Scholl & Company, LLC - February 2021

Scholl & Company, LLC - February 2021

YOUR FINANCIAL SUCCESS

FEBRUARY 2021

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WHEN I’M NOT THE BRET SCHOLL OF SCHOLL & COMPANY How I Relax

Like many of you, my business is a big part of my life — but it’s not the only part of my life. It can be difficult to turn off that switch from business owner and boss to husband, father, and grandpa, but in those moments where I can put my work away and focus on my family, that’s when I find the most benefit for my mental health and work. One of my favorite ways to decompress and relax is to spend time with my grandkids. They range in age from 16 months to 4 years old, so they’re at that really fun stage where everything is new, exciting, and adorable. We often do crafts and read books. I also enjoy watching them just destroy the house, and then I hand them back to their parents when they get fussy and cranky. (Grandparent perks!) I like to call it a little comedy show, and I’m not sure what’s more humorous: the funny things they say or me trying to keep up with them and their energy levels. Regardless, I enjoy every moment that I have with my grandchildren. It really is a gift to spend time with them, especially now that they all live closer to my wife, Rose, and me. Right now, I have three grandsons and a granddaughter, and it wasn’t always easy for the whole family to be together at a moment’s notice. One of our grandchildren was even born in London! (That was an adventure.) Today, we’re glad to have them all a little closer to home and within reach for grandparent time. I can’t wait for the days when we can travel and explore the outdoors together. I already know we will take them to a lake and try fishing. Rose and I will surely try to not miss any of

their sporting events or dance recitals either! Any opportunity we can have to be there, see some of their greatest “firsts,” and watch them grow, is worth the effort it takes on our part. When we’re not playing grandparents, Rose and I enjoy our freedom by traveling. Visiting Europe again is next on our travel “must-do” list when it’s safer to venture over the border, and one of our favorite places to travel to is Canada. (I’ve always liked the buying power of the U.S. dollar up there.) We enjoy traveling to a new country and immersing ourselves in a new culture. It’s a great way to escape the day-to-day pressures and enjoy some of the little things. Neither of these hobbies of mine — spending time with the grandkids and traveling with my wife — are that big or crazy, but they offer me a tremendous benefit. Like anything in life, you have to be fresh in business. You have to come at it with a clear mind and approach new challenges with a refreshed sense of purpose. This pandemic challenged that. Many worked long hours from home, and we all scrambled in the beginning. In a way, we’re still scrambling, trying to navigate taxes, vaccine timelines, and potential new opportunities. We’ve come a long way, and in some respects, we still have a long way to go. This February, I want to encourage you to take care of yourself. Take a moment to reflect on what brings you joy — and go do it. (As best as you can, of course.) Spend time with your family, enjoy your favorite foods, or pick up that hobby you forgot about in the midst of the COVID-19 panic. I guarantee you will feel the stress wash away and feel better prepared to tackle what this hectic — yet rewarding — life as an entrepreneur throws at you.

BUSINESS IS GREAT AND WE'RE LOOKING FOR MORE.

We hope that you will keep us in mind if the opportunity arises to refer family, friends, colleagues, and neighbors. Thank you for your continued support.

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Heart and Grit

What Nonprofits Must Do to Survive the Recession

At Scholl & Company, we believe in doing good beyond the work we do in businesses every day. That’s why our founder, Bret Scholl, created Scholl Cares, which is designed to help our community through annual holiday give-back events. As such, we know what it’s like for the business AND nonprofit sectors to feel the impacts of a wavering economy. This month, we offer insights for nonprofits or business leaders who want to give back during a recession. You’ll notice that these tips are also sound business sense! Tuck these ideas away for future recession planning as our economy continues to change. In June 2020, the National Bureau of Economic Research declared that the U.S. was in a recession, and experts have cautiously warned that this recession is different from the nightmarish Great Recession. For starters, this recession was “self-induced,” as CNBC described it this summer. While global health crises have impacted the economy, never before in U.S. history has the economy been purposefully siphoned off. Experts claim it may be far briefer than the Great Recession, and many economists are debating how the recovery will happen. Some believe it will be a slower start, while others argue that reopenings could create a more dramatic climb.

However, let’s not count out the American people. A study by CCS Fundraising found that the U.S. ranks second in the world for philanthropic spending, and while giving did drop during the Great Recession, it bounced back at higher rates than prior to that major dip. And experts are quick to point out that similar to how the pandemic has been impacting various industries more than others, the nonprofit sector is no different. Organizations that fund theatrical or musical performances are faring far worse than others, and food shelters and smaller nonprofits are facing increasing demands and a lack of funding, too. So, what can be done to combat this downturn? Network for Good, a platform that offers software and guidance to nonprofits, explains that there are ways for nonprofits to create lucrative giving options for their donors, much like for-profit business leaders who pivoted during the COVID-19 pandemic. If you created a nonprofit, actively volunteer with one, or support your own charitable giving through your business, try one of these tactics to stimulate more growth during a recession. 1. Stay in Contact: Create videos, postcards, or banners to express your gratitude for recent donations and share stories about the impact it had on your recipients. This offers transparency and a connection to others that all humans crave. It also makes you the first choice people think of when considering donations. Network for Good also found that many donors won’t give when they don’t know what their contributions are funding, so your content could serve a multilevel purpose. 2. Encourage Recurring Donors: If someone has given to your organization in the past, they likely believe in your mission and want to help again. Make this easier for donors. Offer monthly withdrawals and create a relationship with people. In turn, they will become a powerful ally for your cause. 3. Be Flexible: Plans will change. You will have to come up with new ideas, chuck the old ones that aren’t working anymore, and find new and innovative ways to encourage donations. You can also consider processes and items that just aren’t working for your organization anymore. Do you need office space? Are there items you could sell or donate? Could your staff be better utilized? Consider your options and adjust! If your nonprofit or an organization you partner with is in need of financial guidance, our team is willing to help. Have them contact Scholl & Company today for more information.

It truly is unprecedented territory.

In traditional recessions, the nonprofit sector is hit the hardest later than the for-profit sector of the economy. With the sharp drop the recession took in 2020, that damage has been felt sooner than most. According to the Washington Post, some of the sector’s top leaders warned that as many as one-third of all nonprofits could close as a result of the economic hardships.

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FROM HOBBY TO BUSINESS HOW CALERRAIN WINES FOUND ITS ROOTS IN SANTA CLARA

When Geoff Mace left the Marine Corps in 2010, he thought a career in accounting was just what he was meant to do. But before he could settle on that path, Geoff thought about his time in the Marine Corps, and two things stuck out: He always enjoyed working with his hands, and he really enjoyed learning about winemaking while on leave.

leave from the military in California. Because of their proximity to one of the world’s greatest regions for wine, Geoff

and his wife began exploring California’s many, many wineries. When it came time to find a new career outside of the military, Geoff went back to school to learn more about winemaking. He learned all he could about wine and viticulture from Fresno State University — well-known for their prestigious winemaking education — and earned his MBA in the process. As he found his way to starting Calerrain, Geoff worked for large-scale wine producers in the Central Valley and then joined a startup that was in need of a winemaker. Eventually, the couple bought a chunk of land along Jean Ellen Court in Gilroy, California, planted half of a vineyard, and converted the property’s barn into a tasting room.

That was the start of Calerrain Wines.

“My mom’s still my best customer,” Geoff jokes, “but we’ve got some other people who have really fallen in love with the wine. The feeling of pride and bringing a product that takes a year — some cases take two years — and then seeing people’s enjoyment and pleasure from it … that’s pretty great.”

Geoff and his wife, Chantelle Mace, were first introduced to winemaking during the stints Geoff would have on

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There, people can enjoy the very same experiences that led Geoff and Chantelle to start Calerrain.

be laughed out of the office, fearing he was too small to seek help from experts like Bret Scholl and his team.

“Our sales rely on that personal touch of having people out here,” Geoff says. “You’re in my backyard. You’re allowed in my home, and that’s important … If you can create a nice experience and create good hospitality, and you know all your club members by their first name, you can make a pretty good go.” Calerrain is competing in a big market for wine, so right after the company began, Geoff was referred to Scholl & Company by a friend. He was nervous that he would

Instead, the opposite happened.

“Bret and the whole team were super gracious. They were happy to help with anything I needed. They picked up the phone when I called,” Geoff says. “I really value having Bret’s expertise … I know he’s coming from a place where he’s seen other people do it.” Today, Calerrain produces about 1,500 cases of wine each year, sourcing grapes from both their own vineyard and other vineyards in the area. Because they rely heavily on direct consumers, the closures that came with the COVID-19 pandemic have forced Geoff and Chantelle to search for other ways to pour their wine directly into their consumer’s glasses. To combat the effects of multiple state-mandated closures, Calerrain has partnered with local catering groups to create small to-go meals that feature their wines. It’s not the same as a quiet, picturesque visit to their winery, but it’s a way to get the taste of Calerrain right at home. Geoff adds that Scholl & Company has helped him and his team plan for big purchases, which the winery is already implementing. They plan to create the “ultimate outdoor kitchen” to better serve their guests who want larger dinners and events. As they grow and adapt, Geoff is excited to continue to contribute to the landscape of vibrant Santa Clara wines — a dream born out of a hobby discovered while on leave.

I REALLY VALUE HAVING BRET’S

EXPERTISE … I KNOW HE’S COMING FROM A PLACE WHERE HE’S SEEN OTHER PEOPLE DO IT.”

To learn more about Calerrain Wines, including how to purchase its wines, visit CalerrainWine.com.

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FRASER GETS KEYS TO THE CITI 1st Female CEO of Any Major Wall Street Bank

Since Jane Fraser, Citigroup’s former president and CEO of global consumer banking, was named the bank’s new CEO, she’s been profiled by People magazine, interviewed in Time, and discussed extensively by the news media. That makes sense: Fraser is the first female CEO of any major Wall Street bank. She’s also bringing new thinking to the sometimes stodgy industry, and those in the world of finance and business are watching her carefully, especially because Fraser will be leading the company through one of the most turbulent markets in recent years. That turbulence extends beyond the coronavirus pandemic and its economic fallout. Last summer’s protests over racial inequities have many Americans blaming capitalism itself for injustices, and Fraser is attuned to that. “The wealth gap is disrupting society and has caused people to lose faith, and so much of the problem comes down to access,” she told Time. “The average Black family in America has just one-tenth the wealth of the average white family.” Fraser worries that the economic fallout from the pandemic could exacerbate these inequalities if not addressed. She believes that solving this dilemma starts at home. Citi recently divulged statistics regarding the pay gap between its male and female employees, and Fraser is pushing for more diversity in its workforce. Citi’s focus on elevating “the talent that exists” among women and people of color is part of what led to Fraser’s consideration as CEO. As she put it to Time, “the biggest impact we can make as a bank is through our core business capabilities.” HAVE A Laugh

And that’s an important point to make when many are doubting our system's ability to address inequality. But Fraser has always been a problem-solver. According to The Financial Brand, she led Citi’s Corporate Strategy and Mergers & Acquisitions group through the 2008 financial crisis — a position enviable only for the paycheck. She moved people and assets around, freeing up smaller companies that could be sold to help make up for the losses everyone was experiencing at the time. In an interview with LinkedIn, Fraser also emphasized the importance of having a balanced life. One game-changer for her as a mother was realizing “that you can’t do everything at the level you are comfortable with.” Plus, leading a balanced life makes for “better leaders and far better professionals. You have to have the courage to say, ‘This is my path’ — and the organizations have to support it.” Clearly, this approach has taken her far. It’s taken Citi far as well. They’ve weathered the pandemic admirably, getting everybody home safe and working remotely when possible. Where others were struggling to stay afloat or make the transition, Fraser says Citi didn’t miss a beat. In fact, the pandemic has helped dramatically increase the rate of digital banking adoption by consumers and clients. Any time there’s a shakeup in a major Wall Street player, there’s potential for upheaval. Will Fraser’s appointment lead to turmoil? Or will she lead the industry into the future, addressing the needs of the public as she does? Only time will tell, but one thing is for certain: It won’t be business as usual. Handing out cards is now a well-loved Valentine’s Day tradition, but have you ever wondered why? There are legends that the originator of this holiday tradition was Saint Valentine himself. One story says that on the night before he was set to be executed, Valentine wrote a small letter to a jailer’s daughter. He ended the note with “Your Valentine.” It’s unknown whether that story is true, but to 18th century Europeans and Americans, it was inspiring! So inspiring, in fact, that the entire Valentine’s Day industry began to gain traction. During the 1700s, it became fashionable to trade Why Valentine’s Day Is the Ultimate Card Holiday It’s in the Cards

Valentine’s Day cards with a short poem or verse. The popularity of swapping cards only increased throughout the 1800s. Sometimes, people would go as far as to paint or draw spring-like images on the cards. Today, Valentine’s Day cards are an ingrained tradition, and now people can’t get enough of them!

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Inside This Edition

1.

My Life Outside of Scholl & Company

2.

Help Your Nonprofit Survive the Recession in 3 Steps

3.

Meet the Winemaker Whose Business Grew From a Hobby New Citi CEO Shakes Things Up What’s the Deal With Valentine’s Day Cards?

5.

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Lockdown Ads: Have You Seen These Ones?

Almost a year ago, most of the United States entered a period of lockdown in an attempt to thwart the spread of COVID-19. For marketers facing an economic crisis, this presented a conundrum unlike any they’d seen before. On the one hand, it was likely that spending would drop, although the increase in nationwide unemployment payouts helped mitigate that. On the other hand, they now had a “captive audience” like never before, with people streaming movies and television from home at a record rate. The lifestyles of those consumers had changed dramatically — could advertisers meet the challenge? Well, That Was Fast Advertising in the Time of COVID-19

Some advertisers settled for merely reflecting the new norms of remote life and work in their advertising, with mixed results. If we weren’t tired of the Zoom-focused Progressive ads featuring Flo and cohorts back in spring 2020, we’ve surely grown tired of their hard-to-parse antics by now. No matter who’s doing the advertising, studies done as early as April 2020 found that many consumers were tired of being reminded of the pandemic every time they sat down to watch TV. With national anxiety at an all-time high and mental illness spiking during the pandemic, that’s no surprise. People didn’t want to face the reality of the virus every 10 minutes due to advertisements. On the other hand, some businesses were just hampered by circumstance. Carnival and Norwegian Cruise lines both ran aground with their streaming ads focused on spring and summer getaways. These seemed especially tone-deaf given that cruise ships made headlines at the time as vectors for massive COVID-19 spread.

They certainly tried.

For retailer Carvana, the virus was almost a boon. The Tempe, Arizona-based auto seller had already gained fame for its “car vending machines” in several large American cities, but it had yet to crack the national market. As their ads put it, they wanted to be a coast-to-coast solution for new car sales, and our newly confined circumstances meant many more Americans were interested in Carvana than before. The company dumped money into its streaming ads, and the results speak for themselves: Bottoming at $30 million in March, their stock was valued at more than $200 million just a few months later.

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