In Your Corner Magazine | Summer 2023

ISSUE 14 | 2023

Road trip to tomorrow California sets the EV pace

In this issue ISSUE 14 | 2023

CHARGING INTO THE FUTURE State’s auto emissions mandate strikes a chord

AVOID THE PITFALLS Start on the path to creating a lasting legacy

Start earning more with a high-yield CD

DRIVING AMBITION Fairness spells success for Oakland auto entrepreneur

LIQUID ASSETS Dynamic duo reinvent, recharge brewery business

MILITARY HONORS Exclusive banking solutions for service men and women

READY, SET, LAUNCH Is this a good time to start a business?

AI AND YOUR BUSINESS How artificial intelligence impacts business

LIFE IS A HIGHWAY Hit the road for a quintessential California road trip

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MODEL RENOVATIONS Popular home upgrades can add value to your property

FRAUD ALERT: SKIMMING Play your cards right, don’t be a victim

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TAKE 5 Q&A with JR Younathan, Senior Vice President and California Mortgage Production Manager, California Bank & Trust

PUBLISHER California Bank & Trust (CB&T) EVP | DIRECTOR OF MARKETING Jathan Segur

COMMUNICATIONS OFFICER | MANAGING EDITOR Tom Stacey

MAGAZINE CONSULTANT Michelle Jacoby

PRODUCTION ASSISTANT Nicolle Lee

CONTRIBUTORS Doug Bonderud, Sally J. Clasen, Julia De Simone, Bruce Farr, Debra Gelbart, Jake Poinier

VP | CREATIVE DIRECTOR Ron Gligic

SENIOR DESIGNERS Nathan Joseph and Diana Ramos

In Your Corner magazine may contain trademarks or trade names owned by parties who are not affiliated with California Bank & Trust, Zions Bancorporation, N.A. or its affiliates. Use of such marks does not imply any sponsorship by or affiliation with third parties, and California Bank & Trust does not claim any ownership of or make representations about products and services offered under or associated with such marks. Articles are offered for informational purposes only and should not be construed as tax, legal, financial or business advice. Please contact a professional about your specific needs and advice.

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CHARGING INTO THE FUTURE BY BRUCE FARR CALIFORNIA’S RECENT air-quality legislation—an ambitious timetable aimed at reducing carbon-bearing greenhouse gas emissions—is generating many questions, and having a polarizing effect on many state residents, companies and organizations, both for and against the new law. Regardless of their arguments pro or con, both sides of the debate agree that the new regulations will reshape California’s economy; alter how Californians’ vehicles, buildings and appliances are powered; and, at its best, serve as a blueprint for other states and countries to follow.

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IN YOUR CORNER ISSUE 14 | 2023

Carbon-free future Under Advanced Clean Cars II (ACCII), all vehicles sold in the state beginning with 2035 models must be zero-emission, namely electric, hydrogen-fueled or plug-in hybrid. California has often been a leader in progressive legislation and policies, some of which have become nation-leading movements—and this could become one, too. As California Governor Gavin Newsom’s office describes it, “The State of California is committed to achieving a just and equitable transition to carbon neutrality by 2045.”

Gas: A thing of the past? One of the most pressing questions about the new mandate: What will become of the hundreds of thousands of gas-powered vehicles on the road after the 2035 deadline? On that point, car owners don’t have to worry. Vehicles with internal combustion engines will be grandfathered in and still be permitted to operate after 2035. With the average lifespan of a car in the U.S. pegged at about 12 years, there will be a need for gasoline for decades beyond the deadline. Still, that demand is expected to decline dramatically. But the fuel shift poses another major challenge. The alteration from gas-powered to alternatively fueled vehicles will correspondingly reduce the demand for fossil fuels, a development that will ripple through the state’s entire economy. For one, what will become of the state’s plethora of gas stations? After all, fuel stations have been a small-business mainstay in California since the early part of the last century. At last official count, in 2021, there were more than 10,000 of them in the state. A few years ago, the Boston Consulting Group—a global think tank that partners with business leaders to research and report on a wide array of issues that affect society—conducted a study on American gas stations and the impact the advent of electric vehicles (EVs) will have on their continuing operation. The study found that the number of gas stations across the U.S. could decrease by 80% by 2035. Stations transformed However, as the study determined, gas stations have been declining significantly since 1978, when legislation governing fuel efficiency standards was enacted. “The rise of EVs is simply the final nail in the [gas stations’] coffin,” noted Justin Rowlatt, chief environmental correspondent for the BBC. “Electric cars are going to send the gas station business into a death spiral over the next two decades.” One very likely consideration in this regard is the idea of transforming gas stations into electrical charging stations. But studies have shown that the concept is somewhat dubious. “It’s largely impractical,” noted Tomas van Stee, CEO and founder of EnPowered, a global energy innovator. “While some gas stations (particularly those at highway rest stops) will be able to make going fully electric a viable business model, most gas stations won’t. Selling electricity is not like selling gas.”

estimates the total cost associated with the rule— including vehicles, home plug purchases, insurance and maintenance—at $289 billion through automotive model year 2040. The average new vehicle purchased will cost about $2,000 more than it would have by model year 2040, if ACCII standards remained in place. CARB expects these costs to be more than offset via benefits totaling $383 billion. More than 80% of these benefits come from savings on gasoline (68%) and savings from reductions in carbon emissions (12%); just 4.3% of the estimated benefits are related to health.” An equal trade? Adding even further complexity is the question of whether Californians can be assured that the move to alternatively fueled vehicles will, indeed, reduce carbon emissions. The vast increase in the number of electric vehicles that laws like California’s will herald begs the question: Are we trading one set of problems for another? For one thing, it’s been suggested that EV battery production can adversely impact the environment. Their batteries consist of materials such as nickel, lithium, cobalt and others, which are energy- intensive to mine. What’s more, EV chargers rely on electricity from power plants, which still use fossil fuels. This could be especially problematic in states like California, where the energy grid is already being pushed to its limit during the hot summer months.

“While some gas stations will be able to make going fully

electric a viable business model, most gas stations won’t. Selling electricity is not like selling gas.” Tomas van Stee CEO and Founder, EnPowered

With climate change such a hot topic, the air-quality bylaws have evolved into a national referendum on the topic. The legislation is sparking debate on both sides of the issue, with one faction cheering it from an “it’s about

Charging stations, the plug-in kiosks where EVs can power up, pose another challenge. California currently claims the highest number of them in the country: 80,000 in 2022. But as the experts agree, that’s a fraction of what will be needed to charge every new electric vehicle that will be hitting the roads as the ban takes effect. New national legislation is earmarking $7.5 billion toward building new charging stations, but the uphill struggle of constructing, equipping and operating these stations—especially in rural environments—remains a critical factor in the massive adaptation from gas to electricity. Economic impact There’s little disagreement among California state officials and residents that the state’s increasingly critical air pollution numbers are largely caused by gas-powered motor vehicles. In a statement about its new legislation, the California Air Resources Board (CARB) explains what’s at issue. “Mobile sources are the greatest contributor to emissions of…greenhouse gases (GHG) in California, accounting for about 80% of ozone precursor emissions and approximately 50% of statewide GHG emissions. California suffers some of the worst air pollution in the nation.” What concerns many, however, is the potential impact that such a sweeping new law will have on the California economy and, for that matter, on that of the entire country. Thus, CARB has gone out of its way to justify the ACCII ruling by issuing a Standardized Regulatory Impact Assessment (SRIA) to review some of the areas likely to be affected by the new regulations. Regulatory expert Dan Bosch, who formerly headed up regulatory policy at the American Action Forum, summarized the CARB economic assessment: “CARB

time” point of view, while other voices argue that the legislation is too aggressive and the 2035 timetable

unreasonable in its goals.

Auto civilization There’s a reason why gas-powered cars and trucks are such a critical carbon-emissions target in the state. In 2021, California had more automotive registration filings than any state in the nation. In that year alone, almost 14.3 million vehicles were registered in the state and, what’s more, California has the highest number of registered motor vehicles overall: nearly 31.4 million. With these numbers, it’s clear why automobiles and trucks are the state’s leading source of air pollution, and why they’re the target of those who are attempting to curtail it. California’s joined-at-the-hip relationship with gas-powered automotive vehicles is as long-term as it is legendary. The state has long been an epicenter for automobiles, showcasing the sweeping influence they’ve had on everyday life. Literature from the state’s Capitol Museum, in fact, refers to California as the world’s first “auto civilization,” and goes on to say, “No form of transportation has had a greater impact on shaping the landscape of the Golden State than the automobile.”

According to an exhaustive study conducted by the U.S. Environmental Protection Agency, however, while the concern is certainly reasonable, it’s not accurate. The study states that, “The greenhouse

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IN YOUR CORNER ISSUE 14 | 2023

Full steam ahead There are strong arguments on both sides of the fuel- switch issue, and California’s experience will become a litmus test for other states across the country that are watching the Golden State’s developments with keen interest. Across the Atlantic in Norway—where the sale of internal combustion engines will be phased out in 2025, and 80% of new cars are battery powered— people have accepted EVs with enthusiasm, according to a recent story in The New York Times: “...the air in Oslo, Norway’s capital, is measurably cleaner. The city is also quieter as noisier gasoline and diesel vehicles are scrapped. Oslo’s greenhouse gas emissions have fallen 30 percent since 2009, yet there has not been mass unemployment among gas station workers and the electrical grid has not collapsed. “Some lawmakers and corporate executives portray the fight against climate change as requiring grim sacrifice. ‘With E.V.s, it’s not like that,’ said Christina Bu, secretary general of the Norwegian E.V. Association, which represents owners. ‘It’s actually something that people embrace.’ ” Here in California, Newsom left no uncertainty in a speech late last year. “California isn’t waiting anymore,” he said. “Together with the legislature, California is taking the most aggressive action on climate our nation has ever seen. We’re cleaning the air we breathe, holding the big polluters accountable, and ushering in a new era for clean energy. That’s climate action done the California Way—and we’re not only doubling down, we’re just getting started.”

gas emissions associated with an electric vehicle over its lifetime are typically lower than those from an average gasoline-powered vehicle, even when accounting for manufacturing.” That looming strain on the state’s energy grid is yet another factor in this entire equation. As California gears up to meet the fuel-switch deadline, will there

be enough electricity to power all the new EVs? After all, state officials predict that 12.5 million EVs will be on the road by 2035. Those same officials are deflecting this concern, however, and using data to illustrate that California’s electricity grid won’t be severely strained. But with 15 times more electric cars expected on California’s roads by 2035, the amount of power they consume will grow exponentially. The California Energy Commission says the

“California isn’t waiting anymore. Together with the legislature, California is taking the most aggressive action on climate our nation has ever seen.” Gavin Newsom Governor of California

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demand will remain a fraction of all the power used during peak hours, jumping from 1% in 2022 to 5% in 2030 and 10% in 2035. “We’re confident that electricity will meet future demand, and we’re able to plan for it,” stated one commission official.

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IN YOUR CORNER ISSUE 14 | 2023

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BY DOUG BONDERUD

How to create

a great legacy: avoiding the pitfalls

Y OU’VE DECIDED TO SELL your business and name a successor. You’ve read part one of our “How to Create a Great Legacy” series in Issue 13 of In Your Corner, so you’re equipped with the knowledge you need to value and sell your business. In part two, we’re looking at some of the most common missteps business owners make when they start on the path to creating their legacy. More importantly? We’re going to help you avoid them. Fail to plan? Plan to fail Owners know that their business lives and dies by this adage. Data shows that 20% of small and midsize businesses fail within their first year. And by the fifth year, 50% have shut their doors. While it’s impossible to predict every outcome—as the ongoing impact of the pandemic makes clear— business owners who take the time to consider as many potential paths as possible are better equipped to handle challenges as they occur. When it comes to succession and legacy planning, meanwhile, it’s easy to put the cart before the horse. You’ve already done so much of the hard work, from getting the business off the ground to carving out your target market, turning a profit, and creating a sales and service model that’s sustainable. It’s easy to get caught up in the idea of creating your legacy without considering the potential problems you may encounter. As with your business, however, success in your legacy depends on: • Taking the time to consider potential areas of difficulty

• Identifying ways to handle these obstacles • Taking actions that increase the likelihood of positive outcomes

the company’s future, this isn’t something you can do after the fact. If you leave without a statement in place, the new owner(s) are under no obligation to provide details about their plans or listen to your suggestions. As a result, it’s worth taking some time to think about what role you want to play after you leave, and then codify this role to make sure you’re prepared to make the jump.

owners, especially if they’re family or close friends. For example, while C Corps don’t have limits on the total number of shareholders, S Corps can only have 100. In addition, C Corps can offer multiple types of stock, whereas S Corps can only offer one. When it comes to taxes, meanwhile, S Corp owners are only taxed once on the income they receive from the company, while C Corp owners are double taxed, first on the business side and then again on their personal taxes. To help avoid business structure issues, it’s a good idea to sit down at the beginning of your succession planning to determine what type of structure best fits your business once you’re gone.

Here’s a look at the top seven missteps—and what you can do about them.

Missing a clear vision Succession plans focus on what happens

after you leave a business, but have you considered if you’ll still have any personal involvement with your business? Depending on your preference, you may want to leave the company completely behind, still receive regular updates, or have a hand in decision- making under certain circumstances. With everything going on, you may forget to draft a vision statement. This is a way to clearly describe your vision for the business after you leave, and define the limits of changes that can be made immediately after your departure. While there’s no requirement to draft a vision statement that gives you a say in changes that could significantly alter

Lacking the right business structure Depending on your plans for succession,

your current business structure can enable or inhibit the efforts of the new owners. For example, does your business currently use a C Corp or S Corp tax classification? In the case of a C Corp, the business itself pays taxes on its income, while owners pay tax on whatever salary they take. Under an S Corp model, the corporation itself doesn’t pay tax. Instead, owners report company revenue as personal income. If your succession plan lacks the right business structure, it could cause problems for the new

Forgetting about family concerns On paper, the idea of business succession

often seems simple, especially if you have children or other relatives who are interested in taking over the organization when you leave. In reality, however, the choice of a successor (or successors) can cause significant familial conflict.

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IN YOUR CORNER ISSUE 14 | 2023

Consider a family with two children. The eldest is interested in taking over the business, while the youngest has their own career. Is succession as simple as transferring ownership to the eldest? Or do owners need to consider selling a portion of the business to someone else and then providing this money to their younger child? Does the potential

make take steps to limit the scope of influence and responsibility held by the new buyer. If you push back on these steps, it could create a culture of anger and resentment that ultimately undermines the business and makes it harder for your succession plans to occur as intended. To help avoid this issue, start a conversation with your partners when you first start thinking about succession. Talk to them about your plans post-business, who you might want to hire as your successor, and what that looks like for them. This makes it possible to draft documentation that benefits you, your partners and your incoming purchaser before the changeover happens, rather than scrambling to put something in place as the sale of shares is underway.

have to expertly plan, the better your chances of creating a succession plan that lives up to your legacy expectations.

the outcome. Consequences range from immediate payment of outstanding taxes to payments plus significant penalties. To navigate this pitfall successfully, it’s best to engage professional help. Given the number of potential taxes—and tax exemptions—that could apply in your specific case, it’s worth taking the time to sit down

Focusing on the short term The interconnected nature of succession

planning makes it easy to focus on the short-term, including the challenges that are right in front of you, rather than the longer-term consequences of the decisions you make. Consider a basic business transition that sees ownership transferring from X to Y, from you to a family member or a partner. Simple, right? Potentially too simple. Instead, you might want to consider an installment approach that sees the next generation of owners paying for the purchase of the business by using sales revenue. You could also include a default clause that sees ownership returning to you or a third party if the new owners aren’t able to keep the business afloat or can’t make their installment payments over time. Taking a long-term approach to succession planning provides a more holistic view of how your decisions now could impact both the business itself and the members of your family as they take ownership roles or remain on-site to help new owners navigate key challenges.

revenue of the business necessitate this kind of balance? Or does the stress that comes with owning the business offset the notion of the youngest receiving any compensation? This can get even more complicated with extended families. When aunts, uncles, cousins, nephews, nieces and in-laws are involved, does everyone who has worked at or alongside the business

On paper, the idea of business succession often seems simple, especially if you have children. However, the choice of a successor (or successors) can

with a tax expert and understand exactly what taxes will apply and how much they will cost when you sell the

business. These professionals can also offer advice about how best to structure and sell your business to minimize the tax impact you face. Staying the course Your legacy is more than just what you leave behind. It’s a testament to the work you’ve done and will continue to do even as your role in the company shifts. After investing so much of your time—and yourself— into the business, it’s critical to stay the course, to ensure that the legacy you want to leave is the one that comes to fruition. In summary, keep your legacy plans on track by planning for common missteps. Instead of waiting to see what happens and dealing with the consequences as they arise, make sure you’re prepared with a clear vision statement and a business structure that supports what you’re trying to do. Keep both family and current business partners in mind when making your decisions, and play the long game when it comes to both preparation and execution. Finally, always assume the worst when it comes to taxes. Plan for potential problems at local, state and federal levels to ensure you’re not surprised when the succession process starts in earnest.

Waiting until the last minute This ties into our next pitfall: Waiting too long

to start your succession planning. Ideally, you want to start planning the moment you start thinking seriously about leaving. Why? Because over time, your succession plans may change. For example, you might find yourself burnt out and wanting a change, which leads to the notion that selling your business in its entirety and leaving everything behind is the right choice for you and your family. If you immediately put plans in place and make the change, you may find yourself regretting the decision six months or a year down the line once your burnout starts to fade and your passion for the business comes back. Reduce the risk of this pitfall by starting early and getting the help of experienced succession planning specialists, who, let’s face it, know this territory better than you do. Put simply, the more time you

cause significant familial conflict.

deserve some say in what happens next? Even if owners determine that a specific person is an ideal successor, will this lead to inter-family conflict? A recent study from the International Journal of Environmental Research and Public Health puts it simply: The uniqueness of family businesses, being the intertwining of the family and the business system, represents a double-edged sword for business families that strive for mental health at individual, family and business levels. Bottom line? Whenever possible,

Discounting tax complexity There are only two certainties in life — death

and taxes. While business owners are often familiar with their tax obligations on a year-to-year basis, additional tax complexity arises when it comes to selling your business or initiating a transfer of ownership. In addition to state and federal tax laws, there may be international statutes that apply, depending on where your business operates, where your employees are located and where your revenue is primarily generated. Discounting this tax complexity can lead to serious problems. For example, if you’ve run the numbers and come up with a solid valuation for your business, found a buyer, and initiated the transaction, but then discover additional tax obligations, you could end up with significantly less money than predicted, in turn potentially impacting your post-succession plans. There’s also a worst-case scenario here: unintentional tax fraud. If you forget to file taxes for a specific succession action, even if you don’t realize that the law applies to you, you’re still responsible for

it’s better to address family concerns up front, rather than dealing with them after the fact.

Overlooking partner problems Another common misstep is 4

overlooking potential problems with other business owners. While in most cases you have the right to sell your shares to the person or company of your choice, it’s worth approaching this transition with caution. Why? If existing partners don’t like your choice of successor, they

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Disclosure: The information contained herein may not represent the views and opinions of California Bank & Trust, a division of Zions Bancorporation, N.A. or its affiliates. It is presented for general informational purposes only and does not constitute tax, legal or business advice.

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IN YOUR CORNER ISSUE 14 | 2023

DRIVING AMBITION

sales business was a lot more difficult in the early days of his involvement. “It was much harder to be a car dealer in those early days,” he recalls. “Back then, every sale involved a negotiation. Cars had a sticker price, but it was common practice for every car buyer to negotiate a discount. Nowadays, it’s different. It’s one price, the MSRP, which is the price that’s advertised and paid.” Today, Batarse

Fairness spells success for Oakland auto entrepreneur BY BRUCE FARR ANTHONY “TONY” BATARSE

M ANY YOUNG, ASPIRING professionals exactly what he wanted to do from the start. Now 89 and semi-retired, the hugely successful auto dealership entrepreneur from Hayward, California, says with certainty that he chose his career when he was a young man and has never looked back. struggle to find their calling, their career niche. But Anthony “Tony” Batarse knew To prove the point, over the past half century-plus, Batarse has built what can only be described as an automotive empire, opening and operating a total of six successful dealerships spread across a wide swath of northern California, as well as in Tucson, Arizona. As Batarse himself describes it, “It’s been a long journey, but I don’t think there’s much that I would change about it.” College standout That journey began with his birth in New York City in the early 1930s. Soon thereafter, Batarse’s father got offered a job as a textile engineer back in his native El Salvador, so the family immigrated there when Tony was just two. “I was raised in El Salvador from that time until I was 14, and we moved back to New York City,” he says. “So, even though I was born in the U.S., my first language was El Salvadoran, and my second English.” An uncommonly bright young student, Batarse excelled in high school and was accepted at Columbia University, where he studied business. He

then applied to the prestigious Harvard Business School, eventually earning a master’s in business administration. With customary humility, however, Batarse says of his early academic achievements, “You see, I’ve been lucky.” Initially, with such impressive credentials, Batarse thought it wouldn’t take him long to find a job in accounting or finance in the banking industry. But he quickly discovered that, impressive as they were, his college degrees proved to be something of a hindrance. He applied for entry-level positions at a number of banks, but in nearly every case they told him he was “overqualified.” By that time, Batarse had met his wife, Esther, and had moved her and their growing family to California, where Esther originally was from. “I didn’t know what to do,” he recalls. “I needed money quickly, you see, so I went to work for an auto dealership.” Batarse began what would become his lifelong career, humbly enough, working as a car salesman at a Chevrolet dealership in the mid-1960s. He held that job for a couple of years, learning the ins and out of the business. But all the while, he withheld from his employers that he had college degrees from two of the most prestigious universities in the country. “I wanted to remain humble,” he says, of his decision not to disclose his background. “In some ways, having those degrees was an impediment for me.” Two years of hard, dedicated work reaped some rewards for the young salesman. Batarse’s boss

recognized Batarse’s drive and talent and promoted him to sales manager. “I’m a people person,” he says, “and it paid off for me.” Fate comes knocking That might have been where Batarse remained, but fate has a funny way of inserting itself into the mix of work and life. “Somehow, one day, I got a call from a man named Lloyd Wise, who was a well-known Oldsmobile/GMC car dealer from Oakland, who had been in business since 1914,” he explains. “Lloyd was getting old, and he told me that he was looking for a partner to grow with him. He said, ‘Why don’t you come to work with me and if I like you and it works out, I’ll make you a partner.’ And that’s exactly what happened.” It was 1967, a great era for the growth and expansion of American automobiles. “I took the job to heart,” Batarse says. “I wanted to do a good job.” Not long thereafter, Wise passed away and his family offered Tony the dealership. “Mr. Wise had communicated to his family that I was a good person, so when he died, they invited me to buy the rest of the business, so it became a sole proprietorship.” That development was the springboard for the rest of Batarse’s career. With the Olds/GMC dealership under his control, he began building and acquiring other automakers’ dealerships, eventually owning and operating six of them that, in total, employ more than 1,000 people. Batarse is the first to admit that the automotive

operates his dealerships in partnership with another self-made automotive businessman named Rami Yanni. But Batarse says he still makes sure to train his employees to use the same formula for success that he did when he was starting out. “I’ve always instructed my employees to follow my lead and become ‘people-persons.’ I tell them to never argue with a

customer, even if the customer is wrong. In the end, it helps all of us develop a good relationship with the communities that we do business in.” As to his personal code of ethics, Batarse is straightforward: “I was fair. Fair with people and with my employees, and I never played favorites. I guess that’s been one of my keys to success— to treat everyone who worked for me

“I tell [my employees] to never argue with a customer, even if the customer is wrong. In the end, it helps all of us develop a good relationship with the communities that we do business in.” Anthony “Tony” Batarse Auto dealership entrepreneur

fairly, and not show favoritism to some of them. I’ve always tried to do a good job, and that’s been how I’ve operated throughout all the years.”

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IN YOUR CORNER ISSUE 14 | 2023

LIQUID ASSETS

“The relationships we have with CB&T means everything to a small business like ours. We know they are rooting for us, and it is good to have them on our side.” Molly Rust, Co-owner, Bolt Brewery

BOLT BREWERY

Dynamic duo reinvent, recharge brewery business

in Little Italy came available…just three months before opening day in La Mesa. “We’d never sold a beer and we had already signed our lease on our second location,” Rust says. “We had no money, but Clint and our other business partner at the time outvoted me. But man, what a good decision they made!” Starting up two breweries just a few months apart wasn’t for the faint of heart. Business was a bit slow for the first year or so, but by the third year, they’d hit their stride—and Rust’s financial acumen helped them weather the difficulties of the pandemic. That and the relationship the couple has with California Bank & Trust. “We have been very impressed with the level of service CB&T has provided us over the years,” she says. “Our banker Joe Snyder is always available and prompt to deliver excellent service. The relationships we have with CB&T means everything to a small business like ours. We know they are rooting for us, and it is good to have them on our side.” Something for everyone While the two locations feature the full range of Bolt’s beers, the vibe is distinctly different at each. Bolt Brewery & Beer Garden in La Mesa is an outdoor beer garden with picnic tables and cargo containers, and a steady rotation of live bands and food trucks. A Quonset hut houses all the brewing equipment and supplies both the La Mesa and Little Italy locations. Befitting a more touristy location, Bolt’s Little Italy Eatery & Tasting Room includes liquor, wine, seltzers and ciders, as well as 15 to 20 Bolt brews on tap. The Little Italy location offers a full restaurant menu, with munchies such as giant Bavarian pretzels, wings and spicy pickle fries to a full lineup of burgers, sandwiches, burritos and tacos. On the tap list, hopheads gravitate toward Stairway to Hazyville IPA and Tropic Thunder IPA. But there’s something for everyone, from the popular Mango Me

Crazy blonde ale to porters, sours and lagers. “We just got back from Germany. Clint is always working to improve his pilsner,” Rust adds. Bolt also introduced So Fly Seltzer in the spring. “There was a lot of resistance in the industry to brewing seltzer a few years ago, but now everyone’s doing it,” she continues. “You need to be innovative and brew what people want.” If you’re looking to expand your palate, there’s always something new at Bolt’s rotating taps, too. “Every few months, we’ll experiment with something and, if it sticks, we’ll stay with it,” Rust says. “That’s what happened with our Red Eye Monkey Ale, and they’ve really got the formula locked in now. [It] sometimes takes a couple of batches—you brew, you tweak it like any recipe, a little more of this, less of that, until you find the right balance.” It’s all about the brew Bolt differs from many of its brewery competitors in a couple of key respects. First, you won’t find their beers in stores; you have to go to one of their locations (if you’re hankering to bring some suds home, they do offer growlers and crowlers). “Foot traffic is key to our business, since we don’t have our beer in stores,” says Rust. “Lots of people look for breweries, so we really count on people walking by to find us.” Second, you won’t find them entering contests. “Clint’s been in the industry for so long, he’s just not interested in that kind of stuff anymore,” Rust says. “We’re really concentrating on brewing great beer, and we let our customers be the judge of how we are doing.” What’s next for Rust, Stromberg, and Bolt Brewery & Beer Garden? The dream is a third location, Rust says. “We can’t give all the details yet, but the plans are for another tasting room in a high-traffic area— more similar to Little Italy than La Mesa.”

BY JAKE POINIER

B OLT BREWERY BEGAN in 1987, when Clint Stromberg, at just 19, launched his brewery in San Diego County. While Bolt’s brews earned a loyal following, the business challenges eventually became insurmountable, and Stromberg had to shutter the business. He transitioned into building and installing brewing equipment, eventually working on about 200 breweries worldwide. When Stromberg met his now-wife and co-owner Molly Rust in 2011, he had just finished working on Coronado Brewing Company’s tasting room on Knoxville Street in San Diego. “When we first met, he told me, ‘I want to open a brewery,’” she says. “I’m an accountant, so I thought to myself, ‘OK, we’ll see.’” Then, when we’d been together for about three months, we were walking in Little Italy and stopped in front of what was then the North End Lounge. He looked at it and said, ‘One day, this is going to be ours.’” Bolt reinvented Fast forward to fall 2014 and the couple was on track for the reinvention and launch of Bolt Brewery in La Mesa in December. “I was living in La Mesa, and that’s where Clint was born and raised,” says Rust, who managed the accounting, licensing and paperwork, while Stromberg handled the design and building. “We wanted to start it somewhere we had roots.” Then, like a bolt from the blue, the building

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IN YOUR CORNER ISSUE 14 | 2023

MILITARY HONORS

“It kind of ‘fills my bucket’ knowing that I’m giving back to a community I once served, and to assist service men and women with the transition to civilian life.” Gil Kennedy Vice President and Business Center Manager, California Bank & Trust

interested, so I went through schooling for that and was deployed to Special Boat Team 12 in Panama, where I supported drug interdiction efforts in Central and South America,” says Kennedy, who spent the majority of his 20s fighting the flow of narcotics into the U.S. He did similar duties in Southeast Asia and Guam, in addition to working with what’s called foreign internal defense and partnering with local military to reinforce

Working with veterans has been Kennedy’s focus for the last 25 years. “It kind of ‘fills my bucket’ knowing that I’m giving back to a community I once served, and to assist service men and women with the transition to civilian life. For me, one of the hardest times in my life was going from being in the military to not being in the military.” In his current role as vice president and business center manager, Kennedy helps military vets and historically marginalized people access credit offerings and other banking products. One of the newest products CB&T offers is called Military Advantage Checking, introduced at the end of June. For veterans, “this can be an ideal checking account for them and their families,” Kennedy says. This product joins the long-established CB&T military business loan program—geared to veterans who are entrepreneurs and small-business owners— as another service to help veterans with their personal and business financial needs. And for Kennedy, it’s another reminder that he is in the right pace, doing the right work. “When you can find a way to talk to someone about their experience in the service and about who they are as a result, it’s really special,” he says. “We recognize the hardships they’ve encountered and may still be encountering. My job allows me to better connect with someone with this background. And I’m able to say to them, ‘We have you, in this new endeavor and with this new product. Being able to introduce active-duty personnel and veterans to a special checking account intended just for them, as well as our specialized lending program, is an honor.”

U.S. policy and protection. Kennedy was one of about 400 servicemen trained to do this type of work around the world. Transition to banking Although he enjoyed what he was doing, it was becoming physically taxing and Kennedy decided to leave the military in 2000. Soon after, he took a civilian job in a management training program at a bank in the San Diego area, where he spent 19 years. He also graduated with a degree in legal studies from National University in San Diego. In 2020, Kennedy joined California Bank & Trust (CB&T) as a business center manager in downtown San Diego. “The core of my work as a banker is teaching financial literacy,” he says. “A big part of banking is helping people and educating them about financial products and how to manage their money. The lean toward helping veterans for me is the brotherhood and sisterhood of the service. We do have a common bond from having served.”

GIL KENNEDY Exclusive banking solutions for service men and women

BY DEBRA GELBART

T THE AGE OF 18, Gil Kennedy couldn’t have known enlisting in the U.S. Navy would pave the way for a career in banking, and helping veterans and active duty and reserve service members access a variety of financial services. Perhaps because his military career didn’t include accounting, finance or business management. He originally enlisted to be an electrician.

“I didn’t know what I wanted to do after high school, but I knew I wanted to do something productive,” says Kennedy, a native of the Central Valley. “And my dad and grandfather had been in the service, so it was a natural step for me.” While training to be an electrician, he heard about an opportunity to become a special warfare combat crewman with special boat teams. “I was super

See page 18 for more information on Military Advantage Checking.

IN YOUR CORNER ISSUE 14 | 2023

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Is this a good time to start a business?

Banking services for those who serve

ARE YOU READY TO start your own business? Whether you have a brilliant and unique business idea or a passion for entrepreneurship, launching a new business can be an exhilarating journey. As exciting as it may be, however, starting a small business can be just as overwhelming, especially if you don’t know where to start. Here are some key steps to help you navigate the initial stages of starting a small business.

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Develop a business plan The first and most critical step in starting a new business is to write a business plan, a document that outlines the goals, strategies and tactics that will guide your business. When writing your business plan, keep in mind that it should include the following key components: Executive summary – A brief summary of your business plan, including your mission statement, company description, and a summary of your financial projections. Company description – A detailed overview of your business, including your products or services, target market and competitive advantages. Market analysis – A thorough analysis of your industry and target market, including market trends, competitors and potential customers.

Marketing and sales strategies – A description of how you plan to market and sell your products or services, including pricing, promotion and distribution strategies. Financial projections – A detailed financial forecast of your business, including projected revenue, expenses and profit margins. The process of writing a business plan will help you identify potential challenges and opportunities, assess your business’s feasibility, and possibly secure funding from investors or lenders. Conduct market research Before launching your new business, it’s essential to conduct market research to validate your ideas and assess your target market’s demand. Market research can help you identify potential customers,

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BUSINESS CHECKING ACCOUNTS

understand their needs and preferences, and evaluate your competition. You can conduct market research through online surveys, focus groups, or by analyzing industry reports and market data. Secure funding Starting a new business often requires a significant amount of capital. Depending on your business’s size and scope, you may need to secure a business loan or funding from investors, lenders or other sources. One of the most common ways to finance a small business is to obtain a small-business loan. To

moment could lead to missed opportunities. Others believe that timing is critical and that launching a business at the wrong time can lead to failure. In reality, there is no one-size-fits-all answer to the question of whether there is an ideal time to start a business. The timing can depend on a variety of factors, including personal circumstances, industry trends, economic conditions and competitive landscape. Here are some things to keep in mind:

Personal circumstances – Before starting a business, it’s essential to consider your

personal circumstances, including your financial situation, family obligations and personal goals. Starting a business can be a significant investment of time and money, and it’s important to ensure that you’re ready for the commitment. Industry trends – Keeping up with industry trends is essential when considering the timing of starting a business. Launching a business in a declining industry or during an economic downturn may be more challenging than starting a business in a growing industry with high demand. Economic conditions – Economic conditions can also impact the timing of starting a business. A weak economy may make it harder to secure funding or attract customers, while a strong economy may create more opportunities for growth and expansion. Competitive landscape – Understanding the competitive landscape in your industry is also critical when considering the timing of starting a business. Launching a business in a highly competitive market may require more significant investment in marketing and advertising to stand out from the competition. Starting a new business can be a rewarding and challenging experience. By following these key steps, you can increase your chances of success and build a strong foundation for your new venture. Remember to stay focused, adaptable and persistent as you navigate the ups and downs of

Timing can depend on a

secure a business loan, you’ll need to prepare a detailed loan application, including your business plan, financial projections and collateral. Register your business Once you’ve secured funding and developed a business plan, it’s time to register your business. Registering your business involves obtaining the necessary licenses and permits,

variety of factors, including personal circumstances, industry trends, economic conditions and competitive landscape.

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registering your business name and legal structure, and obtaining any necessary tax IDs. The specific registration requirements will vary depending on your location and industry. Build your team Building a strong team is essential to the success of any business. As you launch your new business, you’ll need to recruit and hire employees, contractors or freelancers. It’s essential to identify the skills and experience required for each role and to hire

GET A $250 CASH BONUS when you open a qualifying Business Checking Account 1 Minimum balance and 10 qualifying transactions required. 1

team members who are a good fit for your company culture and mission.

Now that you have a solid foundation in place, the next question to ask is when to get your business off the ground. Some people believe there is never a perfect time to start a business, and that waiting for the perfect

entrepreneurship. With hard work, dedication and a solid business plan, you can turn your entrepreneurial dreams into a reality.

Pick the perfect checking account for your business! Plus, you can save up to $150 on your first order of Deluxe business checks 2 .

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IN YOUR CORNER ISSUE 14 | 2023

Interact with customers. We’ve come a long way since the early

Improving safety. AI can harvest data from a wide range of cameras and sensors to monitor potentially dangerous conditions or behaviors at hazardous workplaces such as construction sites, mines, and utility plants—and then recommend corrective actions or opportunities for improvement. At a granular level, AI technologies can be used to ensure that workers are adhering to safety protocols and that truck drivers aren’t distracted. Ready to make the leap? While AI offers the potential for a competitive advantage—lowering costs, increasing efficiency, and boosting productivity—the landscape changes radically every day. As with any new business process, the best practices start with defining your goals and measuring the results. Identifying the right data sets and algorithms is paramount, as is having an IT team with the appropriate skills and experience. While it can make sense to test drive one of the many free AI services that are available, a paid service may be required to get the functionality, scalability and performance needed. The user experience with AI may seem like magic, but it’s not without risks. Back in the early days of computing, the phrase “garbage in, garbage out” was coined to express how important it was to input accurate, unbiased data—and that hasn’t changed.

days of pre-programmed chatbots that had us begging for a human customer service rep. As with content-generation tools, there is a never-ending stream of AI tools that can handle customer service functions in natural language around the clock, without a coffee break. In addition to understanding and responding to a customer’s immediate needs, they can use data and predictive analytics to recommend other products a customer might be interested in. They are also making ongoing improvements in routing to the correct person if human intervention is needed. The newest advances are coming in the form of virtual assistants: human-like 3D avatars that are capable of interpreting a user’s facial expressions and eye contact to help with communication. Identify trends and patterns. In the healthcare sector, AI has been deployed to discover data patterns beyond the capabilities of human researchers and to help physicians make more accurate diagnoses and treatment plans. In financial services, AI has become

AI AND YOUR BUSINESS BY JAKE POINIER

a key tool in fraud detection and security, and it’s also widely used for tasks such as loan approvals, wealth management planning, and due diligence. Similarly, pattern detection in IT enables early identification of problems such as hacking and ransomware attacks. Optimize operations. AI has brought sweeping changes into the industrial sector and throughout every aspect of the supply chain. For years, warehouses have been employing increasingly sophisticated AI algorithms for optimizing inventory management, but some of the newer advances include wearable technologies for workers such as smart glasses that recognize bar codes. Predictive machine maintenance allows technicians to optimize decisions on when maintenance will be needed and should be performed. In transportation, self-driving vehicles are the ultimate goal—but while humans are still at the wheel, AI is helping with logistics and traffic management.

While AI offers the potential for a competitive advantage— lowering costs, increasing efficiency, and boosting productivity— the landscape changes radically every day.

I N LATE NOVEMBER 2022, ChatGPT—the prototype artificial intelligence (AI) chatbot developed by OpenAI—notched more than a million users in its first week. By February, it had set a record for the fastest app to reach 100 million users. What’s all the buzz about? Even if you haven’t personally experimented with ChatGPT or Bing AI, similar technologies are having an ever-increasing impact on how businesses operate and interact with customers. Because AI can process vast amounts of data far faster and more accurately than the human brain, it’s an ideal tool to automate mundane tasks, identify trends, increase operational efficiency, and even improve safety and quality. Technically, AI has been around for decades, but it’s gone from a crawl to a run in the past few years. In that

time, the technology has vastly improved, making it a powerful tool that businesses are using to:

Generate content and strategy. Content creation is one of the easier tasks to

conceptualize and execute using AI. And, unlike humans, AI never gets bogged down with writer’s block. Competition has flooded the market with thousands of free and paid applications that specialize in different types of functions, including research on industry topics, SEO, competitors and marketing strategy. Caution is required, however, before you upload an AI-generated blog post, landing page, or press release. AI writing may sound polished, but it’s not foolproof. And it always needs human input such as editing and fact checking.

In many cases, AI serves as a black box at the programming level, which may make it difficult to know the assumptions that went into a given algorithm or the accuracy of a data set. Finally, as with every technology, you want to ensure the privacy and security of proprietary information, as well as customer and employee data.

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IN YOUR CORNER ISSUE 14 | 2023

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