like the flu, which has hit especially hard this year, and can cost businesses billions of dol-lars, said Robin DiPietro, an associate professor in the University of South Carolina College of Hospitality, Retail and Sports Management.

“It used to be that we encouraged people to come to work no matter what, but we’re thinking differently,” said DiPietro, who teaches human resources and specializes in the hos-pitality industry. “It’s detrimental for businesses not to address the issue of employees who are sick.”

According to the Centers for Dis-ease Control, seasonal flu outbreak costs the nation’s employers $10.4 bil-lion in direct costs of hospitalization and outpatient visits. But that doesn’t include indirect costs related to lost productivity and absenteeism.

But employees who come to work sick, called “presenteeism,” can cause problems, too, experts say.

“An organization can be severely impacted by people coming to work when they’re sick. We know how illness can spread from person to person, causing entire work groups to be affected,” said Dr. Mary Capelli-

Increase the number of shifts to reduce the number of people working in the office at one time.

Limit meetings or conduct them via

conference calls or video conferencing.

Expand telecommuting. Determine who can work from home or other locations.

Allow sick workers to stay home without fear of losing their jobs.

Institute flexible leave policies to allow parents to care for an ill child or one who is home due to school closures.

Provide no-touch trashcans and hand

sanitizer.

Encourage employees to wash their hands frequently, avoid handshaking and take other hygienic precautions such as wearing a mask in heavily populated work areas.

Assign someone to

the post of workplace illness coordinator who would be responsible for monitoring absenteeism rates, coordinating leave and informing employees of company measures to prevent and/or respond to outbreak.

Encourage employees to get flu shots.

Fighting the FluPreparation, precautions are necessary for

businesses as they are for employeesBy Cindy Landrum | staff

In some jobs, telecommuting can allow employees to work while not exposing their co-workers. In other jobs, such as the service and hospital-ity industries, that’s not possible.

In those cases, employers can help by setting up phone trees where em-ployees can trade shifts or make up missed shifts – and the income lost because of the absence – when more help is needed.

“It’s a communications issue,” DiPietro said.

Sometimes employees don’t know they have sick time because they’ve never had to use it, Capelli-Schellp-feffer said.

Challenger said companies should prepare for the worst in order to ensure continuity of their business in the wake of an outbreak. In addition to cross-training employees so pro-ductivity doesn’t stop if somebody is out, companies should consider what they’d do if their suppliers were hit and could not deliver key parts, he said.

Workers should be encouraged to step up hygiene efforts, he said, and companies should emphasize healthy habits.

“Though there is a cost involved in promoting wellness, it is small in comparison to the pricey hit com-panies take when their workforce is impaired by illness,” Capelli-Schellp-feffer said.

And even if the worst of this year’s flu season has passed, DiPietro says anything done now won’t be wasted.

“This is not just something for 2013,” she said. “There will be a flu season next year and in the years after that.”

Contact Cindy Landrum at [email protected].

THERE ARE THINGS BUSINESSES CAN DO TO PREvENT DEvASTATING FLU OUTBREAkS, ACCORDING TO THE OUTSOURCE COMPANY CHALLENGER, GREY AND CHRISTMAS INC.

Photos by Gerry Pate

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FULL-YEAR PROFITS AT GREERGreer State Bank reported annual net

income of $4.2 million, or $1.68 cents per share, for 2012.

The bank also said the fourth quarter of last year was its fifth consecutive profitable quarter.

With the bank back on a stable foot-ing, Dennis Hennett, who had come out of retirement to lead the bank through its turnaround, resigned as CEO, retiring for the second time. He remains on the board of directors.

George Burdette, 59, who earlier replaced Hennett as president in an easing of transi-tion, was named CEO to replace Hennett in that capacity.

The profit for the year “was aided signifi-cantly by net gains on investment transac-tions, which accounted for $2.1 million” of the net gain, said Burdette.

He also noted the bank did not incur any loan-loss expense because of “favorable trends in loan quality and a reduction in total loans outstanding.”

The 2012 year-end results were a far cry

QuarterliesUBJ

from the net loss of $2.8 million, or $1.12 per share, in 2011.

In 2012, the bank booked expenses of $723,000 on dividends paid to the U.S. Treasury for preferred shares on the $10 million it received in TARP funds.

ALTERNATE LENDER GAINS World Acceptance Corp., the Greenville-

based lender in the subprime market, said its net income rose 5.6 percent to $20.7 million, or $1.58 per share, in its third fiscal quarter.

In the comparable period a year earlier, it had income of $19.6 million.

Revenue increased 10 percent to $149.6 million on the strength of an increase of 11.3 percent in average net loans and their interest and fees.

“The company’s growth in earnings per share also has benefitted from our ongoing share repurchase program during the cur-rent year,” said CEO Sandy McLean.

Over the last nine months, World Ac-ceptance said, it has used its “excellent cash flow” to repurchase 2 million common shares. The repurchase reduced by 13 percent shares outstanding, which makes each share more valuable.

verdae properties has closed on the purchase of the former Sam’s Club property for $3.25 million, said Randall Bentley, president of Lee and Associates Greenville.

The 133,000-square-foot building on 12 acres of land on Laurens Road has been for sale since Aug. 20 by Dune SC LLC, he said. Lee and As-sociates represented by the sellers, a partnership from New York and Ohio, and Rick Sumerel represented the buyer.

Sumerel could not be reached for comment.

Bentley said that as far as he knows no plans have been developed for the property, which has been vacant for about five years. How-ever, Verdae Properties owns other properties in the area, including a retail center with Books-a-Million,

and is expected to incorporate the Sam’s Club property into its overall development plan, including the Verdae mixed-use community with residential, retirement community and commercial space.

He said the proximity of this property to existing Verdae Proper-ties land makes it a strong purchase for the development group. It also is located next to several retail centers and is about a 10-minute drive from downtown Greenville.

The property at 2519 Laurens Road was developed in 1986.

Commercial property activity is picking up in recent months, and Bentley said there is not a lot of property for sale in the Laurens Road area.


sam’s Club Property sold to VerdaeBy Jenny Munro | Contributor

UBJ


the future was bright for Computer Software Innovations, a small Easley company with promis-ing technology for schools, when it went public in a complicated transac-tion in 2005.

Just seven years later, it came to an end. A far bigger publicly traded Canadian company with a competing subsidiary took possession in a re-lentless takeover campaign that went on for three years.

In the end, the CSI board and management agreed the sale was in the best interest of all shareholders.

An exhaustive search by an invest-ment banker hired by CSI did not turn up a better offer or a strategic investor, and CSI’s cloud services did

not produce the hoped-for home run.Although its stock never caught

fire, CSI had built a strong niche as a provider of software and hardware technology to manage school ad-ministration and enhance classroom teaching and student learning.

It also had tools for administrating local government. It was recognized nationally by CRN as one of the nation’s top 500 value-added software resellers.

Looking for a cash cow

Sales grew year by year, and the company was consistently – if at times marginally – profitable. It put its cash into growth, including a major investment in cloud technol-

ogy that it hoped would lead to a full communication system for schools.

The cloud was not the cash cow it counted on and became too expen-sive to fully develop. CSI wrote it off in April 2012 as the takeover was nearing reality.

David Dechant, who joined CSI as chief financial officer as it was becoming public in 2005, said that CEO Nancy Hedrick, a founder along with Vice President Beverly Hawkins, “did a tre-mendous job of growing the company.”

It had doubled in size through or-ganic expansion and acquisition and had become “the premier” provider of educational and local government software, hardware and services in the Southeast, Dechant said.

“I don’t think it was a surprise to anyone that a company that was a com-petitor was interested in CSI,” he said.

CSI was unique in governance. It was the only public company in South Carolina with a female CEO; and, unlike the usual corporate hierarchical rigidity in pay practices, officers were compensated at roughly the same level.

canadian firm prevaiLs

On Nov. 7, Constellation Software Inc. of Toronto gained ownership of CSI, winning a fight not unlike what large corporations might go through in a hostile takeover.

“It is not a big deal, but it is like a microcosm,” said CSI’s attorney, Wil-liam Pitman of Smith Moore Leath-erwood, referring to the acquisition process. “We did the same things you would deal with in a Fortune 500 acquisition.”

In the end, a New York investor, Barron Partners, which had helped establish CSI as a public company in 2005 with a major financial invest-ment and the mechanism to do so, played a major role in forcing the sale.

The saga is played out in minute detail in a Securities and Exchange Commission filing to give investors an unvarnished account of how own-ership passed to Constellation in a merger with its subsidiary, N. Harris Computer Corp.

Andrew Barron Worden, manag-ing partner at Barron Partners, got involved in early 2005 when CSI, then privately held in equal shares by Hedrick and other co-founders, Beverly Hawkins, Tom Clinton, Bill Buchanan and Joe Black, sought investment to recapitalize.

Barron antes ups $5 miLLion

Barron agreed to purchase more than 7 million preferred shares for $5 million and an equal number of warrants for common shares. The

Csi takeover result of 3-year Campaign

Toronto company grabs Easley software reseller despite search for other investors

By Dick Hughes | senior business writer

continued on page 16

CSI Technology Outfitters of Easley is located in a former coat manufacturing facility, which was converted into office space.

Photo by Greg Beckner

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ThE BuSInESS Of ADvISInG COMPAnIES

merging, selling, buying or borrowing in

the Upstate points to emerging knowledge

enterprises and technological twists on an

old one.

Terrell Mills and Melinda Davis of the

Wyche firm, which has an 80-year history

in corporate law, including mergers and

acquisitions (M&A), say these changes are

reflected in the type of work they’re seeing.

“The biggest change is the increase in

private equity investment in South Carolina,”

said Davis.

With some exceptions, such as Azalea

Capital, which has been in business since

1996, the Upstate has not had “historically

the same level of investment by private

equity firms as other parts of the country,”

she said.

What Wyche is seeing is private equity

firms showing higher interest in South

Carolina, “and that is going to drive more

M&A activity.”

On that score, Mills said, the “negative

conception” created by disparagement of

Mitt Romney’s Bain Capital by President

Obama’s campaign does not reflect the

conduct of the venture capital firms buying

into startups, or that of equity firms.

Mills said venture capitalists “are usually

buying into the management team and leave

them there,” he said. “They are looking for

a homerun, no question about it, and they

are making a risky investment because it is

so young, and they really don’t know if the

technology is going to prove out.”

Davis said companies are “delighted and

very excited” to have the infusion of capital

“whether it is venture capital or private

equity. It generally is a good thing.”

Also different from the past, they said,

is the way transactions are being financed

with conventional bank financing “dramati-

cally down.”

“We are seeing our companies having to

be more creative in their financing,” said

Davis. “Some of the big companies are

just using their traditional bank financing,

but for the smaller companies that can be

a challenge.”

Still, said Mills, the restraints on banks

from the credit collapse of the Great Reces-

sion are easing and so is their reluctance

to lend.

“I am hearing from banks now that they

are much more active and looking for oppor-

tunities. Whether these opportunities meet

their criteria or not, they are actively looking.”

Davis said Wyche has several clients

“being called on at least once a day”

by banks looking to lend to that “small

number of companies that have really good

credit. The banks are all going after the

same companies. They are getting great

rates from their banks.”

The financing aspect of mergers and

acquisitions is “an essential part of what we

do,” Davis said.

As an indication of the growing empha-

sis on knowledge enterprises, Wyche is

“starting to see growth in new industries,”

Mill said. “One of the ones that seems to

be really developing in the Upstate is the

life science industry … certainly in the en-

trepreneurial level. We are not particularly

seeing a lot of M&A activity there but are

seeing investment activity.”

Mills, who is co-chair of Wyche’s cor-

porate practice, recently represented Selah

Genomics in the management buyout of

Lab21, a subsidiary of a British company

that helped finance the development of the

life science business that grew out of the

Greenville NEXT incubator.

Davis was the lead attorney in two re-

cent acquisitions by local companies in the

advanced material market, the technologi-

cal successor to the fabric business the

Upstate dominated until lost to cheaper

Asian makers.

She was lead attorney in Milliken’s pur-

chase of GeoTree Technologies, a Colorado

maker of polymer materials, and the pur-

chase by Stretch Associates, manufacturer

of stretch film and packaging products, of

Snead Paper Co. of Greenwood.

“We represent some of the larger (ad-

vanced material) companies in the Upstate

in their acquisitions. Their acquisitions tend

to be companies elsewhere in the U.S., but

their company headquarters become the

Upstate,” Davis said.

The increasingly global economy and the

concentration of international companies in

the Upstate have put South Carolina and

local attorneys in a position to “benefit more

from that than other areas,” said Davis.

“When our local companies make trans-

actions outside of South Carolina, they ask

us to assist, and that provides opportunity.

Then when international companies come

into South Carolina, they absolutely need

local counsel to help them with local laws.”

Wyche said it was involved in transac-

tions valued at more than $650 mil-

lion last year. Davis and Mills said the

transactions, including M&A, fared better

through the recession in South Carolina

than elsewhere.

“We have in the Upstate what we call

the lower middle market, deals between

$10 million and $100 million, smaller

companies, smaller deals. They did not

drop off as dramatically (as mega deals

between large corporations) during the

recession. We still had good activity.”

Contact Dick Hughes at

[email protected].

PRIvATE EQUITY FIRMS CHANGING M&A LANDSCAPEBy Dick Hughes | senior business writer

Melinda Davis william Pitman Terrell Mills

UBJ


strategy was to take CSI public, per-mitting Barron to sell its shares over time and to allow the company to raise capital from the exercise of the warrants.

“It was a complicated transaction, taking the private company public by merging it into an inactive public company referred to as a ‘public shell’” – in effect a reverse mortgage – said Pitman, who handled the transaction for CSI.

Pitman said an “unexpected tech-nical accounting interpretation with severe consequences” then led to a delay in registration of CSI’s stock, preventing an initial public offering to take advantage of investor enthu-siasm. Pitman and Dechant had to work with the SEC to restructure key elements of the deal.

Coming on the heels of the delay in registration that slowed getting CSI stock to market came the recession that froze capital markets, preventing CSI from getting its “stock moving,” said Dechant.

csi grows, stock Languishes

The stock never really gained trac-tion, consistently hovering around 50 cents or less and with thin trading, despite CSI’s ability to double in size using its cash flow for acquisitions and organic growth.

“We definitely were undervalued, and that was obviously borne out by the results of the acquisition,” said Dechant.

From the beginning, Pitman believes, Worden, Barron’s manag-ing partner, “was not thinking of staying for a long time. His warrants expired, so he lost that bang on his investment. He had this preferred stock, which converted into about 50 percent of the company. In the end, what really pushed this story is that he wanted out.”

It wasn’t until after CSI had lost the

fight that Constellation revealed it first approached Barron in Septem-ber 2009 and in August 2010 offered Barron $1 – later raised to $1.07 – for each of its common shares converted from preferred.

Pitman said CSI suspected Barron and Constellation had talked but didn’t “actually know that” until it was disclosed in the SEC filing after the takeover fight was over.

Constellation informally ap-proached Hedrick in late 2009 “regarding a potential financing arrangement.” After negotiating with Barron, on May 9, 2011, Constella-tion presented CSI a non-binding offer of $1 a share, 7 cents less than it had offered Barron.

csi seeks other investors

Pitman said CSI was “really in the dark about all those negotiations.” Still, he said, “Barron kept telling the company, ‘I’m going to sell my stake if you don’t sell the company.’”

According to the SEC document, Bar-ron was pressuring CSI to use its capital or take out a bank loan to buy his stock at premium if it would not sell, which CSI said it did not want to do.

It had high hopes for a revenue and

profit windfall from its cloud services, and CSI’s board believed buying out Barron at a premium would be unfair to other shareholders holding stock trading around 35 cents, Pitman said.

Under threats from Barron, Pitman said, CSI made the “extremely key” decision to engage Hyde Park Capital of Tampa, Fla., to find other investors and examine other strategic avenues.

“The company effectively was say-ing, ‘OK, we are not for sale, but let’s look carefully at all of our alterna-tives,’” Pitman said.

Hyde Park contacted “an enormous amount of people in all categories of investors,” and CSI went into negotia-tions with a dozen.

Hyde Park and CSI management did “a real thorough search” but did not find a suitable alternative to the Constellation offer, Pitman said.

“Most investors would not want to have either a very large minority or even a majority position in a public company, so it is not a surprise in the end there weren’t other transactions available.”

Board crafts a ‘poison piLL’

On March 1, 2012, the CSI board approved a “poison pill” as an anti-takeover defense. The poison pill gave

existing shareholders an option to buy stock “really cheap” if a potential acquirer purchased 15 percent of CSI stock, thus diluting the buyer’s financial holdings, Pitman said.

He said the company acted because negotiations with Barron had been fruitless, and an agreement prohibit-ing Barron from selling its stock was about to expire.

Constellation escalated the battle later in the month, releasing a public statement saying it would pay $1 per share at a time the market price was around 35 cents. Barron said it fully supported the offer, and some other shareholders were clamoring for CSI’s board to “take the buck.”

It was what lawyers call a “bear hug,” bypassing the board in a direct offer to buy shares at a premium over market value. It was a way of forcing the board to consider the takeover and engage in negotiations, which CSI did.

acquisition jointLy announced

After negotiations that raised Con-stellation’s offer to $1.10 in cash and settled transaction fees and severance terms for CSI officers, the board ac-cepted the terms Oct. 2. The acquisition was announced in a joint statement.

Constellation said its Harris division would operate CSI as a separate sub-sidiary under the CSI brand. Dechant said that while he and the partners have left the company, day-to-day operations continue under competent middle management in Easley.

Nancy Hedrick declined to com-ment for this story, saying only that she is enjoying her retirement. Re-quests by phone and email for com-ment from Andrew Barron Worden and from executives at Constellation were not returned.

Contact Dick Hughes at [email protected].

nancy hedrick, former CEO of CSI Technology Outfitters.

continued from page 14

Photo by Greg Beckner


UBJ

BANk GETS LIFT FROM FDICFederal and state regulators

have lifted a consent order that had put Palmetto Bank under tighter scrutiny since June 2010, a sign the bank has been restored to a more normal state of health following reces-sionary hits.

“This positive action by the banking regulators is further confirmation that the execu-tion of our strategic plan is yielding the desired results,” said Samuel Erwin, president and CEO.

The consent order by the FDIC and action by the South Carolina Board of Financial had required Palmetto to keep higher levels of capital to protect against credit losses on bad loans, increase its loan risk management and restore profitability.

Palmetto reported net income in the last quarter of 2012 and in the first quarter of this year, and Erwin has said the bank expects to stay in the black.

Although the consent order was lifted, the FDIC has in-sisted that Palmetto “continue to improve credit quality and earnings” and maintain higher than normal credit ratios. Palmetto also remains unable to make dividend payments to shareholders without permis-sion of the FDIC.

CHINA STOCkPILES COTTONPrices for cotton grown by

South Carolina farmers have dropped from $2 per pound three years ago to around 80 cents a pound today, according to Gary Adams, vice president for economics and policy analysis for the National Cotton Council of America.

The Clemson University news service said Adams gave a 2013 industry outlook report at the S.C. Cotton Growers’ annual meeting in Orangeburg last week.

Mike Jones, cotton spe-cialist at Clemson’s Pee Dee Research and Education Center in Florence, said S.C. growers produced 918 pounds of cotton per acre, a record. Average yield is about 750 pounds per acre.

Jones said higher-than-usual rainfall and moderate tempera-tures in June and July were the primary factor in the record yield.

Adams said China holds about half the world’s cot-ton stock and is the largest consumer and importer of cotton, and it is uncertain when China will decide it has enough in stockpile. “That’s the big unknown,” he said.

The U.S. Department of Agriculture believes 81.7 million bales are in stock worldwide, Adams said. In 2009-2010, less than 47 million bales were held.

PEANUTS GALORE LAST YEAR

S.C. peanut growers had a bumper crop and a high yield in 2012 in the best growing weather for row crops in a de-cade, according to the Clemson University Extension Service.

Peanut specialist Scott Monfort said a record 105,000 acres of peanuts were planted, yielding 3,900 pounds per acre. In 2011, 75,000 acres were planted.

Prices were good at between $550 and $650 per ton but are expected to be around $475 per ton this year. Plant-ing is expected to be around 70,000 acres this season.

wORkFORCE TRAINING GETS BOOST

Duke Energy has donated $4.1 million to fund Clemson University’s Center for Work-force Development.

The money will help finance “initiatives in the state to help provide a next-generation workforce in key cluster areas,” Clemson said.

The center will oversee distri-bution of funding to universities, technical colleges, and K-12 institutions through competitive grants, scholarships and intern-ships, Clemson said.

The program is aimed at developing a “labor force with specific skills in science, tech-nology, engineering and mathe-matics, specifically in advanced manufacturing to support South Carolina’s burgeoning manufac-turing industry.”

The funds from Duke are be-ing combined with funding with grants from the U.S. Depart-ment of Labor, the Employment Administration and the National Science Foundation.

LIBERTY FIRM BUILDS FOR ISRAELIS

Sealevel Systems has signed an agreement with Sital Technology, an Israeli company, to manufacture and distribute certain technical computer products and designs for aero-space, avionics and military applications.

“Partnering with Sealevel in the U.S. will bring proven solutions to rugged applications that demand strict adher-ence to stringent military and aerospace specifications,” said Duli Yariv, Sital’s vice president of marketing.

Sealevel of Liberty designs and makes durable computing products tailored for industrial and military needs.

NEw BOARD MEMBERS FOR SILvER CRESCENT

The Silver Crescent Founda-tion, a nonprofit organization supporting South Carolina’s manufacturing industry and efforts to encourage young people to consider careers in manufacturing, has elected four directors to three-year terms.

They are Greg Hillman of Greenville, director of SC Launch; Sam Patrick of Greenville, president of Patrick Marketing and Communications; Ken Scarlett, president and CEO of Scarlett Surveys International, and Fran Jones, vice president of administration for Bridges-tone’s new plant in Aiken.

GHS wINS AwARDGreenville Hospital System

received the McNair Economic Development Award at the Ecoplosion summit Jan. 24.

The award from the law firm recognizes GHS’ “efforts to address the state’s looming physician shortage by helping to establish the University of South Carolina School of Medi-cine in Greenville.”

SCOTT ACQUIRES TAx FIRMScott and Company of

Greenville and Columbia has

acquired the tax firm of Low-rance Cooper of Columbia and merged the operation into the accounting and consulting firm.

Sandy Cooper, principal of the firm, along with another tax attorney, joined Scott as part of the transaction.

Don Mobley, managing member of Scott, said the combination expands the depth and talents of Scott and “will benefit clients.”

“As we explored this op-portunity, we realized that our firms had extraordinarily similar goals and could benefit from working as a team,” said Cooper.

SEMINAR FOR HR ON PATENT LAw

InnoVision will hold a workshop Feb. 15 on “what the human resource professional needs to know” about the changes that will take place in U.S. patent law on March 15.

The session will be held 3-5 p.m. at the McNair law offices in Poinsett Plaza, 100 S. Main St., Greenville.

The panel includes McNair attorneys Doug Kim, head of the intellectual property group, Rita McKinney and Reginald Gay. Dan Radovic, vice presi-dent of The Kidder Group, is moderator

There is no charge, but seat-ing is limited. For registration, contact Kathy Ham at [email protected] or at 864-552-9345.

AFL ACQUIRES AUSSIE FIRMAFL, the Duncan-based

manufacturer of fiber cabling, said it has acquired a leading Australian maker of cable and connectivity products.

AFL said Optimal Cable Services of Melbourne manu-factures various cables and ancillary products that are an “exceptional complement to AFL’s current offerings.”

Optimal will continue to operate at its existing facility in Melbourne. Terms of the deal were not disclosed.

AFL, a wholly owned sub-sidiary of Fujikura of Japan, has products and services in use in 120 countries and said the addition of Optimal will “further grow our business and customer base across Asia.”

SHAkEUP AT DIAMOND MAkER

Michael McMahon has been named CEO of Scio Diamond Technology Corp., the Greenville-based startup making manufactured diamonds that is going through a management shakeup.

McMahon, who had been chief operating officer since 2011, became the third CEO at Scio in two months. His appointment was effective Feb. 1.

He replaced Steve Kelley, who was named CEO on Dec. 5 to suc-ceed Joseph Lancia, who resigned as president and CEO on Nov. 30. Lancia also resigned from the board.

The shakeup in management also involved Charles Nichols, who resigned as chief financial officer on the same day Lancia stepped aside.

No explanation of the leader-ship upheaval was offered by the company in its notification of the changes in Securities and Exchange filings, and the departing officers all signed non-compete and non-disparagement agreements, normal boilerplate in executive departures.

Ed Adams, board chairman, said McMahon’s vision of mass production of diamonds for both the industrial and gemstone markets is “clear, concise and focused.”

He said, “There is no doubt that Michael will lead Scio to being the most productive and efficient dia-mond operation in the world.”

McMahon, who has been with Scio since it moved production into Greenville’s NEXT center in 2011, has more than 30 years of manage-ment experience, including in senior positions at Fluor, Jacobs Engineer-ing and CRSS. Lancia, too, was with the company at the startup in Greenville.

Scio reported a loss of $2 mil-lion in its fiscal year ended March 20, 2012, a year in which it was preparing for production and had no revenue. Scio reported revenue of $12,000 in the first 2013 fiscal quarter and $61,000 in the second. The company said it expects to have full-year sales of about $1.3 million in fiscal 2013.

The Fine Print

18 UPstatE BUsinEss JoUrnal

February 8, 2013

UBJCREATE. INNOvATE. CELEBRATE.

by JIM hENDRIx and TIM REED

Your Friendly neighborhood

BUtChEr shoPPE

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ided

Jim Tindal

Jim hendrix is president and co-owner of the Graphic Cow and chairman-elect of the board of directors of the Ronald McDonald house. he is a graduate of Clemson and the university of Chicago Graduate School of Business.

Tim Reed is co-founder and past board chair of uCAn. After 20 years in the frozen food industry, he is now

serving as a community volunteer, working in varied business ventures and

pursuing real estate investing.

service and quality,” Tindal says. “We only prepare USDA prime and high-choice meats, and all of our personnel, especially the franchisee, are highly trained and experienced. We are the one-stop shop for your evening meal. We offer fresh pasta made by Drake’s in High Point. Our home-cooked meals feed two or three people. We offer frozen meals that feed four to six, and we have party sizes.”

The New York Butcher Shoppe is clearly is more than just another butcher shop. It really has every-thing required to com-plete a meal. “We have crackers and dips, wines, a variety of pre-made salads, potatoes and rolls too. We won’t overwhelm you with offerings; we just want to be a complete grab-and-go grocery with absolutely the best meats available anywhere.”

Today, there are nine New York Butcher Shoppe locations scattered from Birmingham to Greens-boro to Jacksonville. The two corporate-owned stores in Greenville are located on Augusta Road and Woodruff Road. Store hours are 10 a.m. to 7 p.m. Monday through Satur-day, and noon to 6 p.m. on Sundays. To inquire about a franchise, call Jim Tindal at 864-710-9204.

Although the New York Butcher Shoppe doesn’t fit UCAN’s typical invest-ment model, it does fit well in a neighborhood shopping center … and its rare quality and well-done service are a business model worth betting on.


UBJCREATE. INNOvATE. CELEBRATE.

Such was the case with the New York Butcher Shoppe.

When UCAN members were asked during the company’s investment presentation if they had heard of the New York Butcher Shoppe, nearly everyone in the room not only raised their hands, but also said it was one of their favorite destinations. In contrast to the typical technology-driven op-portunities UCAN evaluates, this low-tech business was one that every member could truly understand – and most already loved.

The original New York Butcher Shoppe was founded by Bill D’Elia, who is a native of Brooklyn and was a butcher in his hometown. He semi-retired from New York to Charleston, and in 1995 went back into the busi-ness with his son, Billy. Because of his strong Brooklyn accent, customers called him “the New York butcher,” and the name stuck.

The business took off thanks to the el-der D’Elia’s experience and his son’s ideas and energy. They began to franchise in 2001 and, in 2007, sold the franchise rights to their Greenville franchisees, Jim Tindal and Todd Prochaska.

“We were just regular franchi-sees,” Tindal says in a soft South Carolina accent that definitely isn’t from Brooklyn. “I had been in the food-service business for 16 years after graduating from Clemson and I saw the New York Butcher Shoppe as a unique opportunity. We had two stores and were making plans for more when the opportunity came to buy the franchising rights from the D’Elia family. We jumped all over it.”

And UCAN jumped all over the investment opportunity to help the

Butcher Shoppe grow when pre-sented with the opportunity in 2009. Although it wasn’t an investment driven by a technology advantage, the unique business model and the size of the franchise opportunity caught the investors’ attention. But what sealed

whatever special recipe you might have in your family,” Tindal says. “We make a lot of German sausages to special recipes brought over by some of the BMW employees.”

General Manager Adam Sturm and Master Meat Cutter Tom Kloeser keep the Augusta Road store neat, clean, and crisply or-ganized, with a dynamite sign in a high-visibility, high-traffic strip shop-ping center. Rents in such locations aren’t cheap. To keep prices down and to draw more customers, Tindal and Prochaska have expanded their offerings to include fine wines and pre-packaged complete meals, plus the sausages and custom food preparation.

Since becoming the franchisor, Tindal and Prochaska have used their practical experience in the retail environment to help reduce costs and increase the income potential for their franchisees. Store sizes have been reduced from the original design to a more manageable target of 1500 square feet. Those savings, coupled with strong and ever-im-proving merchandising, enable lower rents in bet-ter locations for start-up franchisees.

“Most importantly, we focus on customer

UPDATE ON HIGH GROwTH

SMALL BUSINESS JOB CREATION ACT:

The bill, which we wrote about in January, creates

income tax credits for accredited angel

investors who support high growth potential startup businesses

headquartered in S.C. The bill was intro-

duced in the Senate as S.262 on Jan. 17 by Senators Leather-man and Setzler. On Jan. 22, the Senate

Finance subcommittee on Sales & Income Taxation passed the

bill unanimously with no amendments.

Earlier this week, the full Senate Finance committee reported

favorably on the bill with technical amendments. The

bill will now proceed to the Senate floor for second reading, potentially as early

as Thursday of this week.

SINCE ITS INCEpTION IN 2008, ThE UpSTATE CAROLINA ANgEL NETWORk (uCaN) has studied over 900 business plans and invested in 25 early-stage, high-growth potential companies. One of the group’s earliest investments was in the parent company of the New York Butcher Shoppe franchises. Normally, uCaN would not consider investing in a restaurant or retail concept – unless there was a particularly compelling and unique opportunity involved.

To learn more about becoming an angel investor, visit www.upstateangels.org, or send an email to [email protected].

the deal, like most investments, was the strength and experience of the team – Tindal and Prochaska.

“We obsess about the quality of our products and customer service. We’re in the relationship business. We enjoy being on a first-name basis with our customers and we do whatever it takes to meet their needs. We’ll cater an event and we’ll make sausage to

CoVEr storYUPstatE BUsinEss JoUrnal

February 8, 2013

DIvERSE OpTIONS kEEp UpSTATE FITNESS BUSINESSES STRONg IN A WIMpY ECONOMY BY LEIgh SAvAgE

a hEalthY BottoM linE

Women taking part in a Pure Barre class use a ballet barre to assist with their workout.

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In the Upstate, numerous busi-nesses have cropped up to feed the demand for fitness, with large gyms standing their ground and smaller, more specialized workout facilities staking their claim in the marketplace.

“It is so much more specialized to-day than it was a few years ago,” said Richard Osborne, who since 2006 has published Go Magazine, which covers Upstate endurance sports and fitness. “You don’t just go to a gym, you go to a boxing place or a CrossFit place, or to power yoga. For a market our size, we have a great offering of very specialized fitness opportunities.”

An ‘ActivE community’

One of those specialized facilities

is Pure Barre, which opened on Augusta Road last July. Lauren Wilson, who had fallen in love with Pure Barre classes in Charlotte, left the world of commercial real estate to open the first studio of its kind in the area.

The class uses a ballet barre and upbeat music to lead people of all fitness levels through isometric exer-cises that the company says will show results in as few as 10 classes.

Wilson selected Greenville because “this is an active community,” she said. “So much of Pure Barre is word-of-mouth, and this is a close-knit community, so word has spread.”

Swamp Rabbit CrossFit, which opened alongside the Swamp Rab-bit Trail in October, draws men

and women interested in a quick but intense workout that includes everything from heavy weightlifting to running to flipping oversize tires.

Owner William Timmons also got into the business as a client first, starting out five years ago as a law student in Columbia. When he moved to Greenville to work as an attorney, “I wanted to stay in shape and I wanted to help my family stay in shape,” he said.

Swamp Rabbit CrossFit is the largest CrossFit studio in the U.S., Timmons said, though a Boston facility will claim that title soon. “The population density here is great, and the trail is unbelievably popular, so having that right outside the door is great,” he said.

soaring unemployment and dismal disposable income growth between 2007 and 2012, the fitness industry – typically considered a discretionary expense – managed to pump up its revenues. ¶ according to the Bureau of economic analysis (part of the u.S. Commerce Department) disposable income growth averaged just 0.1 percent in the past five years. But during that same period, profits for gyms and fitness clubs grew from $24 billion to more than $25 billion, according to iBiSWorld, a market research firm. Pilates and yoga studios saw the largest growth, increasing 7.7 percent to an estimated $6.9 billion in revenues.

Despite a recession, 1

CERTIFIED AND EDUCATED FITNESS PROFESSIONALS

2STRENGTH TRAINING

3BODY WEIGHT TRAINING

4OBESITY PREVENTION

FOR CHILDREN

5EXERCISE AND WEIGHT LOSS

6FITNESS PROGRAMS FOR

OLDER ADULTS

7PERSONAL TRAINING

8FUNCTIONAL FITNESS

9CORE TRAINING

10GROUP PERSONAL

TRAINING

Source: American College of Sports Medicine Worldwide

Survey of Fitness Trends

nEcESSity or Luxury?

Timmons said it makes sense that the fitness business grew despite a stagnant economy.

“People are seeing how traditional medicine is not always the answer. Diet and exercise is the answer,” he said. “People see the ill effects of the decisions they’ve made, and exercise is going to be a very large part of more people’s lives. As they see the quality of life that other people have that they don’t, it’s an easy decision.”

Research backs up that assessment, with the Centers for Disease Control and Prevention showing that more than 32 percent of adults who sought

THE TOP TEN FITNESS TRENDS

PREDICTED FOR 2013

Pure Barre owner and fitness teacher Lauren Wilson takes part in one of the classes on Augusta Street in Greenville.

William Timmons, owner and coach of Swamp Rabbit Crossfit, works out on the rings at the facility located near downtown

Greenville on the Swamp Rabbit Trail.

William Timmons, owner of Swamp Rabbit Crossfit, and

Sarah Anderson work out during a fitness class at the facility.

continued on page 22


medical attention in 2010 were advised to exercise, an increase of 10 percent in 10 years.

Health club memberships have climbed from 36.3 million in 2002 to 42.8 million in 2011, according to the IBISWorld report.

The Life Center, which is operated by the Greenville Hospital System, has seen steady growth over the past few years, and a surge of 200 new members this January. Kendra Gar-rett, supervisor of group fitness and aquatics programs, has noticed grow-ing interest in group fitness such as Pilates and boot camp-style classes.

“We have one called Interval Insan-ity, which is formatted like boot camp,” she said, with challenging exercises like sprints, push-ups and planks. “We see that as a growing trend.”

Bobo Eason has been offering his version of boot camp, “Bobo’s Express,” since 1994.

“People run, jump hurdles, do

strength training sessions,” he said. “People love working out in groups, so that’s where the money is made right now.”

At Body By Bobo, open since 2004, he offers individual personal training as well as classes and no-contract gym memberships. “There was definitely a plateau,” he said of the 2008-2011 timeframe. “There are so many gyms. Personal training is considered a luxury. It was a tough couple of years, but it has picked up.”

FocuSEd FitnESS

Garrett has noticed numerous small gyms cropping up in the area, each specializing in one type of workout, and she said larger gyms like the Life Center can learn from what those facilities offer.

“Consumers have access to more information, and they want a fitness professional who is more educated than they are,” she said. “They want

FITNESS GLOSSARY

CROSSFITA fitness company founded in 2000 that uses a strength and conditioning program that is constantly varied, high-intensity functional movement.

Short workouts combine intense movements like sprinting, climbing, flipping tires, weightlifting and pull-ups.

ZUMBAA Colombian fitness program that features dance and aerobic elements. Combines hip-

hop, samba, salsa, belly dancing and other dance styles.

PILATESPhysical fitness system developed in early 20th century that builds flex-ibility, strength and en-durance, with emphasis on alignment, breathing

and a strong core.

YOGAPhysical, mental and spiritual discipline originating in ancient India. Often used today to refer to postures that promote balance, strength and flexibility.

vINYASAYoga in which movement is synchronized to the breath. Also called flow yoga because of the smooth way the poses run together.

BOOT CAMPClasses that build

strength and fitness through intense intervals.

PURE BARREA group class that uses the ballet barre to perform small isometric movements to shape and tone the entire body.

someone who specializes in a work-out, and they also enjoy that personal connection and the accountability. We’ve learned from that, to specialize in things like yoga and boot camp, and to also offer that connection, so people feel they are part of something more than just having a gym membership.”

Beth Brown opened Dharma Yoga Studios in 2009, during the height of the recession, and said growth has been steady but slow as more com-petitors move in. “We didn’t have as many yoga studios then, but several have opened in the past year or two,” she said.

She points out that competition is different among yoga studios, as each one offers its own styles and special-ties, from hot yoga to power yoga to the specialty at her studio, a vinyasa flow style.

“People come for weight loss or stress relief, but find it’s a lifestyle,” Brown said. “People find their community and a place they feel welcome. Sometimes

continued from page 21 large gyms can feel intimidating.”Osborne stays in contact with the

area’s growing cadre of yoga studios, gyms and personal training facilities.

“I keep an eye on who is still open and who isn’t,” he said. A few years ago, “big box gyms and $19 workout places were going under,” he said. But now, it seems gyms and facilities of all types are prospering. “People are calling me and are willing to spend money, which is a testament to how well they are doing,” he said.

The growth is expected to con-tinue. The U.S. Department of Labor Statistics expects jobs in the fitness industry to increase 24 percent be-tween 2010 and 2020, faster than average for all occupations.

“When you look into it, there are a lot of fitness places people can choose from,” Garrett said. “How can an area our size support all of that? It’s excit-ing to think that it can.”

Contact Leigh Savage at [email protected].

Attendees at a Swamp Rabbit Crossfit fitness class do a few pullups.

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The TakeawayUBJ

joe lancia’s varied career has encompassed a range of fields, from electronics to synthetic diamond manufacturing. What connects these diverse interests is his willingness to take calculated risks and follow his instincts when he sees the potential for growth within an industry.

Armed with degrees in finance and computer science, Lancia started his career with the intention of becoming a banker. After experiencing several mergers in the company where he worked, he launched his own M&A firm. His experience in vetting companies and brokering deals has given him a wealth of experience in establishing strategies for the integra-tion, implementation and redirection of businesses. His unique ability to analyze financial data has allowed him to pinpoint potential weak areas and develop action plans.

Through his positions with various companies, Lancia gained expertise in a wide range of manufacturing and distribution industries, including consumer products, packaging, food service, electrical, metal fabrication and electronics.

ON BECOMING AN ENTREPRENEURI didn’t set out with the intention to become an entrepreneur, but the company I worked for went through a few acquisitions, which got me thinking, “This acquisition stuff looks pretty easy – maybe I’ll start my own acquisition company.”

What I didn’t know was at the time, M&A had the big players – Goldman Sachs and Morgan Stanley – and then there were the mid-tier smaller companies. All the owners of the smaller companies started off with the big firms and had the connections and portfolio to land clients out of the

gate. I didn’t have any connections, and had to work for a year and a half to land my first client.

ON LANDING CLIENTSI worked really hard to land my first client. I pitched them several times on what was my strength as a small company. I told them, “You’ll never find anyone who will work harder at a lower cost and be more dedicated to your company than I will, because you will be my only client, and all my time will be devoted to you.” During those first years of struggling to land a customer I had to remind myself to not take “no” for an answer. Of course you don’t want to irritate people, and you will know when you’ve worn out your welcome – believe me, they’ll let you know. But you need to do what one of my first bosses taught me, which is to be pleasingly persistent.

ON HOw TO kEEP GOING DURING DIFFICULT TIMESWhen you start a venture and you’re struggling, it’s easy to start second-guessing your decision and wonder whether you should give up and go back to a 9-to-5 job. I think it’s only

human to have feelings of doubt. But if you are passionate about your idea, you will keep at it. You also will come to learn that failure isn’t the worst thing in the world. Many successful businesspeople have experienced multiple business failures before finding their success. You have to re-member that just because you failed once doesn’t mean you always will, and that you are not the failure; the business idea was the problem. Find a new idea, get right back up on that horse and try again.

ON THE kEY TO ENTREPRENEURIAL SUCCESSPassion is probably most important. You have to want it bad. I have three daughters, and when they decide they want something they let you know and they never let up. But in that is a good lesson – if you are passionate you will do whatever it takes to get where you want to go. You do have to be careful and maintain a balance, though. That passionate quality is good, but on the flip side someone can become so driven they are difficult to be around. A lesson I learned as an entrepreneur is that you can’t expect everyone work-ing for you to be as passionate as you are. You certainly will find people who are dedicated and will help you suc-ceed, but you will always be the most passionate person in the room – and that’s as it should be.

THE kEY TO LEARNING A NEw FIELDSurround yourself with people you trust and who you can communicate with well, and then do a really good job of managing them. As you go along, try to soak up knowledge like a sponge, but just do the best you can. You only need to learn enough to be dangerous, not enough to be an expert. Hire the experts, and manage them well so they can do what they know best how to do. If you’re sitting around a table with your team and you’re the smartest person in the room, you have failed. The key is to recruit and then manage the smart people.

ONE BUSINESS RULE TO LIvE BYNever lie. As an M&A guy, I’m basi-cally an in-between. I may work for one company or the other but at the end of the day I’m working for the deal. Full transparency and full disclosure are the key.

Friday signals the end of the work-week, but you can bridge the transi-tion from work to relaxation every First Friday at Clemson at the Falls. Once a month, the Spiro Institute for Entrepreneurial Leadership, Clem-son’s MBA Program and UBJ host speakers who enlighten the audience on various business topics, followed by a networking reception including drinks and refreshments in the four-story atrium overlooking Falls Park. The events are free and everyone is welcome; however, space is limited so guests must register in advance. The next speaker is scheduled for March 1, 2013. To receive email notifications of upcoming events, please register at www.eepurl.com/oPtGv .

By Darlene Fuhst

‘always Be the Most Passionate Person in the room’

EvENT: First Friday Speaker Series – Clemson at the Falls

wHO wAS THERE: 100 Clemson students, Greenville area business owners and other interested parties

SPEAkER: Joe Lancia, prior president and CEO of Scio Diamond Technology Corp. and prior CEO of D&W Fine Pack LLC

JOE LANCIA

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UBJ

In 2012, NAI Earle Furman completed over 600 transactions.

The Upstate’s leader in Commercial Real Estate. Greenville/Main Office

864 232 9040Spartanburg

864 398 4444 Anderson

864 622 5040

NAIEarleFurman.com

INSURANCE/FINANCE:Northwestern Mutual recently announced that Eddie Terrell will join the firm as a financial repre-sentative. Terrell has previously worked at Medpoint LLC and Greenville First banks.

The Faust-Boyer Group of Ray-mond James recently welcomed Carter Hall as an investment specialist. Hall previously worked as a financial advisor with Morgan Keegan & Company.

LEGAL:Haynsworth Sinkler Boyd, P.A., is pleased to announce that Martin C. Mcwilliams Jr., Of Counsel in the firm’s Columbia office and professor of law at the University of South Carolina, has been elect-ed a fellow of The Honourable Society of Gray’s Inn. Gray’s Inn is one of the four London Inns of Court, founded in medieval times, which regulate the English justice

system. All English judges and barristers must be trained by and be members of one of the Inns. Gray’s Inn has named just over 25 fellows, and McWilliams is the first non-British fellow named.

MARkETING/PUBLIC RELATIONS:Infinity Marketing Solutions recently brought on Andreas Aristides, kara Hunter, Joseph Hartley, Michelle Eddy and Michael Cecil as new interns for the spring semester. Aristides will be working with Infinity’s creative and production team as a graphic design intern. Hunter will be assisting the health care team with order confirmations, media research and internal reports. Hartley will continue working part-time at Infinity, assisting with proofing, administrative projects and copywriting. Eddy will be helping out the telecommunica-tions team with order confirma-

tions, media research and internal support. Cecil will use his exper-tise to help the endorsements department.

Full Circle Public Relations re-cently added Erin Frederickson to its team as an account manager. Frederickson brings more than five years of marketing and commu-nications experience to Full Circle PR. Most recently, she worked with Greenville-based Ferebee Lane + Co. and Prime Therapeu-tics and Daymon Worldwide in Minnesota.

NONPROFIT:The Silver Crescent Founda-tion, the South Carolina non-profit organization dedicated to supporting the vitality of South Carolina’s manufacturing industry and educating citizens about rewarding career opportunities in manufacturing, has elected business leaders Sam Patrick and

ken Scarlett to three-year terms on its board of directors. Patrick is president of Patrick Market-ing & Communications Inc. of Greenville. He is active with the American Advertising Federation, South Carolina Association of CPAs, Association for Account-ing Marketing, Senior Action of Greenville County, Greenville Area Development Corporation, and numerous economic development organizations across the Palmetto State. Scarlett is president and CEO of Scarlett Surveys Inter-national, The Survey Company. Since 1985, he has built Scarlett Surveys to be a worldwide leader in the employee engagement survey and management consult-ing industry serving Fortune 1000 companies, and has authored or co-authored numerous articles, white papers and books pertain-ing to employee engagement and engagement leadership.

REAL ESTATE:The Marchant Company recently announced the leading agents for the 2012 sales year at their annu-al meeting in January. Top listing agents for 2012: Tom Marchant, Volume Listings Award; kathy Slayter, Unit Listings Award; and valerie Miller, Highest Average Listing Price Award. Top sales agents for 2012: kathy Slay-ter, Volume Sales Award and Unit Sales Award; and valerie Miller, Highest Average Sales Price Award. Top sales team in 2012: karen Turpin and Nancy McCrory. Signature agent of the year: valerie Miller. Also, these agents and staff were recognized for their years of service: Gordon D. Seay, 20 years; kathy Slayter, 20 years; Brian Marchant, 17 years; Nancy McCrory, 16 years; karen Turpin, 16 years; Joan Rapp, 16 years; Barb Riggs, 16 years; Lisa McDowell, 16 years; and Nellie wagoner, 10 years.

Randy pageJoined Bob Jones University as the school’s manager of public relations. Page comes to the uni-versity from South Carolinians for Responsible Government, where he served as president for the last eight years. He has also served as legislative affairs director for former Lieutenant Governor Bob Peeler, chief of staff for former Lieutenant Governor Andre Bauer, and as the director of public events for former governor David Beasley.

Carolyn Berg hired as the new administra-tive assistant for the Greenville Airport Commission. Berg will report to airport director Joe frasher. The Greenville Airport Commission is the owner and operator of the Greenville Downtown Airport (GMu). GMu is the busiest general-avi-ation airport in South Carolina.

Michael L. Batchelor Named as CEO of Baptist Easley Hospital, effective March 1. Batchelor comes to Baptist Easley from Greenville Hospital System (GHS) where he has served as president of the North Greenville Campus since 2005. Prior to that, he was administra-tor of clinical/non-clinical support services at GHS from 2001-2005. He started his career as a combat field medic in 1988 with the U.S. Army.

Joe Dwars Honored by Charter Business with the PULSE Volunteer Award for January 2013. Dwars is an IT recruiter for Recruiting Solutions in Greenville. He has been a PULSE member for a little more than a year. He was selected for the PULSE Volunteer Award after volunteering his time for numerous events over the past few months. Charter Business honors PULSE volunteers on a bi-monthly basis.

HIRED HIRED HIRED HONORED

Charles Scales Iv named Greenville Office Supply’s sales manager. Prior to being named to this new position, Scales had worked for more than two years as an account manager at GOS. he had previously served as a sales representative for over three years at Waste Indus-tries uSA in Greenville.

PROMOTED

On the Move

On the MoveUBJ

pROMOTED

SUSAN CLARY SIMMONS

Promoted to executive edi-tor of Community Journals’ three weekly publications: Upstate Business Journal, the Greenville Journal and the Spartanburg Journal. Before her promotion, Simmons was editor of the Greenville and Spartanburg Journals, and began her eight-year tenure with the company in 2005 as Com-munity Journals’ opinion writer. As executive editor, Simmons is responsible for the day-to-day editorial direction and planning of all content in the three pub-lications and continues as the editorial opinion voice for the Journals community. A Savannah, Ga., native, Simmons has more than 30 years’ journalism experi-ence, 18 of those as a reporter and opinion writer for the Greenville News.

pROMOTED

JERRY SALLEY

Promoted to manag-ing editor of Commu-nity Journals’ three weekly publications. working with the executive editor, Sal-ley is responsible for overseeing and coor-dinating all aspects of editorial produc-tion for the Upstate Business Journal, the Greenville Journal and the Spartanburg Journal. A native of Asheville, N.C., Sal-ley joined Community Journals as assistant editor and staff writer in March 2012, prior to which he worked as a freelance writer and editor.

hIRED

RIChIE SWANN

Joins Community Journals as art director of the Upstate Business Journal. Originally from Georgetown, S.C., Richie Swann accepted an offer from Community Journals to come back home from a two-year stint at Southern Living in Birmingham, Alabama. Richie will be bringing a fresh new approach to the design of UBJ. Aside from Southern Living, he has previously designed for Garden & Gun and DPS Sporting Club Development Company, a luxury real estate developer. Richie is a Clemson alumnus (class of 2004) with a degree in graphic communications, so he should feel right at home here in the Upstate.

hIRED

WhITNEY FINCANNON

Hired as a graphic artist and member of the creative services team. Fincannon came to Community Journals after working as Graphic Designer at Swoozie’s. She received a BFA in graphic design from East Carolina University. While a student, she had the opportunity to take an internship with the historic Hatch Show Print in Nashville, Tenn., letterpress-printing posters in their iconic design style. After graduating in 2009, she worked as a freelance designer and later a boutique manager, using design skills to help in their rebranding campaign. She has lived in Greenville since 2011.

hIRED

ANDREW hUANg

Hired as the assistant editor at TOwN Magazine, an Upstate lifestyle publication. Huang is a graduate of Furman University, where he received a Bachelor of Arts degree in English. A native of Columbia, S.C., he returned to Greenville after spending six months abroad in Taiwan. He enjoys writing, photography and weightlifting, and considers himself a “blossoming foodie.”

hIRED

LAURA LINEN

Joins Community Journals as sponsorships and events coordinator. Merging her media, creative and fashion backgrounds from Atlanta, New York, Chicago, and Paris, Laura has found Greenville and the Journal publications the perfect place to share this experience and learn even more. Apart from working on events, you will also see her in the roles of contributor, stylist, wife and mother.

JOURNAL FAMILY kEEPS GROwINGCommunity Journals is happy to be seeing some new faces around the office

lately – and some familiar faces taking on exciting new challenges.

J O I N T H E C O N v E R S AT I O N O N FA C E B O O k

UPSTATE BUSINESS JOURNAL

The Upstate Business Journal

Have feedback? Information to share? Something you think we should look into?

Photos by Greg Beckner


UBJ

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ENTREPRENEURIAL READINESS

USC Upstate – The George, 160 East St. John St., Spartanburg; 11:30 a.m.-1:30 p.m.

Cost: $20. Attendees are invited to bring lunch; dessert will be provided.Register: http://scwbc.net/events/greenvillespartanburg/.

ECONOMIC FORECAST BREAkFAST

USC Upstate, Campus Life Center Ballroom, 800 University way, Spartanburg; 8 a.m.

Speaker: Tim Quinlan, Economist-Wells Fargo. Cost: $25/Person, $200 Reserved Table (eight seats).Register: www.spartanburgchamber.com or 864-594-5000.

MONDAY, FEBRUARY 11

GCS ROUNDTABLE: CLOSING YOUR BIGGEST DEAL-SO FAR

The Office Center at the Point, 33 Market Point Drive, Greenville; 8:30-9:30 a.m.

Speaker: Russ Davis, Sandler Sales Institute.Call: Golden Career Strategies at 864-527-0425 to request an invitation.

TUESDAY, FEBRUARY 12

BUSINESS BEFORE HOURS

Commerce Club of Greenville, 55 Beattie Place, Ste. 1700, Greenville; 7:30-9 a.m.

Open only to Chamber members. Cost: $8.50 for those who pre-register online or $12 at the door. Register: Commerce Club members contact Dot Drennon, [email protected]: Lorraine Woodward at 864-239-3742 for more information.

EARLY MORNING LAUNCH

Holiday Inn Express, 3821 Grandview Road, Simpsonville; 7:30-8:30 a.m.

Speaker: John Uprichard, Find Great People. Topic: The young professional demographic in the Upstate. Cost: Free to members, $5 for non-members. Breakfast provided.Contact: Allison McGarity at [email protected]

POwER EvENT: IS YOUR BUSINESS SECURE?

TD Convention Center, 1 Exposition Drive, Greenville; 7:30-9 a.m.

Panel of experts will break down what businesses need to know about the latest technology. Single tickets: $30.

Social Planner

You’re going places. Take us with you.Get access to local premium content and exclusive photos, videos and stories.

Only at: www.GreenvilleJournal.com.


REMEMBER THAT

ABSOLUTELY BRILLIANT NO ONE HAS EVER THOUGHT OF THIS BEFORE I SHOULD REALLY WRITE THIS DOWN ONE-IN-A-MILLION BUSINESS IDEA

YOU HAVE TUCKED AWAY IN THE BACK OF YOUR MIND?

DUST IT OFF. IT’S TIME.

The Clemson MBA in Entrepreneurship & Innovationwww.clemson.edu/mba · 864-656-8173

Corporate table: $275.Register: http://www.eventbrite.com/event/5038139210/es2/?rank=80#

SMALL BUSINESS ROUNDTABLE: STARTING A SMALL BUSINESS

Spartanburg Library, 151 South Church Street, Spartanburg; 9:15 a.m.

This seminar reviews (a) the personal assessment that all individuals need to make if they are seriously contemplating the work of an entrepreneur; (b) legal entity choices that a business owner must make in order to do business; (c) the 10 parts of an effective business plan, financial forecasting, and sources of funding. Cost: Free to attend.Register: online at workgroups.clemson.edu/SBDC_Workshops/form.php.Contact: Beth Smith at [email protected] or 864-592-6318.

wEDNESDAY, FEBRUARY 13

PELHAM POwER BREAkFAST

Carpet One, 226 Pelham Davis Circle, Greenville; 8-9 a.m.

Cost: Admission is free for Chamber members.Register: www.greerchamber.com.

GSATC LEARNING LUNCH

Embassy Suites Hotel, 670 verdae Blvd, Greenville; 11:30 a.m.-1 p.m.

Speaker: Jim De Piante, executive project manager at IBM Research. Topic: “How IBM’s Watson Won ‘Jeopardy!’”RSvP: http://www.gsatc.org

MAULDIN CHAMBER LEADS GROUP

Mauldin Chamber of Commerce,

101 East Butler Road, Mauldin; noon-1:00 p.m.

Cost: Free to attend.Contact: Don Johnson at [email protected].

DIvERSITY CONNECTIONS

CityRange Steakhouse Grill, 774 Spartan Blvd., Spartanburg; noon-1:30 p.m.

Speaker Cynthia Powell, Send Out Cards. Topic: Appreciation marketing. Open to all members and guests.Contact: Doug Gregory at 864-594-5000 or [email protected] for more information.

RESOURCE RECESS

Simpsonville Chamber of Commerce, 211 North Main St., Simpsonville; noon-1 p.m.

Speaker: Julie Poncar, David Gilston Insurance Agency. Topic: “Healthcare Reform: What Every Small Employer Needs to Know.”Cost: Attendance is free and lunch is provided.Contact: Allison McGarity at [email protected].

PINk COLLAR CONNECTION wORkSHOP

The Loft at Falls Park, 631 S. Main St., Greenville; 4-6 p.m.

Speaker: Local celebrity Kimberly Kelley. Topic: “Making YOU a Brand.” Mediterranean hors d’oeuvres and wine will be served. Cost: Admission is $25 for members and $40 for non-members. Register: http://www.femfessionals.com/FemCities/Greenville/Calendar/Events/FEMCITY-GREENVILLE-%7C-FEBRUARY-EVENT-1077.htm.


UBJ

669 N. Academy Street, Greenville, SC864.679.6055 | 800.446.6567 | www.propelhr.com

Social Media is a huge asset to most businesses but can be an HR nightmare. Many states have implemented laws restricting employer access of employees’ personal accounts. Plus the National Labor Relations Board (NLRB) has issued decisions that protect employee rights to converse via social media on workplace conditions as this is viewed as a “protected concerted activity.”

However, you will be just fine if you apply a little common sense and the manners your mother taught you. Here are a few pointers:

• Don’t “friend” your employees. As a manager, you can’t be a buddy to everyone. It is fine to ask about your employees’ children in the break room, but you don’t need to see their online pictures. Give your employees space and respect their privacy.

• Don’t accept “friend” requests from your employees. If an employee asks to be your “friend,” decline the invitation. There are other professional sites to network on such as LinkedIn. Remember, your employees need a manager not another friend.

• Have a Social Media Policy and review it often.

• Don’t ask for passwords. Never ask for the passwords to individual’s personal social media sites. Not only is this rude, it is illegal in many states.

• Be careful when making hiring decisions. During the hiring process, most employers will look up the candidates online. If their social media sites are open to the public, then you have a right to look. However, be careful with the information you find. For example, if you find out a candidate is pregnant, that information can’t be used in the hiring decision. Discrimination laws are still in place, regardless of how you obtain the information.

• Most importantly, have your HR department involved. They are aware of the laws and the potential minefields; look to them for guidance. Social Media posts can be used in disciplinary matters, but consult with HR before proceeding.

Social Media is always evolving and as an employer, you need to evolve with it. By following these best practices, you can reduce the company’s liabilities and hopefully use the online tools to increase your bottom line.

Are you “Friends” with your employees?

LEE YARBOROUGH

M23A

Snapshot

The YMCA of Greenville had its beginnings in 1876. In the early days, the Y was focused on providing a wholesome, spiritual grounding for young men in the community, and a welcoming place to stay if they needed it. Bible study, social

activities, entertainment and education programs, sports and fitness helped to keep participants in shape spiritually, mentally and physically. In Greenville, this movement was led by local mill owners. A centralized Y on Coffee Street was built in 1912.

Today the YMCA of Greenville has ten locations throughout the county. Since 1960, it has welcomed women into full membership. In fact, 51 percent of membership is female. The Y is still driven by its mission to follow Christian

principles and develop all in spirit, mind, and body, and to turn no one away due to an inability to pay. The YMCA of Greenville serves over 50,000 in its many high-quality programs for children and adults.

THE wAY IT wAS..

THE wAY IT IS TODAY

Got an old photo you’d like featured in Snapshot? Send an image file to [email protected] with a

description of the photo and do your darnedest to identify any people in it.

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The Dow Jones Industrial Average just crossed 14,000 and is near an all-time high. Are we looking towards a new sustainable bull run, or will the fi nancial markets collapse like they did the other two times they reached these heights?

Housing markets, while improving, are still anemic compared to historic norms. A slower recovery may be more sustainable. Lots of people are affected by housing including construction workers, insurance providers, realtors, attorneys, bankers, and lots more. Most people upgrade appliances, furniture, and other items upon the purchase of a new home. Retail spending is impacted.

Low cost, plentiful energy is shaping up to be the big news story these days. Not so long ago there were fears of peak oil and energy shortages. Today, people are more concerned with environmental issues of production. The US is predicted to become a net energy exporter within 10 or 15 years.

Companies are looking to expand refi neries. Innovative ways are being considered to export natural gas. Communities in places like North Dakota are becoming boom towns and the price of gasoline seems fairly stable.

This low-cost energy is helping to fuel resurgence in domestic manufacturing. Many companies are beginning to fi nd off-shoring too expensive and too risky. We read stories almost every day of companies moving their operations back to the US.

Chinese workers are beginning to seek higher wages to buy some of the goods their factories have been producing over the last few years. As capital investment and transportation costs get factored in, wage costs become less of an issue for companies seeking to invest in the US. High corporate tax rates are still a drag.

So if you’ve been invested over the past decade or so, you’ve seen the markets reach these levels before. Both times stocks fell by about 50%. Things do look different this time. Manufacturing recovery is a big deal. The housing recovery looks slow and sustainable. Energy may be the great game changer.

Low-cost, abundant energy lowers the cost of transportation and reduces the need for us to protect energy sources far from home. Risk of loss is always a real concern when investing, and we encourage you to thoughtfully consider your risk tolerance and individual fi nancial situation when investing.

If you would like to further discuss our thoughts on the markets and how we can help you build a portfolio, please give us a call. Markets rise and fall. How you react may mean more to your long-term fi nancial health than any short-term movement. We strongly encourage you to plan thoroughly and invest often.

Christopher A. Brown, CPA, PFS has been helping people plan and save money since 1995. Visit our website at www.falegacy.com for more information or call 864-233-0808 to schedule a free consultation.

Markets and Actions

LANGSTON-BLACk REAL ESTATE, INC. ANNOUNCED:

Jeff Howell recently represented Lucky Strike Amusements LLC in the sale of their 1888-square-foot convenience store building (situated on .52 acres) located at 13780 East Wade Hampton Blvd., Greer.

NAI EARLE FURMAN ANNOUNCED:

David Feild and Tyson Smoak represented the landlord of a dental building currently under construction in Anderson on Greenville Hwy. at the corner of Wexford in leasing a 2,500-square-foot medical office space to Smith Dental Care of SC, Inc.

Ted Lyerly and Jimmy wright represented the landlord of 926 NE Main St., Simpsonville, in leasing a 1,606-square-foot retail space in suite A-2 to Black Belt Attitude School Inc.

Tim Roller represented the landlord of 130 Plaza Drive, Forest City, in leasing

a 3,747-square-foot retail space to Distinx.

Stuart wyeth represented the landlord of Greenville Business Center at 181 Johns Road, Greer, in leasing a 2,145-square-foot flex space in Suite J to Commercial Flooring Solutions of SC LLC.

Jon Good and Alexi Papapieris represented the landlord of Roper Center at 6020 Ponders Court, Greenville, in leasing a 5,250-square-foot flex space.

Stuart wyeth represented the landlord of Park Central at 555 N. Pleasantburg Drive, Greenville in renewing a lease of a 3,145-square-foot office space in Suite 225 to McKinley Cooper & Co LLC.

Marsh/Bell Construction Company Inc. recently announced that they have been awarded a contract to build a new Starbucks on the campus of Clemson University. This new Starbucks will be located at the University Center. Construction began on Feb. 4. The entire project will take 90 days to complete.

DealFlowUBJ

Hunter Garrett and John Staunton represented Carbures USA Inc. in leasing a 26,576-square-foot

industrial space at 202 Beechtree Blvd., Piedmont.

DEAL OF THE wEEk

UBJ

AQUOS BOARDIt’s not just a display, it’s your business.

Communicate, Collaborate, Disseminate on an affordable, large touch screen LCD whiteboard display to make every presentation unforgettable.

864.675.2000 | sharp-sbs.com

aquos-board-10 X 2.668-AD .indd 1 2/23/2012 2:18:27 PM

New to the Street

available. For more information, visit www.greenville.wedding101.net or Wedding 101 on Facebook.

3. STELLA LOUISE BOUTIQUE AND COSMETICS recently opened at 215 W. Wade Hampton Blvd., Suite L, in Greer. The hours are Monday-Friday 9 a.m.-7 p.m. and Saturday 9 a.m.-5 p.m. For more information, visit www.facebook.com/stellalouiseboutique.

4. DIANA CLASSIC CHILDREN, Greenville’s favorite children’s boutique, recently moved to 21B Augusta Street next to Cocobella and across from Augusta 20 Boutique. Diana Classic Children’s flagship location in Palm Beach, Fla., is consistently rated the No. 1 children’s store in South Florida. This upscale boutique carries clothing for boys and girls, newborn to tweens, nursery decor, toys, shoes and more. The hours are Monday-Saturday 10-5 and 12-5 on Sunday. For more information call 864-451-7782 or visit www.dianaclassicchildren.com.

1. wHISkERZ PET SITTING is a business in Greer that provides at-home care for pets for owners who are out of town on business travel or vacation, are working a long day, or just need their pet taken out for a daily walk. For more information, call 864-804-8966 or look at their Facebook page.

2. wEDDING 101, a wedding planning resource library with complimentary service designed to educate and inspire brides and party-throwers alike, recently opened at 807 South Main St. in Greenville. Professional wedding vendors such as photographers, caterers and floral designers will market their services through innovative and interactive vignettes, displays and portfolios. Brides can gather ideas, explore vendor options, meet with professionals and receive one-on-one consultations from bridal experts for free at any time. Their hours are Tuesday-Friday from 11 a.m.-5 p.m. and on Saturdays from 10 a.m.-3 p.m. Appointments are also

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BusinessUpstate

J O U r N A L

Copyright @2013 BY COMMUNITY JOURNALS LLC. All rights reserved. Upstate Business Journal (Vol. 2, No. 3) is published weekly by Community Journals LLC. 148 River Street, Suite 120, Greenville, South Carolina, 29601. Upstate Business Journal is a free publication. Annual subscriptions (52 issues) can be purchased for $65. Visit www.UpstateBusinessJournal.com. Postmaster: Send address changes to Upstate Business, 148 River St., Ste 120, Greenville, SC 29601. Printed in the USA.

HOw TO REACH US148 River Street., Suite 120

Greenville, SC 29601, 864.679.1200

PRESIDENT/PUBLISHER Mark B. Johnston

[email protected]

SENIOR vICE PRESIDENT Alan P. Martin

[email protected]

UBJ ASSOCIATE PUBLISHER Ryan L. Johnston

[email protected]

ExECUTIvE EDITOR Susan Clary Simmons

[email protected]

MANAGING EDITOR Jerry Salley

[email protected]

MARkETING REPRESENTATIvES Lori Burney | Mary Beth CulbertsonKristi Jennings | Donna Johnston

Pam Putman

STAFF wRITERS Cindy Landrum | April A. Morris

Charles Sowell

SENIOR BUSINESS wRITER Dick Hughes

CONTRIBUTING wRITERSJenny Munro | Jennifer Oladipo Jeanne Putnam | Leigh Savage

DESIGNERS Richie Swann, Kristi Adair

EDITORIAL INTERNS Shelby Livingston | Casey Dargan

PHOTOGRAPHER Greg Beckner

CONTRIBUTING PHOTO EDITOR Gerry Pate

MARkETING Katherine Elrod

MARkETING & EvENTS Kate Banner

BILLING Shannon Rochester

PRODUCTION Holly Hardin

CLIENT SERvICES MANAGERS Anita Harley | Jane Rogers

ADvERTISING DESIGN Michael Allen | Whitney Fincannon

Caroline Reinhardt

IDEAS, FEEDBACk, [email protected]

Last week, the united Way of Greenville County held its 2013 Legislative Breakfast at the Kroc Center. The united Way unveiled their 2013-2014 Public Policy Agenda, and attendees heard from elected officials on their priorities for advancing the common good in Greenville County.

Photos provided

feb. 8, 2013 ubj

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