GENERAL INSURANCE SERVICES
MAGAZINE FALL 2019 JOE POLISH 3 KEYS TO ATTRACTING YOUR IDEAL CUSTOMERS + CLIENTS
+ PROFIT + PURPOSE 2.0 - AMY JO MARTIN + READ MORE BOOKS - NEIL PASRICHA + BRAND ENDEARMENT - SCOTT STRATTEN NOTHING YET Your local hometown HERO Your local independent agent is your neighbor – someone you can trust and someone who’s here for you when it matters most. 219.879.4581 • GenIns.com
2 Your local hometown HERO Your local independent agent is your neighbor – someone you can trust and someone who’s here for you when it matters most. 219.879.4581 • GenIns.com
3 PUBLISHER Carle Publishing Inc. Gain control MANAGING EDITOR Erika MacLeod GRAPHIC DESIGN Allyson Chute over your CONTENT COORDINATOR Stacey Cowperthwaite CONTRIBUTORS Daniel Todd Eric Gibson healthcare costs Stephanie Domazet Craig Menne Jim Butcher Amy Jo Martin Neil Pasricha Ari Meisel Joe Polish Ann Handley Scott Stratten Brad Smart Alison Williams Kyle Rosenbaum Elizabeth Johnson
ADVERTISING (Local) Kara Moon
PHOTOGRAPHY Carle Publishing IStock.com Stephanie Ruff Images and Art
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General Insurance Services Risk & Business MagazineTM is published by Carle Publishing Inc. All content, copyright © 2019, Carle Publishing Inc. All rights reserved.
Healthcare out of control? Change the status quo. Risk & Business MagazineTM is a valued and recognized trademark of Carle Publishing Inc. This publication may not be reproduced, all or in part, without written consent from the publisher. Every EmCap® is an innovative funding strategy that puts small and effort has been made to ensure the accuracy of all content in this publication, however, neither the publisher nor General Insurance Services will be held responsible for omissions or errors. midsize companies in charge of their own employee health plans. You can gain control, transparency, and stability – and Articles, reports and information contained herein reflect the views of the individuals who wrote the opportunity for real cost savings. Take control today with or prepared them and do not necessarily represent the position of the publisher or General Insurance Services. The material herein is intended for educational and informational purposes EmCap. To learn more, contact: only. Nothing herein is to be considered the rendering of insurance advice for specific cases or circumstances. Communication of any legal information contained herein does not constitute an Craig Menne Shawn Lanter attorney-client relationship, nor convey legal advice or recommendation of any kind. Do not rely General Insurance Services Berkley Accident and Health on information contained herein to replace consultation with qualified brokers, attorneys or other professionals in your jurisdiction. [email protected] [email protected] Please address all editorial and advertising inquiries to Carle Publishing Inc., Email: erika@ carlepublishing.com. Carle Publishing Inc. is not held responsible for the loss, damage or any other injury to unsolicited material (including but not limited to manuscripts, artwork, This example is illustrative only and not indicative of actual past or future results. Stop Loss photographs and advertisements). Unsolicited material must be included with a self-addressed, is underwritten by Berkley Life and Health Insurance Company, a member company of W. R. Berkley Corporation and rated A+ (Superior) by A.M. Best, and involves the formation of overnight-delivery return envelope, postage prepaid. a group captive insurance program that involves other employers and requires other legal entities. Berkley and its affiliates do not provide tax, legal, or regulatory advice concerning Carle Publishing Inc. and General Insurance Services will not give nor rent your name, mailing EmCap. You should seek appropriate tax, legal, regulatory, or other counsel regarding address or other contact information to third parties. Subscriptions are complimentary for the EmCap program, including, but not limited to, counsel in the areas of ERISA, multiple employer welfare arrangements (MEWAs), taxation, and captives. EmCap is not available to qualified individuals. all employers or in all states.
©2018 Berkley Accident and Health, Hamilton Square, NJ 08690. CARLE PUBLISHING All rights reserved. BAH AD 2018-02 1/18 Toll Free: (877) 719-8919 Email: [email protected] Website: carlepublishing.com www.BerkleyAH.com 16 feature JOE POLISH Welcome! ATTRACTING YOUR IDEAL CUSTOMERS AND CLIENTS LETTER FROM THE PRESIDENT
t is my pleasure to welcome you to the fall 2019 edition of our Risk & Business Magazine. General Insurance Services CONTENTS is pleased to provide this magazine to you as a valuable 5 LETTER FROM THE PRESIDENT & CEO resource for your company. 6 NEW EMPLOYEE BENEFIT OPTION COMING IN 2020 IAs I write this letter to you, I can’t help but think about Eric Gibson the year we have had at GIS. One theme resonates, and that 8 THE BENEFIT OF CONFIDENCE is growth. We continue to move our business forward and Daniel Todd have added many valuable members to our team that will help us carry out our mission of securing the future of the 9 PROFIT + PURPOSE 2.0 communities we serve. Amy Jo Martin When we set out to create this magazine, our goal was to 12 A PODCAST TO HELP YOU READ MORE BOOKS provide another outlet to help inform and educate, not only Neil Pasricha our clients, but all of the businesses in Northwest Indiana. 14 HOW WE DO PERFORMANCE REVIEWS We continually look for ways to help organizations grow and Ari Meisel thrive. As you flip through these pages, you’ll find many great 20 PERSONAL + PROFESSIONAL SOCIAL MEDIA PRESENCE articles related to business insurance, cyber risk, employee Ann Handley benefits, risk management, and other topics. Our feature story is “3 Keys to Attracting Your Ideal Customers & Clients” 22 BRAND ENDEARMENT by Joe Polish. Scott Scratten We appreciate you taking the time to read our current 20 PERSONALITY TESTS issue, and we look forward to any feedback you may have on Brad Smart future articles and topics. We know that business is built on 25 WHAT TO DO AFTER A HIT-AND-RUN relationships, so if there is any way we might be able to assist Stephanie Domazet you and your team, we would love to hear from you. 26 WOULD YOUR BUSINESS SURVIVE A CATASTROPHIC LOSS? Enjoy! Alison Williams 27 CYBER ATTACKS ON MAIN STREET BUSINESSES Kyle Rosenbaum 28 THE TOP 10 THREATS TO SMALL BUSINESSES Craig Menne, President & CEO Elizabeth Johnson GENINS.COM 30 BUCHER TECH - COMPUTER SECURITY Jim Butcher
5 NEW EMPLOYEE BENEFIT
New Employee Benefit Option Coming in 2020: INDIVIDUAL COVERAGE HRAS
BY: ERIC GIBSON, GROUP BENEFITS EXECUTIVE, GENERAL INSURANCE SERVICES
n October 12, 2017, President Beginning in 2020, employers of all sizes employees’ income and wages for federal Trump issued Executive may implement a new HRA design—an income and employment tax purposes. Order 13813—“Promoting individual coverage HRA (ICHRA)—to On June 13, 2019, the Departments issued Healthcare Choice and reimburse their eligible employees for final rules that expand the usability of Competition Across the insurance policies purchased in the HRAs. Effective for plan years beginning OUnited States”—which states in part that individual market or Medicare premiums. on or after January 1, 2020, the final the “Administration will prioritize three Final rules released by the Departments of rules allow HRAs to be integrated with areas for improvement in the near term: Labor, Health and Human Services (HHS), individual insurance policies (or Medicare) association health plans (AHPs), short- and the Treasury permit employers to offer for purposes of satisfying the ACA’s term, limited-duration insurance (STLDI), an ICHRA as an alternative to traditional reforms. and health reimbursement arrangements group health plan coverage, subject to (HRAs).” This means that, effective for 2020, HRAs certain conditions: may be used to reimburse employees for The Executive Order further provides that Employers cannot offer any employee the cost of individual health coverage (or expanding “the flexibility and use of HRAs • a choice between an ICHRA and a Medicare coverage) on a tax-free basis, would provide many Americans, including traditional group health plan. subject to certain conditions. employees who work at small businesses, with more options for financing their • Covered individuals must be enrolled ELIGIBLE EXPENSES in individual insurance coverage (or healthcare.” An employer may allow an ICHRA to Medicare coverage). reimburse all medical care expenses, may • Employers must generally offer the limit an ICHRA to allow reimbursements ICHRA on the same terms to all only for premiums, may limit an ICHRA employees within a class of employees. to allow reimbursements only for nonpremium medical care expenses Employers must provide an annual • (such as cost-sharing), or may designate notice to covered employees. specific medical care expenses that will be BACKGROUND reimbursable. An HRA is a type of account-based group Although not required, it is expected health plan that is funded solely by that most employers will use ICHRAs to BY: ERIC GIBSON employer contributions and reimburses reimburse premiums for individual health GROUP BENEFITS EXECUTIVE, eligible employees for medical care insurance coverage or Medicare (including GENERAL INSURANCE SERVICES expenses, up to a maximum dollar amount Medicare Part A, B, C, or D as well as for a coverage period. premiums for Medigap policies). Eric Gibson specializes in group benefits for organizations of all sizes, HRAs are an attractive option for Enrollment Requirements employers and employees due to their having been with GIS for nearly six An employee who is covered by an ICHRA tax-favored status. Employers may take years. Outside of the office, Eric enjoys must be enrolled in individual health a federal income tax deduction for HRA spending time with his wife, Sidney, and insurance coverage (or Medicare coverage) contributions. Any reimbursements that daughter, Zoey. for each month that he or she is covered employees receive from their HRAs for by the ICHRA. For example, individual medical care are excludable from the insurance coverage includes:
6 NEW EMPLOYEE BENEFIT
• individual insurance coverage • Nonsalaried employees (i.e., hourly The minimum class size is determined purchased on an ACA Exchange; employees) prior to the start of the ICHRA plan year and depends on the employer’s size, as individual insurance coverage Employees whose primary site of • • follows: purchased outside of an ACA employment is in the same rating area Exchange (including coverage employers with fewer than 100 Seasonal employees • purchased through a private exchange • employees: at least 10 employees model); Employees who are covered by a • employers with 100–200 employees: collective bargaining agreement (CBA) • • student health insurance coverage; or at least 10 percent of the total number Employees who have not satisfied a of employees catastrophic health insurance • • waiting period for coverage coverage. • employers with more than 200 Nonresident aliens with no US-based employees: at least 20 employees One key restriction to keep in mind is if • income an employer offers an ICHRA to a class of Whether a class of employees satisfies the employees, the employer cannot also offer • Temporary employees of staffing firms minimum class-size requirement for a plan a traditional group health plan to the same • Any group of employees formed by year is based on the number of employees class of employees. combining two or more of these in that class who are offered the ICHRA as EMPLOYEE CLASSES classes of the first day of the plan year. For more information about ICHRAs Employers with ICHRAs may make MINIMUM CLASS SIZE and how this new benefit could make an distinctions between different groups of A minimum class size requirement applies impact on your business, please give me employees, using the following employee if an employer offers a traditional group a call 219.510.6207 or send me an email classes: health plan to some employees and an at [email protected]. I’d be happy • Full-time employees ICHRA to other employees based on the to provide additional information and following classes: full-time versus part- Part-time employees resources. + • time status; salaried versus nonsalaried • Employees who are paid on a salary status; or geographic location, if the basis location is smaller than a state.
Striving to make every day better for business. For information about UnitedHealthcare group plans, and how we’re working to lower costs and improve health outcomes, go to uhc.com/employer.
MT-1178974 7/18
7 BENEFIT OF CONFIDENCE
THE BENEFIT OF CONFIDENCE
ponsoring a retirement plan is are working for us as well as possible. Do these improvements can be worth many an important benefit for you most of your employees know if they thousands of dollars over time without and for your employees. Upon are invested properly in your retirement having to save extra money right now. retirement, most people rely plan? Does the financial advisor for your Your employees deserve access to this heavily on their Social Security retirement plan offer to meet on-site with confidence, and the financial advisor for Sbenefit to meet monthly income needs. employees, and if so, are your employees your retirement plan should be helping you And unless you still offer a traditional taking advantage of that professional to engage current and eligible participants. pension plan, the retirement savings plan access? If you’re retirement plan needs a checkup you provide to your employees will likely and you would like to see greater employee Some employees may be invested too be a significant source of income for those engagement, we are ready to help! conservatively or may be taking more risk who wisely save for the day when their than necessary to achieve their current rate Daniel Todd, MBA regular paycheck stops. of return. Some employees may be invested Financial Advisor As a financial advisor, a large percentage of appropriately but they may not know it or Investment Adviser Representative the conversations that I have with clients understand what their investments are 219.809.2217 or [email protected]. + involve understanding where their regular doing. They may be in great shape and monthly retirement income will come just need some validation! In just about from and how much they can expect each any situation, though, a good financial month while planning for an average of advisor will be able to understand an 25 to 35 years in retirement. As you may employee’s current financial state and expect, people who have saved and invested help them evaluate some considerations over time are usually more confident that to maximize future potential with their financial needs will be met during investment performance, personal their golden years. Employer-sponsored finance, and long-term risk management. savings plans such as a 401(k), a Simple IRA, Small improvements today can make a and several other types of plans truly do monumental impact over time. make a great impact for those people who It can be easy to ignore, but don’t let your BY: DANIEL TODD have had the ability and made the sacrifice employees put retirement planning on to save regularly. REGISTERED REPRESENTATIVE, the “back burner” and possibly wait too INVESTMENT ADVISOR REPRESENTATIVE, One intent of this article is to encourage long before talking with your retirement EQUITY SERVICES, INC. you as an employer and benefit sponsor plan financial advisor. I encourage you and to help your employees even more. Not your employees to take action today with Daniel Todd is a Registered necessarily with more matching funds a financial checkup. Don’t be embarrassed, Representative and Investment Adviser or adding an expense line item to your don’t be ashamed, and don’t fall into the Representative of Equity Services, Inc. benefits spend, but by helping employees trap of regret—thinking that it is too Securities and investment advisory to know that their retirement savings are late or that you didn’t do enough in your services offered solely through Equity invested correctly. earlier working years. The job today is to Services, Inc. Member FINRA/SIPC, look forward and position the resources Each one of us has limited resources, and 550 Polaris Parkway, Suite 550, that you have and will continue to save for ultimately, we must make a choice between Westerville, OH 43082, (614) 430- retirement. There is always something we how much we can save for retirement with 8414. General Insurance Services, Inc. can do to improve your future financial each paycheck and how much to keep in is independent of Equity Services, Inc. outlook and help you gain knowledge of our bank accounts for current household TC109457(0819)1. a strategy or investment philosophy that needs. So, if resources are limited, we you may not know about today. Some of should want to make sure those resources
8 PROFIT + PURPOSE
THE BENEFIT OF CONFIDENCE
The New Economic Model: PROFIT + PURPOSE 2.0 BY: AMY JO MARTIN NEW YORK TIMES BESTSELLING AUTHOR, FOUNDER/CEO, KEYNOTE SPEAKER, ANGEL INVESTOR, PODCAST HOST AND INNOVATION ADVOCATE.
9 PROFIT + PURPOSE
HE BUSINESS MODEL OF THE FUTURE. WHAT’S NEXT FOR DO GOOD + DO WELL COMPANIES?
TDouble or even triple bottom line companies. Most people are familiar with the them thanks to the TOMS shoes phenomenon. The buy one, give one business model that does well ($) and does social good at the same time. For each pair of shoes you buy, TOMS gives a pair to someone in need. The new BOGO – exchange get for give. Secretly, I can’t say I’m in absolute love with the actual shoe design, but I do love them and proudly buy the shoes because it makes me feel good to support the company. And let’s be honest – it’s a pride thing to flaunt your “giveback-ness” on our feet. Vibrant conversations with complete strangers have been sparked due to the charitable tokens on my toes. Then there are Warby Parker glasses. Even better, they’re on your face versus your feet. They make for great first impressions – hello giving, caring bright eyes, nice to meet you. Wink. So, what’s next? How can we continue to innovate this “do good, do well” economic model in order to use business as a lever for changing the world? I spy an answer to this question. Before you start your company or non- profit, please consider this option. (Or at least read the bullet points below. I won’t be offended if you skim or skip to the magic bullets. I actually think in bullet points so more power to you.) I’ve come across a few companies that have taken the “for profit, for purpose” one step further. They’re integrating a solution to a social problem into the product. For example, ArtLifting helps the homeless and disabled sell their artwork so they can put a roof over their heads. Brilliant concept given the problem and solution are so tightly integrated into the company’s sellable product. The challenge has become the core component of the company and solution. Research has shown these homeless artists don’t want to be a charity case, they don’t want a handout. They just want an opportunity to change their life. Having a job restores their dignity.
10 PROFIT + PURPOSE
So, why wouldn’t someone just start a non- PROS TO FOR PROFIT + FOR PURPOSE profit or charity? What’s the difference? BUSINESS MODEL: With non-profits, there’s a finite amount • Your product and message IS your of resources. Think of a bucket that has a marketing. By simply existing, your certain amount of money inside. Once you customers are your sales people. It can use that money, you’re done. You have to go become a movement. (TOMS shoes, out and ask for more. Fundraise. Sometimes example). Example: ArtLifting didn’t this means filling out 14-page grant spend a penny on marketing to get applications for a $5k grant that take a year started. to process. Slow moving. There are so many You know those millennials that non-profits that are fighting for this money • everyone has an opinion about? They are but it’s incredibly limited. conscious consumers – meaning they care where they spend their dollars, even WITH A FOR PROFIT + if it means paying more, and this trend is FOR PURPOSE COMPANY, transcending the millennial generation. Amy Jo is the author of New York Times best-seller Renegades Write the Rules, and Legal protection (b-corps explained YOU’RE GROWING YOUR • host of the Why Not Now? podcast. She above) BUCKET OF MONEY AND founded Digital Royalty in 2009 to help • You can make MORE impact as a for- corporations, celebrities and sports entities SELF-SUSTAINING. profit company. humanize their brands online through social communication channels. You have the potential to grow and scale • This allows people to start for-profit your business with infinite potential companies that serve as wage-earning, resources because you’re generating revenue full-time jobs vs. starting a charity that’s In 2012 Tony Hsieh, CEO of Zappos.com, while also giving back and making a social a side hobby. Because this economic and Baron Davis, NBA player, invested in impact. model is generating revenue, it can be a Amy Jo and her company. After a successful “day job” where you focus all of your time seven-year run as the Founder & CEO of With ArtLifting, the homeless artist receives and energy. Digital Royalty and growing the business 55 percent of the profit,44 percent goes • You’re doing good and doing well. (Aka – globally into ten different countries, Amy to the company and one percent goes to Jo recently exited the company. shelters they work with. They license the art, have cake and eat it too. Yummy.) She is currently spending her time print the art on tangible items and sell the CONS: researching the relationship between original art as well as prints. ArtLifting is Skepticism – Anytime there’s something technology and humanity. She is also what’s called a b-corp, a Benefit Corporation. • new, people will develop innovation investing in other female entrepreneurs so What’s a b-corp? Just like an s-corp, it’s a allergies. Some people have concerns they can reach their full potential. legal business structure that allows the about exploitation and companies using Amy Jo is also a contributor to news outlets government to classify your business type. a social mission in order to get more including the Harvard Business Review The main difference is that with a b-corp, profit. (When actually the impact has and Sports Business Journal. She has you have a legally-binding social mission so more potential as a for-profit entity.) been featured in top-tier media outlets the company can protect both bottom lines – Lack of education – The business including Vanity Fair, TIME, Forbes, The financial and social. • model simply isn’t well known yet. This New York Times, Fast Company, ESPN Meaning, if you’re filing as a b-corp and fuels skepticism and many people are SportsCenter, USA Today, MSNBC you have investors, they can’t push the not aware they have this option when and Newsweek. company away from the social mission in starting a company or business order to maximize profit. The company To learn all there is to know about this Client portfolio includes: Hilton Worldwide, can protect their social bottom line so it’s business model, listen to Liz Powers Shaquille O’Neal, Motorola, FOX Sports, not compromised for financial success. If The X-Factor, Chicago White Sox, UFC investors want to shift direction or strategy co-founder of ArtLifting, explain and Dana White, Dwayne “The Rock” her journey and the details of getting in order to make more money but that will Johnson, Los Angeles Kings, Jabbawockeeez, jeopardize the company’s social impact, started. She bootstrapped her company Doubletree by Hilton, Tony Hsieh CEO of the company can legally push back and starting with $4k and personally living Zappos.com, Monte Carlo Resort & Casino, lean on the b-corp status. There are many very lean in her 20’s. She quickly grew KC Royals and Hard Rock Hotel & Casino. companies out there that have a give-back the business to six figures in revenue component, but they don’t file as a b-corp. before receiving funding from investors AMYJOMARTIN.COM You don’t have to be a b-corp. As of now, like Blake Mycoski from TOMS shoes. there are no tax benefits to b-corps. (Not yet Do good, do well. Do double bottom line. For at least!) profit + for purpose. For sure. +
11 READ MORE BOOKS
WHY I JUST STARTED A PODCAST TO HELP YOU READ MORE BOOKS BY: NEIL PASRICHA
just started a new podcast called 3 The Annual Review of Psychology So read more? Not a surprise I’m saying Books. published an incredible report in 2011. that. You know what they said? Books are It’s the world’s only podcast by and But then there’s another huge problem. And medicine! They create empathy and for book lovers, writers, makers, you know what it is? There are way too intimacy and happiness. Why? Our brain’s sellers … and librarians. many books! I mirror neurons fire when we read about On each chapter of the show, I uncover and experiences we have not lived. Our minds Over 1,000 new books are published … discuss the three most formative books think we’re there. a day. Over 500,000 a year! You have of an inspiring individual. And I’m doing no chance of finding the ones that will When we’re the boy in the boat, the man 333 chapters for a grand total of 1,000 actually shape your values the way you searching for meaning, or lying with formative books over the next 13 years. know a book can … so you grab whatever’s Margaret talking to God … we develop in a big pile at the airport and chalk up The show makes no money! Takes a ton of empathy, insight and contentment in our your lack of interest in it to you. time! And involves me flying all over the lives. place talking about books of all things! But it’s not you! Science magazine published a formative Am I crazy? study in 2013 which showed that reading It’s the book. The answer is yes. literary fiction improved test results And that’s why I started 3 Books. measuring social perception and empathy. But there’s a Game of Thrones quote I love Translation: You become a better parent, Because I want to uncover and read and that says: boss, student … and human being. talk about the 1,000 most formative books from 333 inspiring people. So am I the preacher, then? No, I’m the “THE MAN WHO READS parish, too. So far I’ve interviewed Judy Blume, Seth LIVES A THOUSAND Godin, Dave Barry, Gretchen Rubin, Frank Because for most of my adult life, I read Warren, and the world’s greatest Uber LIVES BEFORE HE DIES… maybe five books a year. I had plenty of driver with a 4.99 rating and over 5,000 excuses. Books are dry, boring, slow … and rides! THE MAN WHO NEVER heavy. College forced me to read too many READS LIVES ONLY ONE.” textbooks so now my brain is full. Plus, no I have no ads, no sponsors, no time! The classic one. Time, time, who’s got interruptions, and no profit. I say we need to read books — real books the time? But I want the world to read more. on real paper — more than ever before. But then I published an article that went Much more! We’re spending over four hours a day viral on Harvard Business Review last year on our cellphones right now! We are called “8 Ways To Read (A Lot) More Books I want to help myself and others who itch actually find addicted. And research shows we touch This Year.” I listed a series of small changes to read more those books that 2 500 our cellphones over , times a day. I was making to dramatically increase my will truly inspire and lift us up and into our When was the last time you went to the reading intake. Cancelling cable. Installing greatest possible selves … and help us live bathroom alone? a bookshelf at the front door. Making a our greatest possible lives. In a world of endless dings and pings we public commitment. Quitting books with Are you with me? + need a giant and great big single task that no guilt. focuses our minds, challenges our And you know what happened? assumptions, shapes our values and fuels * Originally written for the Toronto Star, our passions. I read a hundred books last year. And I Reprinted with Permission have never felt like a better husband, father, writer and speaker.
12 READ MORE BOOKS
Neil Pasricha is the New York Times- best-selling author of The Happiness Equation and The Book of Awesome series, which has been published in 10 countries, spent over five years on best- seller lists, and sold over a million copies. Pasricha is a Harvard MBA, one of the most popular TED speakers of all time, and after 10 years heading Leadership Development at Walmart he now serves as Director of The Institute for Global Happiness. He has dedicated the past 15 years of his life to developing leaders, creating global programs inside the world’s largest companies and speaking to hundreds of thousands of people around the globe. He lives in Toronto with his wife and sons. GLOBALHAPPINESS.ORG
13 PERFORMANCE REVIEWS
How We Do Performance Reviews
BY: ARI MEISEL CO-FOUNDER OF LEVERAGE AUTHOR OF THE ART OF LESS DOING AND IDEA TO EXECUTION
14 PERFORMANCE REVIEWS
hen it comes to scaling a business, I believe that Ari Meisel is a best-selling author, productivity the most difficult part to scale is your people. expert, CEO, real estate developer, green You’re faced with two building consultant, and a graduate of the Wproblems, bringing in more people that University of Pennsylvania, Wharton School complement and enhance the team as well of Business. His proprietary process, the as maintaining a team culture that doesn’t Less Doing System, is the foundation of his break down when you hit critical mass. company Less Doing which offers individuals and enterprises road-tested methods to We’ve been really fortunate at Leverage. We optimize, automate, and outsource everything. started in August of 2015 with two people The goal is to learn how to work smarter, in New York and now we are a force to be instead of harder. reckoned with, with over 100 people in 16 time-zones. We always have an eye on LESSDOING.COM team culture — I wrote a WHOLE article on some of our hacks for that — and on our ability to give constructive feedback that the option of the teammate, if they don’t in a given week and it’s on the order of effects change. fill it out then they can’t get a raise or be hundreds of hours. For every hundred promoted. When they do fill it out, they hours we do as a team, a bonus is issued There are dozens of startups now that answer a specific set of questions, including to a VA. So if we do 800 hours one week, offer products and services to facilitate their goal for how many hours they want eight VAs will get a bonus. That bonus, performance reviews, 360 reviews, peer to to do over the next quarter. All of these is 40 percent of whatever you made that peer reviews, OKR meetings, etc… but in entries go into a Trello board, in a list for week. This incentivizes more hours as well a world where organizations are getting the current quarter. Then at the end of the as overall improvement to earn a higher flatter and continuing to grow (no one in month, the managers can review all of the hourly rate. It’s worked extremely well for our company has a title) it becomes more submissions, discuss for a few minutes, and us but recently we upped the game. and more difficult to identify and recognize make a decision. We then share that with a job well done or provide guidance. I The new bonus structure is still based on each person individually and on if they want to share our three-pronged approach the number of hours we do each week but want to, do we schedule a one on one video to nurturing the members of our team now there’s a twist. Now each week the VAs call. Last quarter three people requested a through constant feedback. who feel they’ve earned a bonus have to fill follow up conversation. out a Wufoo form, checking off the boxes 1) PERFORMANCE REVIEWS 2) TASK REVIEWS of the core values they feel they exemplified About nine months into the operations and then explain why. This pushes them to This started out as a way for me to quality of the company we decided we should bring their achievements to my attention, I control on tasks. We asked that once create some formal process for reviewing can give specific praise and in the case they every two weeks each team member book performance over the quarter and set goals don’t get the bonus, feedback. Now in order a call with me to go over their current for the next one. We came up with some to prevent them from submitting a request tasks, identify any issues, and answer questions and had each team member book every week, we scale their bonus based on questions. In order to keep this scalable we a 10-minute video call with me, one on how often they apply and actually get it. used Calendly to book the calls and they one. I would ask them about their goals for So now the top-level bonus will be a full have a really cool option which is a Group the quarter and things they could improve match, 100 percent whatever they made Meeting. You can allow as many people as on, I’d take notes in Evernote, and then I that week but if they submit for the bonus you want to book a single time slot. It will would decide whether or not that person four times and only get it twice, then they continue to show that slot as available until should get a a raise and/or level up to the will get 50 percent of the bonus. + you hit the limit that you set. Sometimes next rank. It was time intensive, overly the call would be with five people, but subjective, unscalable, and completely THESE THREE METHODS more often it was three or less. Recently incongruent with how we do everything these evolved from talking about tasks to a MAKE OUR ABILITY TO else. So we changed it to a version that, simple opportunity to connect on a nearly from the outside seems less personal, but SHINE A LIGHT ON OUR one on one basis with members of the team has our DNA written all over it. in a mini-mastermind. They could give TEAMMATES, PROVIDE Every quarter we have an automation feedback and get feedback and guidance. FEEDBACK, GUIDANCE, through Zapier which posts messages to 3) BONUS PROCESS our team Slack channel asking them to fill AND OF COURSE PRAISE, out a Wufoo form for their quarterly review. From a behavioral economics view, this was COMPLETELY SCALABLE Seems impersonal right? Autonomy is one one of our most interesting innovations. of our core values and scalability is part of One of our key performance metrics AND QUANTIFIABLE. everything we do. Filling out the form is at as a team is the number of hours we do
15 3 KEYS TO ATTRACTING YOUR MOST IDEAL CUSTOMERS + CLIENTS BY: JOE POLISH FOUNDER, GENIUS NETWORK AND PIRANHA MARKETING, CO-FOUNDER OF 10XTALK AND I LOVE MARKETING
16 ATTRACTING IDEAL CUSTOMERS
"PEOPLE DON’T BUY FROM YOU BECAUSE THEY UNDERSTAND WHAT YOU DO. PEOPLE BUY FROM YOU BECAUSE THEY FEEL UNDERSTOOD..."
hen most people think • Selling is what you do when you’re on 1. UNIQUE SELLING POINT (USP) of marketing, they copy the phone or in front of a prospect. Your USP is a precise statement of why your what everyone else is Marketing is what you do get someone company is special. doing because they think • on the phone or face-to-face with that’s what works. This should answer a prospect’s question, you, properly positioned, so that by W “Why should I do business with you instead Far too many people narrowly focus the time you talk to them, they’re of any of your competitors or not do on their own industry, imitate their pre-interested, pre-motivated, pre- anything at all?” competitors, and hope for the best without qualified, and pre-disposed to do realizing that most of their competitors business with you. Think of every successful company that offers a clearly defined USP, such as Federal don’t know any more about marketing Note: neither sales nor marketing has any Express’s “When it absolutely, positively, than they do. The problem is that most relationship to the actual quality of your has to be there overnight.” Apple’s USP businesses waste their time and energy product or service. trying to reach everyone rather than for its first iPod was 1“ ,000 songs in your targeting the best possible prospects for You want to invest your time and effort pocket.” The USP gives a clear, distinct their business. attracting and selling to the best prospects. description of what that company has to offer. And when customers need what a Peter Drucker, one of the most highly You could be the greatest salesperson in company’s USP offers, they think of doing influential authors and management the world, but you’re not going to make business with no one else. consultants of the last century, said, much money selling lifeboats to people in a desert. Yet, even if you’re the worst Without a clear, distinct USP, most “Because the purpose of business is to create salesperson in the world, you could easily businesses simply say, “Because I have a customer, the business enterprise has sell lifeboats to people on a sinking ocean a great price,” or “Because I’ve been in two—and only two—basic functions: liner—because these prospects would business for 20 years.” The reason you can’t marketing and innovation. Marketing and be pre-interested, pre-motivated, pre- make any of these claims is because that’s innovation produce results—all the rest are qualified, and pre-disposed to buy your exactly what everyone else is saying. costs. Marketing is the distinguishing, unique product. function of the business.” 2. FOCUSING ON CLEAR BENEFITS Your marketing efforts should be devoted This is the secret to a powerful USP. If you accept Peter Drucker’s definition to finding these types of ideal prospects. of business, you would think there would First, it’s important to understand the However, you don’t want to spend your be a huge emphasis on marketing and difference between features and benefits. A own time looking for these people. You innovation. feature is what the product is or what want to structure your marketing so these Unfortunately, too many people confuse people come to you. sales with marketing. How?
17 ATTRACTING IDEAL CUSTOMERS
it does. A benefit is what that product guarantee success for your restaurant actually does for the person who’s using it. would be a starving crowd. Imagine that the world’s supply of toilet You want to market your products and paper suddenly evaporated and you’re the services to people who desperately want only person left with a closet full of toilet what you have to sell. If you determine paper. Even if you’re not a smart marketer who your market or starving crowd is, or a great salesperson, you could easily sell you’ve just made your marketing 10 times all the toilet paper you own, for hundreds easier. Most people focus on developing a of dollars a roll if you wanted. All you’d great product and then worry afterward have to do is scribble on a cardboard sign about who might want to buy it. If you “I have toilet paper for sale!” Or put a post can find your market first, you can zero in on Facebook or upload a video on YouTube, on your target audience much easier than and you would sell out of your supply wasting time trying to attract as many quickly and easily. people as possible. That’s the advantage of having supply and The message in market matching is not only demand on your side. what you communicate but also to whom you’re communicating to. If you happen to be in a business where Joe Polish is one of the most sought there’s so much demand for what you offer, Remember: don’t sell the product or after marketers alive today. Known you don’t have to rely on any marketing service. Sell the benefits that it will create. for his ability to connect with almost techniques. However, most people are in anyone on the planet, he leverages People don’t buy from you because they competitive businesses, so they need to his networking prowess through his understand what you do. People buy from structure their marketing so that it drives highly renowned Genius Network, and you because they feel understood... business to them by creating demand. GeniusX masterminds with household 1. GROW YOUR BUSINESS 10X guests like Peter Diamandis, Tony To do that, you need to talk about the benefits Robbins, Sir Richard Branson, Steve customers will get by doing business with you. If you listen to the podcast Joe does with his dear friend Dan Sullivan, founder Forbes, and John Mackay coming in Once you start focusing on what your of Strategic Coach, you can discover to share their wisdom with the groups. customers can receive, prospects can untapped potential in your business, With these events, as well as his clearly understand why they should do multiply your opportunities, and grow work as a consultant, Joe has helped business with you. Your competitors might 10x visit 10xtalk.com. to build thousands of businesses, offer the exact same features that you do, generated hundreds of millions of 2. I LOVE MARKETING: GET OVER 300+ but if they don’t describe the benefits of dollars for his clients, and changed those features, nobody will know about HOURS OF THE BEST MARKETING the lives of many others through them. EDUCATION ON THE PLANET his charitable causes including: Shift the focus of your marketing from Check out this podcast with Joe and his JoeVolunteer.com, ArtistsForAddicts. your business to your customer, and you’ll co-host, Dean Jackson, where they talk com, Genius Recovery, and Sir Richard appeal to a lot more people—and increase about new marketing ideas, direct mail Branson’s Foundation, Virgin Unite. the effectiveness of your marketing as a ideas, lead generation, lead conversion, Joe continues to be a prominent result. getting referrals, stick strategies, email figure in the world of business and marketing, psychology, books, people, 3. MATCHING YOUR MESSAGE TO YOUR entrepreneurship, reaching people not productivity, and a lot more visit MARKET only through his business endeavors, ilovemarketing.com. but through various forms of media The best message in the world is useless if it falls on deaf ears. as well. He’s the co-founder of two popular podcasts, 10XTalk and My friend Gary Halbert used to ask his iLoveMarketing. audience, “If you were to open a restaurant JoePolish.com and you could choose just one advantage to improve your restaurant’s chance of success, what would you pick? A great location? A great staff? The best quality food? A wonderfully designed building?” While all of these advantages would be nice, the most important advantage to
18 19 SOCIAL MEDIA PRESENCE
HOW DO YOU BALANCE YOUR PERSONAL + PROFESSIONAL SOCIAL MEDIA PRESENCE?
BY: ANN HANDLEY
Why? Simply: I enjoyed it. (There’s nothing Here’s how I approach it: quite like it.) And it’s worked for us. And COMMUNITY TRUMPS CURATION. now, I’m pretty sure MarketingProfs is one of very few major business-to-business At both of my Twitter accounts, this brands whose Twitter account is run solely is the approach that guides my effort: by a shareholder. (Do you know of another? Connecting with others in a kind of loose Let me know.) community and finding the interesting and relevant amidst the abundance. (The A SUBTLE BUT IMPORTANT SHIFT “curation.”) As Twitter grew in influence as both a But at the @MarketingProfs account, I tend social platform and a communication to emphasize community over curation channel for companies, and as the even more—because I feel a responsibility MarketingProfs account has climbed to to represent and respond both to almost 500K followers, I’ve realized I had complaints and to kudos on behalf of the recalibrated the way I interact with people larger organization. there, almost by accident. BUSINESS CASUAL VERSUS BAR CASUAL. It’s been a subtle shift, but an important one. In both of my accounts, I am who I am: My “bigger story” on both accounts is that This idea was on my mind when a question I’m waging a war on content mediocrity, came up at a business event where I spoke and I truly want to find the interesting recently: and relevant. It’s in both my bios. But I do How do you balance the professional-you that with more brand-centric perspective with the personal-you on social media @marketingprofs; on @annhandley, I tend networks? to have a broader view. started on Twitter in 2007 as @MarketingProfs, sharing headlines In the moment, I advocated for a blending And I’m a bit looser at the account from the site and representing the of the two. At its heart, that’s the real with my name on it, too, sharing brand there. Then years later opportunity of social media, isn’t it? People my Instagram photos and personal I resuscitated @AnnHandley on do business with people—not faceless, perspectives that I might not share from ITwitter as a personal ID—afive handle I’d been soulless edifices. Don’t you want your MarketingProfs. It’s not that what I do on squatting on for years but never used. prospects and customers online to have @annhandley wouldn’t be appropriate on an opportunity to get to know you, just as @marketingprofs—just using that word Why the second account? I guess the easiest your friends, colleagues and contacts in makes me feel like an old-school librarian answer is that it seemed… I don’t know, real life do? shushing rowdy patrons. Eww. time? Because Twitter itself had shifted. However, since that event, I’ve given the It would, of course. It’s just that it seems In 2007, when I started on Twitter, things subtleties of the matter and my own more—I don’t know… fitting? —sharing felt a bit quieter. A bit under the radar. I behavior a little more thought. them with a smaller group of contacts. started and assumed the Profs Twitter account first on a lark (let’s see what this is So, how do you balance these two sides of What about you? You might be the owner all about, shall we?) and then as it grew… I your online identity? Is it one over the other of a cupcake truck. But your bigger story just kept at it. for you? Or are they one and the same? could be that you are passionate about
20 SOCIAL MEDIA PRESENCE
locally sourced food or community- Exactly where that line is varies according (I get a lot every day, on both accounts. Do centered activism. Or perhaps you’re just to your own brand and that of your you do it? OMG. Stop.) an advocate of embracing the simple joys in company. But to give a broad example: It’s life. It could be anything. What matters is one thing to mention feeling under the IN SOCIAL MEDIA (AND that it’s simply true. weather—that’s personalized. It’s another IN LIFE, I SUPPOSE), TRUE to say you have an irritating rash in a (I almost wrote “What matters is that it’s sensitive spot. ENGAGEMENT TRUMPS authentic.” But “authentic” has become one of those social buzzwords that has had all ALLERGIC TO TOO MUCH AUTOMATION. TECHNOLOGY. the color and life drained out of it, leaving Obviously, there are many tools that And by the way, I realize that I’m talking an empty husk of meaning behind. So, I can help manage and scale your social mostly about Twitter here. Probably didn’t.) presence. IFTTT (If This Then That) because Twitter seems less constrained, PERSONALIZED, NOT PERSONAL. automates tasks such as auto-saving less boxed-in than most other social Instagram photos to Dropbox. Buffer, dlvr. networks, at least to me. Social platforms do present an opportunity it and others can help you manage multiple to show more of the people behind a Despite its longevity, Twitter persists as accounts and multiple users, as well as a bit of the Wild West (thank god)—with company. But there’s a fine line between see the analytics behind your efforts. For sharing yourself and sharing a little too fewer implied rules and a broader mix growing companies, these tools can be of people hanging out there, from teens much of yourself. Actually, I walk this line handy time savers. on both of my accounts. and Walking Dead to March Madness fans But I don’t rely on automation tools as to news outlets. Think of personalizing your brand, not social shortcuts. And more generally, that getting personal. So that’s how I approach it. I suppose some day on stage, I suggested that people use people do all this from one account; I just The former means showing that you’re them to extend and ease their efforts… not happen to do it from two. a real human being, with actual blood supplant them. flowing through actual veins. You have a But what about you? I’d love to know how I’d like to say that everyone understands you work it out. + point of view, real character, a personality. this already. But if I had a nickel for every The latter is sharing details that are time I got a robo-sent automated direct intimate or too specific to you to have messages to greet me as a new Twitter relevance for the larger community you are follower… well, I’d never fly coach again. trying to build.
Ann Handley is a Wall Street Journal best-selling author who speaks worldwide about how businesses can escape marketing mediocrity to ignite tangible results. IBM named her one of the seven people shaping modern marketing. Ann is a digital marketing pioneer and the Chief Content Officer of MarketingProfs, the leading marketing training company with more than 600,000 subscribers. She is the Wall Street Journal best-selling author of Everybody Writes: Your Go-To Guide to Creating Ridiculously Good Content , and co-author of Content Rules: How to Create Killer Blogs, Podcasts, Videos, Ebooks, Webinars (and More) That Engage Customers and Ignite Your Business . Her books have been translated into 19 languages, including Turkish, Korean, Italian, Chinese, and Japanese. A LinkedIn Influencer, she has more than 420,000 followers on Twitter and is consistently named one of the more influential marketers on social media. She has contributed commentary and bylines to Entrepreneur magazine, IBM’s Think Marketing, Inc. magazine, Mashable, Huffington Post, American Express, NPR, and the Wall Street Journal. Ann lives in Boston, where she is Mom to creatures two- and four-legged. She is an E.B. White Superfan, a Cavalier King Charles Spaniel enthusiast, and a novice tap dancer. She escapes it all by retreating to her tiny-house office, which houses her vintage typewriter collection. annhandley.com
21 BRAND ENDEARMENT
Scott and Alison Stratten are co-authors of four best-selling business books, co-owners of UnMarketing Inc and co-hosts of not only The UnPodcast, but five children, two dogs and two cats. This site, the show and the books all represent their thoughts on the changing world of business through their experiences of entrepreneurship, two degrees (Alison), not lasting long as an employee (both) and screaming at audiences around the world (Scott, Alison is more polite). They were put on this earth to remind the world that not all Canadians are passively polite. Businesses like PepsiCo, Saks Fifth Avenue, IBM, Cirque du Soleil, Microsoft and others have been brave enough to want their advice, to the point that Scott has been named one of the Top 5 Social Media Influencers in the world by Forbes.com. They now spend their time keynoting around the world and realize they rank 10th and 11th in order of importance in their home. Oh, and they met on Twitter. How’s that for ROI? UNMARKETING.COM
BRAND ENDEARMENT: RETURN THE HIGH-FIVE BY: SCOTT STRATTEN
22 BRAND ENDEARMENT
live on the road, in hotels and airports. new suitcase-of-awesomeness, packed it up If you only pay attention to your customers While some people keep suitcases at for the trip and away we went. when they are angry, you are only going to the back of their closets, I live out of have angry customers publicly. You will However, by the time I’d reached security mine. miss the chance to engage with the happy at my first airport, I was already frustrated ones and create brand evangelists. ISo when I read about the Genius Pack with my new suitcase. Here are the four steps to create Brand on USAToday.com I was excited to try it It tipped over. Many times. out! I trusted the site, and the suitcase was Endearment. It tipped over in line. It tipped over when exactly what I’d been looking for. I ordered LISTEN. You need to be paying attention I let go of it for a moment to take off my one that day. to what people are saying about your brand jacket. By the time I had finished my and industry online. There are some great The case arrived quickly and had all the trip, the front pocket zipper had broken tools out there to help you keep up. It can compartments and fancy add-ons I had (It wasn’t over-packed by far). I couldn’t be as simple as setting up a Google Alert hoped for (better pockets, phone charger wait to throw the thing out and use my or using keyword search on Twitter. Use built in, dirty laundry compartment). I old suitcase again. The case had been a listening tool such as Expion, Radian6, was a happy customer and decided to tweet expensive and instead of making my travel Vocus or Trackur. Paying attention is the about it. more comfortable, it was more difficult. first step. Because I hadn’t built a connection to the OWN THE GOOD YOU DO. Value the company, I had no problem voicing my positive voice. It’s too easy only to focus issue publicly. on the negative. You need to make time to thank customers who love what you do. Be A bunch of my followers jumped in and proud and say thank you. (and by “thank- replied, some of who were also looking for you I don’t mean only RT’ing positive suitcases. Travel, and anything to make People replied that they were also looking compliments about yourself. Avoid the it more comfortable, is a popular topic at this particular suitcase and were glad humble brag). I try to do this with people on Twitter, and the tweet lead to a great I saved them the hassle after seeing my who tweet compliments about my books. conversation. original tweet. Don’t leave all those high-fives hanging. You know who didn’t join in though? When we are endeared to a brand we Take time away from fighting fires, and Genius Pack. The company remained seek out private and personal channels to seeking out new customers, to thank quiet. manage resolution. With a brand I know, the ones you have. This is the where like and trust, I will email or contact them the opportunity for brand endearment When would-be or happy current privately first, rather than publicly, when begins. Don’t value your customers based customers mention your product or I’m unhappy. Since @GeniusPack hasn’t only on purchases already made. A happy service, they are putting up their hands followed me, I couldn’t send them a private customer is your best marketer. Grow for a high five. It’s not to say when we message even if I wanted to. those relationships. compliment a brand we must get a reply, but when we make an effort to include the Unlike the non-reaction to my first tweet, ENGAGE. Social media is just a fancy Twitter name, it shows we are including Genius Pack did reply to my second very term for talking to other people. When you in the conversation. (I still remember quickly. you listen and value your customers you my first reply from the brand, Cirque du can create content and products that Soleil. Love them.) This is an opportunity give value back to them. Be a part of the for engagement that is all too often conversation; find out what they like to ignored. As businesses we are quick to chat about. Care about what they are reply to angry customers, but often leave looking for. And then be there, to have a conversation that matters to them. happy ones hanging. We went on to email and their CEO was Genius Pack wasn’t listening. Or, if they apologetic and very efficient at processing When you do these three things, your were, they weren’t interested in talking the refund for my purchase – but not customers will become endeared to you. with me, or the other would-be customers before the issue was shared publicly online. As customers we feel like we know an putting up their hands. I was very impressed with how great they engaged brand, because we do. Brands were after the problem, which confused who connect with their customers online At the time, I didn’t think too much me as to why they had no response before about them not replying. I gave them an earn a face, a personality, and a reputation the problem. There weren’t hundreds of for listening. opportunity, and shared my excitement mentions of the product, actually none about their product, but I wasn’t sitting other than mine that day. around waiting for a response. I took my
23 PERSONALITY TESTS PERSONALITY TESTS
Are Scams In Selection… And Here Are Two Great Solutions, Free.
BY: BRAD SMART SOLUTION 1: Test the test: This is what I did with 10,000 candidates for jobs in one of the big box retailers. It took two years and cost $100k, but you can do it easily at your company. Administer the personality test to all candidates (BEFORE they are hired, so a lot will fake their answers), don’t score the test, put away the tests for six months, score them, and make a simple chart: on the vertical axis show Performance Rating and on the horizontal axis put the test score with the cutoff score. If the dots are straight as a pencil from lower left to upper right, Brad Smart is full of BS – the test is valid in a USEFUL way! But you’ll see the dots in a perfect circle, showing it has zero practical validity. Look at who would have been eliminated by the cutoff score: I’ll bet you’ll see as many As as Cs would have been eliminated. Thankfully you did NOT use that test and eliminate candidates for six months!
UESTION: Brad, I’ve taken of resumes to a few candidates you can SOLUTION 2, FREE: Without the personality tests and my interview. And what do you find? Many personality tests, here is a time-tested spouse says they are quite managers screen candidates using suggestion for screening candidates, accurate. Why shouldn’t I use personality tests, a $4 billion industry, and it’s 1,000 times more valuable than them in selection? including the money they have taken personality tests and … it’s free: email Q from you. Too bad – you got conned by ANSWER: Because a) you KNOW from candidates a “truth serum” saying, Thank the personality testing companies. To you for your interest in the (sales rep) job experience your hiring has not improved clarify: using them and I know, from properly at ACME. We’d like to continue the hiring validating them that if your test has a THERE ARE A LOT process but want to be sure you’re okay cutoff score that eliminates candidates with our policy: a final step in hiring is for who score below it, that test eliminates as OF GOOD ABILITY candidates (that’s you) to arrange reference many A Players as C Players. AND KNOWLEDGE calls with managers. If you’re okay with this, Reply and we’ll be in touch. Low Is this you? Do more than half the people TESTS. BUT EVERY performers, who are the BSers, drop out you hire turn out to disappoint you? You PERSONALITY TEST I’VE so you now have mostly the sharp, honest are sure some mis-hires have conned you, candidates to interview. Hundreds of am I right? So, you try to find a screening PROPERLY VALIDATED companies have used it. The most famous tool – something to cut down the number HAS FLUNKED. is General Electric under Jack Welch in the 1990s … and GE became the most valuable company in the world and the most Dr. Brad Smart is an internationally renowned management psychologist and is respected. generally regarded as the world’s leading expert on hiring best practices. He has written five books on hiring including the New York Times/Wall Street Journal best Wow – this solution solves two big hiring seller Topgrading: third Edition. Topgrading methods have enabled hundreds of small problems: candidate dishonesty and lack companies and leading companies such as General Electric, American Heart Association, of verification. The truth serum and your and Barclays to more than triple their success hiring high performers. talking with the managers when your TOPGRADING.COM finalists arrange the calls will be the best verification of what candidates said. +
24 HIT-AND-RUN
What To Do After A Hit-and-Run
eing involved in any type of It’s also important to take photos of the If you have any questions regarding your vehicle collision can spur some scene and any damage to your vehicle. If auto insurance coverage or would like pretty basic human instincts. there were any eyewitnesses, gather their to review your policies, feel free to reach For some that feel they may have names and contact information. out. I can be reached at 219.510.6205 or done something wrong, their 2. CALL THE POLICE [email protected]. Bfirst instinct may be to flee the scene. Once all important information has been When you’re involved in a vehicle collision gathered, call the police immediately to and the other driver takes off without file an accident report. When the police exchanging insurance information, this arrive, provide them with a description of is commonly referred to as a hit-and-run. the vehicle and the incident as well as the These incidents can leave you feeling names of any eyewitnesses. frustrated and wondering what to do next. It’s incredibly important to know 3. CONTACT YOUR INSURANCE what information to collect and whom to COMPANY contact following an accident. Once you contact your insurance company, Here are three things you should do in the the claims process will begin. If covered BY: STEPHANIE DOMAZET, VICE event of a hit-and-run: under your policy, your insurance company PRESIDENT—PERSONAL LINES, GENERAL can assist you in getting a tow for your INSURANCE SERVICES 1. RECORD ALL PERTINENT vehicle as well as finding a rental car. INFORMATION Stephanie Domazet has worked in the In the event of a hit-and-run, never try insurance industry since 2004, joining Write down as much of the other vehicle’s to follow or apprehend the fleeing driver. GIS in 2005. She is a member of the information as possible, including its What’s more, leaving the scene could cause Valparaiso Chamber of Commerce, license plate number, make and model, and you to miss eyewitness accounts and may serving on the Board of Directors and color. leave law officials questioning who’s really Ambassador Committee. In her free Note the time and location of the hit-and- at fault. time, she enjoys outdoor activities such run. Be sure to record the direction the car as boating, skiing, and camping. was headed post-incident.
25 CATASTROPHIC LOSS
Would Your Business Survive A Catastrophic Loss?
ontinuity is critical in organizations would have received had • RELOCATION—In the event that your business, and there are few they been able to operate. primary location is unusable following things more important than This was particularly important for the a disaster or other event, you will continuous revenue and cash bagel shop, as paying for costly repairs and likely have to relocate in order to flow, particularly for small- to not having a steady flow of income could remain open and continue generating Cmedium-sized organizations. In fact, just revenue. Business interruption have bankrupted the business. With the one brief business interruption can be right policy, organizations can take the insurance can cover the expenses of incredibly costly for an organization, often necessary steps to get back up and running, moving your business to a temporary leading to serious reputational damages or all without sacrificing day-to-day income. location and may include both moving long-term closures. and rent costs. CLAIMS SCENARIO: RELOCATION, If you think about it, there are several RELOCATION, RELOCATION • EMPLOYEE WAGES—If you are local examples of businesses that faced unable to operate, it is likely you unfortunate circumstances. Nearly two The company: A mid-sized auto dealership. will not be able to continue paying years ago, Colonial Cleaners faced a The challenge: After a night of severe employees. Business interruption structural fire that affected many of the flooding, a number of area businesses insurance can help you avoid losing businesses in Thornapple Plaza on US 30 experienced substantial water damage. Of staff while you’re closed by ensuring in Valparaiso. More recently, Allure on the these businesses, an auto dealership was that you make payroll. Lake in Chesterton faced a devastating fire hit the hardest, losing the majority of its LOAN PAYMENTS—If you have an that left many couples without a wedding • inventory. outstanding loan, you will need to venue. In addition, because the lot was flooded, continue to make payments even if It’s easy to talk about insurance in the the dealership had to move its operations your business isn’t fully operational. abstract, thinking “That won’t happen to to a new location. This, in turn, meant Business interruption insurance will me.” However, incidents like these—ones the dealership had to sign a new lease and ensure you never miss a payment until that happen close to home—are a reminder cover steep moving expenses. you are fully operational again. that anything can happen unexpectedly. Business interruption insurance in Business interruption insurance is That’s where business interruption action: In the face of a disaster or other designed to give businesses access to the insurance can help. This form of coverage disruptions, organizations may be forced assets they need when they need them provides protection against a variety to move to temporary locations in order to most. However, these policies can be of common interruptions, including remain open. Without the proper policy, complex, and it’s important to work with natural disasters, equipment damage, and organizations would have to pay for these your insurance broker closely when seeking vandalism. costs out of pocket. coverage. CLAIMS SCENARIO: YOU’RE FIRED Thankfully, business interruption The company: A small, family-owned bagel insurance can reimburse organizations for shop. all of the costs associated with a move. The challenge: Following a recent fire, a BENEFITS OF BUSINESS INTERRUPTION bagel shop experienced major property INSURANCE damage. Not only were substantial repairs • REVENUE—In the event of a needed, but the company lost crucial disruption, business interruption baking equipment. insurance provides coverage for Repairs for the damaged property and income your business would have BY: ALISON WILLIAMS equipment were expected to take three earned during a closure period if it COMMERICAL ACCOUNT EXECUTIVE, GENERAL INSURANCE SERVICES months to complete—a significant amount had been operating normally. of lost time and revenue. • RENT OR LEASE PAYMENTS—Even if Born and raised in Chesterton, Alison Business interruption insurance in action: your premises are unusable following Williams joined the GIS team in 2016 Following a covered disruption, business a disaster or other event, many leases where she specializes in commercial interruption insurance can help businesses still require that you make payments. insurance. She is a volunteer with of all sizes stay afloat and recover quickly. Business interruption insurance Porter County Court-Appointed Special This is because business interruption allows you to continue making rent Advocates, and in her spare time, she insurance can reimburse income that or lease payments, even while your enjoys spending time with friends business is not operating. and family, beach days, and musical performances.
26 CYBER ATTACKS
Would Your Business Survive A Catastrophic Loss?
Cyber-Attacks On Main Street Businesses
e live in a fast-paced, Contrary to popular belief, hackers Business owners need to take a hard look technology-driven world predominantly target small- to medium- at their network security and determine where everything is a sized businesses. According to research if their business could withstand a cyber swipe or a click away. done by Travelers Insurance, 60 percent breach. Cyber Risk Insurance is a cost- The technological of all attempted cyber-attacks are on effective way to make certain a business Wadvances made in the past five years are small- and medium-sized businesses. Many can continue to function if a cyber-attack nothing short of miraculous. Our entire large firms have extensive web security occurs. Insurance carriers are offering business and personal lives are no farther and spend a considerable amount of extensive training and loss prevention. It away than an application on our phone, resources to ensure their data is protected. is important for small businesses to take which for most of us is probably within a Unfortunately, this is not the case for many advantage of these resources and become two-foot radius. While technology makes Main Street business owners which is why as educated as possible on all aspects of a our lives convenient, it is also convenient there is an increase of attacks on smaller cyber-attack. + for hackers to steal sensitive information. local businesses.
We know what it took to build this business.
BY: KYLE ROSENBAUM COMMERCIAL ACCOUNT EXECUTIVE, GENERAL INSURANCE SERVICES Kyle Rosenbaum was born and raised in La Porte. He attended Manchester University where he received a B.A. in Accounting. Upon joining GIS in 2013, And we know what it takes to protect it. he became the second generation of the Rosenbaum family to be involved in the agency. In his spare time, Kyle enjoys To find out how West Bend can help protect your valuable business, contact this Official Supplier of the Silver Lining®. golfing, hunting, and fishing.
(219) 879-4581 www.genins.com
27 SMALL BUSINESS THREATS
ptimism is the fuel that drives unusable, what would you do? Ideally, the entrepreneurial spirit, you would move to a temporary location so it isn’t surprising that while your permanent place of business is most small business owners being repaired, but traditional Property consider themselves optimists. Insurance does not cover this move or OToo much optimism, however, can get the loss of income while the permanent a small business owner into trouble. A business location is being repaired. Ill- business plan built solely on the “best-case prepared businesses are often forced to scenario” is like a house of cards: one gust completely shut down operations during of wind—or fire or wrongful termination repair, which can do irreparable damage to lawsuit—and the entire business can come their brand and leave employees without crashing down. That’s why smart business work for extended periods of time. owners temper their innate optimism with To mitigate this risk, consider adding a healthy dose of reality. In other words, Business Interruption coverage to your they learn to manage risk. Property Insurance policy. This invaluable, The first step in implementing a though often overlooked, coverage comprehensive risk management plan is safeguards your business by covering identifying potential risks. To help you get operating expenses and lost income while started, we have provided a list of the top your permanent business location is being 10 threats facing small business owners. repaired. This will allow you to maintain As you read through the list, consider the payroll and, if needed, reallocate current unique risks facing your business and ask employees to help with the cleanup effort. yourself whether those risks are being 3. LIABILITY LOSSES managed effectively: No matter how well you plan, running 1. PROTECTING YOUR PROPERTY a small business can be fraught with Property holdings are often a small unexpected surprises. The only way to business owner’s largest asset. Therefore, completely avoid liability is to shutter for the long-term security of your small your business. Smart business owners business, it is vital that you evaluate do the next best thing: protect their potential threats to your property and assets by carrying adequate Commercial develop a plan to manage those threats. General Liability (CGL) Insurance Begin by taking a complete inventory of coverage. CGL policies provide coverage all your assets to determine how a loss for claims of bodily injury or other physical might affect your business and how much injury, personal injury (libel or slander), coverage you need. Property coverage can advertising injury, and property damage come in many forms to suit your specific as a result of your products, premises, or The needs, but a typical policy will provide the operations. A CGL policy with adequate replacement cost value for your building coverage limits enables you to continue and the actual cash value for your business normal operations while dealing with Top 10 property. real or fraudulent claims of negligence or wrongdoing, and also provides coverage for You have a lot weighing on your budget the cost of defending and settling claims. already, but don’t make the mistake of THREATS planning for the “best-case scenario” when 4. KEY PERSON LOSSES it comes to your property coverage. Leaving Many small businesses are built around the your small business underinsured is a risk talents and expertise of a few individuals. To Small too great to take. If an employee crucial to the functioning 2. BUSINESS INTERRUPTION of your business departs unexpectedly due to death or injury, would day-to-day The US Department of Labor estimates Businesses operations continue as usual or would that more than 40 percent of businesses disorder and uncertainty ensue? Would never reopen following a disaster such as you be able to maintain your current level a fire or flood. Is your business prepared to of performance and revenue stream? How weather the storm if disaster strikes? If a would you cover for the financial loss fire causes your facility to be temporarily of the employee or pay for a temporary
28 SMALL BUSINESS THREATS
replacement during his or her recovery? 7. ENVIRONMENTAL EXPOSURES disaster that interrupts your supplier’s Key Person Insurance can help you answer regular business operations could have Think of a business with significant these questions with confidence. This a crippling effect on your production environmental exposures. What comes coverage is designed to provide financial abilities. Although you should always try to mind? Most people think of a large stability in a time of stress and uncertainty, to minimize potential liability through manufacturing, mining, or petroleum allowing you to keep your business moving contingency planning and other risk operation. But these are not the only forward without missing a beat. management techniques, as supply chains industries at risk for environmental grow across the globe, sometimes there 5. INJURIES TO EMPLOYEES liability losses. It is important to perform a is little you can do about the exposures comprehensive risk analysis to determine Small business owners, especially those faced by your suppliers. In a perfect world your own level of exposure. Keep in mind with fewer than employees, often you could simply avoid doing business that because most commercial insurance struggle with understanding their with companies that present numerous policies contain pollution exclusions, employee health 10and safety obligations. risks or that are unwilling to conform to unless you carry Environmental Insurance, Just like their larger counterparts, small your standards, but pricing constraints you may be uninsured against significant businesses have the same responsibility and niche markets limit the number of environmental loss exposures. to indemnify workers who are injured potential suppliers to choose from. or become ill during the course of their 8. EMPLOYMENT PRACTICES Supply chain insurance is meant to employment. Many businesses do not From the moment you begin the prehiring cover losses you incur as a result of an realize the full effect workplace accidents process until the final goodbyes at the exit interruption to your supply chain. Such have on their organization. Beyond initial interview, you are at risk for a lawsuit. In coverage allows you to work confidently treatment costs and lost production time, fact, three out of five employers will be with suppliers who face exposures beyond on-the-job injuries have an impact on sued by a prospective, current, or former your control. insurance premiums, which can increase employee while they are in business. your costs for years to come. Insurance is a key component of any Although many lawsuits are groundless, comprehensive risk management plan, but Thankfully, by managing exposures defending against them is costly and time- successful risk management also involves and promoting safety, it is possible to consuming. Your business should take a prevention, training, and contingency control workers’ compensation premiums. hard look at whether it can afford to defend planning. Contact us to learn more about Having the proper pre- and post-accident itself against accusations of wrongful the tools and resources we can offer to procedures in place can drastically reduce employment practices. If not, there is an help you manage risks, control workers’ the severity of a workers’ compensation insurance solution called Employment compensation costs, advance safety, and claim, and implementing a comprehensive Practices Liability that will protect your boost employee morale. + safety program can reduce the accident company against wrongful termination, rate. Together, these two steps can produce discrimination (e.g., age, sex, race, tremendous long-term savings. disability), or sexual harassment lawsuits. 6. MANAGING ELECTRONIC DATA AND 9. CONTRACTS COMPUTER RESOURCES When first starting out, many new Small businesses often lack a formal IT business owners simply don’t have the department or even rudimentary internet time or expertise to adequately evaluate security measures, which leaves them each clause in everything they’re signing. vulnerable to unscrupulous cybercriminals This oversight, however, can create major searching for an easy target. With an problems down the road. In many cases, estimated liability of more than $200 small businesses become saddled with BY: ELIZABETH JOHNSON per compromised record—multiplied large additional risks, accepted via risk COMMERICAL ACCOUNT EXECUTIVE, by hundreds or thousands of customer transfer from savvy suppliers or customers. GENERAL INSURANCE SERVICES records—the cost of a single data breach While it’s tempting to shave costs by Elizabeth Johnson is an enthusiastic incident can be devastating for a small skimping on legal fees, making sure your professional with extensive experience business. If your business stores customer business isn’t accepting additional and in building customer relationships. records electronically, it is crucial that you unnecessary risk can save you a lot of A native to La Porte, she has worked have robust security measures in place. In money over the long haul, both in legal for the nonprofit community, addition to taking preventative measures costs and in insurance coverages. manufacturing industry, and boating to reduce internet-based exposures, 10. MANAGE YOUR SUPPLY CHAIN industry throughout her career. She specialized technology coverage, such as received her Bachelor of Science Cyber Liability Insurance, can help protect Do you rely on one or more third-party in Business at Purdue University your business against damage from cyber- suppliers to produce certain components Northwest. Elizabeth enjoys spending attacks, data breaches, and other internet- used in your products? If you do, a time with her family, kayaking, hiking, based exposures. biking, and snowboarding.
29 BUCHERTECH
BUCHERTECH COMPUTER SECURITY
“TOTO, I HAVE A FEELING WE ARE NOT Password Management: When it comes to password and the password manager takes IN KANSAS ANYMORE” managing your passwords, I have identified it from there! four types of users: hen Dorothy uttered Why take all of these security measures? those famous words in 1. Users that have the same password for Internet criminals are hard at work. If you the 1939 movie, The everything. This is a recipe for disaster as are not proactive, you are at risk to be their Wizard of Oz, little did sooner or later one of their websites will next victim because Toto, we are not in she know that she would get hacked and then the whole world has Kansas anymore! Wbe quoted so many times in the years since access to all of your information. then, but it certainly rings true regarding 2. Users that have unique passwords for 80 the securing of your computers years each site, and write them in a log that is in later! their top left or right drawer. This is better Consider the following timeline of in that only the people that have access computer security: to the top drawers can access all of their confidential info stored in the internet. 1980 – Security was making a periodic Unfortunately, this can be a lot of people. backup of your data, often stored on multiple floppy disks! 3. Users that memorize a variety of catch phrases with a variety of schemes to login 1990 – With the advent of the internet, to websites. This is better in that they are antivirus software now became necessary. unique and safe, but this becomes quite 2000 – Email spam became a real problem, challenging to manage and segregate all of and the spam blocker was created. Also, we those passwords in your head. BY: TIM BUCHER started utilizing passwords. 4. Users that utilize a password manager to 2010 – Multiple security solutions started manage all of their unique passwords. Born in Valparaiso, Tim attended arriving on the scene, including more Morgan Township High School and Of the four methods listed above, the powerful firewalls and applying Windows in 1979 graduated from Purdue with password manager is clearly the best updates became an ongoing process. B.S. in General Management. He solution. Since you access many sites that worked for four years at Midwest Steel TODAY – Many more tools have arrived need to be secured, why not utilize a tool as Financial planner and programmer. on the scene to help protect you, including that can keep track of all of them. If you In 1983 he became the first full time Malware protection, monitoring tools to consider that you have automated many employee of Chester Technologies. In notify you when there is an issue, employee tasks that you used to do manually, why 1996 he was elected to the East Porter training and testing tools, password not use a tool to manage passwords? This County School board which included managers, and multi-factor authentication. will allow you to utilize your brainpower stints as Vice President and President. Data backups have evolved to be an to be creative in solving business problems In 2001 he started Buchertech, focusing ongoing process, happening as often as and creating new solutions instead of on small business solutions. Buchertech every minutes. memorizing letters, numbers and special moved their offices in 2015 to downtown characters! It isn’t15 a coincidence that the number of Valparaiso at 6 Michigan Ave., historic tools has increased in recent years. With Please note, we do not recommend McMahan Center. Currently Buchertech the attacks firms of all sizes have been using your computer browser to be your employees total 21, providing managed victims of, securing your devices has password manager. All it takes is someone services and many different security become more and more of a challenge. to hack or steal your PC and they have solutions to organizations throughout For the sake of space, here is just one of all of your passwords. Instead, there are the region. the more recent solutions that businesses many online password managers available. should consider. You just memorize one long and secure
30 Your business success depends on your network Putting together the pieces being fast and secure. Buchertech safeguards since 2001. your network’s performance by:
PLANNING THE SYSTEM, DEPLOYING THE TECHNOLOGY, AND SECURING IT ALL.
When your network succeeds, so do you.
6 MICHIGAN AVE. SUITE A • VALPARAISO, IN 46383 TEL: 219-465-4500 • FAX: 219-465-5476 WWW.BUCHERTECH.COM • [email protected]
Your insurance is no di erent. Mark L. Phillips William S. Kaminski Nicholas T. Otis Safeco Insurance® agents make sure your bases are covered without breaking Martin W. Kus David P. Jones Anthony G. Novak the bank. They take the time to understand your personal insurance needs and provide unbiased local advice you can trust. Mark A. Lienhoop Matthew J. Hagenow Alyssa N. Speichert James W. Kaminski Kristina J. Jacobucci
Proud to Support RETIRED John E. Newby (1916-1990) Leon R. Kaminski Daniel E. Lewis, Jr. Arthur L. Roule, Jr. Daniel E. Lewis (1910-1997) Gene M. Jones Perry F. Stump Edward L. Volk
916 Lincolnway, La Porte, IN 46350 219.362.1577 (La Porte) 219.879.6300 (Michigan City) nlkj.com Your Trusted Business Advisor
We offer a large variety of business solutions, including insurance, risk management, and employee benefits. Our goal is to protect your company from the risks of today and the emerging risks of tomorrow. We look forward to helping your business grow and succeed. www.genins.com