KBIS 2016 - WYNK Marketing

Succeeding in your Business
Thinking About
Crowdfunding?
Watch the Fine Print
Vol. 13. Number 1
n
www.CaliforniaContractor.us
n
by CLIFF ENNICO
January 2016
M
KBIS 2016
Kitchen & Bath Industry Show VEGAS
National Kitchen & Bath Association January 19-21, 2016
The #1 Networking Conference for Kitchen and Bathroom Designers
T
he Kitchen & Bath Industry Show (KBIS) is North America’s premier
annual event dedicated to the kitchen and bath industry. KBIS is the voice
of the kitchen and bath industry and has been for 50 years.
Owned by the National Kitchen and Bath Association (NKBA), KBIS is an
inspiring, interactive platform that showcases the latest product innovations
and trends from leading kitchen and bath brands. Each year kitchen and
bath designers, dealers, architects, builders, and remodelers from all over the
world attend KBIS to not only discover the newest product innovations, but
to also take advantage of the education and networking.
Whether you are looking to stay up to date on the latest kitchen and
bath design trends or focus on business-related topics, the NKBA’s learning
program & conference has you covered. The NKBA learning program
at KBIS applies to all segments of the industry and is designed to foster
professional growth. Most importantly the conference series allows attendees
to hear the best presentations from their fellow colleagues in the kitchen and
bath industry.
KBIS also offers unlimited networking potential. With a variety of special
events, parties, and receptions taking place outside of the exhibit hall, there
are many opportunities to connect with fellow kitchen and bath industry
professionals and forge new business relationships.
From parties to educational seminars to designer-oriented programs, KBIS
is full of ways for you to engage with your peers and immerse yourself in the
kitchen and bath industry.
For more information please visit
www.kbis.com.
Return Address
3435 Ocean Park Blvd.
Suite # 107-196
Santa Monica
CA 90405
ake no mistake
about it. If you
own a small business or startup company, 2016 is going to
be the year of crowdfunding.
For several years now, it has
been possible to raise money
online for projects such as a new
invention, a documentary film
or a nonprofit campaign using
websites such as KickStarter and
IndieGoGo. Basically, you make
a pitch for money, take whatever
you get and give your contributors goods or services -- or maybe
just a “thank you” -- in return.
Nobody guarantees you will get
a dime, and (if you’re smart) you
don’t guarantee contributors any
sort of return on their investment.
Starting May 16 of next year,
it will be possible for the first time
to raise capital for your company
via crowdfunding, and give contributors stock in your company
in return for their contribution.
You will not be able to raise more
than $1 million without jumping
through some pretty expensive
hoops, you will have to make your
crowdfunded offering via a “funding portal” registered with the
SEC to make sure everything goes
fairly and smoothly, and you will
have to comply with about 600
Continued on page 10
PRESORTED STD.
U.S. POSTAGE
PAID
ONTARIO, CA
PERMIT #1
California Contractor December 2015
CalConJan2016.indd 1
12/27/2015 8:12:48 PM
page 2
CalConJan2016.indd 2
California Contractor December 2015
12/27/2015 8:12:58 PM
For Contractors Only
Uponor First PEX
Manufacturer to Offer
up to 2” Purple Pipe
for Reclaimed Water
Systems
warranty, and one simple ASTM F1960 ProPEX®
expansion connection system that does not require
any torches, glues, solvents or gauges. For more
information about Uponor, visit uponor.oreillydepalma.com or uponor-usa/Mediaroom.com.
o further meet the growing demand for sustainable building systems, Uponor North America is the
first in the industry to offer
a PEX purple pipe in sizes
up to 2” for commercial and
residential reclaimed water
applications. In addition to
its existing ½”, ¾” and 1”
sizes, Uponor AquaPEX®
Reclaimed Water pipe is
now available in 1¼”, 1½”
and 2” sizes as well.
“Uponor has a strong
sustainability culture
and looks to provide
products that align with the
company’s philosophy of
respecting the vital balance
between people, planet and
profit,” says Jayson Drake,
director of Plumbing at
Uponor. “Extending our
current offering of Uponor
AquaPEX Reclaimed Water
pipe supports our mission
of providing products that
help our business partners
build sustainable structures
around the world.”
The new offering comes
in response to a growing
need for water reuse
systems in drought-stricken
areas around the country.
Offering a reclaimed
water pipe in larger sizes
gives professionals the
opportunity to design and
install even more reclaimed
water applications to
help conserve fresh-water
resources. Uponor’s
extended offering, which
is available in 300-ft. coils
for ½”, ¾” and 1” sizes and
10-ft. and 20-ft. straight
lengths for 1”, 1¼”, 1½”
and 2” sizes, provides all
the benefits of Uponor
AquaPEX that plumbing
engineers and contractors
have come to rely on flexibility, durability,
corrosion resistance, a
20-year proven history in
plumbing, a 25-year limited
Brochure Tells How Power Ventilating Crawl
Space Cuts Structural Decay, Mold, Odors
T
A
brochure explaining a cost-effective way to
mechanically circulate fresh outdoor air within
the crawl space to eliminate excess moisture is available to builders, remodelers and homeowners from
Minnesota-based Tjernlund Products. The company
offers a family of crawl space ventilation fans, called
“UnderAireTM. UnderAire fans are the only crawl
space ventilators currently listed by ETL as suitable
for damp conditions. All three UnderAire models
have factory-installed freeze protection thermostats
that prevent the units from operating if temperatures
are below 40° F. The two deluxe models come ready
to plug into an electrical outlet and also include
dehumidistats that allow homeowners to select the
humidity level that activates the ventilator. Tjernlund
UnderAire fans can be installed in minutes, require
no maintenance and are whisper quiet. The brochure
includes installation, number-of-ventilators-required
calculator, performance and dimensions is available
at http://www.tjernlund.com or by calling 800-2554208.Tjernlund Products, Inc. is a leading manufacturer of problem-solving products for residential,
commercial and industrial ventilation applications.
California Contractor December 2015
CalConJan2016.indd 3
Continued on page 6
WYNKMarketing.com
g Graphic Design g Web Design
g Illustration g Apps g Video
g Marketing Campaigns g SEO
626 376-4599
page 3
12/27/2015 8:13:00 PM
President’s Message
Top Rookie Manager Mistakes
(That Make You Look Like a Jerk)
STAFF
Terry Cassel
Publisher, Editor-in-Chief
Bethany Muhl
Executive Vice President
WYNK Marketing
Print and Web Production
Terry Cassel
Advertising Director
Steve Pinkney
Advertising Manager
Herb Chase Jr. Gabriela Alves
Publisher Emeritus
Marsha Graham
Emma Cruz
Associate Publisher
Trade Show Relations
Ed Boitano
Suzanne Black
Travel Editor
Administration
Marika Ivanovic Cynthia Cassel
Editorial Assistant
Accounting
Sofia Gonzales
Carolyn Leigh
Editorial Assistant
Circulation Manager
Richard Pruden
Teresa Hunter
Distribution
Advertising Assistant
SHAUNA KRAUSE
Office Manager
JEFFREY ASHER
ROBERT BARON
MALCOLM BERKO
ED BOITANO
DAN DANNER
PAUL & SARAH EDWARDS
THOMAS ELIAS
DAVID KALB
DANIEL KEHRER
SHAUNA KRAUSE
JAY LEVINSON
RAOUL PASCUAL
EUGENE PETERSON
TERRY SAVAGE
HARLEY SCHWADRON
RON SOKOL
HERB STANSBURY
MICHAEL STONE
c
ongratulations! You just received
your first big promotion. Woo hoo!!
Chances are you’re about to make one
of these rookie mistakes:
Saying how troubled the business is
that you’ve just taken over. That way, if
your results are poor, it’s not your fault,
because you inherited a dog. And if the
results are good, you’ve been successful
in the face of almost-impossible circumstances. People see through this.
Talking badly about people who quit.
Like talking badly about the business
you’ve just taken over, this is another
transparent means to manage your ego.
But this only serves to make your team
wonder what you might say about them
one day. And while being gracious to
departing colleagues might seem obvious, you’d be amazed how often “Well, I
was just about to fire him anyway” is said,
even at the most senior levels.
Getting detached from the clients.
Customers and clients are messy. It can be
very easy to spend more time away from
them. PowerPoint slides and spreadsheets
deliver much crisper answers than what
you can hear from an actual person.
“Taking the hill” on your strategy
without first getting buy-in from the
team. The days of decreeing a strategy
and then telling folks to execute on it
are fading in the rear-view mirror. And
that’s a good thing, because a strategy
that doesn’t incorporate what
your team and customers can
tell you will almost certainly
be sub-optimal. I’ve seen
more than one manager decree a not-well-thought-out
strategy and have his team
essentially wait him out; after
all, the next boss will be announced
soon.
Not recognizing that your words
carry more weight than they used
to. Once you’re in management, your
words (and your mood and your tone)
are subject to interpretation by those
who can be impacted by them. A poorly
thought-out comment or joke can cause
significant unintended anxiety.
Being overly certain and acting like
you’re invulnerable. The right types of
candor can go a long way, such as recognizing the uncertainty in a business
situation. Being absolutely certain and
then dead wrong can be fatal for a new
manager. It’s ok to let your team see you
Continued on page 10
3435 Ocean Park Blvd. Suite #107-196
Santa Monica, CA 90405
California Contractor is a monthly newspaper serving contractors working in plumbing,
electrical, heating, cooling, air conditioning and refrigeration as well as general contractors,
engineers, wholesalers, builders and distributors in these and related fields throughout the
state of California. The publisher is not responsible for any product or service
claims or representations appearing in advertisements or articles, or opinions
expressed by contributing editors and writers. Copyright© 2014 California
Contractor, LLC. All rights reserved. No part of this publication may
be reproduced in whole or in part without prior permission from the
publisher. Printed in the U.S.A. California Contractor (ISSN#1553-0019).
Published monthly by California Contractor, LLC.
PHONE: 310/367-1563 FAX: 310/ 475-5119
page 4
CalConJan2016.indd 4
California Contractor December 2015
12/27/2015 8:13:05 PM
Trusted for nearly 70 years.
Respected by professionals for uncompromising quality.
Proven performance you have come to depend on.
www.brasscraft.com
It’s just better. together.® when you use all BrassCraft® products!
©2015 BrassCraft Mfg.
WAT E R S U P P L I E S
GAS SUPPLIES
California Contractor December 2015
CalConJan2016.indd 5
WAT E R H E AT E R C O N N E C T O R S
FITTINGS
R E PA I R PA RT S
page 5
12/27/2015 8:13:06 PM
For Contractors Only
Continued from page 3
RectorSeal’s SureSeal® Vent-Guard Stops Toxic
Plumbing Stack Sewer Gas Migration to HVAC
Units
R
ectorSeal® Corp., a leading manufacturer of quality plumbing and HVAC/R products, introduces
SureSeal® Vent-Guard, the industry’s first plumbing
vent stack device for eliminating toxic sewer gas and
odor egress and migration to nearby rooftop HVAC
system outdoor air intakes. The patent-pending VentGuard is available in three sizes designed to fit 2, 3, and
4-inch-diameter (I.D.) commercial building plumbing
vent stacks and restaurant grease interceptor vents.
The Vent-Guard introduces outdoor air via its sturdy,
non-mechanical hinged flapper that automatically opens
during vacuum occurrences caused by a vent stack pressure imbalances events, such as toilet flushes. Otherwise,
the flapper remains tightly sealed during a vent stack’s
routine state of neutral pressure. The closed flapper
eliminates heavier-than-air gas and odors from escaping the vent stack and traversing the roof where they
can infiltrate nearby HVAC systems outdoor air intakes
and potentially contaminate the building’s indoor air
quality (IAQ) efforts. Sewer gas is a dangerous threat to
public health and believed to cause and spread deadly
diseases, such as SARS and Legionnaires’ Disease. The
maintenance-free SureSeal Vent-Guard is constructed of
sturdy EPDM rubber.
The Vent-Guard top
is infused with carbon
black that is resistant
to ultraviolet (UV)
light. It is a quick, easy
and inexpensive alternative to charcoal filter
vent stack attachments
that require periodic
cleaning and replacement. Vent-Guard’s
unique design allows
airflow in and eliminates insect, animal,
inclement weather,
bird nesting infiltration. Installing VentGuard requires a quick
and easy push-fit into
the vent stack opening.
Removal is equally
quick and easy. For
more information
on RectorSeal or its
products, please visit
www.rectorseal.com,
call (800) 231-3345 or
email marketing@
rectorseal.com. l
(626) 294-0414
page 6
CalConJan2016.indd 6
California Contractor December 2015
12/27/2015 8:13:07 PM
California Contractor December 2015
CalConJan2016.indd 7
page 7
12/27/2015 8:13:10 PM
Capitol
Connection
Q&A for Contractors
by Shauna Krause, President, Capitol Services, Inc.
Not paying taxes is a no, no and that’s
the unfortunate answer required in our
first Q&A. While reciprocity is a benefit
for licensed CA contractors, there are still
some ‘general’ rules that can’t be skipped.
Another questioner is ‘floored’ by news that
he will be required to have the appropriate
contractor’s license and appropriate classification to ‘seal’ the deal…
Q
: Our Corporation is currently suspended with the Secretary of State
because we failed to pay taxes the last
few years (we weren’t doing any business in
California). We now have a big job opportunity in Southern California and need to
get everything in order so that we can sign
the contract. I looked up our contractor’s
license and it shows a former employee still
listed as our Qualifying individual. Can we
work on replacing him on the license prior
to dealing with the tax issues? I just wanted
to hopefully get a head start on these items
if possible.
page 8
CalConJan2016.indd 8
California Contractor December 2015
12/27/2015 8:13:13 PM
Capitol Connection cont’d
A
: No, no. The CSLB will not add the new
Qualifier until your corporation is back
in good standing with the Secretary of
State. You must meet all Suspension requirements before you can add a new Qualifying
individual.
Q
: You helped my company obtain a
General Contractor’s License in California in 2012. I am the one who took
the exams and I am listed as a Responsible
Managing Officer (RMO) on the license. We
now need to obtain our license in Nevada
and Arizona. Can we do this with reciprocity and waive the exams?
A
: Thank you for contacting us again.
Nevada requires that you be actively
licensed in one of the reciprocal States
for five out of the last seven years. Since
you only obtained your license in 2012 you
will not meet the reciprocal requirement in
Nevada. Arizona doesn’t have “reciprocity” any longer, however they allow for you
to Waive the trade exam (the Construction
Business Management exam is still required)
if you can show that you: a) passed the
equivalent exam in another State, and b) your
license has been active and in good standing at some point within the preceding five
years. It does sounds as if you qualify for a
Waiver of the trade exam in Arizona.
Q
: We are a flooring company and I need
to know if I need a contractor’s license,
and if so, what type of license would
be required? The main type of work that we
have always done is carpet and floor (tile,
concrete, laminate) cleaning. But we have
started to occasionally do more extensive
cleaning such as coatings on the concrete and
laminate floors as well as touch up caulking
on tile floors. We have a potential job coming up for a large retail facility and I want to
make sure that we are in compliance. Thank
you for your advice.
A
: While you are not required to have a
contractor’s license to do carpet/floor
cleaning, you do need a license for the
more extensive work that you mention such
as seal coatings. The appropriate classification for that type of work would be a “C61”/”D-12” license. There is no trade test for
the “C-61” classifications, only the Law exam
is required. The “C-61”/”D-12” (Synthetic
Products)
license covers resin and epoxy applications as well as synthetic caulking and
sealants. As with all classifications, you will
need to have a qualified individual who can
show at least 4 years of experience doing this
type of work. Give us a call if you’d like assistance with obtaining this license.
California Contractor December 2015
CalConJan2016.indd 9
Q
: My license is set to
expire in a few days. I
called the CSLB and
they said that they would
send me one but it would be
at least a week. Is there any
way to expedite that?
A
: Capitol Services is
located here in Sacramento and we can pick a
renewal application for you,
but we need to have a Power
of Attorney to obtain the
renewal for you. That will
reduce mailing time.
While knowledge is power, knowing where to go for the answers is
half the battle. Get expert assistance
immediately when you call 866-4430657, email info@cutredtape.com,
or write us at Capitol Services, Inc.,
1225 8th St. Ste. 500, Sacramento,
CA 95814. Research past columns at
www.cutredtape.com. l
page 9
12/27/2015 8:13:15 PM
Crowdfunding
Continued from page 1
pages of government regulations, but you will
be able to raise money from strangers on the
Internet.
There will no doubt be tons of books published next year to help companies through
the complicated crowdfunding process
(including - full disclosure -- one by yours
truly), and that a number of financially-savvy
entrepreneurs will set up consulting firms to
help startups navigate the process for a fee or
commission
But a number of companies -- including
seedinvest.com, circleup.com and angellist.
co -- are getting a head start on the crowdfunded business by helping companies with
so-called “506(c) offerings”. These offerings,
which the SEC authorized back in 2013, allow companies to raise funds using “methods
of general solicitation and general advertising” as long as each and every investor is an
“accredited investor” as defined by the SEC
-- someone either rich enough or sophisticated enough not to need the protection of the
federal and state securities laws.
The main service these companies provide
is to ensure that each investor meets the SEC
qualifications -- as I’ve written in previous
columns, if you make one mistake here, it
could cost you both your company and your
life’s savings.
If you do plan on doing a 506(c) crowdfunded offering before the new rules kick in
next May, here are some things you need to
look for in the website’s online contract form.
Rookie Mistakes
Continued from page 4
sweat a bit. That said, there are few highly
successful pessimistic leaders; optimism,
even in the face of adversity, goes a long way.
Continue to do your old job, because you
can do it better than the new guy. A corollary of this is insisting that your replacement
do your old job the way you did it.
Talking more than listening. You’ve probably sat through more than one business review in which the senior person did literally
page 10
CalConJan2016.indd 10
90%+ of the talking. You wondered why he
even bothered because he certainly didn’t
learn anything….but I’m sure he felt pretty
important.
Not talking enough. Yes, I recognize
that this flies in the face of what I wrote
above. But once you have settled on a
strategy and communicated it doesn’t
mean that your team has taken it in.
People typically have to hear it several
times, in several different forums, for it to
sink in.
These are the rookie managers errors I’ve
observed most often. What did I miss? l
v Non-Exclusivity. Never ever give a crowdfunding website the exclusive right to
manage your offering. This is a new and
untested process, and it may be years before we learn the “right” way to put together
successful crowdfunded offerings. You may
sign up with one website only to discover
later than another website has a better
mousetrap. If that happens, you should
have the right to work with both websites,
and pay each of them a commission based
only on the amounts they raise for you.
Also, make sure you can terminate the
contract “for any reason” upon reasonable
notice to the website (30 days is customary).
v Fee Calculation. Crowdfunding websites
want their fee to be based not just on
investments they raise for you, but on the
entire amount you raise, both offline and
online. That’s more fair than it sounds, as
investors who learn about you through the
website could do business with you directly
and circumvent the obligation to pay fees
to the website (I’m not sure how the site
would find out about that, but if they did
you would be in trouble). Their fee should
not, however, include money you raise
prior to signing the crowdfunding contract, or from people with whom you have
a pre-existing relationship (you will need to
identify these before signing the contract).
v Ownership of Intellectual Property. You
Continued on page 14
California Contractor December 2015
12/27/2015 8:13:16 PM
California Contractor December 2015
CalConJan2016.indd 11
page 11
12/27/2015 8:13:17 PM
by Edmunds.com
2016 Ram 1500
lthough its last full redesign was
in 2009, you wouldn’t know it
from the way the 2016 Ram 1500
handles itself. From the high-quality
cabin materials to the easy-to-use
infotainment system and remarkably
supple ride, there’s plenty here to
make up for the relative lack of newness. All the major players in this
segment have been thoroughly overhauled over the last few years, but
the Ram’s refined manners belie its
age. It’s still a great choice if you’re
looking for a full-size truck.
That smooth ride remains one
of the Ram’s most distinctive traits,
and it comes courtesy of the classexclusive coil-spring rear suspension, which is better at smoothing
out and reducing the harshness of
rough road surfaces than the typical leaf-spring setup. The flipside
is mildly reduced towing capacity,
but if you’re running up against this
truck’s towing limits, you’d probably be better off with a heavy-duty
model anyway. The optional air
suspension makes the Ram even
more comfortable, and it has a selfleveling feature that keeps the truck
from drooping when dealing with a
heavy trailer or full payload.
A
page 12
CalConJan2016.indd 12
Revisions to the Ram 1500 are
minimal for 2016. The full center
console with connectivity and storage for mobile devices, introduced
on a limited basis last year, is now
the default specification. Several
new variants of the Sport offer
a choice of bright exterior paint
schemes and minor trim tweaks.
Also newly available are LED lights
in the bed, an especially useful
feature with the optional tonneau
cover in place.
Even though the 2016 Ram
1500 is one of our favorite full-size
pickup trucks, the 2016 Ford F-150
is quicker on its feet, with a lightweight aluminum body and two
strong turbocharged V6 engines.
The 2016 Chevrolet Silverado and
the similar GMC Sierra offer competitive powertrains and features,
while the all-new 2016 Nissan Titan
XD splits the difference between
regular- and heavy-duty with a
diesel V8 that’s more capable than
the Ram’s diesel V6. There’s also
the 2016 Toyota Tundra, but it lags
behind in ride quality and fuel economy. The 2016 Ram 1500 may be the
grizzled veteran in this segment, but
it’s still a prime pick. l
California Contractor December 2015
12/27/2015 8:13:18 PM
California Contractor December 2015
CalConJan2016.indd 13
page 13
12/27/2015 8:13:20 PM
page 14
CalConJan2016.indd 14
California Contractor December 2015
12/27/2015 8:13:22 PM
Crowdfunding
Continued from page 10
will be responsible
for the accuracy of
all documents, financial statements and
other material you
post on the site. The
website should have
the right to use this
material as needed
to help you with your
offering, but watch
out if the site asks
you to “assign” your
copyright to them -this means they own
the rights to your
content and can use
it for other purposes,
for example, to help
other companies
with their offerings.
All they should get
is a “non-exclusive,
perpetual license”
to use your material
only to help you with
your offering and
comply with government regulations.
v Post-Offering Paperwork. Some websites will want you
to provide financial
information to them
for one to two years
after your offering
is completed. You
should not have to
do this, however,
if the site failed to
generate at least one
investment for you.
v Government Filings. Some offerings
will require you to
file documents with
the SEC and state
regulators. Will
the crowdfunding
company take care of
those? If not, expect
to spend anywhere
from $1,000 to
$10,000 for a lawyer
to prepare them.
Ad Index – January 2016
AHR Expo
16
Allstate
12
Baker Distributing
8
Brasscraft
5
Digicool
9
ESCO
9
Goldak
3,10
Grundfos
Ironworkers
10
14
Liquid Assets
6
Mark Christopher
Chevrolet
13
Plumbers Warehouse
11
RMS of Georgia
6, 8
Saniflo
10
Spot Coolers
2, 8
Test Products Intl
8
Tjernlund
9
Venture Taoe
7, 8
Vonage
3
Cliff Ennico (crennico@gmail.com) is a
syndicated columnist,
author and former host
of the PBS television
series “Money Hunt.” This
column is no substitute
for legal, tax or financial
advice, which can be furnished only by a qualified
professional licensed in
your state.
COPYRIGHT 2015
CLIFFORD R. ENNICO.
l
California Contractor December 2015
CalConJan2016.indd 15
page 15
12/27/2015 8:13:23 PM
T H E W O R L D ’ S L A R G E S T H VAC R M A R K E T P L AC E
The AHR Expo brings 60,000 HVACR
professionals together to see the latest
products & technology, learn from industry
experts, and build relationships.
REGISTER FOR FREE
AHREXPO.COM
California Contractor December 2015
CalConJan2016.indd 16
12/27/2015 8:13:24 PM