ANNUAL CONFERENCE 2013

Thursday, September 19th

SilverSneakers FLEX

Parker McCarthy

A relationship between individuals or groups that is characterized by mutual cooperation and responsibility, as for the achievement of a specified goal.

According to Forbes Magazine the three keys to a successful partnership:

1) Trust2) Compatible communication styles3) Complementary skills

About Healthways:A Well-Being Improvement CompanyMission Statement: Creating a healthier world, one person at a time.CEO: Ben Leedle• Established in 1981• Publically traded on NSDAQ: HWAYS• Employees: 2,400

Healthways Products include:

About SilverSneakers:

Established in 1992

Founded by: Mary Swanson

About the Program: A fully funded Medicare Fitness Program

Current Statistics and Information• 88 Medicare Complete/Supplement Regional and Nationwide Health Plans

• 11.1 Million Eligible members

• 657 current FLEX classes

• 52 by Live 2 B Healthy a little over 8% of the classes

• 71,000 FLEX visits

• 89 visits from Live 2 B Healthy

• 50% of FLEX participants have never participated in organized Fitness prior to

2014 projections!!

• 10 new verbal Health Plan agreements for 2014

• Estimated 12.6 million members in 2014

• Number of FLEX classes 2,628

• 100 classes Live 2 B Healthy

• Number of FLEX visits 1.7 million52,000 visits from Live 2 B Healthy classes

• Number of visits from Live 2 B Healthy

Recognition and a Huge Thank you to:

Greg SpringmanJerry Czepa

Curtis BergsholmChris and Tina PipkinJosh and Nancy Lewis

Mike & Laurel PapBarry & Terri Scott

Richard KellerRichard Gauger

Phronsie & Richard MarkinJoe & Tina Bettencourt

SilverSneakers Success

Jerry CzepaGreg Springman

SilverSneakers Role Playing

Cory CzepaBryan Schreifels

When the class gets started:• SS will put the location on their national website & social media.• 4-6 weeks later, SS will do a mail campaign (within a 5 mile radius of the location).

“Greatness is not achieved by never falling but by rising each time we fall.” – Confucius

Phases & Options:1). Phase 1 - Participant Pays

2). Phase 2 – Option 1: Reimburse community $2.25 per person (SS member) per session

3). Phase 2 – Option 2: Reimburse community a set amount regardless how many SS members come to class

4). Phase 2 – Option 3: No reimbursement, rather push joint marketing efforts in collaboration with SS partnership

Scenarios:(1). If your sales meeting is at a Coop or 55 and up building – use Phase 1

(2). If the admin talks a lot about money– use Phase 2; Option 1

(3). If the admin talks about filling empty beds– use Phase 2; Option 1, 2, or 3

(4). We already have a fantastic wellness program. - Use Phase2; Option 3. “It’s important to do things right,

but it’s critical to do the right things.” – Unknown

SilverSneakers Role Playing

Group Breakouts

BREAK (15 min)

Business Materials

Adam Johnston - Matreks

Building your Business

Bryan Schreifels

Business Plan / Organization

•Resources > Manage / Grow My Business > Business Plan • Set your course for next year – Double your business in 2014• Set Goals • Drill down to activities that will help accomplish year goals• Part of Annual Review (October / November each year)

Sales Forecasting Tool

•Resources > Manage / Grow My Business >Sales Forecasting• Tie in with your business plan – Financial Goals• Use as a forecast tool – create different scenario’s• Track actual results • Part of Annual Review – (October / November each year)

Sales Funnel•Resources > Manage / Grow My Business > Sales Funnel • Locked header – space for 150 contacts

• Add all of your contacts – customer relations management (CRM)

• Set a goal 100 contacts – all paying communities & resident pay facilities

• Post activity – contact dates, comments• All receive L2BH newsletter• One Touch Point monthly: phone, drop-in, email, networking event• 5th of the Month email a copy of your entire list of contacts• Bryan’s call (3rd Wednesday at 1:30 CST) discuss spreadsheet key points• Part of ongoing communication and Annual Review – (October / November each year)

“How to Make the Most of your Franchise”

John Francis

The 6 Stages of Franchisee relationship

AWARENESS is where change happens:• Always think about where you are now and how to move forward? How to help others see where they are and help them see what's next?• Good to talk about the stages and where you see yourself and others- and WHY you are where you are.• What’s keeping you from moving forward? • ATTITUDE is key, it matters how you see things, affects your behavior which drives results.• KEEP WORKING on it, you know you’ll advance through the stages – don’t give up, change your approach, focus on the future not the past.

How to make the most of your franchise system:

• Through your system franchise HQ - Obvious• Through your system other zees – examples, models, go visit them• Through vendors and groups – ask questions, industry trends, outside of your brand and relevant to your industry.

1) Take control of the situation:

• Be RESPONSIBLE: remember you bought this deal• YOUR investment $$ multiplied by YOUR efforts and time = YOUR results. • It’s not only your JOB; it’s your BUSINESS, so behave like an owner, not a victim! • If you can’t or are unwilling to behave like an owner, sell it to someone who will.

1) Take control of the situation:

• Do NOT experiment, IMPLEMENT the system, completely success takes time, you have to work at it.• Don't wait for franchisor to offer tools/programs if you have needs or issues – ask for help. Request, find, utilize and implement what’s offered and available. If you don’t know, or are not sure then ASK what’s available, use what they have from HQ, ask other franchisees, and NEVER start with a “blank sheet”.• Set GOALS and write them down, share them – make them “SMART” and strive for progress not perfection.

1) Take control of the situation:

• Performance groups – many to one team support, find levels of high performers, “winners” of the system sharing real experience. Get engaged and participate fully – learn from those who have done it well and are willing to share in a structured way – creates ACCOUNTABILITY, not family or friends or HQ – these are PEERS, qualified and motivated for you to succeed.• Mentoring programs – diversity of profiles – new / old, big / small, this is one on one support, get one for yourself and be one to someone else in your system. You learn when you teach.

2) Get and stay informed and stay engaged:

ENGAGEMENT MATTERS. Go to every conference or meeting, be known in the system as a “good guy” and leader. Internal reputation is important for access and respect, gives you authority and ability to make improvements in your business and in the system.• Attend sessions/workshops, plan time and budget $$ for it, it’s a basic requirement to be a good performer / franchisee, consider it the maintenance cost of your investment.• Be constructive in your critique and feedback, offer ideas and comments and experience of “how it works in the real world”.

2) Get and stay informed and stay engaged: • More personal connections are useful – networking time with HQ staff, franchisees and vendors. Get to know them personally, let them know you. Dinner table choices can be key, at cocktail hours mix it up and meet new people, not just your old friends… you have to BE THERE to have this happen.• Read the newsletters and system information provided, offer feedback to the authors or producers – tell them like it is at the front line, offer suggestions and examples to make the material more relevant and useful for the system.• Review and participate in your internal message board, or conference calls, or other system support programs – offer ideas and experience, be constructive not destructive. “This would work better if it was like this….”

3) “Pick Five” Approach

Identify 5 zees in your system who are successful and have one-on-one discussions with each (one per week) to develop relationship, share experience, and get feedback on challenges.•Identify successful zees (those on stage, winning awards, top performers)•Call one each week – talk or leave a message, share something “Here’s what’s going on in my business…” ask questions, share ideas.•Over time, you develop relationship and trust, more value from this over time – mutual give and take.

3) “Pick Five” Approach

• When you connect in person – you are “known” can develop into deeper topics and more valuable discussions.

• Change the list of 5 as needed (people come and go) or appropriate (weak), over time and your growth.

• Offer the idea to new franchisees, and be one of their 5.

4) Visit in Person and go to HQ office often

Or call and TALK with them, and visit and talk with other franchisees in their units – make it personal.•Meet HQ staff, walk around the office, no agenda, become familiar to them. Help them know what it’s like in the front line business, share experiences tell them stories, give them examples of “real life” in the system as a franchisee. This is perspective they don’t have, and will appreciate•Return regularly to HQ to strengthen relationships and meet new staff, they will change over time – understand it: it’s their JOB, not their business, commitment is often different.•Meet them all, top, middle and low level people – all are valuable and know things, and want to know more. They want to be respected too.

4) Visit in Person and go to HQ office often

• When you need something, they will respond because they “know you”, likely you’ll get it, or at least a response.

• Visiting other franchisees helps see other examples of how it’s done – good and bad. Take pictures, share ideas and your experience, meet their people – make it personal. Be careful with your comments – don’t offend them, often there is more than one way to do things correctly, ask permission before you criticize.

5) Engage with HQ Staff & Other Franchsiees

• Personal relationships develop with other franchisees and HQ Staff – it happens in person, exclusive, confidentially – develops your perspective, understanding of system issues and trust of leadership.

• Show interest in being involved and part of groups

• PEER Groups of Franchisees – can form your own, many benefits and accountability. These can turn into a non-official advisory council in systems.

6) Work with vendors – find local vendors to develop

• Look for vendors who serve your same customer – they have the insights and relationships you can leverage.

• The vendors know things about your customers that you won’t, they know other operators, and they know your competitors.

• Build relationships with vendor contacts / national / regional / local reps – find the good ones, they are not all the same, may be in an area other than yours – learn from them.

6) Work with vendors – find local vendors to develop

• Ask them who’s growing, who’s the favorite, what’s the relationship with your system like? Leverage relationships to get their perspective on the industry, your brand, other franchisees, and even info on competitors

• Ask them about industry trends, other associations, other events, and other resources you might consider? Builds your perspectives on the industry from outside of your system.

• Learn to see vendors as the GOOSE not only the Golden EGG.

7) Networking – locally and beyond – get involved

• Chamber of Commerce, or BNI groups and similar, community focused and expandable into other areas.

• Build your network with groups of your customers, where to they connect? Where do they “flock” together?

• Pay attention to changes and be informed and aware of what’s coming and going – be a resource to others.

• IFA’s Franchise Business Network (FBN) meetings - find and attend locally – 30 plus markets in the USA hold these meetings quarterly. Great resource to connect locally with other franchisees, franchisors, other suppliers / vendors, and IFA staff.

7) Networking – locally and beyond – get involved• IFA Franchise congress - meet gov't officials & reps in your local area. Attend the Public Affairs Conference in September in Washington DC.

• Expand your network beyond your system and brand, learn from other franchisees and systems – more broad perspective and appreciation for what you have or want in your system.

• Take your “game” to the “Big League” – learn about and know other systems and professionals from around the USA and Internationally.

• Events – all around the USA, all year.

• Resources – Magazines, LinkedIn groups, blogs & etc.

LUNCH

Promotional Products

John Schudy

Answer 2—42% of end-users have a MORE favorable impression of an advertiser after receiving the item

Nearly 25% of end-users are MORE LIKELY to do business with the advertiser on the items they

receive

Most end-users have done business with the advertiser AFTER RECEIVING the item

End users keep items that are USEFUL

Advertising Specialties Deliver a Better CPI Than Virtually Any Other Media

Review• 84% of end-users can name the advertisers on the items they receive• 62% have done business with the advertiser AFTER receiving the item• End-users keep products for 7 months• The average cost-per-impression of a promotional product = $0.004• The CPI for advertising specialties beats all forms of media (except billboards)

Promotional ProductsBeach Balls

Coffee Mugs

Promotional ProductsPens

Hand Sanitizer

Promotional ProductsWater Bottles

Coffee Cups

“How Activity Increases Opportunity”

Chris Pipkin

"Achievement seems to be connected with action. Successful men and women keep moving. They make mistakes, but they don't quit."

Goals give our activity purpose

“If you don't know where you are going, you'll end up someplace else.”  

- Yogi Berra

Start at the end and work yourself backwards step-by-step.

Make a list of large tasks that will accomplish your goal.

Break the individual large tasks into smaller tasks that can be accomplished in short time-frames.

Now look at the tasks (Small and

Large) from start to finish and know that this is your road map to reaching your Goal.

Must do’s

• Your plan can have complex components inside of it, but the plan itself has to be very simple.• Your plan should direct your activity.

Don’ts

• Don’t change your activity unless you change your plan.  Don’t change your plan unless you change your Goals.• Don’t plan and prepare during selling hours.  Selling hours are when your customers are open for business.• Always be prepared. "I believe luck is preparation meeting opportunity.

If you hadn't been prepared when the opportunity came along, you wouldn't have been 'lucky’.” - Oprah

BREAK (15 min)

CPA

Dane Boeckermann

4470 W. 78TH St. Circle, Suite 200, Bloomington, MN 554435952-844-2500

Dane Boeckermann, CPA

2013 Tax ChangesTop marginal tax rate increased from 35% to 39.6% for taxable incomes over $450,000 ($400,000 for single filers).

Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers).

Completely phased out when AGI equal or exceeds $372,501 for single and $422,501 for married filing joint taxpayers.

Limitation of itemized deductions for AGI over $300,000 ($250,000 for single filers).

Limitation does not include medical deduction, investment interest, casualty and theft losses or gambling losses. May not lose more than 80 percent of itemized deductions.

Medical expenses must exceed 10% of AGI versus 7.5% in prior years.

2013 Tax Changes (continued)Tax rate on qualified dividends and long-term capital gains increased from 15% to 20% when taxable income exceeds $450,000 ($400,000 for single filers).

Investment surtax of 3.8% on net investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles). See next slide.

Payroll tax hike increase of 0.9% on the Hospital Insurance portion of the payroll tax for incomes over $250,000 ($200,000 for single filers).

Alternative minimum tax exemption was permanently extended starting in 2012 at $78,750 MFJ and then indexed for inflation each year.

Exemption starts phasing out when alternative minimum taxable income exceeds $150,000 for MFJ. The phase-out is 25% for each $1 over $150,000.

Net Investment IncomeNet investment income is the sum of:

Gross income from interest, dividends, annuities, royalties and rents, unless derived in the ordinary course of business.

Income from a business in which the taxpayer does not materially participate (code section 469).

Capital gains from the disposition of property, except to the extent attributable to active business.

Top Historical Tax Rates

President Ordinary Income

LT Capital Gains Qualified Dividends

Reagan (1986) 50.0% 20.0% 50.0%

Reagan (1988) 28.0% 28.0% 28.0%

Bush Sr. (1991) 31.0% 28.0% 31.0%

Clinton (1993) 39.6% 28.0% 31.0%

Clinton (1997) 39.6% 20.0% 39.6%

Bush (2003) 35.0% 15.0% 15.0%

Obama (2013) 39.6% 23.8% 23.8%

Home Office DeductionYou may deduct home office expenses if you meet any of the three tests:

Your home office must be exclusively and on a regular basis as your principal place of business.Your home office satisfies a management or administrative activities test.Your home office satisfies a relative importance test.

Taxpayers can now choose between the regular method and the new simplified method for determining home office deductions.

Regular MethodPercentage of home used for business.

Actual expenses determined and records maintained.Home owners insurance, repairs & maintenance, utilities, lawn care, garbage removal, depreciation on improvements.

Home-related itemized deductions apportioned between Schedule A and business schedule (Schedule C).

Mortgage interest, real estate taxes.

Depreciation deduction for portion of home used for business

Recapture of depreciation on office portion of home if house is sold for gain

Home exclusion does not offset recapture.

Simplified Method

Deduction of $5 per square foot of home used for business up to 300 square feet.

Maximum deduction of $1,500.

Home related itemized deductions claimed in full on Schedule A.Mortgage interest, real estate taxes.

No home depreciation deduction or later recapture of depreciation.

No need to maintain records to support home office deductions.

Mileage DeductionBeginning on January 1, 2013, the standard mileage rates for the use of a car for business is 56.5 cents per mile.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Gas, oil, repairs and maintenance, license tabs, depreciation.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

Other notable mileage rates:14 cents per mile for charitable purposes.24 cents per mile for medical and moving.

DepreciationBonus Depreciation

Deduct 50% of cost for qualifying property.

Property must be new

Property must be acquired and placed in service during 2013.

There is no deduction limit.

Deduction is NOT limited by business income.

Section 179

Deduct 100% of cost for qualifying property

Property can be new or used

Property must be placed in service anytime during the year.

Deduction limit is $500,000 for total purchases of $2,000,000 or less.

Deduction is limited to business income.

2013 Auto Depreciation LimitsLuxury auto depreciation limits

Passenger Autos – unloaded gross vehicle weight (GVW) 6,000 lbs. or lessFirst year depreciation limited to $3,160.With bonus depreciation first year limited to $11,160.

Trucks and Vans – loaded gross vehicle weight rating (GVWR) 6,000 lbs. or less

First year depreciation limited to $3,360.With bonus depreciation first year limited to $11,360.

Heavy Vehicles – Over 6,000 lbs. (unloaded GVW for autos, loaded GVWR for trucks and vans) and GVW 14,000 lbs. or less

No limit for first year depreciation.Allowed $25,000 of section 179 for each vehicle.

Autos with unloaded GVW more than 6,000 lbs., trucks and vans with GVWR (loaded) more than 6,000 lbs., and qualified non-personal use vehicles are not subject to limits.

W-2 vs 1099 ReportingForm W-2:

To report wages, tips and other compensation paid to employees.To report the employee’s income and social security taxes withheld and other information.To report the employee’s wage information to the Social Security Administration. The Social Security Administration shares the information with the Internal Revenue Service.

Form 1099-Misc:Used to report payments made to a person who is not an employee or to an unincorporated business.Required when payments of $10 or more in gross royalties or $600 or more in rents or compensation are paid to the same individual or unincorporated entity.Provided by the payer to the IRS and the person or unincorporated business that received the payment.

W-2 vs 1099 Reporting (continued)

IRS 1099 InitiativeEvery business return and Schedule C there are the following questions regarding 1099’s:

Did you make any payments that would require you to file Form(s) 1099?If “Yes” did you or will you file required Forms 1099?

Recommend getting W-9 for every vendor to comply with 1099 reporting requirement. If in doubt a 1099 should be issued.

Regional Opportunities

Doug Jepsen

Understand Ownership Structure•Ownership groups

•Management Companies

Understand Decision Making Process•Directive •Cooperative

Understand Financial Impact•Continuum of Care Org• Single or Dual Focus Org

Marketing Impact

• Increase traffic•Awareness• Status / Standing

SilverSneakers FLEXQ&A

Parker McCarthy

Double your business leveraging the SilverSneakers FLEX program

Tools for Success: SilverSneakers websitewww.silversneakers.com

• SilverSneakers Health Plan Finder:

SilverSneakers Customer Service Number• Toll-free: 888-423-4632, Monday - Friday, 8 a.m. - 8 p.m. EST.• E-mail: SilverSneakers Web Contact

Tools for Success: CATcat.healthways.com

Tools for Success: Marketing Banner

Tools for Success: Marketing Flyers

Tools for Success: Marketing Flyers

Tools for Success: Best Practices for member engagement and

retention• Serve Coffee or other refreshments• Pot Lucks• Birthday Parties• Holiday Parties• Challenges• Refer a friend

Tools for Success: Best Practices for member engagement and

retention• Games• Refer a friend •Joke of the day• Make it a social event for the members

System Overview

CAT and the IRCQ and A

Appetizers & Happy Hour (on us!);-)

4:30 Joe Sensors4217 American Blvd W  Bloomington, MN 55437

(952) 835-1191