11/09 November Directions

RetailRetailers wish for year-end shopping to boost business.P A G E 1 2

November 2009 $3.50

Years of pushing for workouts to be part of the overall healthcare discussionhave finallypaid off.

Tony SgroParadiseFitness

Check out the Auto Showcase for the models of 2010 — page 24

“Exercise is Medicine”

Interview page 36

Auto IndustryCrowded roads not a sign of booming auto industry.P A G E 1 8

Next GenerationYoung professionals show promise.P A G E 2 8

3DIRECTIONS • NOVEMBER 2009

WELCOME TO. . .

THE MAGAZINE DEDICATED TO YOUR PRODUCTIVITY

INTERVIEWTony Sgro, PresidentParadise FitnessRiding the waves of business can bring the joy of incredible highs as well as the depression of unimagi-nable lows. Tony Sgro has seen both. He has emerged stronger for having weathered his challenges, and has built the largest fitness business in our region. He weighs in on over-all fitness, wellness, family business and more.

Auto IndustryWhile the number of vehicles on Guam’s roads suggest a booming automotive industry, it’s not necessarily the case for Guam’s dealerships.

November 2009 Vol. 14, No. 11

Regular FeaturesPerspective 4Signposts 6Picture This 8People 10Diversions 42Pillars 44Executive Environment 46Your Money 50Small Business Focus 51Digital World 52Manager’s Toolbox 54Customer Index 58Higher Thoughts 59Family Business 60

ProfilesDavid Loughlin 47Owner, ACR Air Conditioning and Refrigeration

Ray S. Calma 48Owner, Ray Calma Photography

EDITORFaye Varias

ASSISTANT EDITORBryan C. Sualog

EDITORIAL CONTRIBUTORSJill Espiritu, Marty Herron,Kim Komando, James Lea, Jacqueline Perry Guzman, Jesse Pinkston, Carl Peterson, Georgette Reyes, Jerry Roberts

DIGITAL DESIGNTaliea Designworks

PHOTOGRAPHYSteve Hardy

ADVERTISING SALESStephani Ferrara, Rayann Taitano, Darrell Pereda

PUBLIC RELATIONSNellie Joy Roberts

ADMINISTRATIONTia Camacho

PUBLISHERJerry Roberts

ASSOCIATE PUBLISHER/OPERATIONS MANAGERStephani Ferrara

INSPIRATIONAdam Cooper, Kian Cooper, Aiden Ferrara, Allejandra Ferrara, Aylah Ferrara, Josiah Roberts and Micah Sablan

Opinions expressed in Directions are not necessarily those of the publisher or our advertisers.

SEND COMMENTS TOEditorDIRECTIONSP.O. Box 27290,Barrigada, Guam 96921E-mail: [email protected]

Tel: 671.635.7501 Fax: 671.635.7520

©2009 DIRECTIONSAll rights reserved.

PRINTED BYT&T PrintingHong Kong

RetailWith visitor arrivals down this year and busi-nesses still waiting for the money from the military buildup to start coming in, the economy is in a slump. However, there have been a few bright spots as the U.S. and Asian economies have showed recent signs of improvement.

Next GenerationWith talent emerging in professions at younger ages, Guam’s young professionals are destined to succeed. Not only do they come from elaborate and extensive backgrounds, but there is a distinct air of competition among college graduates who enter the work force with a bang.

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4 DIRECTIONS • NOVEMBER 2009

I recently had a lengthy conversation with a company owner who was perturbed that he had spent a fair chunk of money

advertising a new position he wanted to fill, but the quality of the applicants who came through the door weren’t anywhere close to what he needed.

This man operates a company with fewer than 50 workers and he’s caught in a problem that many Guam businesses face. He has to find a way to attract qualified talent in order to grow his com-pany, while at the same time hoping and praying that none of his key employees gets snatched up by another organization.

He nodded with a frown when I added, “If you think it’s tough now what do you think it’s going to be like when the military buildup starts in earnest?”

All of the emphasis on staffing the buildup has focused on foreign workers for construction projects. There are a number of organi-zations, both local and off-island, who are scrambling to position themselves to provide those workers and grab a chunk of that major pie.

Staffing needs don’t end with construction workers. There will be a large contingent of contracting companies that will work with the prime contractors. Who is going to staff their offices when they set up shop in Guam?

On top of that, normal entrepreneurial activity — new businesses and expansion — will require many more qualified workers than we can now supply.

There will be programs to train the unemployed, our schools will graduate others, and still more will come from off-island to take advantage of the opportunities — some of those being former Guam citizens who return home. With all that, we’re still expected to be well short of our need.

So where will these other workers come from?

From you and me. Many of these new companies that come to Guam will have the resources — and resolve — to pay more than we now do. It’s going to become a big “seller’s market” when it comes to talent. Wages will be driven up and these new employers will be sweet-talking our workers to jump ship.

Many organizations will see key people leave, and it will take a long time for them to recover, if they can.

Perhaps you think that I’m putting more drama into this than is necessary. Maybe, but there are others who would say that I’m sugar coating the issue, that it will be harsher than even I suggest.

I’ve had employers tell me that they’re insulated against this po-tentially disastrous situation. “Almost all of my managers have been with me for the better part of 10 years,” said one. “I seriously doubt that they’re going anywhere for a few dollars more.”

You have to admire the optimism and confidence, but the logic doesn’t necessarily hold true. Let’s define a “few dollars.” If you’re now paying a manager $50,000 a year and somebody offers her $55,000 — a 10% increase — is that enough to get her to move? Would that confidence extend to 20 or 30 percent?

They say that all of us have our price; that we can be bought. What would that be for the key talent in your organization? How much would it take to get them to leave you?

Think back to when you were in their position. What would it have taken to get you to move?

What will it require to keep your talent (and your sanity) when all of this starts in earnest? A strategy for the employment climate that we’ll be in, one that is based in cold reality: that it’s unlikely you’ll be able to retain everybody. Some people are going to leave. Part of that strategy is to pick your battles and focus on who you will really put up a fight to hang onto.

Just like the general manager of a major sports franchise, your job will be to identify the star players and do everything in your pow-er to keep them in your lineup, and not lose them in “free agency” to another team. The good news is that you can succeed in doing this without destroying your compensation structure, while at the same time driving up the price tag for your workers.

You do that by strengthening the relationship in every way pos-sible and, to the extent you can, eliminating any gap between what you pay and the industry average for your category. That will give you the best chance possible to ward off those who would swoop in and make off with people you can ill afford to lose.

How do you improve the relationship? We just finished delivering our exclusive retention-building course, RPM: Recognition, Praise & Motivation, to 20 managers during our new Lunch ‘N’ Learn program. Included in that was a new module, 7 Ways to Retain Talent During the Buildup. Since they paid for the information I can’t give it all away here. If you’re interested give me a call and we can talk about bringing it to your organization.

Here’s the essence of what’s needed: examine each relationship and really know your workers. Keep them energized and engaged; make them ecstatic that they work with you. The more satisfied they are with their career choice, the more it will cost to get them to leave. In a nutshell, that’s the winning strategy.

So Tell Me, What’s Your Worker Retention Plan?

http://guamtraining.com


If I could add an amenity to my office, it would be a mini-gym or an exercise room so that I don’t have to drive away to be able to exercise either during lunch break or after work.Neila PonoQuality Distributors

If I were given the choice to add an ameni-ty in the office, I would add a small room, which I would call the “Need to be Alone” room. It would have a recliner chair and a small table with magazines or reading ma-terials with words of wisdom and a nice interior with some lucky bamboo plants, live orchids and a water fountain where one can spend some time alone — at least 15 minutes — and rejuvenate. I believe that each one of us would enjoy some time alone, away from the stress of work and our boss and office mates and we can

all be more productive.Sheila Snaer ManalotoGuam Capital Investment Corporation

If I could add anything it would be to get a decent chair and a bigger office.Heidi M. BallendorfGuam Waterworks Authority

If I could add any amenity to my office it would definitely be an espresso ma-chine. I love all coffee drinks — drink them all day. Most everyone I know does too. Plus, coffee is great for anti-aging — wonderful addiction.Velma HarperHarper Veterinary Hospital

I would add a nap room, like what doctors use in between rounds. Sometimes, all a person needs is a 15-minute power nap

to feel refreshed and alive again. A com-fortable room with a small rest area where someone can take a 15-minute break with-out any distractions or interruptions could be exactly what is needed for a happy and rejuvenated employee.Joyce Guerrero-TomadaA.T. Tomada & Associates

Directions magazine welcomes respons-es to our monthly Signposts topic. Not every submission can be printed, though all will qualify for the dinner contest. We reserve the right to edit submissions for length.

If you could change one policy at work, what would it be and why?

Contest rules:1. Must be 18 years or older to participate.2. You may e-mail [email protected], fax (671) 635-7520 or mail (address on page 3) entries.3. Your entries must be received no later than Monday, November 16, 2009. One entry per contest only.5. You may photocopy this page for use in the contest.6. Winners will be drawn at random from all eligible entries.7. Prizes may not be surrendered for cash.8. Entrants grant Directions and the Hilton Guam Resort & Spa the right to use their name and response.9. Winner must be hungry for some terrific food and service.

Liz CruzCitizens Security Bank


SPPC Donates for Flood VictimsSouth Pacific Petroleum Corporation (SPPC) do-nates $1,000 to the Filipino Community of Guam’s (FCG) Ondoy Calamity Fund on Oct. 14. The funds will be used to assist the victims of the flooding disaster that occurred in the Central Luzon area of the Philippines and parts of Metro Manila. From left: Emilio Y. Uy, chairman of the FCG Board of Trustees; Alex Gagaring, president of FCG; and Mark J. Sablan, SPPC vice president of business development. Pho-to courtesy of SPPC

Bank of Hawaii Helps Protect Against FraudBank of Hawaii vice president and business manager Nacia Atalig presents a Smart Money Seminar on “Protecting Yourself Against Fraud” to Sanctuary, Inc. staff members. Pictured is Atalig presenting a certificate of appreciation to Mil-lie Lujan, program administrator of community outreach, prevention and edu-cation development for Sanctuary and other members of the organization’s staff. Photo courtesy of Bank of Hawaii

SIM Gives Donation to Erica’s HouseSoroptimist International of the Marianas (SIM) donates $2,500 to Erica’s House of Hope at its business meeting on Oct. 13. From left: Sylvia Crafton, SIM dis-trict director; Annette Santos, SIM secretary; Siska Hutapea, SIM immediate past president; Caroline H. Sablan, SIM president; Michelle Unsay of Erica’s House; Nancy Tan, SIM past president; Rowena Macaraig, SIM treasurer-elect; and Joy Delfin, SIM treasurer. Photo courtesy of SIM

DZSP 21 Helps in SamoaMonte Garrido and Tony Quinata, both from DZSP 21, throw cargo netting over a pallet of Federal Emergency Management Agency (FEMA) tents. DZSP 21 LLC em-ployees constructed 13 pallets containing 800 FEMA tents at Andersen Air Force Base Oct. 9. The pallets were assembled in support of relief efforts in American Samoa, which was recently struck by an earthquake and resulting tsunami. Photo courtesy of DZSP 21

Stocks Open in RPForeign delegates from the Asia Pacific Region and Asia Pacific Associa-tion for Fiduciary Studies (APAFS) executives ring the bell at the Philippine Stock Exchange on Oct. 7 to signify the opening of the market after a morn-ing tour at the Philippine Stock Exchange office in Makati. Photo courtesy of Glimpses Advertising


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Calvo’s Helps RP VictimsCalvo Enterprises presents a check for $15,000 to the Filipino Community of Guam on Oct. 19 to help people suffering and rebuild-ing their lives in the Philippines. Pay-Less Markets, a subsidiary of Calvo Enterprises, also donated products toward the relief drive. Photo courtesy of Calvo Enterprises

The Guam Visitors Bureau (GVB), the Palau Visitors Authority, the Marshall Islands Visitors Au-thority and the Northern Mariana Islands repre-sented the region of Micronesia at this year’s Pa-cific Asia Travel Association Travel Mart from Sept. 22 to 25 in Huangzhou, China.

The Guam Visitors Bureau (GVB) participat-ed in the 3rd Edition Shanghai Expat Show from Sept. 18 to 20 at the Shanghai Exhibition Center in China. GVB marketing manager Pilar Laguana and GVB member from Micronesia Divers Association, Dianne Collins, represented GVB sharing with at-tendees many of the unique features of Guam to attract expats in considering Guam for their next vacation and resort destination.

Guam Waterworks Authority announced that beginning Nov. 2, it would be expanding its hours at the upper Tumon office. Customers will now be able to pay bills or make other GWA customer inquiries beginning at 7:30 a.m. to 6 p.m. Monday through Friday.

The Department of Public Health and So-cial Services and the Guam Homeland Se-curity/Office of Civil Defense conducted a two-day workshop, beginning Oct. 21, at the Hyatt Regency Guam to discuss the Mass H1N1 Influenza Vaccine Campaign. The purpose of the workshop was to educate the Task Force members — com-prised of government and federal agencies and key civic organizations — about the recently arrived H1N1 Flu vaccine and mass distribution plans to immunize the community.

Guam Dancers Perform in TaipeiThe Guam Visitors Bureau (GVB) presents a semblance of Guam’s Chamorro culture — through cultural performers, including two musicians/weavers and four young dancers — at the Taipei Interna-tional Travel Fair 2009, Asia Pacific’s largest travel fair. The fair was held Oct. 30 to Nov. 2. Photo courtesy of GVB

New Cars UnveiledPrestige Automobiles introduces the new BMW 7 Series and Z4 Road-ster models on Nov. 3 at its Dededo location. Talking about the new Z4 Roadster is Prestige Automobiles president John Shen. Photo by Darrell Pereda


Are your new management hires and promotions getting into the most-read business publication in the region?It’s easy to do. Just send color photos (head and shoulders with plain, contrasting backgrounds preferred)

along with similar employee information you see here to:

DIRECTIONSP.O. Box 27290 Barrigada,Guam 96921

If you have questions, please call 635-7501 or e-mail: [email protected].

Note: digital photos should be at high or fine resolution and converted to a jpg (at maximum quality) before e-mailing.

Marlene Hipolitocelebrates 11 years employment at JMC Guam Inc., which operates the Oasis Cafe, Clippers Lounge and Ramen Ya! at the A.B. Won Pat International Airport, Guam. Hipolito is the general manager of all three establishments and department manager for Ramen Ya!

Daisy Del Rosariocelebrates 10 years of employment with JMC Guam Inc., which operates the Oasis Cafe, Clippers Lounge and Ramen Ya! at the A.B. Won Pat Interna-tional Airport, Guam. Del Rosario is the department manager for Oasis Cafe and a senior shift supervisor.

Marilyn Roberto-Borjaaccepts a promotion to business sales manager at Docomo Pacific. Borja joined the Docomo sales team in 2002 — then Guam Cell Communica-tions — and was most recently the senior account executive.

Karl Pangelinanmoves up as director of sales at Doco-mo Pacific. Pangelinan joined Docomo in Sept. 2008 as business sales man-ager and has more than eight years in telecommunications.

Reynaldo Leon Guerrerois the new Sereno’s restaurant opera-tions manager. He will be responsible for the operations of both the kitchen and restaurant sides.

Anthony R. Guerreroaccepts the title of honorary Ambassa-dor-of-Goodwill for Guam from Gov. Fe-lix Camacho in recognition of his dedi-cation and commitment to the island of Guam. The First Hawaiian Bank vice chairman is one of only seven people to hold the title.

Matt Millermakes a transfer in Continental Airlines as managing director of Asia-Pacific. Miller previously served at the airline’s Houston headquarters as managing director, International Pricing and Revenue Management.

Marisol Malumayaccepts the position of assistant food and beverage manager at the Outrigger Guam Resort. She was most recently the manager of Pho Maika Restaurant in Harmon.


Retailers wish for year-end shopping boost in business.

people for whom they purchase presents. Last year, the couple said they purchased presents for everyone in their family, which includes their parents, Wilson’s 11 broth-ers and sisters and all of their nieces and nephews. “It’s difficult now that we have a kid,” Wilson said. In order to prepare for this Christ-mas, the couple started saving last De-cember, but even with that, they’ll only be giving presents to their daughter and their parents. “I want to spend everything on my kid,” Chiren said. Fortunately, the couple’s fam-ily has been very supportive. “We always give a present to everyone in our family. Now that we have a baby, they understand.” Geremy J.L. Asuncion said that instead of being more selective about who he gives presents to — which totals around 30 people — he’s going to stick to a strict budget and limit the amount of presents he gives each person. “It’s pretty easy to stick to a budget if you go looking for the best deals,” he said. “I’ve been waiting for the stores to start offering their Christmas specials so I can get all my shopping done in one shot.”

Holiday Specials Asuncion won’t have to wait too much longer. Shoppers will soon have plenty of deals from which to choose. Rekdahl said there might not be much that the govern-ment can do to help boost business, but stores always offer discounts this time of year to draw more customers. “You’re probably going to see a bigger percent off this year. People need to get rid of their stock. Their Christmas supplies are arriving and you don’t want those ly-ing around when the spring merchandise starts to arrive. You want to give as big a discount as possible to reduce your inven-tory,” she said. “Closer to Christmas, you’ll see a lot bigger discounts.” However, Mesa warns customers not to wait too long before getting started on Christmas shopping. “The major-ity of Guam shoppers have been buying months ahead of the traditional Christ-mas season and sales trends have been consistent leading into the holiday sea-son,” he said. “A few Guam shoppers enjoy the last-minute shopping frenzy at times and seem to make this an annual event — thinking that the sale prices will be better closer to the holiday. My advice to these shoppers is do not wait until the last minute to shop. You’ll have a better merchandise selection now and the values


was quickly wiped out and an additional $2 billion helped the program survive a few more weeks. The program was slated ini-tially to last until November 1. Nissan also successfully participated for a short time, although later than the U.S. dealerships due to some delays, Shelly states. “Unfortunately, compared to the U.S. labels — GM, Ford and Chrysler — the approval certification for ‘imports’ was de-layed on Guam,” Shelly said. “Nevertheless, we had some suc-cess with the program and had no issues collected from the [federal] government.” He added, “It was successful because it pushed new vehicle sales, which sparked a recovery for the auto manufacturing in-dustry. The ripple effect of this program is much wider than the up-front cash everyone is talking about.” Guam’s short participation in the program may have sparked some new cars sales, but not in the high numbers as in some U.S. dealerships. Car sales in Guam have somewhat declined this year, but generally not as significantly as seen in the U.S. “The current market trend for car sales on Guam is flat with a slight decrease from last year’s numbers,” Crisostomo said. “The total market is off 13.2 percent year-to-date 2009 compared to 2008. This is much better than what is happening in the U.S. The U.S. and Hawaii is trending 26.4 percent below 2008 figures.” He added, “Guam’s banks did not get into the sub-prime mess like in the U.S., therefore our customers are still able to find at-tractive financing options. Plus, our economic picture is much brighter here than over there.”

Increase in Parts and ServiceEven if new car sales have slightly decreased, Crisostomo said that other streams of income for dealerships, including parts


28 DIRECTIONS • NOVEMBER 200928 DIRECTIONS • NOVEMBER 2009

With talent emerging in professions at younger ages, Guam’s young professionals are destined to succeed. Not only do they come from elaborate and extensive back-grounds, but there is a distinct air of competition among college graduates who

enter the work force with a bang.

Jason Boyd, 29New father and medical professional, Jason Boyd, serves as the staff pharmacist for the Guam Memorial Hospital Authority and has several plans for his workplace. “My current challenge is meeting the acute care medication needs for an increasing patient population given the financial restrictions, lack of resources, minimal staffing and distance from the U.S. drug manufacturers,” Boyd explained. “My future challenge is to expand pharmacy services to have a more assertive role in patient care, such as develop-ing an anticoagulation therapy management service and antibiotic monitoring program,” he added. Boyd said when he graduated from the University of Washington more than two years ago, he did not face much competition when he chose to apply for a position in Guam. “Many opportunities are still available here. Many more opportunities will arise as our population continues to expand and change,” Boyd said. For Boyd, the key for any individual considering a serious professional career is mo-tivation. He also believes that Guam residents may have an advantage when looking for work on island.

By Jacqueline Perry Guzman


Up The next generation of professionals

shows a lot of promise.

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and Comers

porary admission to the Guam bar for 5 years,” she explained. “As a new attorney, I needed to find my inner confidence in my abilities so I would not be intimidated.” She said the attorney general’s office provided her with the opportunity to be-gin a career and gain experience. “The of-fice has a few attorneys that have recently begun their careers. There are various attorneys with different levels of experi-ence to provide advice and insight,” Robin-son said. Overall, she said she is very satisfied with her career choice and enjoys being a trial attorney. “I love being in the court-room. I especially enjoy working in the family division of the AG’s office. In the juvenile court, we have the opportunity to help and nurture the youth that have made some bad decisions. At the juvenile level, there is a real opportunity to help these youth turn their lives around and start making better decisions,” she said. “Guam juvenile probation officers and the court system are in my opinion excep-tional at identifying the needs of the mi-nors and finding ways of assisting the mi-nor to strengthen these facilities are also open to the public. Not only do I deal with juvenile prosecution, I also work on some persons in need cases. Our office repre-


Photography by Steve Hardy


On family business: “The tough learning that I had to go through when I was

in the family business helped me survive everything. There was a time in my life where I was just totally down. I got into a major lawsuit, I sued a bank and I lost 90 percent of what I had. If not for the good Lord upstairs, the hard work and the never-giving-up [attitude] that I learned from my dad — and my wife standing next to me during my worst of times sitting in that

courtroom — I would never have survived.”

Interview

Tony SgroPresident

Paradise FitnessAnthony Peter Sgro, 54, was born in Guam. From as far back as he

can remember, he felt that he would one day be in business for

himself. “I always had the vision,” he said. “I grew up in a family of

business, a household of six, and my dream was always to put up

a business, and that was it.”

Sgro got his career out of the blocks early as he helped out in the

family business, Ada’s Market. “I worked in the grocery store when

I was still in elementary school. My grandfather used to put a real

apron on me and take me around the store. I was the bag guy.”

Soon, an interest in music began to take hold of him, and would

be a strong influence for many years. “I did that since I was a

child, played drums and sang. In fact, in the mid-1970s, I left col-

lege and played music, to the point where my dad went looking

for me in San Diego when I was supposed be in school. He flew

from Guam to San Diego looking for me, but I was in Honolulu

playing music.” When his father found him, he was blunt, saying,

“Okay, if this is what you want to do, go — you’re on your own.”

He borrowed money from his father and assembled a group,

which played in hotels and clubs throughout Honolulu, until Sgro

was burned out from a six-night weekly schedule and was able to

just walk away.

He then finished his studies at San Diego Mesa College, earning

a bachelor’s degree in management in 1976. Following that,

he moved to San Francisco to attend Heald Business College.

Upon his return to Guam, he took a job with Ada’s Inc., working with

and eventually managing the company’s real estate business. He saw

values rise and fall, culminating with the financial crisis in the mid-to-

late 1990s that saw the real estate market take a prolonged tumble.

During that period, Ada’s Inc. had a vacant building in Dededo that

had been empty for almost a year. Sgro, who had been a runner

and later active in fitness, wanted to build a fitness center in that

space. After family members declined to invest, he decided to ven-

ture out on his own. “I said, ‘Well, if you don’t do it, I want to do it.’

That was the start of Paradise Fitness, in 1996.”

The operation has since grown to two locations, with the larger of

the facilities in Hagåtña. Sgro also engineered a purchase of rival

Gold’s Gym in 2006.

Sgro has served as chairman of the Guam’s Visitors Bu-

reau, as well as chairman of the Guam Airport Author-

ity, and is an airport authority board member. He is also presi-

dent of the Guam Community Improvement Foundation.

He and his wife Audrea have a son, Pedro, and Sgro has two adult

children, Anthony II and Michael.

38 DIRECTIONS • November 2009

What was the initial process to get Paradise Fitness off the ground?

It took about six months and was easier because I already had the building. I had to change the carpet, knock down a few walls, and we came up with some sort of concept and design. I then visited the different factories all around California and purchased the equip-ment we needed. I literally tried every single piece of equipment before I purchased it, and so that’s what you have today. I got the gym open and in a couple of years it was actually very successful.

What is the general health of Guam’s fitness industry? We are so far behind. An example I would use is we probably only have 2 to 3 percent of the population actually using or being a member of any exercise facility — and I would put all fitness facili-ties together. There’s room to grow, no doubt. A lot of people think that running a fit-ness business is pretty easy. What’s the biggest misconception? I hear it every day, people saying that they want to open a gym or somebody who knows how to exer-cise wants to open a gym. We’ve seen those come and go, both here and in the mainland. People that actually run fitness facili-ties in the mainland, they’re executives. They’re sitting in boardrooms, they’re not your gym brat as people would say. This is a mar-keting business and you have to be out there pro-moting it all the time. Oth-erwise, you can’t make it. In recent years, we have seen the growth of small-er, niche-focused fitness outlets, some catering to women and others to the mixed martial arts community. Do you expect the trend to continue? Today’s fitness landscape is a little different and you have a lot of these small, specialty boutique-type of places with really low over-head. So, is it competition? Yes and no. They’re more specialized and somewhat limited in what they’re doing. Some just offer yoga or group exercise classes, or mixed martial arts, and a lot of people are actually members of both that and Paradise, because you can’t get it all at a little boutique facility. The trend will probably continue. We’re a mass market facility. We need to attract the larger numbers.

Paradise and Gold’s were long time competitors. What was it like during the acquisition? You know, it was an emotional thing. It’s too bad that it had to be

that way because it was more emotional on that side than busi-ness. There was heavy competition and we just didn’t see eye-to-eye for whatever reason. I bought the facility and I couldn’t go in it until we decided to shut it down. I sent my wife up to do it. That’s how emotional it was. But all that is water under the bridge. The manager that used to manage the Onward facility is one of our top personal trainers. I’ve got them all in here working out. We’ve all come together as one. It’s been great, but it wasn’t easy at first. Your business is basically selling memberships, specialized classes, and operating your juice bar. It’s the same industry model that’s been in place for decades. How else can a fitness operator ex-pand revenues? I’ve been a member of several gyms over my time, and this goes back 30 to 35 years. It’s always been about selling memberships,

specialized classes, oper-ating a juice bar, selling shirts. You name it, what-ever it is. It’s been the same model for decades. The thing to know is that the fitness market is ex-panding. Gyms have been replaced by fitness centers and we offer our patrons a choice for a healthier life-style in a non-intimidating environment. It’s gotten a lot better since I first started. When I first got involved with running, you might have 20 people at a 5K. Now there are 1,000 people. I think Kick the Fat had 3,000 people. Who would ever dream that we’d have 3,000 peo-ple at a 5K run on Guam? I never thought I’d be expanding my facility in Dededo. Group exercise classes are starting to get very, very popular.

In terms of equipment purchases, are you looking at different types of products today than you might have five or 10 years ago? Totally different. I’ll give you an example.Those racks of big balls out there that help develop the core muscles. Fifteen years ago you didn’t see those, or even hear about core. That’s a big movement now, working your core which is your abs, hips, and back holding — all holding your frame up. There’s plyometrics, because balance and your flexibility are so important. Nobody used to stretch in the past, but now we got to realize that’s important. So absolutely, it’s changing. One of the challenges we have as far as equipment, we have to purchase everything and can’t lease it. If we were doing business in Asia or the mainland someplace we’d be leasing all this equipment, so every three years you’d be seeing everything brand new. It’s not cheap to do it this way. Just a single treadmill is $6,000 to $6,500. Maintenance is also an issue. The manufacturers forget

Tony Sgro, Paradise Fitness

“People have to realize that exer-cise is medicine. I’ve said it over and over. It’s not Tony Sgro talk-ing, the American Medical Associa-tion has stated

that if there was a pill that a doctor could prescribe, if it could do everything that exercise can do, it would be the number one prescribed pill.”


about us because we’re way out here. I finally had to send one of my men out to get certified to repair our equipment. Given that military personnel and dependents have ac-cess to on-base facilities, does the upcoming buildup offer any significant direct benefits to civilian fitness businesses? I really do think so, though there’s no secret about the mega facili-ties up on the bases. But you know, we do get a lot of the folks coming down here from Naval Hospital. Some military members like to get outside into the civilian community, where they’re a lot more loose and more comfortable. So, absolutely, I do feel that there’s going to be a possible upswing. And I feel that we’ll also see growth from the other workers who are coming to Guam to support the buildup. In the end it’s all about convenience and a good facility. People don’t want to go too far. Both the fitness and health sectors have pro-moted proper exercise and nutrition for de-cades, yet our society is in worse physical con-dition than ever with obesity affecting over 60 percent of all Americans — probably a higher percentage in Guam — and the problem is growing. Why isn’t this message getting through?

People have to realize that exercise is medicine. I’ve said it over and over, exercise is medicine. It’s not Tony Sgro talking, the American Medical As-sociated has stated that if there was a pill that a doctor can prescribe, if it could do everything that exercise can do, it would be the number one pre-scribed pill. A lot of people don’t understand the real benefits. You’d be surprised, but most doctors don’t understand what exer-cise is. The first thing they’ll tell you is stay away from rice or stay away from this, stay away from that. But if you ask a doctor about carbohydrates, proteins and sugar count, they couldn’t tell you. At Paradise, we have trained professionals who can provide this information. As for the message, yes, there’s a lot of information out there and a lot of people are ignoring it. How do we generate some real progress? There is progress. The administration of Governor Camacho and Mike Cruz has got this program, Let’s Get Up and Move, Guam. They wanted to put this program in the health plan for all gov-ernment employees. I’ve been screaming about this for years and then finally, it happened. They offered it to all GovGuam employ-

ees, and I wish more companies will think this way. People think year to year, but you need to look at this investment a little longer term and see a return in about five years. There’s 11,000 govern-ment health plan subscribers — because the benefit is only for the subscribers — and out of that, 5,480 subscribers signed up last year. So you look at the percentages and it’s baby steps. But it’s progress. It’s going to take time. You’re not going to see an instant return on the investment.

How do you make this message resonate with corporate execu-tives and business owners?

The first thing I would do is to tell these guys that your health is your wealth, number one. Number two, invest in your employ-ees. And you know some companies do. I’d like to give kudos

to the companies that do. I’ll give you an example, GTA. I walked in on a Sun-day, after mass, and this guy walks up to me and introduces himself, “I’m Dan Moffatt, the new CEO at GTA and I’d like to do something for my most important assets.” Those were his exact words. “I want to do something for my employees. We’ll pay a part of it and they’ll pay part of it. What kind of dollar amount can we come up with?” We came up with a figure for him and that was a Sunday. We had a deal on Tuesday. So all GTA employees have an opportunity to work out at Paradise Fitness for a minimal fee because GTA will pay the balance and we bill them directly, because he believes in it. Healthy body, healthy mind, more productivity out of employees, and he

understands it. It takes somebody like that. He just said I believe in this and this is what I’m going to do.

How about the business leaders themselves? So many avoid fit-ness plans because they say they’re too busy.

I’m the same way. I’m out of my house at 6:30 in the morning, and I’m in a meeting at 7:00. I bounce between offices all day. But I can tell you this, I will find that time, because I’m commit-ted to it. It’s a way of life. It’s got to be a way of life. I don’t care how hard you work or how much money you make. Whatever you’re going to do, without your health you’ve got nothing. So, if I get the chance to talk to an executive or business owner I’m go-ing to tell him or her to slow down and take care of what’s really important. There’s a man I’m very, very close to, he’s the president of Core Tech, Ho Eun. This guy is a firm believer of exercise. I have

The acquisition of Gold’s Gym:

“You know, it was an emotional thing. There was heavy competi-tion and we just didn’t see eye-to-eye for whatever reason. I bought the facility and I couldn’t go in it until we decided to shut it down. I sent my wife up to do it. That’s how emotional it was.”


40 DIRECTIONS • November 2009

never seen a man busier than him and a man that moves as quickly as him. But I can tell you this, he’s in Paradise in Dededo at 6:00 every morning. He could come off a flight from Korea at 2:00 a.m. he is there at 6:00. It’s part of his life, and he swears by it to the point where we put a corporate gym in for his employees.

Diabetes, heart disease, cancer and other ailments are on the rise in Guam. While exercise isn’t the total answer, it certainly is a part of it. What have you seen? I’ve seen people turn their lives around in our facilities. When I say turn their lives around I’ve seen folks who can get free from dialysis machines and be-come brand new people — and I see it almost weekly. When it comes to diabetes, as a community we are a disaster. When it comes to cardiovascular diseases, we are a disas-ter. I’ll tell you this, the doctors see people when they’re already ill and a lot of times they’re so far gone. A regular fitness program can help prevent so much misery, for both the individual and their family. There’s a member named Clayton, a chef. You talk about a guy that wants to beat a disease. This guy competed in the bodybuilding shows; he’s a senior. He had a tooth-ache. Long story short, he had his tooth pulled and found out he had cancer of the jaw. He went through radiation and chemother-apy. When he came back from Hawaii he looked horrible. He looked like a pencil. He was in the gym with his son and he says to me, “I want to beat this thing. I’ve got five years and I’m going to beat this thing for him.” So, he’s working out with his 15 year-old kid and Clay-ton is in his fourth year now. When you see that drive in people who have gone through something as tough as this, it’s amazing. Some health insurers have started charging more for obese members, and recently ambulance operators have instituted higher fees for transporting people who are highly overweight. Do you think the trend towards punitive measures will put a dent in this issue? I really feel it will. When it hits the pocketbook, people tend to react. I think it’s fair. People have to take responsibility for their health, and if they’re not going to take the responsibil-ity then why should other people suffer from it? We know what’s good and we know what’s bad. So there’s got to be a balance. It shouldn’t be all the healthy folks paying for all

the people who do things that they know are unhealthy. Overweight kids almost always become overweight adults. Should our focus be on getting the health message into the schools? Absolutely. We need to focus our attention on our kids and help that generation. It starts in the home but we’ve got to be spreading the word in the schools, too. They have to eat better and exercise regularly. We just started kids aerobics classes here at Paradise and we are launching a Mommy and Me program. We need to continue to educate our community that exercise is a lifestyle, and it’s a life-

style that we need to have. It needs to be a habit, like when you wake up in the morning and you brush your teeth. If kids make fitness and eating right a habit now, they’ll be healthier adults and they’ll bring up their kids that way. Just like we’ve had negative trends in health for so long, we could eas-ily create positive trends. You were overweight at one time. What’s your personal strategy towards fitness and how are you maintaining your health in your fifties? I just don’t quit. When you’re in your fifties you don’t jump out of bed as fast as you once did. Stretching is more im-portant, and the cardio-vascular work is really what you need to do. I’m not looking to build up and get into contests at

this age. I want to get in the best shape possible and I practice what I preach. The mistake some people make is to focus on just one type of exercise. Then, if they don’t see the results they get disappointed and give up. You have to do it all if you really want to get fit, some exercises with weights and some for your cardiovascular.

What are your feelings toward family businesses, as you’ve par-ticipated in them with your wife as well as other members of your family? They’re tough to work in, but I’m glad for my experiences work-ing in the family business. I call it the school and the college of hard knocks and thick skin, and it’s taught me so much. Every-body thinks because you’ve got a well-known name that you auto-matically get a big job. Not always. If you do, sometimes it’s hard because you’re not ready for that position. In other cases if you do well then the credit goes to everyone, and if you don’t do well


The challenge of surviving in the fit-ness industry:

“People that ac-tually run fitness facilities in the mainland, they’re executives ... Theyare not your gym brat as people

would say. This is a marketing business and you have to be out there promoting it all the time. Otherwise, you can’t make it.”


then you’re to blame. I’ve kind of had both sides of that. So those are some of the challenges that you have in a family business. If you look at a lot of the larger family businesses in the mainland — companies that make our businesses here in Guam look small — many times they’re taken over by a trustee because people can’t get along and family members just pick up their dividend checks. There’s that saying that goes, ‘The first generation starts it, the second generation builds it, and the third generation spends it.’ By the time you get to the third generation there are so many people looking for a high paying job on their name alone, that the business can’t support it and the only way it can survive is to be placed into outside hands. Working with my wife has been very good. She is a driven professional and brings focus, discipline, and balance to our company.

Those experiences that you referred to, did you draw upon those to get you through the tough times?

Exactly. The tough learning that I had to go through when I was in the family business helped me survive everything. There was a time in my life where I was just totally down. I got into a major lawsuit, I sued a bank and I lost 90 percent of what I had. If not for the good Lord upstairs, the hard work and the never giving up that I learned from my dad — and my wife standing next to me during my worst of times sitting in that courtroom — I would never have survived.

What are the keys to making a family business work well? You share the responsibilities and everybody pulls in the same direction. My wife, Audrea, handles the day to day operation of

Paradise Fitness. She’s here in Hagåtña, then she goes up to the Dededo location. The first thing you have to do is be there, have a presence. When she walks to the door, she’s not Audrea my wife, she’s Audrea the vice-president of the company and she’s working. One day during the summer my son, Michael, was working here and he came in said, “Dad, Audrea is in the woman’s bathroom and she’s scrubbing the showers.’ I said, ‘What’s the problem? — it needs to get cleaned, you’ve got to do it.’ He was just shocked that, at that level, she wasn’t afraid to jump in and scrub the shower. In a family business, whatever it’s going to take to get the job done is what we’re going to do.

Your father, Pete Sgro, Sr., was an iconic businessman during the 1950s through the 1980s. What did you learn from him that has made a real difference in your life?

My dad always had God in his life. Maybe it was the rebel rouser I was, but I never did. I thought I knew it all. If I would have lis-tened to my dad and had God in my life, I might not have gotten into all that mess I was in; I really do believe that. I finally realized there was something missing. I’m a Catholic, here’s a Bible; it’s on my desk, I read it. People ask me when I carry a bag, “What’s in your bag?” They’re surprised when they see the Bible. I’m not out preaching it, I just read it for myself. Having the Lord in me has made me become a better person.



You Just Have to Know Your Own Limitations

After watching the movie Cinderella, little Sarah started waving her toy magic wand, pretending she was a fairy godmother. “Make three wishes,” she told her mother, “and I’ll grant them.”

Her mom said, “Okay, I want world peace.”

Sarah swung her wand and proclaimed the request fulfilled. “What’s your next wish?” she asked.

Mom smiled, then sweetly replied, “I’d like a cure for every child in the whole world who is ill.”

Sarah smiled back and, again, with a sweep of the pinwheel, she said that it had been accomplished. Then she said, “I am ready for your final wish.”

Her mother paused for a moment, and with a glance down at her rather ample curves, made her third wish: “I wish to have a trim figure again.”

The miniature fairy godmother started waving her wand madly. The mother, seeing this, asked her, “Darling, why are you swinging your arms so wildly?”

Sarah looked at her with a sad face and said, “Well, I think I’m gonna need more power for this one.”

From Directions’ Matrimonial Files

Eighty year-old Barbara was getting married for the fourth time. The newspaper was interviewing her about her previous marriages and her pursuit of love.

She told the reporter that she got married the first time when she was 20, to a banker. Then, in her 40s, she married a three-ring

circus leader. Next, she married a preacher. And now she was marrying a funeral home director.

Barbara said, “I guess that’s one for the money, two for the show, three to get ready, and four to go.”

Lost And Found Department

Wife: “Oh my, I think that my mind is almost completely gone!

Husband: “I’m not surprised. You’ve been giving me a piece of it every day for 30 years!”

In The Beginning...

Three people were arguing about what profession was used first in the Bible.

The Surgeon said, “The Medical profession was used first when God took a rib from Adam and made Eve.

The Engineer said, “No, engineering was used first. Just think of the engineering job it took to create the world out of chaos.

The Politician laughed, “You would have nothing if we didn’t cre-ate chaos right from the start!”

The Powers of Observation

Attending a wedding for the first time, a little girl whispered to her mother, “Why is the bride dressed in white?”

“Because white is the color of happiness, and today is the happi-est day of her life,” said the mother.

The child thought about this for a moment then said, “So why is the groom wearing black?”

Oh No You didn’t!

Single guys should never use the following opening lines (the as-sociated reasons why in parentheses).

Man: I would go to the end of the world for you.Woman: But would you stay there?

Man: Haven’t I seen you someplace before?Woman: Yes, that’s why I don’t go there anymore.

Stuff Said By Real Lawyers In A Real Courtroom?

Lawyer: Doctor, before you performed the autopsy, did you check for a pulse?Doctor: No.Lawyer: Did you check for blood pressure?Doctor: No.Lawyer: Did you check for breathing?Doctor: No.Lawyer: So, then it is possible that the patient was alive when you began the autopsy?Doctor: No.Lawyer: How can you be so sure, Doctor?Doctor: Because his brain was sitting on my desk in a jar.Lawyer: But doctor, could the patient have still been alive nevertheless?Doctor: Yes. It is possible that he could have been alive and practicing law somewhere.


Timing Is Everything

A husband is watching a football game when his wife interrupted. “Honey, could you fix the light in the hallway? It’s been flickering for weeks now.”

He looked at her and saidangrily, “Fix the lights now? Does it look like I have GE written on my forehead? I don’t think so.”

“Fine,” she said, and walked away.

Then his wife asked, “Well then, could you fix the fridge door? It won’t close right.”

To which he replied, “Fix the fridge door? Does it look like I have Westinghouse written on my forehead? I don’t think so.”

“Okay,” she replied, trying to maintain her composure.

She then asked, “Could you at least look at the washing machine? I’m trying to get the clothes done today and one of the control knobs doesn’t seem to work.”

“I don’t fix washing machines,” He said. “Does it look like I have Maytag written on my forehead? I don’t think so.”

Before she could say a word he yelled, “I’ve had enough of you — I’m going out!”

So he got in his car, fuming, and drove to a restaurant where he ate and watched the rest of the game and another game, too, Afterwards he felt guilty about how he had treated his wife and decided to go home.

As he entered the house he saw the hall light was working.

As he went to the refrigerator to get a drink he noticed the door was fixed.

He also saw that all the clothes were freshly washed neatly folded on the table.

“Honey,” he asked, “how did all this get fixed?”

She said, “Well, after you left I sat outside and cried. Then a nice young man came along and asked me what was wrong. I told him and he offered to do all the repairs and all I had to do was either give him our television set or bake him a cake.”

The husband said, “So what kind of cake did you bake?”

She looked him in the eye and said, “Hello? Do you see Betty Crocker written on my forehead? I don’t think so.”

Material in Diversions comes from individual contributions as well as Internet sources such as www.crosswalk.com, the Net’s premier site for clean humor.

1. The Guam Police Dept. has just re-implemented AFIS. what is it?

2. Ambulances in numerous communities on the mainland are now charging extra for these patients.

3. Legislation proposed by Sen. Frank Aguon Jr. would prevent Guam Waterworks Authority from doing what?

4. The California Energy Commission is prepared to pass the nation’s first ban on which energy-hungry devices?

5. Guam Education Financing Foundation Inc. protested GovGuam’s intention to sign a contract with International Bridge Corp. over which property, and what did they claim?

6. PETA (People for the Ethical Treatment of Animals) is trying to lease one of Elvis Presley’s former properties — Circle J Ranch in Horn Lake, Mississippi. What do they want to do with it?

7. The Department of Homeland Security will implement a parole period beginning November 28 that will allow which visitors to do what?

8. If ordered, show up in court. This company didn’t and had a $1.26 billion default judgment issued against them. Yow!

9. Guam senators are considering a bill to require smokers to be how far away from the entrance of an enclosed public place?

10. The largest union for this Philadelphia government agency agreed not to strike during the recent World Series, which was played there.

ANSWERS ARE ON PAGE 58

The word this time is Vigilant. The dictionary tells us that it is defined as “keenly watchful to detect danger; wary; ever awake and alert.” Nothing wrong there, Boys and Girls. Now, to see how one little letter can make a big difference, add an “e” and you get “vigilante,” which refers to taking the law into your own hands and dispensing your own form of justice. That’s not a good thing. However, the 2010 election campaign will really get rolling soon and we’ll be asked to take Guam’s future into our hands to decide who we feel will be most vigilant about handling the business of the territory, managing af-fairs during the buildup, etc. Hopefully, enough of us will be vigilant and make good choices. Vigilant has 43 words hid-ing within its 8 letters. Each must have at least three letters. When you’re done, check your list against ours on page 58.




Over time, well-planned

financial goals may

be achieved through active

investment management

that relies on in-depth

research and the experience of the money

manager.


“Successful business

people know where their businesses are going. They have

a plan that they are

willing to follow in order to

achieve their clear goals as

written. ”


Instead of megapixels,

look for features that will improve your photos. Optical image stabilization

is a must. You’ll get

better low-light and

telephoto pictures.

Manager’s Toolboxsolutions, ideas and inspiration for enhanced productivity

“Perpetual optimism is

a force multiplier.”

— Colin Powell

Documents

11/09 November Directions