Eugene Small Business

Poet Rita Dove summed it up well when she said, “There are times in life when, instead of complaining, you do something about your complaints.”

When it comes to the topic of public safety in downtown and other commercial districts, a good part of the community dialogue often focuses on what is going wrong. In this issue of Open for Business we focus on the actions of business leaders who are facing the public safety challenges in their respective commercial districts. Examples of what is going right.

There is no denying the public safety challenges in downtown and other commercial districts. As a member of the Downtown Safety Task Team, a group of downtown and community interests formed to develop recommendations to city leadership, I helped identify four main areas that contribute to the problems in the city core, many of which could, at one time or another, could have applied to either the University District or Midtown area. They are:

• A lack of consequences for criminal behavior because of an inadequate police presence downtown and a shortage of jail beds, which served as a sanction for criminal activity.
• The presence of behaviors ranging from illegal to obnoxious.
• The lack of a cohesive, coordinated downtown public safety plan, including resources such as staff, facilities and treatment.
• The debilitated state of many physical spaces in the downtown (e.g., empty storefronts, dark corners), which invite illegal activities.

These are significant challenges. At the same time, there are positive stories to tell about how business and property owners have stepped up to address public safety challenges:

• Businesses in the downtown formed a special services district more than a decade ago, voluntarily agreeing to tax themselves to create resources to fund, through Downtown Eugene, Inc., the Downtown Guides, graffiti abatement and other strategies to make downtown clean and safe.
• University District businesses also formed a special services district to fund a portion of a police officer dedicated to providing community policy services in the district, West University Guides and more. Over the last decade the collaborative efforts of the University Small Business Association (USBA), the City of Eugene, University of Oregon and PeaceHealth Oregon Region have made significant strides in turning around a significant public safety challenge in the commercial district adjoining the University.

Through commitment, collaboration and good strategic thinking, I am confident that as a community we can make a difference in our downtown. The business community, through the Chamber and Downtown Eugene, Inc., has and will continue to move beyond complaining and, instead, actively participate in finding solutions to the public safety challenges in our commercial districts.

Dave Hauser is president of the Eugene Area Chamber of Commerce. As the area’s leading business advocate, the Chamber works to create an environment in which business will thrive. The Chamber works with partners in business, government and education to improve the quality of life for local residents.

Earlier this month the Eugene Chamber participated in Palo Alto Software's Oregon Small Business Boost. The Eugene Chamber gave away over 600 cards, the second largest number in the over 80 locations throughout the state of Oregon that participated in the one-day event. The cards allowed the recipients to download a copy of Business Plan Pro software.

Recently Tim Berry, President of Palo Alto Software, posted the following testimonial on his blog from a satisfied user of the software. The entrepreneur said "I owe Business Plan Pro, SCORE and (the) Chamber of Commerce a huge round of applause and gratitude for being available, supportive and a constant reminder to me that success is about passion, drive and intention." Contact Caroline Cummings, director of entrepreneurial development at the Eugene Chamber, 541.484.1314, or call SCORE, Counselors to America's Small Business, 541.465.6600, for assistance for your business.


 

It was one of the hottest debates in 2004: Should Eugene resume giving property tax breaks to industries in West Eugene? Should there be limitations on the amount that can be received? Does it really make a difference?

The primary purpose of the Zone is to stimulate new investments through tax break incentives, thereby creating jobs and new income in the community. The primary concern was determining which companies should be eligible and how much should be waived. If the city and county didn't decide on specifics within a certain timeframe, then the qualifications and incentives would default to the state's requirements.

In the end, it was determined that the city and county would offer the maximum tax breaks allowed by state law - up to $96,000 in property taxes would be waived over three years for each new job. Even if a company becomes eligible for the tax breaks, it will still be required to file every year in order to ensure that it's continuing to meet eligibility requirements, and to quantify the quality of jobs offered at the company. The Public Benefit Criteria were designed by the city to reward companies for creating jobs with higher than average wages and benefits. If the company fails to meet a certain level of Public Benefit, then it will be required to make a public benefit contribution to the community, essentially giving back some of what the company received as a tax credit. 

So who qualifies? Businesses within the boundaries of the enterprise zone planning significant new investment in additional real property and/or personal property and who will increase their number of employees by 10% or one person, whichever is more, are potentially eligible. However, applications must be submitted prior to commencing new construction, modifications or additions to a building. Investment in new machinery or equipment may also qualify.

It may seem like a lot of paperwork to muddle through for a small business owner with limited time and resources, but Imagine Graphics Vice President Erika Leaf assures small businesses that it is possible.

"The city really makes it do-able for small businesses to apply for the tax credit too," explained Erika. "The city's Community Development analyst, Denny Braud, has been great to work with.  Whenever I had questions, he was very responsive and helpful."

See which businesses are in the Zone: EnterpriseZoneMap

For application information or help, please visit the City of Eugene's Community Development website: WestEugeneEnterpriseZone


Take the challenge! Does your business operate within the west Eugene enterprise zone and is currently receiving the tax benefits? We'd like an update. Please take our short Survey and let us know if it's helped your business!

Small business owners concentrate a lot on what they do best – selling their products or services. During good economic times, you can probably run your business successfully focusing mostly on that. During tough economic times, however, the belief that as long as you are still selling goods the rest of the business will take care of itself doesn’t necessarily hold true. As the economy slows and credit tightens, you need to expand your job description to include oversight of areas that may have been unnecessary to examine during the good years but can help with survival through the economic downturn.

• Manage your cash flow. Review your cash position and anticipated cash needs. Ask yourself, have you been meeting your budgeted projections? How much of a drop in revenues can your business withstand and for how long?
• Manage your receivables. Look at who you are selling to and evaluate their credit worthiness. Watch for new patterns of slow payments and follow up immediately. Keep receivable agings current at all times.
• Analyze your expenses. Determine which ones can be controlled by disciplining your spending. Can you reduce spending in any areas to put fewer burdens on your cash-flow needs?
• Review your financing. Talk to your lenders to determine the status of your credit lines, compliance with their terms and likelihood of renewing their commitments with similar amounts, rates and terms. Review your reliance on credit and make sure it is in line with your business’s short-term needs, goals and risk tolerance.
• Don’t panic. A solid financial plan can help you face the current economic challenges. Develop a plan now to respond to future declines in revenues before they actually occur. Review your business strategies and update projections. Review your product/service lines to identify the most profitable items and determine how to leverage for future growth in profits.

By Kim Conway, Kernutt Stokes Brandt & Co. LLP for the Eugene Area Chamber of Commerce.
 

Where to Retire magazine is featuring Eugene as a top retirement town in its March/April issue.

The magazine’s editor, Mary Lu Abbott, said Eugene was selected because of its “ample recreational and cultural opportunities, hiking and biking trails, lakes for water sports, festivals, music events, and continuing-education classes.” She also noted that Eugene’s housing market is diverse, with a choice of affordable homes in older neighborhoods, condos in the city and land outside town.Eugene was also chosen because of its moderate climate, lush scenery, state-of-the-art medical facilities and proximity to the Oregon coast and the Cascade Range—all of which make it a great choice for retirees looking for “a friendly city with a sophisticated vibe.”

According to the magazine, 700,000 Americans move to new towns to retire each year.

Where to Retire joins a long list of publications and organizations that have lauded Eugene for its livability. Recent accolades include:

• The Best Track to Watch a Meet, Hayward Field, University of Oregon, Runner's World, May 2003.
• Eugene ranked #7 in The Best 20 Places in the Country to be a College Sports Fan. Sports Illustrated, September 13, 2003.
• Eugene and Springfield were ranked as #6 on a list of least polluted areas in the U.S. American Lung Association (as reported by CNN website), June 24, 2003.
• Register Guard reported that Golf Digest names Eugene Country Club as #83 in their list of top 100 golf courses. Register Guard, June 19, 2003.
• Annual ranking of nation’s 200 best performing big metro areas. Eugene/Springfield ranked 85^th. Register Guard, June 27, 2003.
• Eugene listed as one of 5 Cities That Inspire. Delicious Living, March 2003.
• Campus Scenes That Rock. Rolling Stone, Feb. 20, 2003.
• 10 Great Retirement Towns. Travel 50 and Beyond. Fall 2003.
• Eugene-Springfield ranks #1 as the healthiest environment according to Self, November 2003.
• Top 10 Cities for Animal Wellness in North America. Animal Wellness Magazine, March/April 2004.
• Eugene ranks #61 in the Top U.S. Small Cities for Doing Business category by Inc.com, March 2004.
• Eugene was ranked sixth in the Best Places to Retire. Compiled by Cal State University geographer Dr. Warren Bland, the survey used 12 criteria most important to retirees: landscape, climate, quality of life, cost of living, transportation, retail services, health care, community services, cultural activities, recreational activities, work/volunteer activities, and crime.
• The University of Oregon was the only West Coast public university or college listed as a “best buy” in the 2005 edition of the Fiske Guide to Colleges.
• Eugene was ranked #8 Best Walking City in America by the American Podiatric Medical Association. In the annual Best Walking Cities competition, 200 cities are ranked by an independent research company using 14 direct measures of walking, including the percentage of the population that walks for fitness or exercise, the percentage of hikers or backpackers, and the percentage of people who walk or bike to work. August 4, 2005.
• The Green Guide named America’s Top 10 Green Cities and Eugene ranked #1. Cities were surveyed on air quality, electricity use and production, recycling, and water quality, among other things. For more information, visit www.thegreenguide.com. April 10^th, 2006.
• Eugene was ranked #15 in the Best Green Places in America list of the most eco-friendly cities and towns, the results of a nationwide study of green living. Country Home magazine, www.countryhome.com, March 8, 2007.
• Eugene ranks 5^th in ‘Popular Science’ list of top 50 green cities. Though Portland tops the list, Eugene scores the only perfect 10 in the electricity category. www.popsci.com/category/tags/green-cities. Feb. 13^th, 2008.
• Eugene ranked #36 in Forbes’ 10^th annual ranking of the 200 “Best Places for Business and Careers.” The ranking was based on five-year job growth, five-year income growth, the cost of doing business, cost of living, crime rate, educational attainment, presence of four-year colleges, cultural and recreational opportunities, and net migration. March 2008.
• Eugene made Fortune Small Business magazine’s 2008 list of 100 best places to live and launch a small business in the United States. The magazine’s April issue ranked Eugene 96^th, trailing other Oregon cities of Portland (6^th), Corvallis (48^th) and Bend (87^th). April 2008
• The University of Oregon College of Education in Eugene, OR has been ranked 5^th among education programs in the U.S. The UO College of Education has consistently been ranked as one of the top public education colleges in the nation. The college’s faculty once again led the nation’s education researchers in productivity, and the college’s special education program was ranked 3^rd in the nation for the ninth consecutive year. Spring 2008, U.S. News & World Report.
• The University of Oregon in Eugene, OR is one of 11 schools in the nation named to the new Green Rating Honor Roll (a list of the greenest college campuses) issued by The Princeton Review, a college test preparation firm. Universities are chosen based on their sustainability programs, environmental projects and overall commitment to sustainable practices. July 29^th, 2008, article in The Register-Guard.
• Eugene was named first runner-up for America’s Foodiest Small Town in Bon-Appetit’s October 2008 issue.

How does a local community build a vibrant economy?

Just as an experienced investor knows the value of a balanced portfolio, local economic development efforts should also seek to find a balanced approach.  For the investor, "Safe" options like bonds and money market funds provide slow, steady returns. Yet it's the more aggressive investments that carry a higher risk, and also the greatest potential rewards. The same principles apply to economic development. Larger, more mature companies can help anchor a regional economy, even account for a significant share of its jobs and tax base. At the same time, an area’s entrepreneurial success can serve as a real catalyst for dynamic growth.

Work by the National Commission on Entrepreneurship, Embracing Innovation: Entrepreneurship and American Economic Growth, confirms the importance of entrepreneurs to local economic vitality:

• Small entrepreneurs are responsible for 67% of inventions and 95% of radical innovations in the U.S. since World War II. Such diverse products as frozen foods, air conditioning, and the helicopter resulted from the drive and innovation of small entrepreneurs. A churn of ideas allows new companies to grow, but also helps the better-established firms in a region succeed. According to the Council on Competitiveness "Large firms often depend on small firms for new ideas and technologies ... Procter & Gamble now gets about 35 percent of its ideas from outside the company, and its goal is to reach 50 percent ... as the pace of innovation increases, tapping into the creativity of entrepreneurs is the only way to keep up."
  
• A small group of high growth entrepreneurs, only 5% to 15% of all firms, created about two thirds of net new jobs in the late 1990s. In many parts of the country, these small entrepreneurial firms are contributing new jobs at the same time as larger firms are cutting back employment.
  In addition, a groundbreaking national, multi-year study, the Panel Study of Entrepreneurial Dynamics, found that entrepreneurship is widespread in the U.S. across all racial and ethnic groups. At any given time, about 10 million adults are trying to create a new business. In addition, entrepreneurial firms employ a greater percentage of scientists and engineers than the labor market as a whole. Exciting, plentiful careers with fast-growing companies also help attract and retain more college-educated workers.

Now more than ever, entrepreneurship is the critical ingredient for a diverse, thriving economy and increasing a perfect fit for Eugene-Springfield. And by the way, the Eugene Chamber has embarked on effort to build and implement a comprehensive strategy to support small business and entrepreneurial growth for our area with an eye toward new jobs, new investments and a steady stream of new economic energy to drive this wonderful place.