Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 3222 SEPTEMBER 2016 • FOGHORN BUSINESSMATTERS What a Great Business By Bob Shaw, Industry Consultant 2570 Beverly Dr. #128, Aurora, IL 60502 T 630.236.3500 CENTA Power trAnsmIssIon LeADIng By InnovAtIon • USA based production • Over 20 unique designs • Over 16 million sold • Torsional vibration experts Trust CENTA – The Global Innovator Since 1970 CENTALINK Carbon Fiber Driveshafts Innovative flexible couplings for marine applications As a leader in passenger vessel design, stability assessments and refurbishments, our vessels are not only beautiful, they’re also safe and efficient to operate while producing maximum profitability for owners. To bring Jensen on board for your next passenger vessel design or build, contact us at 206.332.8090 or visit our website at jensenmaritime.com. Passenger Vessel Designs: OPtimizeD fOr PrOfitability O ur guests celebrate their special occasions aboard our diverse vessels. Whether it is a strong corporate quarter or sales celebration, church brunches, bus tours, high school graduations or late night post prom parties, engagements, weddings, an- niversaries, baptisms, family reunions, and yes, even memorial services; we bring those great moments alive on our boats. Our guests and clients enjoy a special moment on the water, even if it is a quick ferry ride to work or a two- to three-hour mini-vacation amidst their busy lives. I have been a business voyeur during my professional career. Every business seems like it has eight great features, offset by a dozen that are worrisome. Business schools would warn us about being in a seasonal, cyclical, heavy fixed asset business. But, sometimes downsides have ad- vantages. Seasonality gives us a chance to plan for next year, get refreshed and make changes. Can you imagine being in a business where every Saturday night is the same? Talk about living Groundhog Day every day! Each day is different and challenging. Our fixed assets don’t depreciate and will hold their value over time, totally different than my friend’s Porsche that loses a $1,000 a month in value just sitting in his garage. We can accumulate value in our businesses by paying down mortgages, and have an equity base to borrow against to fund expansion. Compared to the restaurant business that I was formerly in, our industry is nirvana. We can charge four-star prices for being on the water, if we have a bad location we can move the boat without writing off 95 percent of the initial in- vestment, and negative working capital accumulates cash as we grow. And, when I was the in the construction business, it seemed like every conver- sation was shrouded in conflict and we spent half our emotional energy trying to get paid for the work we did. This business has many advantages and a lot of moving parts so you won’t ever be bored. But business mechanics won’t excite most of our team. It’s the adventure of planning the new menu and comparing how you’ll compare with so many emerging restaurants. Our core bands and DJs can stack up against good acts everywhere and know how to read the crowd just right for the perfect vibe. Fireworks on the Fourth of July, numerous festivals and New Year’s Eve illuminate the magic on the water. Our guests love visiting the wheelhouse and talking to our mariners about where