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M A G A Z I N E M A G A Z I N E THURSTON COUNTY CHAMBER OF COMMERCE SEPT/OCT 2015 BUILDING COMMUNITY PROSPERITY FOR 140 YEARS The center for business & innovation : Catalyst for High Growth, High Wage Jobs See page 14 STARTUP PLAYBOOK: Mud Bay's Lars & Marisa Wulff See page 4

September/October 2015 VOICE Magazine

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M A G A Z I N EM A G A Z I N E

T H U R S T O N C O U N T Y C H A M B E R O F C O M M E R C ES E P T / O C T 2 0 1 5

BUILDING COMMUNITY PROSPERITY FOR 140 YEARS

The center for business & innovation:Catalyst for High Growth, High Wage JobsSee page 14

STARTUP PLAYBOOK: Mud Bay's Lars & Marisa Wulff See page 4

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2 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

September 1Morning Mixxer - 7:30 - 8:30 a.m. - Titus Will 2425 Carriage Loop SW, Olympia.

September 3Young Professionals Network - 5:30 p.m. - 7:30 p.m. Oly Underground, 109 Legion Way SW, Olympia.

September 9Forum - 11:30 a.m. - 1 p.m. - Red Lion Hotel OlympiaTopic: Criminal Justice Reform.

September 17 Business After Hours - 5:30 p.m.- Regus400 Union Ave. SE, Ste. 200 Olympia.

October 1Young Professionals Network - 5:30 p.m. - 7:30 p.m. Top Rung Brewing, 8343 Hogum Bay Ln. NE, Lacey.

October 6Morning Mixxer - 7:30 - 8:30 a.m. - Best Western Plus Inn & Suites, 18326 Quinault Drive NE Lacey.

October 14Forum - 11:30 a.m. - 1 p.m. - Red Lion Hotel OlympiaTopic: Meet the Candidates

October 15Business After Hours - 5:30 p.m.- Bite of BusinessRed Lion Olympia, 2300 Evergreen Park Dr, Olympia.

October 22South Sound Showcase - 10 a.m. - 4 p.m.Saint Martin's University Marcus Pavilion

Executive Offi cersMariella Cummings, Chair Physicians of Southwest WA

Jessica Coen, Chair ElectXerox Company

Drew Phillips, Vice ChairFORMA ConstructionNeil Woody, TreasurerMcSwain & Company P.S.Ron Bruchet, Past ChairGHB Insurance

CHAMBER BOARD & STAFF

Page 3 .............................................................Vision in Action

Page 4 ....Startup Playbook: Marisa & Lars Wulff of Mud Bay

Page 6 & 7 ..................................................Caught in the Lens

Page 8 ....Criminal Justice Reform Topic of September Forum

Page 10.......................................................Networking Events

Page 12 .............Cities Report Positive Outcome from Session

Page 14 ......................The Center for Business and Innovation

Page 17.....Port Commissioner Race Debate at October Forum

Page 17.............................LTC Class of 2016 Takes the Stage!

Page 19...............................New Members from June and July

Page 21.......Meet John Bash, Tumwater's New Superintendent

Page 23...................B&E Committee is Shaping Public Policy

Page 25....Young Professionals Gain Momentum & Add Buzz

Copyright © 2007 Thurston County ChamberALL RIGHTS RESERVED

Published bimonthly by theThurston County Chamber.

809 Legion Way SE P.O. Box 1427 Olympia, WA 98507

[email protected]

360.357.3362

These events require pre-registration at www.thurstonchamber.com

Editor: David Schaffert Layout & Design: Natasha Ashenhurst of Mosaic Marketing Studio VOICE Intern: Rory Zuagg Printing: Print NW Cover Photo: Center for Business & Innovation

Chamber StaffDavid Schaffert, President/CEO

Sytease Geib, VP Workforce DevelopmentMarny Bright, VP Member Services

Laurie Bjerke, Admin. AssistantAlisha Blain, Events Coordinator

Christina Bower, Education/Youth InitiativesDebbie Burk, Workforce Development

Ryan Dahlstrom, Workforce DevelopmentLesona Hartman, Workforce Development

Beth Johnson, Member ServicesHelaina Kennedy, Workforce Development

Laura Klem, Executive Administrative SupportJudy Reynolds, LeadershipThurston County

Mike Spezia, Workforce DevelopmentMartha Wagner, Member Services

Michele Winn, Camo2Commerce

Board of Trustees

CONTENTS

BUILDING COMMUNITY PROSPERITY FOR 140 YEARS

George Barner, Port of OlympiaMichael Cade, Thurston EDCDavid Cullen, David D. CullenDick Cvitanich, Olympia School DistrictCheryl Fambles, PAC Mountain Workforce Development CouncilPerry Hanchey, Diamond Technology InnovationsJoseph Lanham, Wells Fargo

Platinum InvestorsCapital Medical CenterFORMA Construction

Great Wolf Lodge • KeyBank Lucky Eagle Casino & HotelMills & Mills Funeral Home & Memorial Park • Morningside

Olympia Orthopaedic Associates TwinStar Credit Union

Washington Business Bank Xerox

Gold InvestorsAmerica's Credit Union • Cabinets by Trivonna Columbia Bank • Community Youth Services

The Creative Offi ce Express Employment ProfessionalsFirst Citizens Bank • GHB Insurance Hometown Property Management

Jessica Jensen Law PS Nisqually Red Wind Casino Olympia Furniture Company

Pardiman Productions Providence St. Peter Hospital • Puget Sound EnergyRed Lion Hotel Olympia • Saint Martin’s University

SCJ Alliance • TAGS • The Governor Hotel

Diamond Investors:Anchor Bank

Heritage BankPhillips Burgess

Physicians of Southwest Washington

Port of OlympiaVersoria

Join the conversation online at facebook.com/ThurstonCountyChamber.

CALENDAR

Bryan McConaughy, Puget Sound EnergyBen Shah, Olympia OrthopaedicsKevin Stormans, Stormans Inc.Ann Sweeney, Lemay - America's Car MuseumFaith Trimble, The Athena GroupElyse Villanueva, Heritage BankJoanna West, Washington Business BankMike Williams, Tags Awards And Specialties

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Thurston County Chamber VOICE Sept./Oct. 2015 3www.thurstonchamber.com

How does a community take an idea that will create economic and community development and bring it to fruition?

It isn’t a magic trick or sleight of hand, but rather having the imagination to create a vision and turn it into something tangible. It takes incredible leadership and the willingness to put reputations on the line—and fi nances at stake.

This month, we are celebrating the opening of The Center for Business and Innovation, a partnership between the Thurston County Economic Development Council (EDC) and South Puget Sound Community College (SPSCC).

As we look ahead to the tremendous benefi t this center will have on Thurston County, I believe it is important we examine how the vision for The Center became a reality, and celebrate the leadership that moved this project from a great idea into a force for change.

The spark that set the project in motion occurred in the fall of 2012, when SPSCC invited Dr. Kevin Cooper from Florida’s Indian River State College to keynote their fall gala. His talk addressed the impact that education has on economic development and the building of a quality community. Cooper referenced the work of the recently completed “Sustainable Economy” chapter of the Thurston Regional Planning Council’s sustainable communities project, and the Pacifi c Mountain Workforce Board’s economic cluster study. Cooper cited both as foundational work to begin the process of wealth creation that supports a long-term economic development model that supports business growth, entrepreneurial development and innovation.

A few months later, SPSCC convened a work session—consisting of representatives from SPSCC, the EDC, Thurston County Chamber, the City of Lacey, Evergreen State College and Saint Martin’s University—to discuss the feasibility and opportunity of creating an entrepreneurial center that promotes innovation,

and to serve as a catalyst for high wage sector growth.

Representatives from this group decided to seek national best practices, and

proceeded to visit Indian River State College in Fort Pierce, Fla., and the college’s Brown Center for Innovation.

After the group returned, they launched a series of community meetings with business organizations, education, military, fi nance sector and social services. The charrette process resulted in two basic directives: The Center would be supported and valued by the community if it focused on high-value, high-wage innovation within the private sector, and the entrepreneur center could successfully be the home of joint—but collaborative—

economic development efforts and career and technical training provided by SPSCC.

By the end of 2013, SPSCC—through Washington State Enterprise Services—released a request for quotation for redevelopment of the identifi ed Rowe Six Property. By early 2014, the redevelopment of the facility was underway.

This month, we are getting ready to celebrate its grand opening.

From the chronology it is easy to see how leadership, information and action create opportunity. The Center—though conceived initially by a few—quickly became a community endeavor that refl ects the needs of community and business development. The Center also demonstrates the commitment of the principal partners—the EDC and SPSCC—to take risks, to move quickly on an opportunity, remain inclusive in developing vision with community and extraordinary leadership to move the project from a vision into action made visible. ●

Thank you, Michael Cade, for supplying the time line of events.

Vision in Action

David Schaffert

By David Schaff ert, Thurston County Chamber President/CEO

How does a community take an idea that will create economic and community

development and bring it to fruition?

It isn’t a magic trick or sleight of hand, but rather having the imagination to create a vision and turn it into something tangible. It takes incredible leadership and the willingness to put

reputations on the line—and fi nances at stake.

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4 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

This is the sixth article in our Startup Playbook series, where we examine Thurston County startups—and the entrepreneurs behind them—in order to learn what’s working and what’s not, and search for a pattern to success. Here’s Marisa and Lars’ story.

In 1993 Marisa Wulff had recently returned from Holland, where she had fi nished an MBA. Her brother Lars was trying to fi nish writing a novel. Their mother, Elsa, owned a small farm supply store on Olympia’s Mud Bay Road that wasn’t doing well, so they decided to join the business and turn it around. “Our intent was to get the store in the

black, sell it and move on,” said Marisa, Co-CEO of Mud Bay. “What we didn’t realize is that we would have so much fun working together and that the business actually might be worth keeping.”

When Lars and Marisa joined the store, it was selling a little bit of everything under the banner of ‘farm store’, from oysters to baby chicks, folk art to barbed wire. Slowly they grew the business by dropping inventory categories and focusing on the part of the business they had the most interest in—natural food and supplies for dogs and cats.

“We’ve learned a few key lessons—don’t

try to be everything to everybody; do what you are passionate about; and do it really well. Also, we had to learn to let go of perfectionism which is a Wulff family trait. It was a hard thing to get away from, but we quickly realized that if you focus on perfectionism, the competition leaves you in the dust,” said Marisa.

Sales grew, but naysayers told them selling natural food for dogs and cats would only work in the Westside neighborhood of Olympia, home to the Evergreen State College and the Olympia Food Co-op, and not to think about expanding. Lars and Marisa believed otherwise.

I n 1993 Lars and Marisa Wulff jumped onto a sinking ship—a farm supply store located on the west side of Olympia, owned by their mother, which was losing close to $50,000 a year. Together they turned the business around, and today Mud Bay has

34 locations throughout the Pacific Northwest. Mud Bay has had a consistent growth rate of about 20 percent per year and was recently named "2015 Retailer of the Year" by Pet Business Magazine.

By Natasha Ashenhurst

STARTUP PLAYBOOK: Marisa and Lars Wulff & Mud Bay

Photo on left: Mud Bay's Olympia location on Harrison is less than a mile from the original feed store. Photo on right, courtesy of Mud Bay, is Lars and Marisa Wulff taken at the Retailer of the Year dinner.

Continued on page 26

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Thurston County Chamber VOICE Sept./Oct. 2015 5www.thurstonchamber.com

Bring Clarity, Alignment and Actionto What You Do.Let’s Get Started Today.

Terry Taylor,MA, MCC

360-789-3711 VERSORIAONLINE.COM

ORGANIZATIONAL DEVELOPMENT

LEADERSHIP DEVELOPMENT

STRATEGIC BUSINESS PLANNING

PROCESS DESIGN

EXECUTIVE AND LEADERSHIP COACHING

BOARD DEVELOPMENT

CAREER DISASTER RECOVERY

TEAM BUILDING/CONFLICT RESOLUTION

BUSINESS PROCESS IMPROVEMENT

TRAINING, MENTORING AND COMMUNICATION

If you’re a woman age 40 or older, remember to get an annual mammogram. Having a regular mammography screening can be a valuable, lifesaving tool in identifying breast cancers early, when they are localized and treatment plans are most successful. In fact, when breast cancer is detected in its early stages, the American Cancer Society reports a five-year survival rate of 98 percent! So why wait? Talk to your doctor and call us today to schedule a screening!

Schedule your screening today! Call 360-704-4750.

MAMMO MIA!

Capital Medical Center is partly owned by some of the physicians who serve our patients. ©2015 BCI

3900 Capital Mall Dr. SW • Olympia, WA 98502 • 360-754-5858 • 888-677-9757 • capitalmedical.com

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6 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

Caught in the Lens...

PRESENTING SPONSORS

The Ride supports Morningside’s High School Transition Program, helping young people with disabilities transition to jobs

through coaching, internships, and job placement during their final year of high school.

Grab your hat and boots, The Morningside Ride is going Cowboy! Our popular road rally event that has you looking for clues, filling out an answer sheet, and stopping at a couple check points where you can earn extra points has a western theme this year!

Dressing the part adds to the fun, but whether you come as yourself or come as the Lone Ranger, do come to the Best Little Fundraiser West of the Mississippi!

$80 per 2-Person Team

$30 per Additional Adult Passenger $25 Texas-style BBQ ONLY $10 Meal under 12 years

Want to sign up online? Go to morningsideservices.com

Olympia High School

1302 North Street SE, Olympia WA 98501

Lucky Eagle Casino and Hotel

12888 188th Ave SW, Rochester, WA 98579

2015 ROAD

CHALLENGE SATURDAY morningsideservices.com

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Thurston County Chamber VOICE Sept./Oct. 2015 7www.thurstonchamber.com

Photos taken during June, July and August 2015 at the following events: June Business After Hours at the Washington Center, July Morning Mixxer at Liberty Mutual, July Business After Hours at Cabinets by Trivonna, July Forum, August Morning Mixxer at the Firs,

Ribbon Cutting at SafePlace, Ribbon Cutting at Edward Jones and August Forum.

Let’s get to know each other.

anchornetbank.com

Successful businesses don’t always know eachother. But they do know Anchor Bank.

Anchor Bank helps local business owners maintain and grow theirbusiness so local people, including us, can get the things we need.

A C C E S S | A D V I C E | E V E R Y D AY S O L U T I O N S

WHERE BUSINESS CONNECTS.

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8 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

[email protected]

Venables Pest Management is a locally owned and operated company using pet-friendly, professional pest management solutions for ants, termites, mice, beetles, spiders, bed bugs, yellow jackets and rats. We also offer commercial and residential maintenance services and real estate inspections. Give us a call today.

TRUSTED BY THOUSANDS

Mark your calendar for the Chamber's September Forum on Wednesday, September 9. Thurston County

Prosecuting Attorney Jon Tunheim will deliver the keynote address. His remarks will focus on the topic of Criminal Justice Reform.

Tunheim received his undergraduate degree in physics from South Dakota State University, and his law degree from the University of Puget Sound School of Law (now Seattle University School of Law). While in law school, he joined the Thurston County Prosecuting Attorney’s Offi ce as a legal intern.

After graduating from law school, Tunheim became a Deputy Prosecuting Attorney for Thurston County in 1990 and served the offi ce most recently as Chief Deputy since 2003. During his career, Tunheim has personally prosecuted cases involving charges ranging from drug possession to murder, and specializing in the prosecution of sexual assault, domestic violence and crimes against children. As a Deputy Prosecutor, he was a leader in the

effort to form Monarch Children’s Justice and Advocacy Center, an organization which provides coordinated services to child victims of abuse and neglect.

Tunheim was named a “21st Century Leader” by The Olympian. He was also presented with the “Champions for Kids” award from Together! in 2008, the Thurston Community Network’s “Making a Difference in the Life of a Child” award in 2009, and most recently the “Local Hero Award” from the Washington State Bar Association. Jon and his wife Marcia have four active sons.

Forum begins at 11:30 a.m. at the Red Lion Hotel Olympia. Forum includes lunch and is $35 for general admission, $25 for prepaid Chamber members and $30 for members at the door. Reservations are strongly

advised. Make your reservation today at www.thurstonchamber.com.

Thank you to our sponsors, United Way, Anonymously Yours Foundation and Saint Martin's University. ●

Prosecuting Attorney to Keynote Forum Addressing Criminal Justice Reform Efforts

Jon Tunheim

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10 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

Young Professionals NetworkOly Underground will be our host this month! Admission is FREE, Chamber membership not required. Get ready to make awesome new connections, and be sure to bring a friend! The Thurston Chamber YPN is a great place to interact with new, younger business professionals in a low-pressure environment. Bring plenty of business cards and a smile, and you're set to enjoy a fantastic evening of networking! ●

Morning Mixxer sponsored by Mixx 96 FM and Anchor Bank and is the fi rst Tuesday of each month, from 7:30-8:30 a.m. Locations vary. Includes coffee and pastries. Admission is FREE. Business After Hours is sponsored by 94.5 ROXY and Heritage Bank and is the third Thursday of each month. Locations vary. Admission is free.

Morning MixxerIn the spirit of hospitality, please join the Best Western Plus Lacey Inn & Suites for an hour of relaxed networking. The top rated Facility on Trip Advisor will offer tours of the facility and door Prizes while you partake in their spectacular continental breakfast. Check in time: 7:30 am! ●

BITE OF Business After Hours!Share an evening of networking at the Red Lion Hotel Olympia while experiencing the culinary diversity available in Thurston County! Vendors will provide samples of their latest and greatest holiday menu options. Attendees will vote on: Most Creative, Best Display/Presentation & Best Taste. A few of the businesses participating this year are Budd Bay Café/River's Edge, Lucky Lunchbox, Occasions Catering and Casa Mia. ●

OCTOBER 6 - 7:30 a.m.

October 15 - 5:30 p.m.

8326 Quinault Drive NE, Lacey

2300 Evergreen Park Dr SW, Olympia

2425 Carriage Loop SW., Olympia

Morning MixxerThe Titus-Will family would love to host you for breakfast at the Chamber’s September Morning Mixxer. Don’t miss this networking opportunity to mix and mingle and make new business contacts. Enjoy breakfast goodies and a cup of Joe and meet some wonderful members of our Titus-Will team. We look forward to welcoming you all. ●

September 1 - 7:30 a.m.

September 3 - 5:30 p.m.109 Legion Way SW Olympia

More information about upcoming events can be found at www.thurstonchamber.com.

OCTOBER 6 7:30 a mSeptember 1 7:30 a m

MARK YOUR CALENDAR!

September 17 - 5:30 p.m.400 Union Ave. SE, Ste. 200, Olympia

Business After HoursJoin us for Business After Hours, at Regus’ new office space in the old WSECU bank building. We’ll be serving appetizers, beer and wine in the boardroom—which used to be the bank’s vault!

Our turn-key office suites require no long-term leases, up-front capital or build-out costs. They also include phones, internet, professional meeting rooms, video conferencing, a receptionist and in-house IT support! Meet local professionals and celebrate our newly-opened center with us! ●

Young Professionals NetworkTop Rung Brewing Co. will be our host this month! Admission is FREE, Chamber membership not required. Get ready to make awesome new connections, and be sure to bring a friend! The Thurston Chamber YPN is a great place to interact with new, younger business professionals in a low-pressure environment. Bring plenty of business cards and a smile, and you're set to enjoy a fantastic evening of networking! ●

October 1 - 5:30 p.m.8343 Hogum Bay Ln. NE, Ste. E, Lacey

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12 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

On July 10, the 65th legislative session adjourned in triple overtime.

The Thurston County Chamber of Commerce had the chance to speak with Olympia City Manager Steve Hall, Tumwater City Manager John Doan and Lacey City Manager Scott Spence, about the fi nancial impact of the session on the cities.

They reported most issues of direct importance were resolved in a positive way, including:

• Retention of current liquor profi t sharing.

• $6 million in marijuana excise tax revenues to cities and counties per year.

• Fully funded Fire Insurance Premium Tax.

• Washington Wildlife and Recreation Program funded at $55 million, with an additional $46 million in WWRP

projects funded elsewhere in the budget through recreation grants. This represents a $101 million total investment –the highest since 2007—and is a great sign to cities who will seek this funding in the future.

That the legislature did not provide funding for any new loans through the Public Works Trust Fund — a fund critical to medium and small-sized cities’ ability to fund public works projects –is concerning.

A $16.3 billion transportation package was passed that includes an $11.9 cents per gallon gas tax that will be implemented over the next two years. Some additional highlights of the transportation package include:

• Authority provided to Transportation Benefi t District governing boards to raise the vehicle fee to $40 if a fee of $20 has been in place for two years. It also conveys authority up to $50 if a fee of $40 has been in place for

two years.

• $7.6 million is included for the Mottman Road Pedestrian and Street Improvements -- a joint Olympia/Tumwater project. However, funding is not provided until the 2023-25 and 2025-27 biennia.

• Continued funding for the Transportation Improvement Board, Safe Routes to Schools, and bicycle and pedestrian grant programs.

Capital dollars received by the City of Olympia:

• The City of Olympia received $950,000 for the bulkhead repairs at Percival Landing. Although the City requested a more fl exible appropriation that could be used on Percival Landing, Capitol Center Building or East Bay shoreline repairs, the fi nal budget earmarked funding specifi cally for Percival Landing. The estimate for the bulkhead repairs is $2.7 million, so

Olympia, Tumwater and Lacey Report Mostly Positive Outcome from Triple-Overtime Legislative Session

Photo above from Legislative Support Services Photo Department: Gov. Jay Inslee signs Senate Bills 5987 (Relating to transportation revenue); 5988 (Relating to additive transportation funding and appropriations); and 5989 (Relating to authorizing bonds for transportation funding), during a ceremony at the University of Washington’s Conibear Shellhouse in Seattle, July 15, 2015.

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Thurston County Chamber VOICE Sept./Oct. 2015 13www.thurstonchamber.com

City staff will work on a plan to fund the balance of the project.

• Funding for the demolition and construction of the 1063 Building was also included in the Capital Budget. In addition to getting a new, modern building along Capitol Way entering Downtown, we will realize approximately $500,000 or more in permit fees and revenues from construction, as well as the associated sales tax generated from construction.

All in all, the city agrees that this past session was positive. All current state-shared revenues, including the Fire Insurance Premium Tax, remained intact. They obtained some funding from the marijuana excise tax, the 1063 Building is moving forward, and they obtained $950,000 for Percival Landing.

Capital Dollars Received by the City of Tumwater:

The State Legislature adjourned with a mostly positive outcome for Tumwater. On the upside:

• The current formula of sharing of liquor revenues was untouched.

• $6 million was made available statewide from marijuana revenues. Tumwater will be eligible for that funding because they allow marijuana retailing.

• The Washington State Department of Transportation relocation off Capital Blvd. was funded in order to free up the site on Capitol for redevelopment.

• $5.8 million was provided for the Deschutes Valley Trail, but it is identifi ed as Tier 3, meaning funding is in future biennia.

• Full funding is provided for the improvements to Mottman Road along South Puget Sound Community College in Tumwater and Olympia. The funding is available in 2023-27.

• $50,000 is available for the Henderson House renovations.

The City of Tumwater will continue to work with the delegation in the coming years to move up the timing of the funded transportation projects. On the down side:

• The proposed Washington State University extension position was not funded.

• The Public Works Trust Fund was fully swept leaving no funding available.

Tumwater Mayor Pete Kemet added, “We were thrilled to receive grant funds for preserving the historic Henderson House and for future construction of the Deschutes Valley Trail. We are also grateful that State employees were fi nally able to get a raise, which should inject some life into our local economy. We’d like to thank our delegation for all their hard work during this diffi cult session.”

Capital Dollars Received by the City of Lacey:

• The City of Lacey will receive $72 million for the Marvin Road/Exit 111 Interchange. This will upgrade the existing structure to a single-point urban interchange, including an exclusive truck ramp to access Northeast Lacey and a direct off-ramp, southbound, to enter the future Gateway Development.

• The transportation package included $40 million to construct a WSDOT Olympic Headquarter Facility. “This is a long overdue investment. Tumwater will have the opportunity to reclaim the land the existing site is on, and the brand new headquarters in NE Lacey will provide jobs in Thurston County,” said Scott Spence. He adds, “The Transportation package is a huge win for our state and region. Legislative District 22 really went to bat to get this package, they really championed our region.”●

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14 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

The Center for Business and Innovation: Catalyst for High Growth, High Wage Jobs

“Sure,” said Dr. Timothy Stokes, president of South Puget Sound Community College. “The key ingredients are a culture of creativity, access to capital and a commitment from municipalities that they are willing to sustain business development and growth. Mix in easy access to resources, quality mentoring and a population consisting of individuals who are willing to take some risk. Finally, you need a culture that celebrates success.”

Next, he said, we can look to other cities that have already created this success, like Austin, Texas—where Stokes worked in the early 1990s—or Fort Pierce, Fla., home of Indian River

State College (IRSC). During a visit to IRSC, a group of local leaders—from SPSCC, the Thurston Economic Development Council (EDC), the Thurston County Chamber of Commerce, the City of Lacey and Saint Martin’s University—experienced a collective aha moment. They recognized that Olympia, Lacey and Tumwater already had the ingredients needed to create a climate that fosters entrepreneurship and innovation, it simply needed a cohesive structure for the pursuit of their goal—a one-stop shop.

“I became excited when we went to [IRSC] and saw the combination of resources they had to create [the Brown

Center for Innovation],” said Michael Cade, executive director of the EDC. “So we asked, ‘How do we organize the resources we already have?’ ‘Why not put all of these resources under one roof’?”

Resources like those found in the Small Business Development Center, the WPTAC program, SCORE mentoring and the Washington Center for Women and Business. Add to these resources a degree-granting program in entrepreneurship and half of the recipe is already in place.

On the plane back to Washington, Cade was already drafting the vision

By Natasha Ashenhurst

How does a city, or three cities, create a climate ripe for high growth, high wage jobs? How does a region foster innovation and entrepreneurship? Is there a recipe to follow, step by step?

Photos above: the Center for Business and Innovation at SPSCC's Rowe Six Campus on 6th Avenue in Lacey. Dr. Timothy Stokes, left, and Michael Cade, right, keynote the Chamber's August Forum, addressing the Center as a hub of innovation and entrepreneurship.

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Thurston County Chamber VOICE Sept./Oct. 2015 15www.thurstonchamber.com

statement of what was to become the Center for Business and Innovation, the fi rst installation at SPSCC’s Rowe-Six campus in Lacey.

The vision of the Center is audacious. The Center is to be the catalyst for high growth, high wage jobs in Thurston County; the nucleus that spurs economic development and education specifi cally designed to launch companies, develop products and issue patents, according to Cade.

“The Center will integrate the practice of economic development and education. Someone could walk in the door of the Center to create a pilot project, review their funding, and then launch. It will be a place to fl esh out ideas and then incorporate those ideas into a solid business model. A whole new sector of the economy will emerge from this,” he said. “ It will be a place to fl esh out ideas and then incorporate those ideas into a solid business model. A whole new sector of the economy will emerge from this.”

In fi ve to 10 years, Stokes believes the Center can launch 30 to 40 businesses annually—businesses that are sustainable and scalable—adding to the overall economic development of the region.

When asked how they’ll fi nd the entrepreneurs and ideas to make the Center buzz with innovation, both Stokes and Cade state that our region is fertile ground.

“We need to ask how we can keep our talent here,” said Cade. “With a population of 250,000 and three colleges, we need to recognize the talent that we have. We have one of the highest education rates in Washington state and we draw a lot of very smart people here for state government.

“We also have a quality of life that attracts people to live here and start jobs and companies that allow them to stay here. Look at H2O Jet and Diamond Technologies, Inc. Great companies that grew up here. They are world leaders at what they do.”

Stokes agrees. “Our colleges turn out a tremendous number of people who want to stay in the community and start their own businesses,” said Stokes. “We need to harness the energy that young people have and move them into the economy in a seamless way.”

Entrepreneurs are usually full of passion for their idea, Stokes said, but many lack the practical business acumen—or access to that knowledge—it takes to turn an idea into a solid business.

“If you talk to entrepreneurs they always have the ideas and passion, but many forget about the not-so-sexy services, like human resources and accounting,” said Stokes. “The Center will provide those back-of-the-house services so entrepreneurs can focus on their passion.”

The Center’s phones will start ringing on Sept. 8, and a grand opening is set for

October. Celia Nightingale is the Center’s director, reporting to Cade. Nightingale is a former business adviser with the Small Business Development Center, is an adjunct faculty member at SPSCC, was the primary writer of the Washington Small Business Guide, and has an MBA from the University of Washington’s Foster School of Business.

The Center will have an Entrepreneurship faculty member who will help coordinate internships, write business plans and help students fi nd capital to start their businesses.

When asked if all the services will be in place by September, Stokes said most will, but one important ingredient is still missing.

“We are working on angel funding and micro lending,” said Stokes. “Our [SPSCC] Foundation would like to offer start-up funding and micro loans. Many people starting businesses need loans that aren’t bankable. Thurston County really does have a need here.”

Also, Stokes added, other partners are still coming to the table.

“There are additional partners that will be added over the next few years to add to the suite of services that we offer.”

Ultimately, said Cade, when a region becomes a catalyst for innovation and entrepreneurship, it becomes a magnet that attracts more of the same elements to it from beyond that region.

“As an economic development guy, I’m always asking, ‘How do we attract new investment in Thurston County?’ ‘How do we bring resources into our community?’,” said Cade. “If I go to a company outside of our region and tell them they should do business here, I can point to the Center and say, ‘Look, we offer a strong platform to operate in. We’ll provide you with assistance in a variety of areas, whether that is technical assistance, workforce development or small business incubation. We have strong resources to grow companies and opportunities.” ●

PROJECT TIMELINEFall 2012 - Dr. Kevin Cooper of Indian River State College keynotes SPSCC's fall gala.Feb. 2013 - SPSCC convenes work session with EDC to identify plans and efforts that support innovation within the economy.March 2013 - SPSCC convenes work session with EDC, Thurston Chamber, City of Lacey, The Evergreen State College and Saint Martin's University, to discuss feasibility of creating entrepreneurial center.March 2013 - Leaders SPSCC, EDC, Thurston Chamber, City of Lacey, The Evergreen State College and Saint Martin's University visit Indian River State College and tour the Brown Center for Innovation. Vision statement for Center of Business and Innovation is crafted.June 2013 - SPSCC contracted with consulting fi rm to begin the process of identifying resources, partnerships and opportunities for the Center. A series of four meetings held to solicit community input.Fall 2013 - SPSCC through Washington State Enterprise Services issues an RFQ for the redevelopment of building 1 of the Rowe Six Lacey Campus.Winter 2013-2014 - Original tour group convenes a work committee to begin the construction of the "architecture" that would govern and guide the operations of the new center. It establishes a joint position -Director position that would be funded via the SPSCC and EDC.Spring of 2014 - Redevelopment of the facility commences.September 2015 - Facility will be operational inclusive of the "Center for Business & Innovation."

September_October 2015.indd Sec1:15 8/31/2015 3:45:45 PM

www.thurstonchamber.com16 • Sept./Oct. 2015 Thurston County Chamber VOICE

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Thurston County Chamber VOICE Sept./Oct. 2015 17www.thurstonchamber.com

The Class of 2016, the 22nd Leadership Thurston County (LTC) class, kicks off a new year

at the September 11 Opening Retreat. The 40 people in this year’s class represent a broad cross-section of the community – large and small businesses, non-profi t organizations, public agencies and community volunteers. Participants meet monthly from September through June to learn about current issues, make community connections and explore ways to get involved.

Introducing the Class of 2016Shari Aldrich, Body Mechanics School of Myotherapy & MassageDwayne Boggs, Boggs Inspection ServicesSusan Bowe, Washington State Department of TransportationKelsey Browne, LOTT Clean Water AllianceAmanda Carroll, Tiburon SystemsDonovan Cathey, Tumwater Firefi ghters UnionMaria Chiechi, WA State Residential Care CouncilSam Costello, Olympia Police DepartmentSteve Craig, City of TumwaterLeatta Dahlhoff, Washington State Department of EcologyTina Davis, TwinStar Credit UnionJohn Duerr, Coldwell Banker Evergreen Olympic RealtyShawna Dutton, Habitat for Humanity

Len Faucher, Port of OlympiaAnthony Ford, Capitol City PressSytease Geib, Thurston County ChamberJoy Gerchak, Intercity TransitKasandra Jaquez, Anchor BankJoshua Johnson, Brown & CaldwellKaren Johnson, Sunset AirRon Jones, City of OlympiaMatthew Klifman, US BankJim Ladd, Evergreen Christian CommunityJennifer Lamont, Olympia-Lacey-Tumwater Visitor & Convention BureauMeryl Lipman, The Evergreen State CollegeJennifer Lord, Thurston Co. Prosecuting Attorney's Offi ceTanya Mote, South Puget Sound Community College FoundationTeri O'Neal, City of LaceySonia Ramirez, Yelm Municipal CourtRyan Reynolds, Weichert Realtors/Reynolds Real EstateChris Richardson, Chehalis Tribal EnterprisesRisha Sanderson, Puget Sound EnergyScott Sawyer, SCJ AllianceBarbara Soule, AAA Washington-Olympia Offi ceMark Steepy, KPFF Consulting EngineersHeidi Thomsen, Thurston County Sheriff's Offi ceBridget Vidonne, Pacifi c Mountain Workforce Development CouncilDaniel Vining, Thurston First BankKyle Wiese, Thurston Economic Development CouncilKim Young, Wolf Haven International

The LTC Board of Regents began the new program year with an annual retreat on August 27.

Board members for 2015-2016: Chair Rick Hughes, Principal, Law Offi ce of Richard L. Hughes PLLC Past Chair Renée Sunde, Economic Development Director, City of Olympia Tom Carroll, President/CEO, Tiburon Systems LLC Ann Freeman-Manzanares, General Manager, Intercity Transit Cecelia Loveless, Vice President for Institutional Advancement, Saint Martin’s University Wes Martin, Designated Broker/Business Sales Consultant, Sound Business Brokers Kim Peterson, Vice President of Finance/Chief Financial Offi cer, TwinStar Credit Union Stephanie Pickernell, Associate Development Advisor, Lucky Eagle Casino Kari Qvigstad, Business Development Manager, Washington State Department of Enterprise ServicesDavid Schaffert, President/CEO, Thurston County Chamber Aaron Steele, Owner, Steele Capital ManagementJon Tunheim, Thurston County Prosecuting Attorney

LTC Class of 2016 Takes the Stage!

Join the Thurston County Chamber on Wednesday, October 14 for a Candidates Reception & Meet the Candidates Forum. Don't miss this celebration of politics, policy and

people!

This event will feature the Port Commissioner race, a pivotal race with regional signifi cance. Forum attendees will hear from all candidates vying for this offi ce. The Olympian's Brad Shannon will moderate the debate. Shannon has covered state government for The Olympian since 1999.

A large contingent of candidates running for public offi ce in Thurston County will be at Forum and the Candidates Reception to meet and mingle with community and business leaders.

Candidates in all races are encouraged to arrive early and stay late for as much one-on-one conversation with Chamber members as possible.

Forum is on Wednesday, October 14, at the Red Lion Hotel Olympia from 11:15 a.m. to 1:00 p.m. A plated lunch will be served.

Forum includes lunch, and the cost is $35 for general admission, $25 for prepaid Chamber members, and $30 for members at the door.

Visit thurstonchamber.com to make your reservation today. ●

High-Profile Port Commissioner Race Featured at Chamber's October Forum & All Candidates Invited to Candidates Reception

For more information about LTC, call Judy Reynolds at 360.357.8515 or visit www.LeadThurstonCounty.com.

September_October 2015.indd Sec1:17 8/31/2015 3:45:48 PM

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Thurston County Chamber VOICE Sept./Oct. 2015 19www.thurstonchamber.com

Auto Sales Unlimited Rob Holsinger (877) 396-5808 www.autosalesunlimited.bizAuto Dealers & Buying ServicesBank of the Pacifi c Tony Conway (253) 964-1082 www.bankofthepacifi c.com BanksBlind Pig Spirits Lesa Givens (360) 628-8259 www.blindpigspirits.com DistilleriesBudget Blinds of OlympiaReynaldo Pinlac(360)464-1022www.budgetblinds.com/olympiaWindow Coverings, BlindsCapital CoachingTressa Wood (360) 791-4481 www.tressawood.com Career Counseling & CoachingClassy Copy Heidi Smith (360) 464-8706 www.classycopy.com Marketing Programs & ServicesEdward Jones - Alex Williams, Financial Advisor (360) 753-5313 www.edwardjones.com

Investment SecuritiesElliot's Boys Painting, LLC Shane Bornstein (360) 888-5594 www.elliotsboys.com PaintingFairway Independent Mortgage Corporation Don Riggan (360) 338-7913www.loansbychuckstewart.com FE Coffee House Joanna Gonzales (360) 338-8511 Restaurant - Espresso & Coffee ShopsFloral Ingenuity Tara Dixon (360) 786-0101 www.fl oralingenuity.com Florists – RetailHall Equities Group Alisa MacCormac (925) 933-4000 www.hallequitiesgroup.com Real Estate - Developers & InvestorsHobby Lobby Natalie Hostetter www.hobbylobby.com Departments Stores & Shopping Centers/MallsIntegra Telecom Jason Koval

(206) 714-1667 www.integratelecom.comIntegrated Network Consultants Will Rabena (360) 867-0052 www.syncwithinc.com Computer Networking/System Designer & ConsultantKangen WaterSara Younger(360) 242-9512www.kangensara.comHealth Products, RetailMarch of Dimes Melinda Tucker (253) 606-0458 www.marchofdimes.orgOrganizations & Associations MIXXEDFIT- April HendersonApril Henderson (360) 972-6111 www.mixxedfi t.comHealth & Fitness/Clubs/Gyms/Personal TrainersNisqually Valley News/The ChronicalTabitha Johnson(360) 458-2681www.yelmonline.comNewspapers & MagazinesOlympia Dental &

Implant CenterSteven Shifl ett (360) 915-7353 www.olympiadentalcenter.com Dentists & OrthodontistsOlympia Nursing Services, LLC Kristy Danforth (360) 870-6295 www.olynurse.com Home Health ServicesPDQ Flooring, LLC Pat Aschliman 360-455-7262 www.pdqfl ooringllc.com FlooringPercival Consulting Group Heather Antanaitis (360) 339-3989www.percivalconsultinggroup.com Consultants – MarketingRegus David Gaver (360) 830-8471www.regus.comFlexible Offi ce SolutionsShred-It Nick Johnson (425) 264-0073 www.shredit.com Document ServicesSwantown Inn and Day Spa Nathan Allan

(360) 753-9123 Bed & BreakfastSteel Structures of America, Inc.Caleb Allen(208) 818-1993www.steelstructuresamerica.comConstruction, Commercial & ResidentialThe Black Sheep Yarn Boutique Michelle Cohen (360) 350-0470 Textiles The Lanai Cafe Bill Nahale'a (206) 478-0772 Restaurants – HawaiianThe Olympia School of Guitar Nicholas Anderson (360) 485-3262 www.olympiaguitarlessons.com Musical Education Valerie Waterland LLC, Valerie Waterland(360) 581-6982www.waterlandllc.comCoaching & CounselingWilldan Energy Solutions Nick Bernoski (425) 482-0761 Consultants - Safety/Training

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September_October 2015.indd Sec1:19 8/31/2015 3:45:53 PM

20 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

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Thurston County Chamber VOICE Sept./Oct. 2015 21www.thurstonchamber.com

“My dream was to be an orchestra director,” said John Bash, Tumwater School District’s new Superintendent. Born and raised in Olympia, Bash, a classically trained violinist,

entered Central Washington University as a freshman sure his career would involve music. However, when he was a sophomore, he got involved in student leadership and his dreams quickly changed.

“What I discovered is that I have a passion for leadership and that discovery took me in a totally different direction. I paired education with leadership and the shoe fi t,” he said. Bash didn’t leave his passion for music behind. During college he joined a country western band called the Fender Benders as their fi ddle player, and even today he is still asked to play the violin at weddings.

After graduation in 1987, Bash went to work as an elementary teacher in Shelton, but was determined to return to Thurston County when the opportunity arose. When it did, he quickly moved to McLane Elementary in Olympia, and his career was on an upward climb from then on. He returned to school and received his Masters of Education in School Administration in 1993 and was Principle at Washington Elementary School in Centralia by 1997, becoming Assistant Superintendent of the Centralia School District by 2007. In 2010 he returned to Thurston County as Deputy Superintendent of North Thurston Public Schools, and on July 1, 2015 the Tumwater School District welcomed Bash as their new superintendent.

He treats the role of superintendent as if he were chief ambassador of the school system. “I am looking forward to engaging in a visible way with students, parents, staff and the community in an effort to build strong partnerships to support students,” he said. “I am interested in partnering in ways that support our kids and families, especially those who struggle.” The community has been extremely welcoming to Bash, he said. He’s attended receptions held in his honor and has met with community leaders to begin the process of building relationships within the community.

During his fi rst month in the role of superintendent Bash drafted

a transition plan outlining the work he intends to accomplish in the coming months. This plan includes gathering critical information about the needs of the students, staff, school system and community, to establish a strong community presence, and

assess the district’s strengths, challenges and opportunities for improvement. Also, the plan will identify critical issues, correct weaknesses while honoring the work of the past, and fi nally create a community network of contacts and resources that will help advance the school system. From there, Bash will begin developing a strategic plan around the information gathered.

“Our strategic plan will focus on engagement with staff, parents, community and students so that

the next fi ve year period refl ects the needs and interests of our community. In addition, there are signifi cant demands on public school systems in the form of new learning standards and assessments,” he said.

Bash acknowledges that he will face challenges in his new role. He said, “While our legislature did make progress this last session, they still have not yet fully funded education, so our greatest challenge will be to continue to fi nd the resources to provide a 21st century education for our kids so we can prepare them for the world of work upon graduation.”

Another challenge he notes is the number of reform initiatives that are occurring all at one time—the requirement of new teacher evaluations as well as adapting to new learning standards. In addition, the region is facing signifi cant teacher shortages during a time when all day kindergarten and lower class sizes will only increase the demand for teachers.

And while Bash is committed to meeting the needs of Tumwater’s students despite these challenges, he is also committed to operational and fi scal effectiveness. “It is important that we take a hard look at how we manage public resources. I started this while working with Raj [Manhas] at North Thurston, and I am bringing that mind-set here.

“However, as we accept these challenges it is critically important not to lose the parts of our programs that are not measured by the test so that we can prepare students for the world of life, and as a music person, I can attest to the importance of this.”●

Tumwater’s New Superintendent, John Bash, is Preparing Students for the World of Work and the World of Life

John Bash at his offi ce in Tumwater.

By Natasha Ashenhurst

September_October 2015.indd Sec1:21 8/31/2015 3:45:58 PM

22 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

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Thurston County Chamber VOICE Sept./Oct. 2015 23www.thurstonchamber.com

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How does the community shape public policy? What role should the business community have in

addressing economic issues facing our cities? What role should the Thurston County Chamber play in facilitating a dialogue and drafting position statements?

Step into Prime Locations in Lacey at 7:30 a.m. on the third Friday of every month and you’d fi nd answers to these questions. This is when and where the Business and Economic (B&E) Committee of the Chamber meets, and it is where they tackle the tough issues that face our community, including land use issues, the general business climate and community service and infrastructure issues. The committee chair is Mike Reid, Business Developer at the Port of Olympia, and the meetings are open to the public. In fact, the public is encouraged to attend. The B&E Committee is a public policy advisory committee and reports to the Thurston Chamber Board of Trustees.

“What we do is connect the dots between what issues the community is facing and public policy. When public policy is under consideration we'll brainstorm the issue, and then draft white papers making recommendations which we present to the Board. Often, we’ll recommend additional research in order to create a more robust policy debate,” said Reid.

Over the past two years, the B&E Committee has tackled an

extensive list of issues, including:

• City of Olympia Comprehensive Plan• City of Lacey Sign Ordinance• Small Business Loan Program• Port of Olympia Warehouse B • Port of Olympia Fuel Dock• Shoreline Master Program• City of Tumwater 93rd Ave. Annexation• City of Olympia Downtown Planning • City of Olympia Comp. Plan Design Review• SideWalk Rapid Rehousing

Reid anticipates that the Mazama Pocket Gopher Habitat Conservation Plan will continue to dominate committee discussions and action plans.

Other areas of focus include the City of Olympia’s Downtown Strategy and Critical Areas Ordinance, Lacey’s Comprehensive Plan Update and the Port of Olympia’s Tumwater Master Plan process. For more information on the B&E Committee, visit www.thurstonchamber.com ●

The Chamber's B&E Committee is Shaping Public Policy in Thurston County

Mike Reid is Chair of the B&E Committee and is Business Developer

at the Port of Olympia.

September_October 2015.indd Sec1:23 8/31/2015 3:46:02 PM

September_October 2015.indd Sec1:24 8/31/2015 3:46:03 PM

Thurston County Chamber VOICE Sept./Oct. 2015 25www.thurstonchamber.com

When you think of the future business leaders of the Olympia area, you wouldn't think of looking for them at an Italian restaurant on a Thursday evening.

But that is exactly where I found the Young Professionals Network (YPN). Granted, I'd been told that is where they would be. It didn't lessen my surprise that it wasn't at some kind of conference center or something more fancy. It was a comfortably casual affair.

The YPN is exactly what the name implies. It is a group of men and women, mostly between the ages of 21 and 35, from all types of businesses and industries around Thurston County, from fi nance to health care. They meet on the fi rst Thursday of every month at various locations to get to know others that are in a similar situation of getting their careers off the ground. At some point in the evening there is a short discussion on ways to improve their business or employment, such as interviewing tips or the importance of professional dress.

These meetings are just the primary portion of the YPN activities. The secondary portion is a new addition to the YPN offerings and is called Morning Buzz. At Morning Buzz young professionals meet to discuss different topics like minimum wage, local business ventures, the growing cannabis industry and more over coffee or breakfast.

While attendance at these meetings can range from half a dozen to around 30, the conversation never grows stale. With

fi rst-timers coming in regularly, there are always more people there to expand anyone's network of associates.

But why go to these meetings at all? How does the group improve the situation of any of its members? You can get out of it almost anything you go looking for, Brett, a fi nancial advisor for Edward Jones, said. "I come to gain some exposure. I'm one of the newest in the industry around here, and getting my name out there will improve my business down the road."

While Brett is looking for results down the road, Jaron has already improved business for the chiropractic center he works with. "I have actually gained a good amount of business from coming to these meetings, either from the people I meet, or people they know," he said.

While interviewing and asking questions with the purpose of writing this article, even I gained advice and contacts that will expand my own network for possible future employment. And if nothing else, I found out about a theatre I can attend to see local plays and other entertainment. That alone was worth it for me.

The saying is true—it isn't about what you know, it's about who you know. And the more people you know, the easier it will be to gain and improve business for yourself or your employer, fi nd some kind of service you need or even fi nd a job. These individuals at the Young Professionals Network have taken this lesson to heart and are reaping the benefi ts of its application. You can bet that tomorrow's leaders are right here. ●

By Rory Zaugg

Rory is a Camo2Commerce program participant, interning for the VOICE Magazine and can be reached at [email protected].

Young Professionals Network (YPN) at Casa Mia in August, 2015. The author of this story, Rory, is on the left.

Young Professionals Gain Momentum and Add Morning Buzz

September_October 2015.indd Sec1:25 8/31/2015 3:46:04 PM

26 • Sept./Oct. 2015 Thurston County Chamber VOICE www.thurstonchamber.com

In 1998 they took a car-camping road trip to California which turned out to be pivotal for the future of the business. “Our SCORE counselor, Jerry Zyskowski, had given us a template for a business plan. As we drove to California in an old Ford Ranger we wrote the plan, and in between writing we sang every song we knew. We were hoarse, but we had a lot of fun,” said Lars.

With a solid business plan in place, one which focused on their core competency of ‘using natural food and accurate information to contribute to the health of dogs and cats and the happiness of the people who care for them’, the Wullfs were ready for what happened next.

From One Store to Nine

In the summer of 2000, the region’s largest chain of small pet stores became insolvent. So, seeing the opportunity to save jobs and neighborhood stores, they took their approach of healthy nutrition for dogs and cats to Tacoma and Seattle. The turnaround took more than two years, and a lot of hard work, but by the end of 2002, Mud Bay was a profi table company of 85 people in nine neighborhood stores around Puget Sound.

Today, there are 34 Mud Bay stores, fi ve open in Oregon (with two more in the hopper) and 29 in Washington (with three more on the way), as well as a distribution center in Tumwater. Lars and Marisa attribute the steady 20% growth rate to several factors, including an intense focus on their core competency of supplying natural food and supplies to dogs and cats, an ‘everyday low price’ pricing strategy, exceptional employees who then provide exceptional service,

adapting to a high rate of change and invention and always working with the long term in mind.

Growth Strategy

Twenty percent growth means you are doubling every three and a half years, which in turn creates a lot of change. “We’ve adapted to a high rate of change and a high rate of invention. Our jobs are constantly morphing. This can be hard on some people but it also creates opportunity,” said Marisa. Lars adds, “Our systems change regularly, which is really healthy. Growth that is sustainable and is consistent can be a kind of tonic and enabler.”

The company grows, not only through opening new stores, but also by selling more at each store every year. “The truth is,” said Lars, “we still serve such a tiny fraction of our market in the regions we have stores. There are a whole lot of dogs and cats out there whose owners have never shopped at a Mud Bay.”

In the past, the stores had higher prices than the competition, justifi ed by extraordinary service, but then they changed their pricing strategy. Marisa explains, “We realized that we didn’t want to ask people to pay more to shop with us. So, we adjusted our prices down. We generally don’t have sales or make our customers cut coupons. Marking

something up in order to mark it down to entice people just isn’t an honest way to do business. We want our customers to see that what we sell is a great value every day.”

They also make it a point to never ask customers to buy from them because they are local. “We don’t ask people to shop at our stores because we’re local. That isn’t sustainable. We want people to shop at our stores because we are the best option in the marketplace,” said Lars.

Finally, they treat their staff and business partners the way they want their staff to treat their customers. “The only thing that matters is how we contribute to the long term health of dogs and cats. That’s it. That contributes to the happiness of owners, which builds a strong company,” said Lars.

What’s Next?

Over the next year, Mud Bay will adopt a model of employee ownership, a goal Lars and Marisa have been working on for a while. “This is the fi rst year that employees will have stock ownership. It is a slow and incremental process, not a huge sea change,” said Lars.

“We can see no downside to employee ownership. The more engaged people are, the better they perform as they work toward building something together. It improves employee retention. Lower turnover means a better trained staff. Better trained staff means customers have a better experience, which improves the health of the business,” said Marisa.

Photos from left: Rox shops for treats at Mud Bay Olympia. "Muddies" at Mud Bay's annual Mudstock event for employee development.Xolo, from Phoenix, is cold during her visit to Mud Bay Olympia and is shopping for a coat. Marisa, Elsa and Lars at Mudstock 2014.

“We don’t ask people to shop at our stores because we’re local. That isn’t sustainable. We want

people to shop at our stores because we are the best option in

the marketplace."-Lars Wulff

Continued on page 27

September_October 2015.indd Sec1:26 8/31/2015 3:46:06 PM

Lars & Marisa Wulff’s Startup Playbook

Find a mentorEarly on we worked with a SCORE Mentor. Jerry Zyskowski was our counselor, and he gave us honest, direct feedback that we couldn’t fi nd anywhere else. He was a sounding board, a critic and a wonderful resource. When considering things, we’d ask ourselves, ‘What would Jerry say?’

Build peer supportWe’ve both been members of Vistage. Vistage brings together CEOs, executives and business owners into private peer advisory groups guided by expert executive coaches, known as Vistage Chairs. The peer group discussions are very valuable. When things get rough it can be isolating. You may not be about to talk about a specifi c issue with your spouse or your business partner. You want to talk to people who have context to understand what you are going through. The key is that it is the same group of people over time. You gain incredible insight from sharing your experiences.

Hire people who are smarter and better than you areWe’ve made it a point to hire people who know more than we do, and this allows us to hand over the reins for specifi c areas of the business with confi dence. We’ve already passed the peak of our level of authority. We have a very good fi ve-person executive team and soon it will be seven. The beauty is that if you turn over responsibility incrementally, you are there to advise and can easily step back in if need be.

Create a company where everyone thinksWe’ve often heard business owners complain about the level of competency or understanding that their staff have. We’ve always believed that if you don’t like the level of engagement and knowledge of your workforce, look in the mirror. It’s the responsibility of the business to create the environment for employees to be great. Ask employees at all levels for input. People really value the opportunity to contribute their ideas and improve the business.

Create a succession planMost people don’t think about how the business will go along without you. They think in terms of selling the business. There is another way, which is to build a strong leadership team that will take the company forward and is not dependent on you as a founder remaining in the business.

Work for the company, not for yourselfWe realized early on that we never considered that we were working for ourselves. We were always working for Mud Bay. We are builders, and if your focus is on building an organization you have the opportunity to serve a whole lot of people. Growth creates opportunities for our staff, and that gets people excited to work here.

Advice for running a family businessFamily businesses can succeed and thrive. As siblings, here’s how we’ve made it work: We trust each other’s judgment, even when we don’t agree on an issue. We share the same values. Neither one of us has to win; we both just want what’s best for the company over the long term. We’ve spent two and a half decades thinking, talking, planning and strategizing. These things made it easy for us to work together, and along with a lot of other “muddies”, we’ve built a solid foundation that is Mud Bay. ●

September_October 2015.indd Sec1:27 8/31/2015 3:46:11 PM

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