VALLEYSMALLBIZCOL/1stjc/mark2nd Local apparel manufacturers have been hit with a series of challenges in recent years including the 1994 Northridge quake and the minimum wage hike that forced many to change the way they do business. When you have loans out to these manufacturers, you must help the client find solutions to their challenges. Restructuring and re-thinking the way a company does business is a process that takes time, practice and creative insight. By the time you’ve received your final loan default notice, it’s too late. The company’s resources already have been tapped and the owner is operating one day at a time. Some apparel industry suppliers believe that less competition awaits them if they can just hang on though they also understand that they need to change, and change now. One manufacturer figured out that retaining a domestic work force was no longer possible. He had a good design, strong name recognition, an excellent track record and large, bankable clients that he could depend on for sales at the right price. He slashed overhead, leased out his plant to cover the mortgage and moved to a smaller office. He stopped manufacturing and kept his design and marketing operations not easy for a guy who considered his workers family, but it was either that or dissolve his business. The results of this upheaval have yet to be realized. He may lose accounts, see a drop in personal income or be forced to work for someone else. He only knew that he could not continue losing money. He had to change. Another company restructured through the painful process of a Chapter 11 bankruptcy. It wrote off quake-damaged inventory, consolidated debt and laid off a third of its work force. Company officials emerged from bankruptcy quickly by taking the following steps: 1. They evaluated every sales order by judging profitability. In the old days, sales growth for the sake of sales was enough they learned that sales cost money and that it’s easy to sell yourself into trouble with unprofitable orders. 2. They assessed on a daily basis whether they were meeting their targets for sales, profit margins, costs and delivery times. It’s too late to find out you’re not making money when you can’t afford a bill you need to take action as soon as you’re budget gets out of whack. 3. They passed on all costs of doing business to the customer. Late payments, shipping costs and customized orders are all examples of costs that a company can’t absorb. A customer has to pay for these extras or you can’t afford to have him as a customer. 4. They replaced ineffective staff and fired people who satisfied their own self interest at the expense of the good of the company. 5. They only bought inventory if it was 70 percent pre-sold, even when they had ‘once in a lifetime’ buying opportunities. 6. They made profit considerations their management guide if one line has higher margins, sell more of it and dedicate more resources to it. All the above may sound simple and easy when laid out in the abstract, but it’s hard to change habits. Increasing sales is considered an absolute good by many small companies no one stops to re-evaluate that assumption every time the phone rings. Change is sometimes next to impossible for some established, historically successful companies. The single largest obstacle is denial especially when the business owner didn’t cause the problem. I see lots of apparel people who have become victims and can’t accept the responsibility to change. Here are some of their typical complaints: “Were it not for the quake, we would have been fine.” “Were it not for minimum wage increases that caused all my workers to want increases, I would have been fine.” Were it not for the federal government and this North America Free Trade Agreement thing, we’d still have a business.” But that’s just denying what is. Apparel companies of the future are looking ahead to catch trends and ride them. They’re trying to forecast demographics and how it relates to fashion. They also are re-thinking factoring arrangements in light of insurance developments. They are exploring catalogue sales contract, TV home shopping outlets and even sales possibilities through a Web site. If retailers can ignore loyalty in favor of price and think nothing of exploiting a supplier relationship then maybe its time to find alternatives. It’s tough to adopt to change under stress and when a lot of pressure is already being applied, but then, the rag business has never been easy and no one expects that to change anytime soon. Bruce Dobb is the chief credit officer for the Valley Economic Development Center’s revolving loan fund.

VALLEYDIGEST/27inches/rdyto2nd/mark2nd New Fashion Center Plans have been announced for the development of a 250,000-square-foot shopping center at Glendale Boulevard and California Avenue, on the site of the former Glendale Fashion Center. Phoenix-based Vestar Development Co. is scheduled to begin demolition of the old Glendale Fashion Center structures on July 1, with the grand opening of the new center scheduled for September 1998. A Vestar spokesman said the Glendale Fashion Center name is being retained because it is well known throughout the area. The center is slated to include a Ralphs supermarket, Long’s drugs, Best Buy electronics, Barnes & Noble books, Cost Plus imports, Ross Dress for Less and Petco. The center will also contain a 10,000-square-foot food court. The project is 98 percent preleased, according to a Vestar statement. The company has built one other shopping center in Southern California, the 600,000-square-foot Cerritos Towne Center in Cerritos. Wal-Mart to Open The world’s largest retailer is making its first foray into the city of Los Angeles. Wal-Mart Stores announced that it will open the first two-level Wal-Mart store in the United States at the site of a former Broadway department store in the Panorama Mall in Panorama City. Wal-Mart purchased the 200,000-square-foot structure from Cincinnati-based Federated Department Stores Inc. Renovation is expected to begin this summer, and the store is slated to open late this year or early in 1998. “Wal-Mart’s decision to open its first vertical store at Panorama Mall is testimony to the strength of the mall and Panorama City,” Dana Anderson, vice chairman of Santa Monica-based Macerich Co. said in a statement. Macerich owns the Panorama Mall. Lockheed Unveils Airport Plan Lockheed Martin Corp., which faces condemnation proceedings over its land slated for the Burbank Airport expansion, has proposed a “conceptual design” for nearly 3 million square feet of new commercial development on the property. Lockheed spokeswoman Maureen Curow said the company is trying to maximize what it gets for the 131 acres that the Airport Authority is seeking to condemn for the expansion. The City of Burbank which is fighting to minimize airport expansion is supporting the Lockheed plan because it would prevent the Burbank-Glendale-Pasadena Airport Authority from expanding the airport to 27 gates by landlocking the new terminal. Lockheed Martin has argued in Superior Court condemnation proceedings that its property is worth $100 million or more. Lockheed has been fighting attempts by the Airport Authority to obtain the land through eminent domain. But last month, a Los Angeles Superior Court judge reaffirmed the Airport Authority’s right to take possession of the site on June 8. Porter Ranch Light Reflecting the more conservative real estate environment, the Los Angeles City Council has approved a scaled-back version of a once massive development planned since the late 1980s for Porter Ranch. The commercial complex now known as Porter Ranch Towne Center was originally intended to be a sprawling 2-million-square-foot development composed of office buildings, retail stores, a hotel complex and a movie theater. But following the real estate market’s bottoming out in the early ’90s, Porter Ranch Development Co. now plans to build a 660,000-square-foot shopping center, likely to include an upscale supermarket, restaurants, a bookstore, a hardware store and a coffee house. “We’re hoping for a groundbreaking to take place in the next few months,” said Richard Mahan, spokesman for Porter Ranch Development, a partnership of Shapell Industries Inc. and Liberty Building Co., both based in Beverly Hills. Last month, the City Council, on the recommendation of the Los Angeles Planning Commission, unanimously approved the new plan for the center, planned for an empty site on Rinaldi Street between Corbin Avenue and Winnetka Avenue. The shopping center is designed to include more than 50 stores and restaurants and more than 3,000 parking spaces. Porter Ranch Development expects more than 600 people to work in the center. Pipeline Gets Go-Ahead Construction is slated to begin this month on a 132-mile oil pipeline that will cut across the San Fernando Valley before heading Southwest to refineries in Wilmington. The Pacific Pipeline which has been under discussions for the past seven years was approved by the L.A. City Council last month. The council originally opposed the pipeline which will transport about 130,000 barrels of crude oil daily out of fears it could break and contaminate the city’s aqueducts and reservoirs. The council’s about-face came after a Superior Court judge ruled that the city can’t block the project. Supporters say the pipeline will employ the latest in fiber-optic technology to detect leaks and other problems. The $170 million project is expected to be completed by the end of 1998. “This will be state-of-the-art,” said Charles McLean, a spokesman for Pacific Pipeline System Inc. of Burbank, a private utility company that wants to build the project. “In addition, this will bring a boost to the economy and add other benefits to the community.” About $50 million in construction contracts will be awarded during the next few months to local companies, he said. Pacific Pipeline also plans to spend about $10 million installing fiber-optic cable that can be used by the city to help expand its 911 emergency system, he said. In addition, Pacific Pipeline will install 150 computers in more than 30 schools, community centers and libraries along the route. The pipeline will be 20-inches in diameter, and will be built mostly underneath Southern Pacific railroad right of way through San Fernando, Burbank and Glendale before heading to downtown Los Angeles and ending in Wilmington. Pacific Pipeline is owned by Anschutz Corp., headed by Philip Anschutz, a Colorado oil man who is co-owner of the Los Angeles Kings hockey team. It is being backed b a consortium of oil companies that include Unocal and Texaco. Compiled by Julie Sable, Brad Berton, Daniel Taub and Joe Bel Bruno.

valley forum/dy/mike1st/mark2nd California State University, Northridge is planning to develop a 20-acre, 20,000-square-foot shopping mall on a vacant piece of north campus land at Devonshire Downs. Under current plans, the mall would be built and run by a private developer, with some revenues going to CSUN. The university claims the mall will provide it with much-needed funds during a time when money from state sources has been dwindling. The Business Journal asks: Should Cal State Northridge be allowed to develop a retail mall on campus property? Annette Bethers Marketing Director Northridge Fashion Center We really haven’t formed an opinion on the issue. It is a potential competitive situation for us, but is it necessarily going to draw away from the Fashion Center? Maybe not. I think the two retail entities can survive in this market, and it doesn’t concern us from that standpoint. We also don’t feel too concerned because it seems to be a very small-scale development they’re talking about. Julie Gertler Co-chair, Land Use Committee Valley Industry and Commerce Association I think that the university doing something creative to add to their financial base is a good decision, but whatever retail they have should have synergy with the university and be related to the university. It shouldn’t be like every other mall in the Valley. I’d like to see the kinds of retail places that students and faculty members would like to frequent while on campus, such as coffee houses and restaurants for faculty, staff and students. CSUN has always been a commuter campus, and this could provide opportunities for all the people in the school to stay in the area. Andy Fishburn Director of Leasing Warner Center Properties, Woodland Hills We’re very much in support of creating quality retail in the general Woodland Hills area. To the extent the proposed development supports quality growth in this area, we’re avid supporters. I’d like to see it a relatively upscale development. Tony Lucente President Studio City Residents Association I’m not sure that educational campuses are the right place for this particular type of retail development. Perhaps they could make some modifications to make it more compatible with community lifestyle, for example, by supplying employment opportunities for students and opportunities for working together with the business school. In that respect, there may be opportunities to tie it in with campus life. That’s what I would like to see. Joann Roth Someone’s in the Kitchen, Tarzana I would say I’d not be in favor of this. Typically when the city or state leases out land or does something with developers, it’s the developers who benefit, and we don’t realize it didn’t work for 10 years. Also, as a community business member in the San Fernando Valley, we’re finally seeing some recovery in the area. I think the Northridge Fashion Center can use the business and doesn’t need another mall to compete with it. Also, we don’t need to invite people onto a campus who are not students.

persfi/may/mike1st/mark2nd MEL POTESHMAN The tax legislation signed into law by President Clinton in 1996 includes several provisions that affect Individual Retirement Account (IRA) distributions. Current tax law allows you to start taking money out of your IRA in any amount without penalty once you reach age 59 and a half. If you take money out before the date you turn 59 and a half, you might be subject to a 10-percent early withdrawal penalty. One way to avoid this penalty is by withdrawing the money as an annuity that is, in annual installments based on your life expectancy. The 1996 tax law allows an exception for taxpayers with substantial medical expenses. Beginning in 1997, IRAs can be tapped penalty-free at any age when the funds are used to pay medical expenses that exceed 7.5 percent of the taxpayer’s adjusted gross income. Individuals who’ve received unemployment compensation for at least 12 consecutive weeks are allowed penalty-free withdrawals from an IRA (without regard to the 7.5 percent deduction floor) when they use the funds to pay for medical insurance premiums. In both cases, however, the withdrawals are still subject to normal income taxation. You must start taking distributions from your IRA no later than April 1 following the calendar year in which you reach age 70 and a half. That means if you turn age 70 and a half this year, you have until April 1, 1998 to start withdrawing from your IRA. Failing to make the minimum withdrawal can be costly: You can expect to pay a penalty equal to 50 percent of the amount that should have been withdrawn. Taxpayers should not be misled by the provision in the 1996 tax law that now allows most participants who work past 70 and a half to delay taking distributions from their pensions and 401(k) plans until they actually retire. This provision does not apply to IRAs. Holders of IRAs are required to begin taking distributions under the above-mentioned rule regardless of whether or not they are still employed. There are several methods you can use to calculate your annual minimum required withdrawal. You can base your withdrawal schedule on your life expectancy, on the joint life expectancies of you and your spouse, or on the joint life expectancies of you and another beneficiary. The joint life expectancies rule allows you to base your minimum withdrawal on the longer life expectancy of you and your beneficiary. In effect, this method reduces the amount you must withdraw each year and lengthens your payout period. The amount you need to withdraw is calculated using IRS life expectancy tables and is based on the total value of all of your IRAs. As long as you take your required distribution, it doesn’t matter whether you withdraw it all from one IRA or spread the withdrawal over several accounts. Individuals with large IRAs need to be concerned about a penalty that applies when distributions from IRAs, pensions and/or 401(k) plans exceed an annual withdrawal limit. When you receive funds from your IRAs, pensions and 401(k) plans totaling more than that limit, which is $160,000 for 1997, the IRS normally assesses a 15-percent excise tax on the excess withdrawals. However, a provision in the 1996 tax law provides a temporary break. Between Jan. 1, 1997 and Dec. 31, 1999, the 15-percent excise tax is repealed. During this three-year moratorium, individuals with large amounts in their IRAs may want to take out sufficient amounts to avoid or minimize the penalty for excess distribution in future years. Keep in mind that the law repeals only the 15-percent excise tax; income taxes on distributions still apply. In addition to those changes affecting IRA withdrawals and distributions, starting in 1997 the new law permits IRA contributions of up to $2,000 for an individual and $2,000 for a non-working spouse instead of a combined contribution of $2,250. Age, earnings, deductibility and other requirements for IRA contributions still apply. Is early retirement for you? An early retirement package can be a great opportunity to launch a new business or start a new career. But accepting one may also be a big mistake if you’re not successful in finding employment and don’t have enough assets to fund your retirement. So before you accept an early retirement package, ask yourself the following questions: How close are you to retirement? Timing is important. With an early retirement package offered 10 or 15 years before you planned to retire, you may have to consider finding another job or undertaking a new business venture. Before you decide to take the money, make an honest assessment of your current financial position. If you don’t oblige, is there a layoff lurking around the corner? Next, realistically look at your employment prospects. Have you kept up with the technology and trends in your field? Is your industry hiring or downsizing? How will early retirement affect your ultimate retirement benefits? Generally, you are fully vested in your company’s retirement plan after a maximum of seven years and in many companies, after three to five years. However, the early retirement benefits you receive will be based on a formula that takes into account the number of years you worked for the company and your salary in your last few years of employment. Normally, leaving the work force early would mean sacrificing some pension benefits. But to sweeten the deal, many employers are willing to add years, typically between two and five, to your age or length of service or both when computing your defined benefit pension. In any case, be sure to compare what you’re being offered with what you would be entitled to if you continued to work. Can you truly afford to retire early? As a general rule, you will need between 70 and 80 percent of your pre-retirement salary to maintain your standard of living during your retirement. To get a amore accurate estimate, you’ll have to do some number crunching. Begin by carefully estimating your post-employment income and expenses. Add up your income sources, including Social Security, your company pension , and the value of any personal savings you have set aside for retirement. Then give some thought to the type of retirement you envision and how much it’s likely to cost. Mel Poteshman is a certified public accountant and president of Poteshman Consulting International & Co., a West Los Angeles-based business consulting firm.

bugle/kanter/17 INCHES/mike1st/mark2nd By LARRY KANTER Staff Reporter Reflecting a growing national trend, Bugle Boy Industries Inc. has launched an aggressive bid to enter the school uniform market. The Simi Valley-based sportswear firm has inked a licensing agreement in which New York-based kidswear manufacturer Lollytogs Ltd. will create elementary, middle and high school uniforms bearing the popular Bugle Boy brand name. “We see it as a large, growing market,” said Howard Finelt, Bugle Boy’s vice president of licensing. “As school boards begin moving towards (mandating uniforms), we want to be a part of it.” With many of the nation’s schools stung by problems of truancy, drugs and vandalism, more and more educators are turning to uniforms as a way of restoring discipline among their students. The idea has been embraced by President Clinton and other national leaders. In 1994, the Long Beach Unified School District became the first of the country’s 16,000 school districts to require uniforms in elementary and middle schools. The following year, school officials reported that school crime had fallen by 36 percent. Since then, almost half the states have passed laws allowing school districts to require students to wear uniforms. Finelt said all 50 states are expected to have similar laws on the books by the end of the century. In Los Angeles, about 300 of the L.A. Unified School District’s 650 K-12 schools require their students to wear uniforms, according to LAUSD spokesman Pat Spencer. The increasing popularity of school uniforms is remaking the school uniform industry, which until recently has been the province of small, specialty manufacturers and retailers. The Bugle Boy deal reflects those changes. Under the company’s new licensing agreement, the uniforms will be designed, manufactured and shipped by Lollytogs, and marketed under the Bugle Boy brand name. The uniforms will be sold in a number of national retail chains, including Mervyns, Sears and Kids ‘R’ Us. Bugle Boy will receive royalties on sales. Both firms are privately owned and they declined to state the specific terms of the agreement. Lollytogs is best known for its French Toast line of children’s sportswear, which is sold in mass market, discount retail chains, such as Wal-Mart. But Lollytogs also has been making school uniforms under the French Toast label for the past decade, and has experienced a doubling of sales every year for the past three years, said Lara Wegard, Lollytogs’ marketing coordinator. The Bugle Boy deal means a significant boost for the company’s profile, Wegard said. “It’s a great opportunity to hit the middle tier of retailers in the uniform business,” she said. Under most school uniform laws, school districts or individual schools create their own guidelines on styles and colors, but cannot mandate that students purchase any particular brand of clothing. Instead, manufacturers such as Lollytogs market their wares to school officials, who in turn inform parents where the uniforms can be purchased. Under California law, school districts may require uniforms as long as parents are given adequate notification and students who cannot afford the items are assisted in getting them. Even in districts with mandatory policies, parents can have their children exempted from the uniform requirement. Bugle Boy’s Finelt said it would cost about $125 a year to outfit a child in Bugle Boy uniforms. The entry of Bugle Boy a high-profile fashion company with annual U.S. sales of more than $500 million is ironic, considering that such policies are driven by a desire to get students’ minds off of status symbols and onto their studies. But Wegard denied that school uniforms are going high-fashion. The Bugle Boy brand represents “a standard of quality,” she said. “It’s not like there’s going to be Bugle Boy tag on the outside of the shirts or pants.”

Flywheel/26″/mike1st/mark2nd By BEN SULLIVAN Staff Reporter After more than a decade of trying, researchers at a Newbury Park company say they’ve developed a commercially viable flywheel for storing energy that could dramatically reduce dependence on chemical-based batteries. The company, U.S. Flywheel Inc., has sold the first few of its new flywheel systems to aerospace industry customers who are conducting tests on them. If the trials pan out, it could be a boon to the entire flywheel industry, which until recently has been the Rodney Dangerfield of eco-technology. “They may only be testing, but that means we’re selling systems,” said investor Dan Costner, who with his brother, actor Kevin Costner, resurrected the company two years ago with a capital infusion. To be sure, U.S. Flywheel is not the only player making flywheel power systems. A bevy of firms, from Woodland Hills-based Rosen Motors to Trinity Flywheel Power of San Francisco produce custom-order devices for utility companies, the military and automakers. But those are used primarily to release large amounts of power in short spurts, usually in conjunction with traditional chemical-based batteries or gasoline engines. What U.S. Flywheel says it has achieved is a practical way to use a stand-alone flywheel as a “kinetic battery” that stores energy better and cleaner than its chemical brethren. “They’re the closest company I’ve seen to having a commercially viable product,” said Byron Stafford, an engineer at the U.S. Department of Energy’s National Renewable Energy Laboratory in Golden, Colo. “I’m very impressed with their capabilities.” Other government agencies are similarly impressed. NASA, in conjunction with TRW Space and Technology Division, has paid U.S. Flywheel an undisclosed sum for a system that could eventually serve as a satellite power storage system, replacing the hundreds of pounds of batteries that satellites typically require. Honeywell Inc. has also ordered a U.S. Flywheel to test for satellite-powering purposes. With costs of between $6,000 and $8,000 per pound for a commercial launch, shaving off even a few hundred pounds can significantly cut launch costs, said Tom Pieronek, director of technology development for TRW’s Avionics Systems Center. The $250,000-to-$1 million cost of such a flywheel system is roughly the same as for a satellite-battery system, he said. “(But) satellite batteries currently have a lifespan of about five years. Our flywheel is designed to last 15, but could go up to 30,” said U.S. Flywheel Systems President Henry Chase. Flywheels have been around for centuries, and are already used as a way to “even out” the peaks and valleys of power generated by an engine’s piston strokes. The devices operate by accepting an electric charge through a motor-generator that spins a donut-shaped disk surrounded by coils of copper wire. Depending on how well it is balanced and the amount of drag it encounters, the disk can keep spinning for hours or even days from a single charge. When power is needed for some other purpose, a user essentially flips a switch that activates magnets spinning on the disk’s axle. The motor, which got the disk spinning in the first place, switches hats and now functions as a electrical generator, drawing down energy and slowing the disk’s rotation. Where U.S. Flywheel is said to stand out is in minimizing drag and friction on the disk. The company’s donut-wheel operates in a vacuum and uses magnetic bearings controlled by powerful computers to let the disk float on its axle without touching its container. The company has also pioneered the use of carbon fibers, the same stuff used in tennis rackets and the B-2 Stealth bomber, to increase the disk’s strength-to-density ratio, which boosts its energy-storage potential. While U.S. Flywheel is seeing its first orders going to satellite-power purposes, the original goal behind the product’s design was for use in electric vehicles. Electric vehicles already developed, such as General Motors Corp.’s EV1, carry about 1,000 pounds of lead-acid batteries and have a range of 70 to 90 miles between charges. Dan Bitterly, U.S. Flywheel’s founder and chief scientist, said that, pound for pound, his company’s flywheel can store four times the power. Replacing the EV1’s batteries with an equivalent weight of flywheels (it would take 12) would extend the car’s range to 200 miles, he said. But safety concerns have made automakers hesitant to install flywheel systems as a primary power source for non-polluting vehicles. A 50-pound flywheel spinning at tens or even hundreds of thousands of rotations per minute is a potentially deadly device. Indeed, when testing new designs, U.S. Flywheel scientists enclose the disks in a steel box with inch-thick walls, itself contained in a concrete, pillbox-like closet in case the disk begins to warble and fly off its mount. John Eastwood, president of Trinity Flywheel, is skeptical that, given their potential for harm, flywheels will be a primary power source for cars any time soon. “What happens if something goes wrong with one of those things? And you’re going to put 10 of them in a car?” Eastwood said. Yet Bitterly remains undaunted. “Sure, batteries don’t have any moving parts until they blow up,” he countered. To pursue the flywheel automobile goal, Bitterly and son Steven co-founded American Flywheel in the early 1990s. After a falling out with their business partner, the pair struck out on their own in 1993 with U.S. Flywheel, holding plenty of ideas but little cash. Soon teetering on closure, they attracted the attention of the Costner brothers, whose Costner Industries invests in environmental technology firms. “The company at the time was bankrupt, but the idea was good and fit our profile,” Dan Costner said. After a series of meetings with the Bitterlys to put the company on a commercial track, Costner said, he and his brother spent more than $5 million to let the father-and-son team work uninterrupted on their design. “It was like winning the lottery,” Bitterly said.

valley econowatch/dy/mike1st/mark2nd By DOUGLAS YOUNG Staff Reporter The Valley industrial real estate market reached a major milestone in the first quarter of 1997, as vacancy rates in all four of the area’s submarkets finished in the single digits for the first time in several years. The East Valley posted the lowest first-quarter vacancy rate, finishing at a scant 4.7 percent. Also finishing strong was the West Valley, at 7.8 percent, the Central Valley, 9.1 percent, and the Conejo Valley, 9.8 percent, according to Grubb & Ellis Co.. Driving down industrial vacancies is steady growth of the entertainment industry in Burbank and Glendale, which has pushed East Valley vacancy rates to their current low levels. The dearth of available space in the East Valley is spilling over into the Central, West and Santa Clarita valleys, where large spaces are also being gobbled up at a brisk pace, said Joe Kraus, an industrial specialist at the Encino office of the Seeley Co. “It’s not only the big entertainment companies that are taking up space, but also the little guys as well, like the guys who make and store products such as props and vehicles for the entertainment industry,” Kraus said. In fact, the demand for industrial space means properties with 100,000 square feet or more of vacant space are now virtually non-existent, said Ross Thomas, a partner at Delphi Business Properties of Van Nuys. “One or two years ago, there would have been four or five properties with 100,000 square feet of vacant space in the East Valley and half a dozen in the West Valley,” he said. But today, there is only one large vacant space in the entire East Valley and only two in the West Valley, he added. The strong demand for space has already sparked new industrial development in the San Fernando Valley. Nearly 100,000 square feet of industrial space is currently under construction in the Valley proper, according to Grubb & Ellis, and another 460,000 square feet of space is being built in the Santa Clarita and Conejo valleys. “We could see up to 1 million square feet of new (industrial) space under construction by year end,” said Kraus, adding that his projected figure doesn’t include additional space being developed in the Santa Clarita and Conejo valleys. Kraus predicted much of the new development this year will occur in the East and Central valley. He said one new project being planned by the Lewis Co. scheduled to break ground in September at the former Litton site on Woodley Avenue and Strathern Street in Van Nuys will add about 500,000 square feet of new industrial space to the market. Thomas agreed that a bigger development boom could be on the way, though he was less sure about the timing. “Speculative activity will have to pick up. Developers and financiers took such a beating in the last few years that they’re reluctant to get back into speculative development, but the supply of space is fast running out,” he said.

SMALLBIZ/dobb/21 inches/1stjc/mark2nd CQ on phone numbers DreamWorks SKG made big news when city officials helped arrange a $70 million package of incentives, tax credits and savings to induce this large employer to locate within the Los Angeles. That caused lots of small and medium sized companies that I work with to ask, “Hey, what about me? I employ people and could use some help too.” Help is available for smaller Southern California companies located both in and outside of Los Angeles. Elected officials have come to realize that small businesses are the new job creation and tax generating engine of the ’90s. Many large corporations have either fled or restructured themselves out of the region especially those in the defense industry. In order to keep smaller businesses and help them expand, local government, utilities and regulatory agencies are offering a host of services that can save you time, money and give you a leg up on the competition. State-sponsored small business development centers are located in Sherman Oaks, Burbank, Torrance, Ventura and other communities. These non-profits offer free consulting services to smaller companies on everything from marketing to computerization, and have solid resource libraries that offer many standard business references. For questions about expanding your business, converting it out of defense, or overcoming the impact of base closures, earthquake, flood or fire, contact TEAM CALIFORNIA at 1 (800) 326-2606. They can direct you to the development center closest to you. Regional small business development corporations are financial intermediaries sponsored by the state that offer entrepreneurial training, technical assistance and specialized loan guarantee programs. Generally geared to loans under $250,000, these corporations fill credit niches not met by conventional lenders, such as loans to replace underground storage tanks. For larger loans to purchase land, building and equipment up to $ 4 million the Small Business Administration sponsors certified development corporations. The region has three prominent ones: California Statewide Certified Development Corporation, the Long Beach Area Certified Development Corporation and La Habra Certified Development Corporation. All are independent non-profits that are licensed to tap into SBA economic development loan funds. Focusing on Los Angeles County, the Community Development Commission ( an affiliate of the County) and the Economic Development Corporation of Los Angeles County both sponsor programs that deliver assistance to businesses. The county has a number of loan programs for businesses outside of incorporated areas or inside smaller cities (population under 50,000). They focus on aerospace and defense impacted companies. The EDC is not in the lending business. Its efforts focus more on advocacy, stimulating private and public investment in technology ventures and supporting consortia of emerging industries. They seek to stimulate entrepreneurial ventures and regional high technology-based companies that will create a lot of jobs in a short period. At a more local level, city governments across the region have launched economic development offices, such as L.A.’s Business Team. These offices can serve as the starting place for exploring regional resources. If your business is located in their jurisdiction, you can expect to find a willing reference guide to all the phone numbers, addressees and contacts you need for whatever specialized service you’re seeking. Southern California Gas Co. actually provides free engineering services to small firms with energy related issues. Apartment owners seeking to understand the most efficient, low-cost means of supplying their buildings with hot water might be surprised at the extent to which Gas Co. personnel can help solve problems. These services are generally free and worth asking for before replacing a boiler, retrofitting a production line or trying to reduce energy costs. The South Coast Air Quality Management District is a little-known resource that can help with technical issues relating to air pollution control. AQMD has an office of small business assistance that helps find pollution-control equipment, determines business permit needs and even guarantees a loan to help a company come into compliance. For years the idea of economic development in Southern California was a quiet joke among ED professionals across the country. L.A. was where all the companies fled the Rust Belt and other aging urban areas. After the l992 riots, people stopped laughing and by the time the Northridge quake hit in 1994, L.A. zoomed to the top of everyone’s list as the Distress Capital of the Nation. Now that distress is leading to substantive economic development. An excellent, easy to read reference source has been developed by Councilman Rudy Svorinich, Jr. Called the “Business Resource Guide to Financial and Economic Development Incentives,” this 40-page booklet can be obtained by contacting Mark Warnick at (310) 548-7526. Bruce Dobb is the chief credit officer for the Valley Economic Development Center’s revolving loan fund.

whittaker/bb/6″/mike1st/mark2nd Aerospace company Whittaker Corp. has sold its corporate headquarters campus in Simi Valley through a sale-leaseback transaction valued at more than $29 million. Charles Dunn Co., which represented both the seller and the buyer, declined to identify the buyer. But Ventura County property records indicate that the new owner is the Fritz B. Burns Foundation, a Burbank-based charitable group named after a prominent Westchester homebuilder. The property includes three buildings totaling about 280,000 square feet on 15 acres. It houses Whittaker’s headquarters offices, along with two recently consolidated aerospace units safety systems and electronic resources. In a typical sale-leaseback transaction, the company that owns and occupies a property sells it to an investor and then leases it back, usually through a long-term arrangement. The buyer gets a predictable return on its investment and a relatively low-risk one, assuming the seller’s credit and business prospects are reasonably strong. This particular deal is expected to help the charitable foundation plan its ongoing activities because it provides a consistent income stream. The seller frees up substantial cash to deploy as needed, and might get some accounting and tax benefits as well. The Burns Foundation paid just under $18 million for the campus, and Whittaker has agreed to make lease payments totaling more than $11 million over the next 15 years. Brad Berton

L.A.’S LEADING WOMEN EXECUTIVES: LOOK ING BACK ON THE PAST AND DESIGNING THE FUTURE By Peter Berk 1 James L. Gary & Co., Ltd Linda Gary As she could this time last year, Linda Gary may once again look with pride to the number one ranking of her company, James R. Gary & Co., Ltd., on the list of top 100 women-owned businesses in Los Angeles County. Gary’s Woodland Hills-based residential real estate brokerage, founded some 20 years ago, earned $260 million in revenues last year, not only securing its return to the lead position in the top 100 list, but representing a stunning increase over nearly $100 million over the year before. This increase signals not merely the upswing in the San Fernando Valley’s real estate market following the devastating Northridge quake, but the continuation of Gary’s winning management style. Gary’s remarkable business achievements over recent years are all the more impressive given the personal loss she suffered only four years ago when her husband and the company’s founder, James R. Gary, passed away suddenly at age 51. Although Linda Gary had played an integral role over time in the development and evolution of the company, her husband’s death prompted her for the first time not only to assume the company’s presidency virtually overnight, but to do so during the worst real estate market period in recent memory. As Gary recalls, “I saw an immediate need, as soon as I started to come out of the shock of the sudden loss, to address the fact that the price of homes was dropping dramatically. I could see we were spending more than we were taking in. My husband died in September. By January, it was apparent to me we had to make some major cuts in spending to survive. And that motivated me to truly become the head of the company and take charge.” Fortunately, Gary had a close friend who was an attorney on the east coast, and therefore called and asked her if she would move to California and help. Says Gary, “Then we really began involving the sales managers who had worked under my husband to run the day-to-day aspects of the business with the agents; they’re the ones who know how to sell real estate. We certainly didn’t know that. So, they accumulated more responsibilities than they had ever had under my husband, because he was a larger than life figure who liked to do it all; he loved selling and managing and growing, concentrating on the big picture while I have always concentrated on the details.” Asked to describe her own management style, Gary notes, “I have allowed people to take a lot of responsibilities. I think it’s a lot easier for a woman to turn over responsibilities than it is for a man. I think boys are raised to think of themselves as needing to do so much, while girls are more willing to share jobs and responsibilities and have a deeper level of intimacy with others. Ego is generally not so important to women; they are more willing to admit weaknesses and utilize someone else who is able to provide the needed strengths. “I really think that personal growth and professional growth are one and the same, especially in the sales field,” Gary continues. “People who work in our company should be concerned about personal growth development, working on their skills with one another, and constantly be striving to achieve the goals we all set for ourselves. I feel a very strong and rich sense of identity and heritage here, because of the way this company was established by my husband. We talk a lot about the company culture and individual identity. We are concerned with the community as well as just our business.” Gary, a former Los Angeles Unified School District kindergarten teacher before she ventured into real estate alongside her husband (the two married in 1963), manifests her commitment to the community in myriad ways these days. Her many current civic activities include sitting on the Boards of Valley Women’s Center, Inc. and Valley Community Legal Foundation. Asked to comment on how the role and perception of women in business has changed over time, Gary says, “Younger women today feel they can do anything, as they should. For me, growing up I was told I could be a teacher or a nurse. I never thought I could be anything else. That’s completely changed. Women today understand that there’s very little that’s closed to them. I really don’t think that many women feel they are handicapped today; maybe in some cases, they even feel they may have a slight advantage. “There is a growing process for women – women of a certain age, especially, have had to work at being stronger and more assured of themselves, not to be knocked over by criticism, and I thing women are doing a wonderful job. What I also see happening and find very satisfying is seeing men reveal more and more about themselves – their own fears and concerns. I see men in our own office who are more vulnerable and are much more successful in sales.” As to what advice she would offer entrepreneurial women today, Linda Gary says, “I would ask them to take the time to think about how they would like to be remembered – by their family, their children, their friends and their clients. When we can put it in that kind of perspective, we can’t help but do the right thing.” 3 American Tours International Noel Irwin-Hentschel Perched high atop this year’s top 100 women-owned businesses list, at the enviable number three position with $150 million in 1996 revenue and a team of 445 staff members, is the 20 year-old AmericanTours International (ATI), also the world’s largest Visit USA travel company. ATI’s stunning growth and accomplishments are directly due to the visionary management of its co-founders, chairman and CEO Noel Irwin-Hentschel and Michael Fitzpatrick, as well as their team of Visit USA professionals. For two decades, via a series of creative products, compelling itineraries, and educational and incentive-driven experiences in America, this truly dynamic duo has combined innovation and quality of service to generate a steady flow of European tourism to the United States. Says Irwin-Hentschel, “What we do best is to create ideas, implement them and cooperate with our partners around the world on selling the United States.” The company was founded in 1977 when Noel Irwin invested her $5,000 savings account and teamed up with Fitzpatrick to create a travel company not like any other on the scene. From their modest beginnings, they have turned ATI into a resounding success story as reflected by the fact that the company handled over 800,000 visitors to the United States last year and is the largest producer of tourism to America, generating $2.8 billion per year in revenue. ATI along the way has developed several products designed especially for overseas audiences, including multi-lingual motorcoach tours of the U.S., fly-drive tours and numerous city tours. Headquarted in Los Angeles, ATI today also operates offices in many major locations, including Honolulu, Maui, New York, Miami, New Orleans, Orlando, Las Vegas, San Francisco and Washington, D.C. In addition to tours, ATI has developed a number of highly popular special products and events, including “Legends of the West” and unique theme parties spanning all tastes and travel objectives. In 1996, Irwin-Hentschel was honored by the National Association of Women Business Owners as “Business Woman of the Year.” Asked in a recent interview to describe her company’s plans for the future, Irwin-Hentschel said, “We are continuing to strengthen our core business, which is Visit USA on the international level. Our first priority is to strenghten and grow that business, which also includes expanding into other markets within the countries in which we’re doing business and with countries that are nearby. For example, we’re expanding in the Asian markets beyond Japan and Singapore and Malasia into China, Hong Kong, Korea and other parts of Southeast Asia. One of the keys for that expansion to take place is going to be America’s stand on visas to the United States, because at the moment, we are making it extremely difficult for many people who have a lot of money to come to America and spend it. When it becomes that difficult, they wind up going to other destinations instead. In Europe, we’re expanding our range of products and motor coach tours, especially involving middle America and other lesser-known U.S. destinations.” An outgrowth of ATI’s success in bringing the world here has been to provide a substantial revenue boost to a wide range of communities to or through which the company’s tours regularly travel. A good example, Irwin-Hentschel says, is Barstow, California, “where we’ve brought so much business over the last 20 years that the McDonalds which used to be very small has considerably expanded, and many other fast food places have opened up to handle the number of buses coming through the area. This is just one instance of how we’ve had a major impact on the economic development of areas that otherwise would never have thought of themselves as tourist destinations.” Another facet of ATI’s ongoing expansion has been the company’s investment of considerable money and resources into a highly advanced computer system, enabling an instant connection between ATI and its major partners around the world so bookings can come straight from agents into the company’s offices and so ATI can readily communicate with destinations both within and outside of the United States. The result is an ability to handle a greater volume of business with less labor. ATI is also planning a domestic expansion, working with selected partners in this country to offer its services to American travelers. Discussing the qualities she feels have enabled her to enjoy success with ATI, all qualities which are also applicable to women in all industries, Irwin-Hentschel says, “Being a visionary, being someone who is very strong in regard to strategic planning and seeing where a company can be and not being afraid to take whatever steps are necessary to get there, being good at planning, being very goal-oriented, being a do-er as opposed to someone who just talks about doing something, being able to implement an idea, being able to absorb the advice of others but make decisions firmly and quickly, being good at motivating people and being able to stay focused. It can be very difficult at times for women because we have to balance so many roles in our lives as a wife and mother and someone who’s also involved with the community, as well as being a businessperson. There are only so many hours in the day.” In regards to the success of ATI, Irwin-Hentschel is quick to say, “It’s not just me. It’s my excellent partnership with Michael Fitzpatrick and the fact that we have been able to put together a really strong team of people who are very talented and know more than I do in the areas of responsibility that they have. For us, getting everyone on our team excited about what we do is also essential. For one thing, the product that we sell is the United States of America, and I can’t think of a more wonderful product to promote.” As to her view of the changing perception of women over the years, Irwin-Hentschel says, “As for me personally, I always considered myself an entrepreneur first and so being a woman didn’t hold me back in any way. Being an established woman in business can be an advantage in some cases, but a disadvantage in others. I would hope, though, that it would always come down to how good you are. Doing business in Japan is a good example in my case. When I initially got an appointment with several high-level people I met with in Japan years ago, they thought I was a man because my name, the way it’s spelled, happens to be a man’s name. When I walked in, they asked where Mr. Irwin was, yet once they realized I was the person they need to meet with, they were very courteous. But in the end, it came down to how well I was able to negotiate with them and that’s how I gained their respect. “In addition, I had taken the time to understand the culture of Japan, which I also think is important. Women or men doing business internationally need to really understand the mentality and culture of the people they’re dealing with.” Despite her own success and the positive direction in which women in business are moving today, Irwin-Hentschel – mother to seven children with her husband, a resort developer – feels “There still aren’t as many opportunities for women as I would like to see in corporate America, meaning public companies or Fortune 500 companies. But I think that will come because of the skills women have. As for women entrepreneurs, the opportunities are definitely there. In addition, there’s more partnering now between men and women so both a husband and wife can have careers and find the proper professional and personal balance in their lives, always remembering that family comes first.” 4 Kent & Spiegel Direct Marsha Kent With 1996 revenues of $150 million, Kent & Spiegel Direct, Inc., president Marsha Kent is the leading female figure in the multi-billion dollar direct response marketing industry. Kent & Spiegel (which Kent operates with partner Peter Spiegel) is a fully-integrated marketing firm which markets products from concept to retail. The company offers creative, marketing and operations services to diverse clients to generate huge sales and create high-profile brand awareness for a wide range of products. Among Kent & Spiegel’s many successful credits are informercials for such top-sellers as The Abflex Fitness Challenge, Miracle Blade, Microcrisp, Karaoke Classic, Oxy White Tooth Whitening System and The Revolutionizer, among many, many others. Discussing her company’s success and her own management style, Marsha Kent says, “Leadership is the key. What is a leader, who is a leader, how do you become a leader? These are very pertinent questions, whether you’re a man or a woman. For me, it starts internally and personally. I think men traditionally had more of an opportunity to build these kinds of thoughts and skills but now women are coming to the fore in terms of confidence and personal power. These aren’t traits women have always been encouraged to fully developed. So I think women who have that entrepreneurial spirit and also have a natural ability to take risks and have the necessary courage it takes will be the business leaders, presidents and CEOs. Obviously, knowledge is a vital component as well. To me, a leader is one who inspires, who motivates, who sets an example, who projects success, power and confidence. Those are qualities you can’t learn in a classroom and you can’t buy, but you have to be courageous enough to develop.” An integral facet of Kent’s leadership strategy is to embrace the views and expertise of others, to encourage the creative and strategic contribution of those around her. As she puts it, “Frankly, there are a lot of women and men in my company who have specific skills which exceed mine, but that’s another important leadership quality – to be able to surround yourself with people who are as good or better than you are.” Kent says she takes a highly realistic view of the role and perception of women in business, happily acknowledging the progress made, but feeling that some long-ingrained societal attitudes may not change in the foreseeable future. “I tend to be realistic about it, and not pessimistic. But the way our entire society functions is such that I don’t feel business women will ever fully be satisfied with `their place in the business society.’ In my case, though, I feel I have found a successful way to deal in a man’s business world. I went through being unduly tough and untouchable with my staff early on, because I had no model. I didn’t know how to be. Finally, though, when I came to a place in myself when I realized I was good enough, then I could start having fun and using my business acumen and personality to their fullest. Because I raised me like a little boy, I was also able to understand where men come from and how they think, which made me – I believe – more effective, especially in a grossly male-dominated industry. In fact, there is no other woman president in a direct response marketing company in the world, certainly not at a $100 million company.” In looking back over the years, Kent also feels very positive strides have been made in terms of how men and women relate to each other on the job and how they manifest their own personalities. Says Kent, “I think it was awful in the beginning, with just about everyone lost and disoriented. I think it’s a whole lot better, and that men accept that women are here to stay in business and that they might as well get along with that issue and make it more of a win for themselves, rather than resist something that’s inevitable. I think women, however, will always have to out-perform men to get very high senior positions, because that’s a fact of life. So if women can take that as a challenge, rather than becoming disillusioned about it, I think they can succeed.” As for Kent’s advice to women looking to enter or grow in the realm of business today, she comments, “I would tell young women that working on who they are internally is even more important than amassing knowledge. There are a lot of smart people out there, and you’re just one of millions if you have only amassed knowledge. But to shine and rise above, it has to come from who you are, from developing the elements of leadership, being a risk-taker, being flexible. I would say, work on the psychology and sociology to come to a place of synergism in yourself.” 5 Hoffman Travel Carol Dunn Ranked a lofty number five on this year’s top 100 Women-Owned Businesses list is Hoffman Travel, an obviously very successful travel management company with headquarters in the mid-Wilshire area and 26 other offices both in and outside of the Los Angeles area, including one in Burbank opened specifically to serve the needs of the company’s entertainment industry clients. Showing a total revenue of $125 million in 1996, Hoffman Travel – founded by Jules Hoffman in 1934 as the first travel agency located in the Beverly Wilshire Hotel (now the Regent Hotel) today employs approximately 300 people. The company was purchased by Hoffman Travel president Carol Dunn in 1972. In a recent interview, she discussed the evolution of her company and her views of women in business today. Discussing one of the most crucial ingredients in her recipe for success after buying the company 25 years ago, Dunn recalls, “Right away, I brought entertainment industry contacts I had developed over the years to the agency when I realized there wasn’t a travel agency which specialized in production companies and entertainment executives. So I filled that niche and trained people to handle productions and music touring groups and other entertainment concerns. Over time, the company grew substantially from about $800,000 annually in 1972 to about $125 million today. The growth was driven by filling the needs of a niche market. Today, our clients are about 65% entertainment and 35% corporate, so it’s moving more toward a 50-50 ratio.” The kinds of services that were designed originally for the entertainment community have now become more and more desirable among high-profile corporate executives, Dunn adds (clients include DreamWorks, Universal, American Honda, MGM and Warner Brothers). These and Hoffman’s countless other clients are, Dunn says, “looking for a combination of high tech and `high touch’ service, meaning we have the technological ability to produce a lot of analysis and travel management, which is usually the number three expense on a company’s P & L.; Our level of technology helps them analyze the trends and expenditures from airline flights to hotel rooms and to bring that information together in order to negotiate a better rate for these companies. “Then we complement that with a `high-touch’ service, which is creating and maintaining comprehensive profiles that have all our clients’ travel needs so our agent can help them cut through the inconveniences of travel. So it’s a combination of technology and highly skilled individuals who are in a climate of wanting to serve our clients.” As to what Dunn considers the next logical evolution in her industry, she says, “By all means, the corporate travel environment is going to be transformed considerably by the ability to go on-line and use the Internet. The use of a computer to produce a ticket for the traveler represents a saving of time and money that is the next step in our industry, and we already have that technology.” Describing her own management style, Dunn considers it “extremely collaborative. I find a great joy in the collective thinking process, bringing together an assortment of different personalities in one room. I find it very exciting to bring different people together to work on strategies and solutions. My style is extremely democratic. I try to hire people who have other strengths that I do.” Regarding today’s opportunities for female executives, Dunn feels, “It’s a well known fact that the largest market share of growing entrepreneurs are women and a source of great revenue in banking and loans. It’s no longer ignored as it was 25 years ago. Women in business are succeeding in every industry. I’m not certain of the glass ceiling myself since I’ve had the luxury of owning my own company. But I don’t find it to be a detrement to be a woman in business as I used to. I would say that there are strides still to be taken in corporate America, but speaking for myself, I haven’t had any significant problems in finding support in the community and I think I’ve been received on the skills and success of my company – having nothing to do with my being a woman, as it should be. I actually prefer not to have my company discussed as a woman-owned business, per se, just as a successful business. Though I do understand that prejudice still exists and there still are well-worn, knee- jerk reactions to women and minorities in the workplace, I haven’t felt them in my position.” Offering advice to young women entering the workforce today, Dunn says, “I always boil it down to three necessary qualities. A lot of spirit, which could also be defined as passion or energy. Hard work. And loyalty. Those are the main three qualities I look for in people I hire and those are the qualities that can lead to success in any field.” 12 Breath Asure, Inc. Lauren Raissen In only four years, the Calabasas-based Breath Asure, Inc., has barely had time to catch it breath, so to speak, as the company has continued to grow dramatically to its current number twelve ranking on the women-owned businesses list. With 1996 revenues of more than $30 million, Breath Asure – aided greatly by its George Kennedy-fronted marketing campaign – has to date sold in excess of one billion capsules worldwide. In the process, Breath Asure has evolved from a home-based direct mail business to an international brand name. Under the direction of founder Anthony Raissen and company president/CFO Lauren Raissen (this year’s “Designing The Future” keynote speaker), Breath Asure has become a product stocked in major food, drug, vitamin and health food outlets around the world. Recently, the company introduced its second product, PureBreath, a natural breath freshener specially formulated for billions of other potential “customers:” pets. According to company literature, the genesis of Breath Asure finds its roots in the age-old maxim, “Necessity is the mother of invention,” the invention being prompted by Lauren Raissen’s confession to her husband that she was especially sensitive to his strong, pickled cucumber and spicy food-induced breath. Rather than dispense with his beloved culinary habits, he agreed to help find a solution. Since poor breath is natural, the obvious solution should be natural as well, the couple reasoned. Therefore, in 1991, the Raissens joined forces with researchers to create a new product for the consumer market. The result was a small golden pill which the couple introduced at a garlic festival. A mixture of all-natural sunflower and parsley seek oils in a gelatin capsule, the product soon won over the skeptics and was rightfully perceived as a breath of fresh air – in every sense – for those with bad breath. Cognizant of the product’s commercial viability, Anthony, an electrical engineer, and Lauren, an audit senior with Ernst & Young, both left their jobs to embark on their new entrepreneurial venture, converting a spare room in their house into an office and officially launching Breath Asure in 1992. The couple soon after implemented an ambitious marketing program incorporating direct mail and a toll-free number and in 1994, brought on Oscar-winning actor George Kennedy as the company’s celebrity spokesperson. An avid user of the product before teaming up with the Raissens, Kennedy’s popularity and credibility immediately helped generate a snowball effect in terms of Breath Asure’s worldwide success. Today, the company remains the market leader despite volumes of copy-cat products, and continues to grow beyond the wildest dreams of its husband and wife founders. Beyond the appeal of Breath Asure as a product and the marketing skill of the company responsible for it, much of Breath Asure, Inc.’s success is clearly due to Lauren Raissen’s management expertise. “I really believe in team work and encourage people at all levels to participate,” she says. “I think it’s very important for everyone to be part of the decision-making process. Delegation and empowerment is extremely important; to have responsible people working for you who can carry out tasks and carry out their jobs in the manner they should be carried out.” Asked whether delegation and the sharing of ideas perhaps comes easier for women, Raissen responds, “It’s an interesting question. It all ultimately depends on the individual. Therefore, it varies from one person to another. There are certainly men who operate on the theory that they must do everything themselves in order to get the job done correctly. Still, there are women who have that viewpoint as well. I will say that it seems as though the women I’ve worked with are a bit more prone toward working in a team and being a team player, but in any business environment, teamwork and communication are essential.” How in Raissen’s view has the perception of women in business changed over recent years? “I think that women in business are definitely being more and more recognized and successful,” she says. “Organizations like the Los Angeles Business Journal recognize women in business, and there are several important women’s organizations which are also helping the world appreciate the accomplishments of women in business today.” In terms of the advice she would offer entrepreneurial women, Raissen comments, “I always say, stick with your guns. If you have an idea or a concept, you must believe in yourself. You have to have the courage of your convictions to go forward and carry out what you believe. You are up against the odds as a woman, so you have to have a great deal of courage.” 21 National Construction Co., Inc. Nina Tate The highest-ranked company on the latest top 100 women-owned businesses list that wasn’t on the list the year prior is National Construction Co., Inc., a $18.6 million company in terms of 1996 revenues, employing 200 people. National focuses on general engineering, general building contracting, reinforcing steel and environmental remediation. Founded by company president Nina S. Tate in 1983, National has thrived as a result of its sage leadership, including a focus on teamwork and a willingness to adopt to change. Indeed, this adaptability is a point which Tate first stressed in a recent conversation. “Like any other business,” says Tate, “it’s very competitive, and to survive, you have to be the best in whatever your particular niche is. In our particular case, I feel that we’re still here even after a bad recession because we were willing to adapt to change. For example, I took us to other states, so we’re now in Arizona and Nevada – states which had a thriving economy when California was going through some bad times. So we’ve expanded our operations and have ventured into other types of work. We are one of the principle reinforcing steel companies in the state, but we’ve expanded our general engineering division. We also have a solid management team, and I’m willing to work, as any other entrepreneur is, I think, however many hours it takes to do the job right and make certain the business grows and thrives.” Describing her own management approach, Tate observes, “I am definitely a hands-on manager, although I can only be hands-on in so many areas. But I do have a very good management team because what I look for in a manager is someone who has the company’s vested interest in mind, who cares about the future of the company, who’s helping build it.” Asked to comment on how difficult it was for a woman to succeed in the construction arena, one generally considered to be male-dominated, Tate responds, “The number of women-owned construction firms has actually increased over the last few years, but we’re still considered very unusual in that we are in heavy engineering such as civil work and seismic retro-fits. I had been in the construction industry for more than 20 years when I started my own business, so I knew a lot of people in the business. Still, when I started out on my own, I found it was almost as if I hadn’t been in construction all those years. I really did have to prove myself, to make sure everyone realized we were a highly competent and qualified company. “All we ask is that we are greeted with an open door and have a chance to compete for work equally,” Tate continues. “There’s still a ways to go, though. The construction industry has long been considered a good ol’ boys network, but I think the majority of clients are just looking for the lowest and most capable bidder today.” As to what counsel she would give entrepreneurial woman these days, Tate says, “Find a position or field you like and make yourself the master of it. To be an entrepreneur also means at times putting your business ahead of your life. You have to make that commitment.” 36 Giroux Glass Anne-Merelie Murrell Comparing the recent top 100 women-owned businesses list and last year’s list, the Los Angeles-based Giroux Glass has the distinction of having enjoyed the most dramatic ascent, moving from the number 67 position last year (reflecting 1995 revenue figures) to its current position at number 36. The jump reflects a revenue leap from $4.3 million to $9 million. Giroux Glass, employing almost 70 people, is a commercial glass constrcutor, a provider of new construction and a company also specializing in high-rise glass replacement, storefronts, tenant improvements and mirrors. The CEO and president of Giroux Glass, originally founded in 1946, is Anne-Merelie Murrell. Murrell was recently named “Business Woman of the Year” by the Los Angeles Business Council as “a woman whose entrepreneurial spirit has enhanced the climate of the Los Angeles business community. She will receive her honor May 2 at the Regency Club in Westwood. Commenting on the company’s rapid growth of late, Murrell notes that certainly the combination of the Los Angeles riot and the Northridge earthquake prompted the addition of numerous new clients, but that Giroux Glass primarily owes its surge in revenues to the “spirit of dedication among our staff members, the quality of our work and the satisfaction of our customers.” Of the future, she adds, “There’s definitely room for more growth and expansion, especially in areas such as the San Fernando Valley and Orange County. Those are projections for now, because we’re still primarily addressing the needs of the Los Angeles market. I believe in this city, its growth and potential and its place in the world.” Reflecting on her own management approach, Murrell says, “I try not to criticize. We talk about the positives here. We are enthusiastic and we’re dedicated. And of course, we work closely with our clients, because obviously without them, there would be no business.” Addressing the ever-increasing prominence of women in business, Murrell notes, “I think we’re fortunate to live in Southern California, where opportunities abound for all of us, regardless of our gender or our ethnic background.” As for her advice to other women hoping to find their own high perch in the business world, Murrell notes, “Believe in yourself and believe in your project. Have fun with what you’re doing. Enjoy the people you work with. Serve your customers and respond to the needs of those around you.” Kathleen Williams CEO, President Williams Worldwide, Inc. Ranked sixth on this year’s list, Williams Worldwide enjoyed revenues of $100 million in 1996 and employs 120 people. The company is a full-service direct response advertising agency. BORN: In Germany and raised in upstate New York. Attended Cornell University and graduated with a BA in Consumer Economics and Nutrition. FIRST JOB: Even as a teen, Williams evidenced entrepreneurial tendencies: “I was the first paper girl in my home town. That was quite an achievement in those days. Out of college, I didn’t have a definitive idea of what I wanted to do, but I did know I didn’t want to settle for a mediocre, 9-5 job.” ADVICE TO WOMEN IN BUSINESS: “To not let anything be a barrier to your success.” Knowing it existed, but not to what extent, Williams entered the business world fairly oblivious to the discrimination against women. As her business and her power in the industry gre, she was amazed, she says, to see herself being a target of discrimination. That’s when she realized she had some crucial choices to make, choices she advises other entrepreneurial women to likewise make today: “Even if you recognize it, don’t accept it, see it for what it is, but remember what you have inside of you and blast right through it. Don’t ever, ever, let anything stop you – you have too much to offer.” Andi McClure Co-President Montrose Travel Ranked ninth on this year’s list, Montrose Travel garnered revenues of $46.3 million in 1996. The full-service travel management company employs 101 employees. BORN: Glendale, California. FIRST JOB: A box person in a supermarket, aged 16. ADVICE TO WOMEN IN BUSINESS: All PEOPLE have the same opportunity for success in business. You must understand what the customer wants and provide it better than your competitors, have a strong grip on your financials, work smart, surround yourself with qualified, well-trained employees, have a short-term and long-term plan for your business. Most importantly, you need to have the ability to see the forest through the trees, have fun and keep it all in perspective. Balance, ultimately, is the key to personal and financial success.” Karen Canter APA Travel Center, Inc Ranked 10th on the list this year with over $35 million in 1996 revenues and a staff of 50 employees, APA Travel Center is a full-service travel management company co-owned by Karen Canter and Marie Bluebond. BORN: New Jersey FIRST JOB: This is it! ON HER WORKING ENVIRONMENT: “I am fortunate to be surrounded by an extremely talented group of people. I seek out the best and let them do what they do well, trusting in their judgement anmd their abilities.” Marie S. Bluebond APA Travel Center, Inc. BORN: Los Angeles. First Job: Filing brochures in a travel agency after school when I has 15 1/2. That’s what whet my appetite for the travel industry and I have been in it ever since! ON HER WORKING ENVIRONMENT: In todays business environment it is extremely important to be flexible. What your business is today may be a different business tomorrow. One must embrace technology and change and not let grass grow under your feet. Stay informed of your competition and constantly strive to improve your product. Never become complacent. Noreen Jenney and Linda Lange Bring Hollywood to Fans Worldwide with Unique Celebrity Research Network For decades, fans of film, television, music and sports stars have been sending love letters which were never read, requesting autograph picutres which were never signed, waiting for press materials which were never mailed and submitting ideas which were never received. Until now. Today, when a teenaged girl wants to invite Brad Pitt to her friend’s Bar Mitzvah or when “Superman” devotees want something as simple as an autographer photo of Dean Cain, they need no longer rely on the patchwork of outdated, misguided and unreliable star access information which has left so many fans unfulfilled over the years. They need simply contact Celebrity Research Network (805-526-6861 or P.O. Box4728-P, West Hill, California, 91308), the most comprehensive public source of celebrity information available today. In early 1995, Noreer Jenney and Linda Lange were already well-established entrepreneurs running the thriving Celebrity Endorsement Network, which works with leading companies and advertisers interested in forming associations with top stars and other prominent figures. As a result of its 15 years as a notable entertainment industry company, CEN had built up one of the most sophisticated and current celebrity computer databases around. Two years ago, Jenney and Lange realized that a new venture offering fans access to this database, while ensuring the privacy and protection of the celebrities themselves, would be a win-win situation for all concerned. The result was Celebrity Research Network, which has grown substantially thanks to the company’s marketing and advertising efforts and thanks, most of all, to highly enthusastic response from fans interested in everything from sending a personal note to a star to acquiring a singer’s performance schedule to contacting a PR or talent agent to, as mentioned, even forwaring a Bar Mitzvah invitation. Commenting on the success of CRN, Jenney says, “Although the response has exceeded even our most optimistic projections, we’re not surprised that fans are interested in finally getting thorough, reliable and regularly updated information about their favorite stars.” Adds Lange, “By giving fans what they want, while always respecting the privacy of the stars in question, we feel we are providing the best of both possible worlds.” —- Financila Intelligence: Few Have It, Everyone Needs It By Suzanne Sirotkin Financial intelligence – – many people think they have it, but few actually do. Over the past six years, I have built a management service based on helping people becoming more financially intelligent. During this time, I have found that there are some common characteristics of financially unintelligent business decisions. Here are some examples: *Not reducing overhead when business is financially down; going into debt while believing new business is right around the bend. *Thinking the business is sound based on there being cash in the bank and your payables are current. In other words, not looking at the big picture. *Being afraid to direct and manage your staff for fear of them not liking you. *Making decisions based on emotions. *Being afraid to ask for money owed to you. *Not knowing the value of your service, and being shy about asking for the price the service deserves. *Not putting operational safeguard systems in place to protect yourself and the business. *Thinking a raise will keep employees motivated and loyal. *Not recognizing when you are in trouble. Financially intelligent business operators take a hard look at every dollar spent. They analyze every expense. They look at everything in terms of return on investment, or a dollar-generating expenditure. They plan for the short falls in cash flow. They have a business plan and are always making adjustments to it. They are prepared to change priorities as needed. They review operations on a weekly basis, and know at all times where their attention is needed. They bring strong leadership to their business as well as to their staff. Sometimes, it’s impossible for business people to detach themselves from the emotional pulls of their business. An outsider who can take an unimpassioned but caring and objective look at the full scope of your operations and management can make all the difference. It isn’t easy to change a pattern but having recognized your business problems, you should be able to turn to someone you trust. The problem, however, is that: 1. Many business people are too embarassed to disclose their problems to someone outside their business. 2. They are ashamed over the loss of moneys their financial unintelligence has cost. 3. They are simply too afraid to admit they need help. How does a busines evaluate an outside consultant in whom the business executive will place a tremendous amount of trust? First, ask around, network, get recommendations from other business people you respect. Ther consultant you choose does not necessarily have to be an expert in your line of business. Financial unintelligence knows no business or professional boundaries. Suzanne Sirotkin is an Operations Management Consultant in greater Los Angeles and can be reached at (310) 843-2778.