2 0 1 5 A n n u a l R e p o r t Year in Reflection In 1909, the Sonoma Valley Chamber of Commerce was first formed by a “group of men who came together and paid various sums to create a brochure advertising this beautiful place.” Fast forward to an ever evolving world and a changed Sonoma Valley. Most communities in the US and abroad have a Chamber of Commerce; the first Chamber originated in New York State in 1768 – older than the Declaration of Independence. The original primary function of these local Chambers was protecting and encouraging commerce – after all, how does a town survive without commerce? Today the role of a Chamber has expanded greatly to address socioeconomic and social needs – far beyond the original intent of several centuries ago. Last year, I had the pleasure of entering a warm and lively community with a sound economy, understanding that that wasn’t the case 6-7 years ago. Business people I talk to seem optimistic –a few somewhat cautious—about the future of the economy in Sonoma. It’s our job to figure out how to best support a vibrant economy and work to ensure long-term sustainability, recognizing the ever growing challenges of running a business. Check out our business survey in this report and see just what issues Sonoma business owners are facing. As we tell the story of 2015 here, you will find several themes – the areas we have focused our energies. They include: • Membership: 72 new members, individual assistance/referrals, grand openings, and many new ways to get engaged. • Online & Media: our LOCAL Mission, a new look for the Chamber brand, a new inclusive website, many new on-line resources, expanded social media outreach and a very well-read weekly e-newsletter. • New Economies: research on existing, emerging, and under-supported economies resulted in convening our Innovation Alliance and Creative Alliance, as well as refining our Young Professionals. • Youth: The Chamber has actively convened SVHS and the youth-serving NPOs, working on ways to collaborate and support our future workforce. Historically and to this day Chambers of Commerce remain the most trusted source of information on local businesses & services, and the most dependable ally in supporting strong local economies. Thank you, members, for being part of the LOCAL Mission!
72 New members
23 Ribbon Cutting Ceremonies
Sonoma Named One of the Best Places To Start A Business in Northern CA -Nerdwallet 2015
• New Ways to Engage through our Innovation Alliance, Creative Alliance, Sonoma Young Professionals, Chamber Ambassadors
• New Monthly Membership Meeting: Table Talk • New Business Showcase: LOCAL-FEST • Business Education & One-on-One Assistance Through the Economic Vitality Program Partnership
• Over 80 prospective, new & existing businesses were assisted • 12 new & existing businesses received business improvement loans • Local Spoken Here/Aqui Hablamos Local Program • SBDC workshops on: Social Media Starter Kit, Parts I &II Hands-on Linked In Business Start Up
“What Employers Want” Panel
Speed Networking with Teens
Ribbon Cuttings
Speed Networking
Alliances: Innovation, Creative, Sonoma Young Professionals
Supporting our Members and Community
New LOCAL Brand
Table Talk Monthly Meeting
After Hours Business Networking
64%75% 67%
20% 18% 23%11% 7% %5%
020406080
100
2015 2014 2013
How’s Business Compared to Last Year?
better same worse n/a
71% 75% 82%
26% 25% 18%2%
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100
2015 2014 2013
Do you think your business will improve in next 12 months?
Improve Stay Same Worsen
Your Business: A Temperature Read
What are the biggest issues facing your business?
What are the new challenges you are facing compared to 5 years ago? (2015) • Marketing and developing customer/client base • Workforce issues (recruiting/retaining qualified employees) • Housing availability/affordability • Staying profitable in changing economy, increased regulations and/or rising cost of doing business • Changes in consumer trends and/or competition
2015 Cost of living Cost of doing business Ability to hire qualified staff
2014 Cost of living Ability to hire qualified staff Regulations, taxes, fees
2013 Cost of living Employee housing Employee work ethic
Workforce & Hiring
32% 30% 36%
020406080
100
2015 2014 2013
Yes, we added staff this year
69%50%
31%
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100
2015 2014 2013
Yes, it’s hard to find qualified applicants
What positions are hardest to fill? (2015) • Sales, marketing, business development • Customer service • Cooks and culinary staff • Skilled workers in specialty areas • General entry level employees
Where do the majority of your workforce live?
57% - Sonoma Valley
25% - outside SV
18% - didn’t know or don’t have employees
77%
20%
0%20%40%60%80%
100%
yes no
Do you (business owner) live in Sonoma Valley? (2015)
Results from our annual survey of Sonoma businesses
Sonoma, the Community
What would you say is the biggest challenge facing the Sonoma business community?
2015: Rising costs & hiring qualified employees 2014: Quality of workforce & lack of higher education/training
2013: Cost of employee benefits/general cost of living
Do you think the following aspects of our community are getter better, worse, or staying about the same? (X = not asked) 2015 2014 2013
Affordability of housing for people who work here X
Availability of housing for people who work here
Attractiveness to visitors X
Local schools
City services (in general) X
Crime affecting local businesses
County road conditions
What would make Sonoma Valley a better place to do business? (asked in 2015)
More affordable housing for employees Better business collaboration, B2B support, professionalism
Continued improvement of the Springs corridor Reduced regulations for business or development
More business diversity Improved roads and/or expanded transit
95%70%
65%
020406080
100
2015 2014 2013
Yes, I am generally satisfied with Sonoma Valley as a place to do business.
36%
26%
38% yes
no
unsure
From a business perspective, would you say that Sonoma Valley is headed in the right direction? (2015)
About our Respondents Which best describes your Sonoma Valley
business location: (2015) 49% Lease space 29% Own Space
19% Home-based
37% = under $500k
38% = $500k - $5M
17% = over $5M
What were the gross annual revenues for your business? (2015)
How many responses did we get to the surveys? 2015 = 65 2014 = 40 2013 = 62
2015 Sponsors
Platinum: Exchange Bank, Pinnacle Capital Mortgage, Sonoma Index-Tribune, Sonoma Raceway
Gold: Union Bank Small Business Supporter: Bank of Marin, North Bay Insurance, WestAmerica Bank. Williams-Sonoma
2015 Board of Directors
Neil Colwell, President,
Well Design Casey Mazzoni, Vice President,
Mazzoni & Assoc. Sion Edwards, Treasurer,
Fairmont Sonoma Mission Inn
Directors: Mike Dunevent, Sonoma Raceway John Burns, Sonoma Index-Tribune
Becky Elster, Exchange Bank Eric Gullotta, Gullotta Law Group
Megan Moll, The Red Grape David Wells, Corner 103
50%
36%
9%
4% 1%
Funding Sources
Membership dues
Gov. contracts & grants
Sponsorship support
Office sublease
Events/other
Total Revenue: $298,500
65%
19%
10%
6%
Where Your Support Goes
Program costs, includingsalaries/related expenses
General businessexpenses
Office lease
Professional services(CPA/payroll/website,etc.)
Total Expenses: $230,870
2015 financial highlights include a fiscally conservative approach to doing business, with an emphasis on cutting operational costs. At the same time, the Chamber ramped up programming, contracted with the City to implement the Economic Vitality Program, and realigned staff to better serve membership needs. This year also proved to be the first in recent history that the Chamber added operational reserves, a key indicator of a businesses health and longevity.