Vol. 2 | ISSUE 17 | SEPTEMBER 2018
10 Steps to Start Your Business
page 26
7 Myths About SBA 504 Loans
The Big Power of Small Businesses Joseph Amato, District Director of SBA
page 5
LETTER FROM THE
LETTER FROM THE
EDITOR
PUBLISHER
by Corrine Casanova
Richard W. Moore
Small businesses are the bread and butter of our community. I think Linda McMahon, Small Business Administration (SBA) Administrator, said it best, “Small businesses may not put their names on stadiums and skyscrapers, but they likely put them on the uniforms of their local Little League and bowling teams.”
In review of all our cover stories and our publisher letters, it is interesting to note that we have not made mention of the actual person or people on the cover very often. I feel compelled to write about the strength of character, poise and image this cover projects. Over the past 17 months we have had many charismatic individuals and groups of people on our covers. When we as a team began the process of preparing this issue for printing, we all loved this cover.
It is no secret that small business is big business here in Nevada and nationwide. In 2016, 55,446 loans under $100,000 (valued at $744.3 million) were issued by Nevada lending institutions to small businesses. Small businesses created 26,753 net jobs in 2015. I spoke with Rachel Dahl, SBA Nevada Service Area Manager, to learn more about how the SBA helps small businesses in our community. During our conversation, we talked about how each small business has a story to tell. If you are a small business and you’d like to share your story, consider applying for or nominating another small business for the 2019 Small Business Awards. Submissions will be considered until the deadline of January 9, 2019. Categories include: Person of the Year, Exporter of the Year, Young Entrepreneur of the Year, Minority Owned Business of the Year, Woman Owned Business of the Year, Veteran Owned Business of the Year and Rural Business of the Year. Winners will be honored during National Small Business Week in May 2019. If you are interested, go to the Nevada’s SBA website. Not only will you find the application form for the 2019 Small Business Awards, you’ll have an opportunity to explore all that the SBA has to offer to make your business successful.
In business, whether we are talking about business in the public or private sectors, leadership is a quality necessary for success. Simply stated, when I look at the cover with Joseph Amato, the SBA’s Nevada District Director on it I see LEADERSHIP! Here are some of Joseph Amato’s accomplishments which may explain why this cover is so captivating: •
His position is an appointed one from the highest levels of the Executive Branch
•
He is a former executive with over thirty years in small business development and commercial lending
•
A successful Entrepreneur who eventually sold his business to a major financial institution
•
Former Executive Director of a Small Business Development Center
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Was recognized as SBA Financial Services Advocate of the Year
•
Prior to injury, he was considered a professional football prospect
These are just a few elements from Joseph’s life which lend a small insight as to why this cover is so powerful, charismatic and eye catching. I would like to personally thank Joseph and his staff for contributing to our feature story. Needless to say, he and his staff are extremely busy and yet they always seem to find the time for the extras which are helping Nevada lead the way in business.
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INTHISISSUE VOL. 2 / ISSUE. 17 BizNEVADA PUBLISHING TEAM BizNevada Publishing Team PUBLISHERS: Richard Moore and Chris O’Sullivan GRAPHIC DESIGNER: Kaylyn Dazey EDITOR-IN- CHIEF: Corrine Casanova PHOTOGRAPHER: Jeff Scheid COVER PHOTO: Joseph Amato, District Director Small Business Administration ADVERTISING Chris O’Sullivan chris@biznv.com Richard Moore richard@biznv.com FEEDBACK/IDEAS We welcome your feedback and ideas regarding BizNevada. Send a message to info@biznevada.com
PG 5-6
The Big Power of Small Businesses
PG 7-8
7 Myths About SBA 504 Loans
PG 9
8 Tips for Building Your Business
PG 12
10 Steps to Start Your Business
PG 13-14
Reputation Management and Reputation Rehabilitation for Your Business
PG 15-16
#EveryNinetyMinutes
PG 17
On the Move
PG 18
Operation Camo Christmas
PG 20-21
Calendar of Events
PG 22-23
Blockchain 101
PG 24-25
Aaron West, Pioneer of the Year
PG 26-29
Tokes Cryptocurrency: An Alternative to Banking for the Cannabis Industry
PG 30-31
NEW COFFEE TALK FEATURE: Meet Jennifer Pyle
© 2018 Carpe Diem International. All rights reserved. CONTACT US info@biznevada.com www.biznevada.com
EXPERT CONTRIBUTORS Jeffrey Benjamin Corporate Training Breakthrough Training BreakthroughTraining.com 775-337-1600 Kyle Reeves Digital Marketing Revolution Online Marketing RevolutionReno.com 775-335-0091 Govind Davis Digital Marketing Big M Marketing bigm-marketing.com/ 415-992-7711 Brent Forbush Certified Public Accountants Forbush & Associates ForbushAndAssociates.biz 775-337-6001
Brian D. Wheeler Financial Advisor Massachusetts Mutual Life Insurance Agency BoulderBasin.MassMutual.com 775-870-1552 Mike Menath Insurance Menath Insurance MenathInsurance.com 775-831-3132 David Spillers Printing Digiprint DigiprintCorporation.com 775-786-4464 Workers Compensation EMPLOYERS EMPLOYERS.com 775-327-2700
KJ Smith Background Checks Employer Lynx EmployerLynx.com 775-883-3733 Ron Ford HVAC Sierra Air SierraAir.com 775-800-5500 Tim Kirk Credit Card, Merchant Services PaidRight GetPaidRight.com 775-393-9669 Golf Hidden Valley Country Club HVCCReno.com 775-857-4735
BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 3
4 · ISSUE 17 · OCTOBER 2018
The Big Power of Small Businesses by Corrine Casanova Photo credit: Howieloo Photography LLC, Photographer: Laura Howard
According to the U.S. Small Business Administration (SBA), over half of the U.S. workforce either owns or works for a small business. In fact, small businesses create two out of every three net new jobs in the private sectors. Rachel Dahl, a sixth generation Nevadan, has been the Senior Area Manager of SBA since March 2018. “You can’t do economic development without strengthening your small business community. It is paramount to being able to attract new business to the area. In my mind, you can’t do one without the other,” said Dahl. Small businesses are the drivers of Nevada’s growing economy. Nationwide, there are 30.2 million small business owners and in Nevada alone there are 254,337 small businesses. (US SBA Office of Advocacy, 2018). Nevada Small Business Facts: •
Over 428,000 Nevadans are employed by small businesses in Nevada
•
95.6% of Nevada businesses are classified as small
•
Between 2007-2012, minority ownership increased by 57.8%
•
Women own 36.6% of small businesses in Nevada
The SBA’s mission is “to maintain and strengthen the nation’s economy by enabling the establishment and viability of small businesses and by assisting the economic recovery of communities after disasters.” Depending on your industry, a small business could be defined as a business with a maximum of 250 employees or 1,500 employees. Privately owned corporations, partnerships or sole proprietorships can all be classified as small businesses. Dahl is passionate about growing the small business community here in Nevada. “I always go back to the economic development world when I think about how important small businesses are. You spend all your time chasing that one big company to come to your town and hire 500 local people, but if you focus on your small business community, you can achieve similar results but in a different way. You can end up with maybe 100 really strong small businesses and achieve your 500-employee quota. That way the community can absorb all of things that come with that workforce including housing and so on. I don’t belittle developing a community by attracting large businesses as when it happens, it is fabulous but I think a lot of time we get stars in our eyes wanting that one 500 employee factory and totally forget to take care of our small businesses. When that happens, suddenly you have no strengths in your small business community and you don’t have the infrastructure to attract a big company,” BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 5
said Dahl. Joseph Amato is the District Director of SBA in Las Vegas. He sees Nevada as a land of entrepreneurial opportunity with its low tax and low regulatory environment. “The SBA is a primary resource for government guaranteed and fixed-asset loan programs. The SBA serves as an integral partner with area, regional and national lenders that seek to provide competitive commercial loans utilizing these loan programs. Access to capital remains a priority and our efforts to increase small business lending will reflect the importance of our lending-related programs to the Nevada small business community,” said Amato. There are 13 banks headquartered in Nevada that work with the SBA to provide loans. However, most lenders have the authority to make loans nationwide. Currently, 69 banks have made SBA loans in Nevada this fiscal year. In Dahl’s role as the Nevada Service Area Manager for SBA, she travels extensively throughout the state doing outreach letting the community know about the resources available to them. Frequently, she delivers the most recent Small Business Resource Guide that contains an overview of the depth and breadth of the services they provide. Many aren’t aware of the training SBA provides small businesses. On their website, www.sba.gov/offices/district/nv/lasvegas, they have a learning center which includes training videos that includes writing a business plan, marketing and anything else you’d like to know about running a small business. “One of the strengths of the SBA in Nevada is our resource partners. These include: the Nevada Small Business Development Center, Nevada Women’s Business Center, SCORE Northern Nevada and Las Vegas, the Procurement Outreach Program, the Procurement Technical Assistance Center. All of 6 · ISSUE 17 · OCTOBER 2018
Photo credit: Jeff Scheid these help small businesses gain access to government contracts. Often, small businesses aren’t taking advantage of government contracting,” said Dahl. She shared a hypothetical example of someone who owns a cupcake shop. They may not consider applying to be a government contractor because they wouldn’t know how it could benefit them. They may be missing a huge opportunity when suddenly a government agency wants 500 cupcakes once a month for an ongoing event. “If you can land a government contract, that can become the bread and butter of your business. You can then rely on a certain amount of money in a certain time period. It gives your business stability. Government
contracting is a focus of ours right now. We just don’t believe small businesses are taking advantage of this opportunity enough,” said Dahl. Nevada’s SBA works closely with other government agencies including the Governor’s Office of Economic Development. “All the different agencies at the local, state and federal levels work together. In the state of Nevada our strength is that we respect the heck out of each other to support small businesses in our community. Everyone works together and it is awesome,” Dahl concluded.
7 Myths About SBA 504 Loans by Evan Dickson, President, Nevada State Development Corporation The following seven myths and facts refer to the U.S. Small Business Administration (SBA) Commercial Loan Program.
MYTH 1:
It takes four to six months to get a loan approval. Fact: You can obtain an SBA approval as quickly as ten business days. Tip: Provide your lender with a complete package and answer your lender’s questions as soon as you can. Being available to the lender will greatly speed up the overall process. MYTH 2: SBA loans are expensive. Fact: All commercial real estate loans have loan fees, professional fees, and closing costs. The SBA 504 loan program will allow you to finance the fees associated with your 504 loan and use many of your out of pocket BIZ NEVADA MAGAZINE ¡ WWW.BIZNEVADA . 7
fees towards your 10% equity injection. Tip: If there is enough value in your appraisal, additional fees and costs can be financed. (example: appraisal and environmental reports) MYTH 3: SBA lending limits are too narrow. Fact: SBA 504 loans start at $25,000 and can go as high as $5,500,000. Tip: Talk to your local certified development company to see what you can qualify for based on your particular situation. MYTH 4: It is hard to qualify for a loan based on my past. Fact: People with a criminal history, bankruptcies, or significant credit issues can and have received financing through the SBA 504 loan program when they otherwise would not qualify for standard bank products. Tip: Be forthcoming with all personal history as soon as possible, no matter how long ago the incident happened, so your lender can address the possible issues. Your past does not have to stand in the way for your future. MYTH 5: There is just too much paperwork. Fact: The paperwork is comparable to that of any business loan. There are a few SBA documents that need to be completed, otherwise the packages for a commercial real estate loan and SBA 504 loan are the same. Tip: Work with your local certified development company so they can share the pertinent documents with the local lender. MYTH 6: I have to put down 30% to buy or build a commercial building and pledge my home. Fact: Most businesses qualify for 10% down when they use SBA 504 financing for their purchase. In most cases the loans are only secured by the building and/or machinery being financed and the personal guarantees of majority business owners applying for financing. Tip: To qualify for the lowest down payment, your business must have two years of verifiable income. Also be sure your business ownership structure is in line with the business’ future goals of real estate ownership before applying for financing. MYTH 7: Fixed rate commercial loans or refinancing of existing business debts are seldom available. Fact: The benefits of an SBA 504 loan include a low down payment, longer loan terms, and larger loan amounts than may be available through a conventional loan. In most cases, the borrower’s down payment 8 · ISSUE 17 · OCTOBER 2018
will be 10% of project costs. Interest rates on the SBA 504 loan are below market rate and are fixed for the duration of the loan term (10, 20, and 25 years). Eligible small businesses may also be able to refinance certain qualified existing debt under the SBA 504 Debt Refinancing Program. Loans made through this program are structured like traditional 504 loans. Borrowers can refinance up to 90% of the current appraised property value. The refinancing may also include a limited amount of eligible business expenses. Tip: Ask your bank for an SBA 504 loan/refinance if you are considering financing through this particular program. Banks have a lot of different loan products and the SBA 504 loan may not be something that they do often but could provide the best solution for your particular situation. Nevada State Development Corporation (NSDC) www.NSDC. COM is a local non-profit certified development company licensed by the U.S. Small Business Administration (SBA) to assist business owners in obtaining financing though the SBA’s 504 Loan Program. With over 32 years of experience in business financing, NSDC has forged strong relationships with numerous financial institutions and brokers through-out the region. Reno office: 6572 S. McCarran Blvd.; 775-770-1240 Las Vegas office: 1551 Desert Crossing Ct.; Office: 702-877-9111
3. SCORE: Supported by the SBA, SCORE is a nonprofit that helps entrepreneurs launch and grow their business. There are SCORE locations throughout the U.S. Between workshops and mentorship business owners can access professional support year-round. 4. Faith-based community:
8 TIPS FOR BUILDING YOUR BUSINESS SUPPORT NETWORK by Ijeoma S. Nwatu Whether you are just branching out or gearing up for your umpteenth year in business, it never hurts to have a supportive network around you. Owning a business can not only be stressful but lonely. Not every family member or friend will understand or emphasize with your entrepreneurial journey. The key is to surround yourself with likeminded individuals who can offer advice, share opportunities and listen to your big ideas. Go beyond your typical inner circle and broaden your network of support. Consider the following strategies in either engaging with people you hope to connect with or need to re-engage to strengthen the support around you as well as to look for new business opportunities. 1. Alumni: Reconnect with college and/or high school staff and classmates by letting them what you are doing now and what you have accomplished or plan to accomplish in your business. There might be opportunities to collaborate with university or community college by speaking at the school, hiring seasonal workers or bidding on a project. If you have children or are engaged in your local community, this strategy applies to reaching out to the parents and teachers association (PTA) or a similar group within the school. 2. Chamber of Commerce:
Your spiritual relationship with the members at your place of worship can have a positive effect on your personal life and business goals. Lean on faith-based organizations and activities that promote a healthy, productive lifestyle. 5. Extracurricular groups: It’s easy to forget that we form bonds with people we meet through leisure activities like sports leagues, volunteer and travel groups. When not working on or in your business, it’s essential to have a release. 6. Former co-workers: If you’ve shared ideas or worked well with previous coworkers and staff, re-engage them to share your current business venture. Their skillset might be useful in your next idea or they can provide insight or contacts that you may have not consider. 7. Professional organizations or conferences: Depending on the nature of your work and business, there might be an established network of professionals who meet annually. Conferences and professional groups are instant support systems because they bring together small and large crowds of people who are similar. You can get a lot of inspiration and information by not only attending events but potentially sponsoring or speaking at one. 8. Online groups via forums, private Facebook groups or Slack communities: Thanks to the internet and social networking, interfacing with other business owners across the world is reality. Building connections that go beyond day-to-day business matters, can provide new ideas and a different perspective. Ijeoma S. Nwatu is a digital strategy and communications consultant. Reprinted with permission from SBA.gov.
Join a local or state chapter and meet and support business leaders. Becoming an active member can expose you to other industries, opportunities and like-minded contacts. BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 9
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10 STEPS TO START YOUR BUSINESS Starting a business involves planning, making key financial decisions, and completing a series of legal activities.
1. Conduct market research. Market research will tell you if there’s an opportunity to turn your idea into a successful business. It’s a way to gather information about potential customers and businesses already operating in your area. Use that information to find a competitive advantage for your business. 2. Write your business plan. Your business plan is the foundation of your business. It’s a roadmap for how to structure, run, and grow your new business. You’ll use it to convince people that working with you — or investing in your company — is a smart choice. 3. Fund your business. Your business plan will help you figure out how much money you’ll need to start your business. If you don’t have that amount on hand, you’ll need to either raise or borrow the capital. Fortunately, there are more ways than ever to find the capital you need. 4. Pick your business location. Your business location
is one of the most important decisions you’ll make. Whether you’re setting up a brick-and-mortar business or launching an online store, the choices you make could affect your taxes, legal requirements, and revenue.
5. Choose a business structure. The legal structure
you choose for your business will impact your business registration requirements, how much you pay in taxes, and your personal liability.
6. Choose your business name. It’s not easy to pick the perfect name. You’ll want one that reflects your brand and captures your spirit. You’ll also want to make sure your business name isn’t already being used by someone else. 7. Register your business. Once you’ve picked the perfect business name, it’s time to make it legal and protect your brand. If you’re doing business under a name different than your own, you’ll need to register with the federal government, and maybe your state government, too. 8. Get federal and state tax IDs. You’ll use your employer identification number (EIN) for important steps to start and grow your business, like opening a bank account and paying taxes. It’s like a social security number for your business. Some — but not all — states require you to get a tax ID as well. 9. Apply for licenses and permits. Keep your business
running smoothly by staying legally compliant. The licenses and permits you need for your business will vary by industry, state, location and other factors.
10. Open a business bank account. A small business checking account can help you handle legal, tax, and day-today issues. The good news is it’s easy to set one up if you have the right registrations and paperwork ready. Reprinted with permission by SBA.gov.
Reputation Management and Reputation Rehabilitation for Your Business: What You Can Do to Protect and Fix your Online Reputation by Bruce Brown – special to bizNEVADA
Maintaining a good reputation and especially reputation rehabilitation is a challenge for U.S. for businesses in 2018. Yelp.com, YP.com, Google Business, and other similar websites can make or break a company. Unethical competitors, angry customers and others with legitimate complaints can harm a business, hurt profits, even put a business out of business unfairly. And yes, the same result can happen because of legitimate poor customer service when a business owner or employee might be having a bad day. Uber is an excellent example. I won’t go into the security breach, alleged illegal activities and sexual harassment suits. However, just do a search for, “Uber government fines and fraud,” and see what shows up. Uber had to do some serious costly reputation rehabilitation. And it worked. Today, if you search simply, “Uber” the scandalous information is now at the bottom of the first page or even on page two. Statistically, only about 20% of people go to page two when conducting a search. So, what can you learn from Uber if you are a small business owner? Trust me, a lot! The following are some rules of thumb when it comes to keeping your reputation intact BEFORE anything really bad happens to hurt it.
Protecting the Reputation of Your Business •
Give someone the job (who understands exactly what to do) to keep track of your social media as well as the most important online business directories such as: Yelp.com, Google Business, YP.com (a more compete list is in my free report mentioned in my article in last month’s issue of BizNEVADA). You can also do the research yourself if YOU have time and know where to look and what to do. You could also hire a skilled company to keep track of your reviews and help you fix them in a timely fashion if things go badly.
•
If you get a poor review, most of the time you can contact the person who made the negative posting. If you can answer their negative comments publicly on the review site itself all the better. Say you are sorry and offer to give them a customer service solution that seems reasonable. Maybe their money back, something free or guarantee you will also talk to the “bad” employee. Let them know you are the owner, sales director or manager who has the power to make it right, so to speak. Request that they contact you directly so you can fix it. It is seldom a good idea to ignore the posting. That generally leads to bad ratings/ rankings and even “copy-cat,” bad review posters. If that happens, you can create a snowball effect BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 13
dropping your review rankings into the basement. If the Problem Seems Insurmountable One method that can often work (although it may be against the rules of the online business directory and they may penalize if they can prove or believe you did it) is to “bury” the bad reviews with good reviews. By the way, if your complaint(s) are because of legitimate poor service and you refuse to fix the problem this method will generally not work because you will continue to receive poor reviews. Some business owners use different customers/ clients to place legitimate reviews by asking, begging or bribing for reviews. Some use reviews from family and friends. I cannot recommend using any of these “sneaky” fix it ideas...contained in this article. If you are discovered by the specific review site using “sneaky” methods they may temporarily or permanently suspend your business profile. If that happens, this problem can often be reversed by paying the business profile company “advertising money” to get your profile posting back and up and “straightened out” completely with even some poor reviews deleted. If you do not have the time for any of this and you suspect or are certain that your poor ratings are losing you business...your only recourse may be hiring a professional company with reputation enhancement/ reputation skills. A good company will not be cheap but they will use a multi-pronged approach that could include: a positive press release perhaps even a PR/ Publicity campaign, a SEO (search engine optimization campaign) to improve what customers will find out about you online, doing a PPC (pay per click advertising campaign), a cleverly created social media campaign, and more. The whole topic of building, keeping and fixing a business reputation is much more extensive than what I have been able to cover in this hopefully helpful article. Under a special arrangement with the publishers of BizNEVADA, I have agreed to offer a free 15-minute no obligation phone consultation to readers. This is a limited time offer and may be withdrawn at any time. You can call to set up a day and time here: 1-800-982-5007. Be sure to mention you are a BizNEVADA reader to take advantage of this free offer. Have a positive business month. Bruce Brown has had his own successful small businesses and is the author of four how-to books. He helps business owners to start and/or grow their business(s) (even B2B’s), with services and consulting. But he also shows business owners and executives how writing a book can help position them as, “experts in their field.” He can be reached at: 1-(800) 982-5007 anytime. www.brownmarketingconsulting.com and www.yourpublishedbook.com
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#Every90Minutes by Corrine Casanova
Every 90 minutes someone is diagnosed and another person dies from Amyotrophic Lateral Sclerosis (ALS) also known as Lou Gehrig’s disease. This rapidly progressing neurological disease is fatal and attacks the nerve cells that control voluntary muscles. Stephen Hawking who died in March at age 76 defied all odds by living with ALS since he was first diagnosed at age 21. Once someone is diagnosed, typically they are looking at a life span of two to five more years. The Harvard School of Public Health conducted an epidemiological study where men with a history of any military service in the last century were nearly 60 percent more likely to die of ALS than those in the general population. The reason for this is unknown.
According to Lisa Tomlin-Kurr, Events Coordinator of the ALS Association Nevada Chapter, the Ice Bucket Challenge in 2014 brought a lot of awareness and funds toward research. “Though we may not know a lot about ALS, researchers are saying they know more now because of proceeds from the Ice Bucket Challenge which has actually given them a ten-year jump start on research. We still have a way to go because there currently is no cure and there are only two drugs currently approved by the FDA for ALS,” explained Tomlin-Kurr. Creating awareness is one way to combat ALS. Fast approaching is the Walk to Defeat ALS which will be held in Las Vegas on November 4. “The one mile Walk is a party. We will have a DJ, food trucks and of course the Ice Bucket Challenge. We also have pumpkins for Smash Out ALS. You get a sledgehammer so you can smash pumpkins. It’s a BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 15
lot of fun. People can bring their dogs and dress them up. It’s a fun, family event,” said Tomlin-Kurr. Last year, 438 people attended the event and this year they expect over 500. As the awareness grows, so do the participants. Not only do people learn about the disease while participating in this event, they learn more about what services ALS Nevada provides. There are three ways Nevada businesses can get involved and Support ALS: •
Event Sponsorships – there are four major events a year and businesses can sponsor anywhere from $250 to $10,000
•
A Corporate Team – this promotes team building within an organization and displays brand loyalty.
•
Donate gift certificates – these are used for prizes and incentives for team captains and other event cheerleaders.
“Studies show that employers who do a charity event or something revolving around a nonprofit cause employees to form a tighter bond and more loyalty to the company. When companies show they care about a cause it goes a long way with employees. Showing unity by wearing the company t-shirts shows brand loyalty too. That means something to people and goes a long way with employees,” said Tomlin-Kurr. Currently, there are about 160 people that have been diagnosed in the state of Nevada with ALS and ALS Nevada has interacted with about 80 of those patients. “We are trying to close the gap to actively be involved with all 160 patients. And that all starts with awareness. We want to get the word out that we have resources they need. Our 16 · ISSUE 17 · OCTOBER 2018
services include allowing our patients to go to one appointment where they will see ten clinicians in one visit. This may include their respiratory therapist, dietician and physical therapist. We also have a loan closet where we loan out equipment like wheelchairs. Our care service coordinators who have a nursing background are amazing at what they do. They do home visits, answer any insurance questions, help to fill out any necessary paperwork and can help explain Veteran’s benefits. They not only know the medical side of the disease, they are compassionate and caring too. People can apply for Respite Grants which provide funding each quarter for respite breaks. Caregivers need a break. Eventually, patients require 24/7 care. I was surprised to learn that each year someone is living with ALS, they can expend about $250,000 in out of pocket costs for lost wages and purchasing medical equipment not covered by insurance. That’s where we come in. We can help,” concluded Tomlin-Kurr. If you’d like to learn more about ways you can get involved, contact www.alsa.org or contact Lisa Tomlin-Kurr at Lisak@alsanv.org
On the Move Emilee N. Sutton Joins Allison MacKenzie Law Firm as New Associate Attorney
Allison MacKenzie Law Firm is pleased to welcome their newest associate attorney, Emilee N. Sutton. Emilee joined the firm on August 27, 2018 and will focus her practice on Administrative Law, Business Law, Probate, and Litigation. Are you on the move? Let us know at info@biznv. com.
Operation Christmas Camo Seeking Sponsors by Corrine Casanova
All Veterans in northern Nevada are invited to the third annual Operation Christmas Camo this December 16 from 1-4pm at Greater Nevada Field. The Veterans Association of Real Estate Professionals and the Veterans Resource Centers of America are seeking business sponsorships to make the event come alive. Keeping in the Christmas spirit, all northern Nevada Veterans and their families are invited including spouses, guardians and families of Veterans who have died. “This is the first time this has ever been done for all the Veterans in northern Nevada. It is a huge event probably bigger than we ever expected it to be. We are extremely thankful for all the partners who have already signed up especially Greater Nevada Field for providing us with the space to do this. This is something that is near and dear to our hearts. I myself as a Veteran am extremely excited about honoring Veterans during this day. Christmas has always been my favorite time of year. I want Veterans to understand that we care and that their families matter to us as well,” said Shane Whitecloud, Founder and CEO of the Veteran Development Group, Inc. 18 · ISSUE 17 · OCTOBER 2018
The following sponsorship levels are available: $3500 – North Pole Stadium Sponsor – Mistletoe Level + Headliner Logo on Santa’s Bag $2500 – Polar Express Sponsor – Mistletoe Level + Name/ Logo Wristbands $2000 – Snowman/Ice Rink Sponsor – Mistletoe Level + your banner displayed at ice rink during event hours $1500 – Mistletoe Sponsor – Santa’s Elves Level + your logo on Santa’s bag $1000 – Santa’s Elves Sponsor – Candy Cane Level + vendor table $500 – Candy Cane Sponsor – Sugarplum Level + Name/ Logo Wristbands $100 – Gingerbread Sponsor – your donation provides lunch for 10 military members and their families Veterans will receive entrance to the ice rink, stadium access to Santa’s Village, lunch, a Santa’s bag and gifts from each table sponsor, Polar Express, a visit with Santa, a photo book, cookie decorating, a hot chocolate bar along with other activities. For more information on sponsorship opportunities, contact Tina Thornton at (775)815-1981 or TThornton@iServeLending. com or Kimberly Larkin-Ritter at (775)830-5357 or kimberlylarkinritter@gmail.com.
BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 19
October/November RENO+SPARKS CHAMBER
FERNLEY CHAMBER
OCTOBER 25 5:30-7:30PM Wordpress 450 Sinclair St
OCTOBER 25 NOON Rotary Club of Fernley The Golf Club at Fernley
OCTOBER 25 8:30-9AM New Member Orientation 449 South Virginia Street #200
NOVEMBER 10 8:30AM-6PM The Fern 45 Patriot Poker Run Fernley 9A Speedway
OCTOBER 26 11AM Tesla Tour
WIN
OCTOBER 24 4PM Unique HR 160 Country Estates Cir Ste 3
NOVEMBER 15 6:30PM Atlantic Aviation 655 S. Rock Blvd.
TUESDAY MORNINGS Tuesday mornings Fernley Ambassadors The Golf Course at Fernley
NOVEMBER 30 7-9 AM WIN Breakfast
NOVEMBER 17 10:30PM Nugget Casino Resort NOVEMBER 17 AND 18 7:30PM Reno Chamber Orchestra with Soloist Ruth Lenz Nightingale Concert Hall, UNR Campus NCET NOVEMBER 7 11AM-1:30PM 3rd Annual State of Digital Panel Discussion Atlantis Casino Resort Spa NOVEMBER 14 3-5PM Biz Café: Melissa Marsh and Melissa Marsh The Art of Moving On Rounds Bakery
Colette Carlson, Many Communicate, Few Connect Atlantis Casino Resort Spa
CARSON CHAMBER
OCTOBER 25-28 33rd Annual Nevada Day Carnival Mills Park OCTOBER 27-29 MAC Multi-Purpose Athletic Center 1860 Russell Way NOVEMBER 3 1-5PM Wine Walk Downtown Carson City NOVEMBER 16 Crazy for You by Western Nevada Musical Theatre Company Carson City Community Center
NOVEMBER 14 5:30-7:30PM Tech Wednesday UNR School of Medicine University of Nevada, Reno For more complete and up-to-date calendar information, visit biznevada.com/events-calendar
Calendar of Events CARSON VALLEY CHAMBER
During October Harvest Festival at Corley Ranch Pumpkin Sales & Country Store EVERY SATURDAY Genoa Farmers Market 2285 Genoa St. NOVEMBER 3 5:30-9PM Community Recognition Awards Carson Valley Inn NOVEMBER 24 Small Shop Saturday Support local Carson Valley merchants in Gardnerville, Minden and Genoa
ONE MILLION CUPS Every Wednesday 9AM The Innevation Center
BNI MEETINGS
TUESDAY 7AM Mimi’s Café BizClub Zero Swill Coffee Napa Sonoma South
OTHER EVENTS
OCTOBER 24 2-4PM StartUpNV Pitch Day Innevation Center OCTOBER 25-28 A Touch of Class Craft Show Carson Valley Inn, Minden NOVEMBER 1 7-9AM NNBW: Monthly Breakfast and Business Atlantis Casino Resort Spa NOVEMBER 7 2-4PM StartUpNV Pitch Day Innevation Center NOVEMBER 7 6-8PM Lions Club Meeting Jethro’s Restaurant, Gardnerville NOVEMBER 10 9AM-NOON Entrepreneurs Assembly Startup Incubator Roundtable Innevation Center NOVEMBER 13 5-7PM Breakthrough Mixer
WEDNESDAY 7AM Napa Sonoma South Meadowood Courtyard WEDNESDAY NOON Wildcreek Golf Course Famous Dave’s Reno/Sparks Association of Realtors
Cantina Los Tres Hombres
THURSDAY 7AM Swill Coffee Lakeridge 19th Hole The Plaza Hotel, Carson City Mimi’s Café Napa Sonoma South
Patagonia Outlet, Reno
THURSDAY 11:30AM Famous Dave’s
926 Victorian Ave., Sparks NOVEMBER 29 7PM Snowlands Backcountry Film Festival Purchase tickets at REI Reno or www.snowlands.org
Blockchain 101 by Craig A. Ruark When you talk about mining to most people, the image of house-size earth moving equipment and gigantic craters, or long dark tunnels are generally what come to mind. However, a new mining industry has been evolving since 2009, and it involves what is called cryptocurrency. Perhaps you have heard about Bitcoin. But in reality, Bitcoin, along with other popular cryptocurrencies, (Litecoin, Ethereum, Zcash, Dash, Ripple, and Monero) are not hard currency at all; they exist only in cyberspace. But, how these currencies exist is becoming more important than the existence of the currencies themselves. What do you know about distributive ledger or blockchain technology? To explain the process, we start with the mining of cryptocurrencies which requires a dedicated and fairly powerful computer with specialized processors, a reliable power source, an internet connection (2 megabits per second or faster), and a cooling system to dissipate the substantial heat that is generated. Depending on the cryptocurrency, establishing mining operation can cost a minimum of between $5,000 and $10,000, and requires many hours of constant study. The mining process itself involves computing the answers to intensely complicated algorithmic equations. Once an equation is solved and a coin mined, that coin is registered with a number and placed into a password-protected electronic coin wallet. Notice that I said the wallet is password protected. Unlike the passwords that you set up for access to 22 · ISSUE 17 · OCTOBER 2018
the internet, bank account, or computer programs, these passwords consist of a long string of numbers and letters that are randomly generated when the wallet is initiated. A typical password may look like this: 34fe9f09e27cc9057e03d29e5ebde996be2869acla4 The wallet holder cannot change the password and must keep it in a very safe place because, without it, the cryptocurrency is impossible to access, and the passwords cannot be recovered. Without that password, the wallet and its valuable contents are lost forever. Each crypto wallet is tracked through a series of connected computers called a node, each with a matching ledger system referred to as distributed ledger technology. Hundreds of node computers are located around the world with matching ledgers. Every cryptocoin transaction is recorded in a block on the ledger sheet that identifies the product sold and the cryptocoins used. Every subsequent transaction generates a new block which is verified against the previous block in what becomes a Blockchain. It is because of these individual node computers, each with their matching ledgers, that it becomes impossible for someone to hack into the system to steal information. These ledgers keep track of every cryptocurrency transaction that has ever taken place and processes the information through what is called “Distributive Consensus” whereby each node on the network mathematically verifies that the transaction is accurate and has not be modified. During a transaction, the network receives three pieces of information. The purchaser’s digital wallet address, the amount of currency to be spent, and the recipient’s digital wallet address. The blockchain computers verify that the person sending the currency is the actual owner of the account and that the funds are available. Once a consensus of the ledgers is verified, the transaction is completed, and each of the ledgers is updated to transfer
the cryptocoins from one wallet to the next. The advantages of cryptocurrency are numerous, including the fact that Cryptocurrency is completely decentralized. No single person or institution controls the network. Its structure, money supply, and transaction record cannot be manipulated by any bank, government, organization, or rogue bad actor. Also: • • • • • •
No bank or credit card company taking a cut No third party holding the funds No monthly account charges No overdrafts No convenience fees Transaction fees range from free to just a few cents
On June 5, 2017, Nevada became the first state to ban local governments from taxing blockchain use. In addition to preventing local governments from taxing the use of a blockchain or smart contract (or requiring a licensure for their use), the bill stipulates “if a law requires a record to be in writing, submission of a blockchain which electronically contains the record satisfies the law”–meaning that data from a blockchain can be introduced in “proceedings.” While the distributed ledger technology and blockchain verification system is the backbone of the cryptocurrency world, it is also finding its way into other industries.
and each provider would be able to update relevant information with an individual key. In the world of finance, a financial technology company called Populous is using blockchain technology and digital tokens as a secure, transparent, and modern solution for businesses to get immediate funding for international financial transactions including bank loans and invoice factoring. The transparency of transactions recorded via Blockchain is a major enabler of faster payments and improved financing across international borders. It reduces risks such as currency exchange fluxuations and fraud, and lowers cost. Populous created a Blockchain-based Smart contract platform to autonomously perform all necessary functions connected with funding, releasing payments, and the distribution of recorded data. This technology eliminates manual error and the need for any services from third parties. Of course, local onsite verifications are still necessary. Since the time when man first bartered for goods and then developed a currency system, the business of doing business has constantly evolved. Businesses need to keep up with current technologies in order to grow.
For instance, in the real estate sector, the demand for international property is up 334% since 2009. But since there are no international real estate standards, rampant fraud and bureaucratic red tape make it almost impossible for Americans to buy property overseas. Propy, a global property store and decentralized title registry, is using blockchain to become a safe and secure global property solution. On Sept. 24, 2017, the purchase of an apartment in Kiev by TechCrunch founder Michael Arrington using Propy made history—it’s the first real estate purchase with cryptocurrency, and the first real estate transfer on the blockchain. Propy uses the nearly impenetrable Ethereum blockchain to record the proof of ownership and is the most secure real estate system to adopt worldwide to standardize the industry. Blockchain simplifies a complicated buying process that ordinarily takes months, into a simple online transaction—opening the international market to American investors and allowing hundreds of billions of foreign dollars to flow into the American residential sector. In the same way real estate transactions are recorded and held secure, healthcare providers are looking at a blockchain-enabled health information exchange that would alleviate security concerns related to data-sharing between different providers. A patient would be able to access and share their data from the blockchain, BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 23
Aaron West, Nevada Builders Alliance CEO,Named Pioneer of the Year -Special to bizNEVADA
The Northern Nevada Development Authority (NNDA) recently announced the winners of its annual Pioneer Awards. Showcasing the many success stories in the area, the Pioneer Awards highlight the strength and innovation of the Sierra Region economic ecosystem. Winners will be honored and celebrated during the 4th Annual NNDA Pioneer Awards & Gala which recognizes individuals and business professionals whose contributions to economic development support the growth of Nevada’s Sierra Region. The gala is being held on November 8, 2018 at Harrah’s Lake Tahoe. NNDA’s Pioneer of the Year award honors someone who both personally and professionally supports and has had a significant impact on the economic development and growth of the region. The 2018 Pioneer of the Year is Aaron West, CEO of the Nevada Builders Alliance (NevadaBuilders.org). Aaron has done an outstanding job of representing
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Nevada’s construction industry and the critical role it plays in economic development. He has been an economic development trail-blazer, in support of his members, the Silver State’s construction industry, and the Sierra Region. Aaron participated on the team of construction industry leaders who sought and successfully facilitated the passage of important industry reforms by the 2015 Nevada Legislature. He has worked with Western Nevada College to implement workforce education and training programs for our region’s rapidly growing construction industry. Under Aaron’s leadership, the Nevada Builders Alliance established its annual Golden Hammer Award which will be presented to Bently Heritage Estate Distillery. When Nevada emerged from the Great Recession, NNDA was asked by the Governor’s Office of
Economic Development to establish and pilot the Nevada Certified Sites program. NNDA’s Construction and Design Committee accepted the task, realizing that expanding the inventory of industrial space was essential for the Sierra Region’s economic ecosystem. Aaron was instrumental in making it the successful program it is today. As NNDA continues to administer the program, he is playing an ongoing key role in its refinement and expansion. The 2018 Pioneer Awards winners are: •
Battleborn Award for Leadership in Sustainability: Edgewood Tahoe Resort (Stateline NV – EdgewoodTahoe.com). Edgewood Tahoe incorporates sustainability innovation, leadership, and business practices into its business model. Their extensive use of sustainable energy and land improvements demonstrates the organization’s dedication to the conservation of resources and protection of the environment.
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Boundary Peak Award for Nonprofit of the Year: The Comstock Foundation for History and Culture (Virginia City, NV – ComstockFoundation. org). The preservation work of the historic and cultural resources within the Virginia City National Historic Landmark District repurposes historical industrial properties and public spaces for use and enjoyment by the general public.
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Kit Carson Award for Entrepreneur of the Year: Quick Space (Sparks, NV – QuickSpaceNevada. com) Quick Space, with two full service locations in the Sierra Region, provides solutions to several industry sectors for infrastructure projects and special events throughout Northern Nevada. The 2018 Inc. 5000 recognizes Quick Space as one of the fastest growing private companies in the U.S.
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Silver Forge Award for Manufacturer of the Year: Aquasyn, LLC (Carson City, NV – Aquasyn. com). Aquasyn focuses on providing customers worldwide with innovative fluid control solutions and associated components of uncompromising quality. The company is proud that all of its manufacturing materials, processes and services are performed or sourced in the U.S. Some of their products were included as part of the Smithsonian Institution’s “The Birth of Biotech” exhibit in Washington, D.C.
Tickets and sponsorships are available for the 2018 Pioneer Awards & Gala at PioneerAwards.com. BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 25
TOKES C
An Alterna Ca
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CRYPTOCURRENCY:
ative to Banking for the annabis Industry by Craig A. Ruark
is still highly subjective and largely related to commodities and/or financial instrument oversight, generally through the lens of the U.S. Commodity Futures Trading Commission (CFTC) or United States Securities and Exchange Commission (SEC). The benefit of decentralized payment solutions like crypto is two-fold: 1) assets/funds are custodied entirely by the individual holding them, not in a custodial or bank account, and 2) payments are processed exclusively by the network of individual nodes on a given blockchain network, not the companies (like Tokes) that may have released them.
Nine states in the U.S. have legalized marijuana for recreational and medical use and an additional eighteen states allow legal medical usage. However, the problem is that marijuana is still considered a Schedule I Controlled Substance by the Federal Government and therefore money generated from the cultivation, testing, processing, and sale of the drug cannot be deposited into a bank that is backed by the Federal Deposit Insurance Corporation (FDIC). Just the retail sale of marijuana alone has exploded to $9.7 billion in 2017, and that number is expected to increase to $24.5 billion by 2021. That does not include the amount of money generated by the growers. Special state-mandated testing laboratories also generate significant revenue from the manufacturers of cannabis oils, edibles, and tobacco products. For the customers and businesses, the buying and selling of cannabis have been a cash-only option. But in Las Vegas, a company called Tokes Platform and partners Michael Wagner and Gabriel Allred, Ph.D. is offering an alternative to cash in the form of a cryptocurrency called Tokes with the obvious nod to marijuana cigarettes.
Cryptocurrencies are stored securely via complex cryptographic functions on a local digital currency “wallet.” To the extent that a user follows standard security measures: uses strong, unique passwords, backs up wallet files, keeps wallets offline unless sending transactions, and ensures they don’t have viruses or malware on their computer, a cryptocurrency wallet is virtually impossible to break into. One particularly beneficial feature of cryptocurrency is a sort-of built in escrow without the need for a third party. Through what is called a multi-signature wallet, it’s possible to require more than one party to sign off on any individual transaction. This multi-signature process is great for businesses with more than one owner who want to prevent any individual partner from absconding with the totality of the funds in a digital currency wallet, as they can’t move them without all parties signing off. Finally, cryptocurrencies are not subject to asset seizure like bank accounts and custodial accounts, as there is no centralized service holding those assets. A recent study by RewardExpert revealed that Nevada is already ranked #4 in the nation with the best infrastructure to use cryptocurrencies. According to the report, Nevada is just as cryptocurious as it is crypto-friendly, with residents showing high interest in various currencies. There are four Bitcoin ATMs available in the Las Vegas area, and a total of 78 other establishments that accept Bitcoin for payment, including real estate and legal firms, and one “Zombie Apocalypse Store.”
The Tokes cryptocurrency, like Bitcoin and other cryptocurrencies, works on the blockchain secure transaction system which is talked about in this issue.
By utilizing cryptocurrency, cannabis growers, processors, testers, and retail sellers can avoid the problem of having hundreds of thousands of dollars in cash being transported and stored in unsecured locations and susceptible to theft.
Cryptocurrency companies and related tokens are regulated by various federal entities. Regulation
Tokes was launched in December of 2016, and the cryptocurrency is currently available, but the
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partners have purposely delayed the full-scale launch of their product. Instead, they have been beta testing and perfecting the final products that they want to bring to the market. Because Tokes is exploring the frontier of this technology, they feel it’s best to be forthright and open with regulators to discuss both the advantages and potential pitfalls of the technology. Although not currently required for cryptocurrency, the partners are making every attempt to communicate Their services and business model to regulators like Nevada Division of Financial Services in advance of launch to ensure they’re not inadvertently undertaking an activity that would otherwise require these licenses or be illegal. The company issuing the cryptocurrency is also developing a consumer app, supply chain visibility tracking system, managed cloud hosting, and a point of sale platform called Tokes Merchant Gateway. “While we are focused on cannabis as being the most opportunistic market, in terms of the need for our service, everything that we develop today can be used by any merchant who would like to use cryptocurrency in their business, either brick n mortar in an e-commerce application,” Said Wagner. “The Merchant Gateway will also accept cash, credit, and debit cards.” The government’s biggest fear is the introduction of a black- or gray-market product into a legal supply chain, and state regulators of the cannabis industry want to track the plant from the grower all the way to the consumer. The data that can be contained in the blockchain technology is ideal for that purpose.
In addition, the Tokes Merchant Gateway will accurately record every transaction and will ensure that proper taxes are being paid, there is no diversion of product, no money laundering, and without the build-up of cash, businesses are at less risk of being robbed. The key to the Tokes Merchant Gateway is the melding of blockchain technology with other more common credit and debit processing. Tokes Platform has essentially developed a bankless ATM to serve any type of cash-heavy business without the need for a bank account. On the backend of the debit or credit transaction, the customer is going to be purchasing Tokes and using those Tokes to purchase the cannabis. “We do want to champion the cannabis movement. In fact, we launched the company under the banner of the cannabis revolution,” said Wagner. “It’s really about understanding the benefits, through the adoption of cryptocurrency, that provides the power to the people that are using the money, to be able to spend it and control it in their own fashion. And likewise, the way the people are empowered by the cannabis industry to consume products that they feel are good for them.” However, this is a solution that spans well outside of cannabis,” said Allred. “We’ll have a white-labeled version with which the average person can use to set up an online storefront.”
BIZ NEVADA MAGAZINE · WWW.BIZNEVADA.COM · 29
by Richard Moore As we all know the insurance world is very different from the industry 15, 10 or even 5 years ago. For those of us who run our companies or have leadership roles, the changes can be very frustrating. As an example, our company is just like so many of yours, we are growing, constantly seeking to hire the requisite expertise and benefits certainly play a significant role in keeping great people. It is our pleasure to introduce one of our first Coffee Talk companies, Employer Benefit Solutions (EBS), which is owned and operated by Jennifer Pyle. What market does your company serve best? Works best with companies that have 20 or more employees. When you talk about companies of this size is this just in northern Nevada? Jennifer’s product offering is broad; however, it is worth noting that there are a few, very specific products her company markets. While these products have been available, EBS has taken the lead in promoting them resulting in a high level of customer satisfaction. It is worth noting Employer Benefit Solutions will be able to handle your company needs on a statewide or national basis. What is the biggest differentiator between your company with its services / products and others? Jennifer’s response was very simple and straight forward, “I do a more hands on approach with my clients, I get a little more involved than a typical broker does”. For her it is not about presenting the least expensive product and went on to say, “I look for a product that is really going to benefit the employer on a deeper level”. Talk about me about some of the products that our readers may not know about. The product that works the best if the company qualifies for it, they are going to get money back at the end of the year and is still going to be a richer plan and a broader network. 30 · ISSUE 17 · OCTOBER 2018
Can you go into more detail on this product offering? Do most companies know about this product? “As it is a newer product really deployed over the last four years, so not very many companies know about”. When discussing this further and without going into a lot of detail on the back end of the insurance business, some brokers are motivated to talk about this product while others just aren’t as motivated. Here are the some of the benefits to this type of product: • • • • •
No network of providers to follow, which means you can to any doctor or facility in the U.S. No referrals to a specialist, FREEDOM to select your own doctors The plans are always going to be richer than tradition fully insured PPO plans while still be a PPO There are a lot of added wellness benefits, Zero co-pays for generic
Without question this has been one of the most informative and interesting interviews I have been a part of. Our conversation at Swill went on for 30 – 45 minutes and this is the excerpt that I chose to focus on.
If you would like to reach out to Jennifer, her information is on the card in this section. I would again like to thank Jennifer Pyle for her time and insights. Make sure you catch our next coffee talk when we discuss trusts and the state of Nevada with NV Legal.
J&A DESIGN STUDIOS LANDSCAPE
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Costom Resid ential • Comm ercial Streetscapes • Playgrounds • Sportsfeilds 775-741-830 5 | gjameson@ jadesignreno.c om
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