January/February 2012 by St. Cloud Area Chamber of Commerce

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IN EVERY ISSUE 8

6 President’s Letter

Editor’s Note

Business Calendar

Network Central

Top Hats

CONTENTS

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20 TechStrategies

Clean Your House Before the Party Developing, organizing

and implementing userfocused content is the first step to increasing search engine rankings for your website.

22 Management Tool Kit Game-Changer

A new report from the National Labor Relations Board suggests social media policies often go too far and are not enforceable.

24 Plan Now for Compliance

MUSIC MEN Managing Bobby Vee’s career and traveling the world in his band turned out to be more than just a good time for his sons, Jeff and Tommy Velline. It also turned out to be good business.

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PROFIT

Business Tools

30 COVER STORY

JANUARY/FEBRUARY 2012

G R OW

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NETWORK

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GROW

This Issue 36 Feature

What’s Your Plan?

Companies should plan ahead to avoid the potentially crippling impact of unexpected events.

40 Special Focus Rethinking Risk

46 Business Spotlight

MCI Carpet One Floor & Home

Special Section

41 Health Care

Private employers— unionized or not—must soon post the NLRB notice of collective bargaining rights.

Economy Central presented by Falcon Bank Holding Steady

Central Minnesota’s cost wof living remains below national average. NEW! A graphical look at

Central Minnesota’s economy.

N E T WO R K

Upfront 10 News Reel

What’s happening and who’s moving. Business news from

around Central Minnesota.

10 Book Review

The Trust Edge: How Top Leaders Gain Faster Results, Deeper Relationships, and a Stronger Bottom Line, by David Horsager

12 Your Voice In Government

The New Normal Changing demographics demand that government examine and restructure its operations.

13 People to Know 16 The Trouble with Business Partners The best partnerships

start with a written agreement.

ONLY ONLINE •• Fascinating People You’ve Never Heard Of

•• Mini-Trends

•• Traits of a Successful Entrepreneur

•• Top 10 Technologies of the 9/11 Age

www.BusinessCentralMagazine.com

Outstanding physicians Recruiting outstanding physicians who provide the most advanced care for you â&#x20AC;&#x201D; itâ&#x20AC;&#x2122;s part of our commitment to quality care.

www.centracare.com

PRESIDENT’S LETTER

NETWORK

Economic Development:

Main Phone | 320-251-2940 Automated Reservation Line | 320-251-2940, ext. 126 Program Hotline | 320-251-2940, ext. 125 www.StCloudAreaChamber.com email: information@StCloudAreaChamber.com

Everyone’s Responsibility

t seems as if everyone is talking about economic development these days. A great approach is for community partners to assume responsibility for the chunk of the economy they can most effectively develop, and do it as well as possible. The City of St. Cloud has established an Economic Development Authority, chaired by Stearns Electric Association District Manager David Gruenes, with a new City Director of Economic Development, Cathy Mehelich. This department now assists businesses with technical tools and financing alternatives that make it easier to build and expand. The department must be housed in a unit of government (city or county) to apply for available government funding. The Greater St. Cloud Development Corporation hired John Kramer as its CEO. At the top of its strategy to develop our area economy: re-establishing air service to the St. Cloud Regional Airport. The organization markets our entire region to businesses outside of our area as a great place to live, work and do business. Your Chamber pursues economic development, too. Our mission is to create, enhance and maintain a healthy business environment, which means developing our economy through the expansion and growth of our member businesses. In this issue of Business Central we are introducing two pages of graphs that benchmark and track economic trends in Central Minnesota. You can search out the information in these charts – it’s all public information – but we’ve decided to do it for you. We’re putting it here to make it easy for you to find and follow. Why are we doing this? During past Grow Minnesota! business retention calls, we have heard business owners discuss how important this information is to them.

ST. CLOUD AREA CHAMBER OF COMMERCE STAFF President | Teresa Bohnen, ext. 104 Vice President | Gail Ivers, ext. 109

Our mission is to create, enhance and maintain a healthy business environment, which means developing our economy through the expansion and growth of our member businesses.

Director of Administration | Judy Zetterlund, ext. 106 Special Events Coordinator | Virginia Kroll, ext. 105 Membership Sales Specialist | Wendy Franzwa, ext. 134 Administrative Assistant | Vicki Lenneman, ext. 122 Administrative Assistant | Cindy Swarthout , ext. 100 Administrative Assistant | Sharon Henry, ext. 124 Communications Intern | Alexa Sandbakken CONVENTION & VISITORS BUREAU STAFF

The charts provide an easy and useful way to track trends that aid in good business decisions. We hope you find them helpful. Another way your Chamber assists with developing the area economy is by bringing conventions and tourists to our community through the services of our Convention and Visitors Bureau. Our pursuit of funding for the expanded Rivers Edge Convention Center furthers the goal of bringing more people here to spend the night and spend their money. We advocate for business-friendly legislation and ordinances at local, state and national levels of government. We help business owners understand and sometimes cut through government red tape. We provide the best business-to-business networking in our community, and we present cost-effective training options for small business owners and their employees. Economic development is like a puzzle with all community partners putting forth their best efforts to make sure their pieces keep Central Minnesota a strong, vibrant and growing area.

Business Central Magazine •• JANUARY/FEBRUARY 2012

Executive Director | Julie Lunning, ext. 111 Sales Manager | Lori Cates, ext. 113 Director of Sales & Marketing | Judy Okerstrom, ext. 112 Director of Sports & Special Events | Kelly Sayre, ext. 128 Director of Visitor Services | Jean Robbins , ext. 129 Receptionist | Nikki Fisher, ext. 100 2011-12 BOARD MEMBERS Jim Beck | Minnesota School of Business Gary Berg | G.L. Berg Entertainment, Performing Artists & Speakers Craig Broman | St. Cloud Hospital/ CentraCare Health System, Board Vice Chair Linda Feuling | Westside Liquor Neil Franz | Neils-Franz-Chirhart, Attorneys at Law Todd Fritz | InteleCONNECT, Inc. Jayne Greeney Schill | St. Cloud Area School District #742 Diane Hageman | College of Saint Benedict Steve Hahn | HahnMark, LLC John Herges | Falcon National Bank Scott Johnson | Times Media Dolora Musech | Batteries Plus Kris Nelson | Custom Accents, Inc. Bernadette Perryman | Past Board Chair Rick Poganski | Principal Financial Group Dr. Earl Potter, III | St. Cloud State University Jodi Speicher | The Good Shepherd Community Bill Winter | St. Cloud Federal Credit Union, Board Chair

Teresa Bohnen President

Green Economic Growth How Natural Resources Will Shape Our Economy & Community February 29 - March 1, 2012 | St. Cloud, Minnesota This year’s exciting program features: • Keynote speeches by

Lynn Scarlett

James Hamilton

Richard Morgenstern

Resources for the Future & Former U.S. Deputy Secretary of the Interior

University of California, San Diego, & co-author of the blog Econbrowser

Resources for the Future & Former Director, U.S. Environmental Protection Agency

• Our annual economic outlook panel with Scott Anderson, Wells Fargo King Banaian, St. Cloud State University James Hamilton, University of California, San Diego Steve Hine, Minnesota Department of Employment and Economic Development • A new business panel “Going Green: The Whys and the Hows” with regional entrepreneurs and innovators • A luncheon speech with Chris Farrell, Economics Editor, Marketplace Money, American Public Radio

For more information about our program and registration, please visit

www.stcloudstate.edu/winterinstitute

EDITOR’S LETTER

NETWORK

Random Acts of Kindness Jim McAlister, Tell-A-Vision Productions shares a cup of coffee with editor Gail Ivers.

ast spring I found myself standing outside the locked doors of Rockhouse Productions (see the story on page 30) with no way to reach the proprietors. I thought we had an interview appointment, but unable to confirm, I was at a loss. I knew that Jim McAlister, owner of Tell-A-Vision Productions, had an office in the basement of the Rockhouse Productions building. I wandered to the back of the building, pushed open the basement door and headed down the stairs calling out Jim’s name. It was my good fortune that Jim had attended Chamber Connection that morning and then proceeded to his office following the meeting. I explained the reason for my unexpected arrival and without a pause, Jim pulled out his phone and called Jeff Velline. Yes, Jeff knew he had an appointment. He was running late. Could I wait? He’d meet me in about 15 minutes. Gratefully I thanked Jim and proceeded to leave, planning to wait for the Vellines at the local coffee shop. Jim would have none of that. “Stay Gail. Have some toast. I won a loaf of Johnny Bread today at Chamber Connection and I was just going to have a piece of toast. Here, have some orange juice. How

Business Central Magazine •• JANUARY/FEBRUARY 2012

about jam?” And with that Jim turned my awkward moment into an entertaining coffee break. This simple kindness reminded me of a camping trip I took to Yellowstone National Park following high school graduation. My friend, Jennifer, and I had planned that trip since we were in 6th grade. It involved a stop in the Badlands, two days in the Black Hills and a week in Yellowstone. Our second night out as we prepared supper, the tiny kerosene camp stove we brought along refused to light. Veterans of campfire cooking, we were stumped. As we struggled and fussed over the stove, finally determining we would have to buy firewood, a neighboring camper strolled up. A former Minnesotan, he remarked about noticing our Minnesota license plate and we chatted about places we knew in common. Then he asked us what the problem with the stove was. We explained and he suggested putting a little cooking oil on the plunger used to pump the tank. We tried and the stove immediately started working. We thanked him and asked how we could possibly repay him. “The best way to repay a kindness,” he said, “is to pass it on.”

Gail Ivers

Vice President

Editor

Photo by Joel Butkowski, BDI Photography

“Stay Gail. Have some toast. I won a loaf of Johnny Bread today at Chamber Connection and I was just going to have a piece of toast. Here, have some orange juice. How about jam?”

Publisher Teresa Bohnen Managing Editor Gail Ivers Associate Editor Dawn Zimmerman CONTRIBUTING WRITERS Fred Hill St. Cloud State University

Gail Ivers St. Cloud Area Chamber of Commerce Sharon Henry St. Cloud Area Chamber of Commerce Mikaela Krenzen The Flint Group/Hatlingflint Dorraine A. Larison and Mark S. Mathison Gray Plant Mooty.

A Tradition of Building Success for Almost 60 Years

David Olson Minnesota Chamber of Commerce Alexa Sandbakken St. Cloud Area Chamber of Commerce Larry Schumacher Wordbender Communications, LLC Dawn Zimmerman The Write Advantage ADVERTISING Associate Publisher/Sales Wendy Hendricks, Hendricks Marketing

You can depend on Rice Building Systems to handle everything from concept and design all the way through the completion of your project. When you choose Rice Building Systems, you also have the peace of mind that comes with knowing your project is guaranteed for years to come. We call it The Rice Difference. Building Relationships Since 1953

Ad Traffic & Circulation Yola Hartmann, Hazel Tree Media ART Design & Production Yola Hartmann, Hazel Tree Media

Cover Photo Joel Butkowski, BDI Photography ACCOUNTING Accountant Judy Zetterlund

110 Sixth Avenue South P.O. Box 487, St. Cloud, MN 56302-0487 Phone (320) 251-2940 • Fax (320) 251-0081 www.BusinessCentralMagazine.com For advertising information contact Wendy Hendricks, (320) 656-3808, 110 S. 6th Ave., P.O. Box 487, St. Cloud, MN 56302-0487. Editorial suggestions can be made in writing to: Editor, Business Central, P.O. Box 487, St. Cloud, MN 56302-0487. Submission of materials does not guarantee publication. Unsolicited materials will not be returned unless accompanied by a stamped, self-addressed envelope. © Copyright 2011 Business Central LLC Business Central is published six times a year by the St. Cloud Area Chamber of Commerce, 110 Sixth Avenue South P.O. Box 487, St. Cloud, MN 56302-0487 Phone (320) 251-2940 • Fax (320) 251-0081 Subscription rate: $18 for 1 year.

1019 Industrial Drive South, Sauk Rapids, MN 56379 • 320.252.0404 www.ricebuildingsystems.com BB-9836_Rice_Marco_BusCent_Ad_km_SQ.indd 1

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J A N U A R Y / F E B R U A R Y 2 0 1 2 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

Book Review

Point of View

Your Voice in Government

People to Know

Business Calendar

It Happened When?

UPFRONT

16 The Trouble with Business

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NEWS & PEOPLE THAT MAKE UP THE CHAMBER NETWORK

N E WS R E E L

BOOK REVIEW

The Currency of Business

If trust is the currency of business, then it might well determine the success of an enterprise.

The Trust Edge: How Top Leaders Gain Faster Results, Deeper Relationships, and a Stronger Bottom Line, by David Horsager, Summerside Press, Minneapolis, MN • 2010 • ISBN 978-1-60936-133-4

By Fred Hill

he dust cover on The Trust Edge reads: “[David] Horsager writes that trust is a quantifiable competency that brings dramatic results. The lower the trust, the more time everything takes, the more everything costs, and the lower the loyalty of everyone involved.”

It has been said that trust, not money, is the currency of business and life. If this is so, then trust as a quantifiable competency might well determine the health and success of an enterprise. This book is organized into five parts: The Case for Trust, The Eight Pillars of Trust, Transforming Trust, Deep Trust in a Flat World and Courageous Trust. Part II, The Eight Pillars of Trust, might be particularly useful. They are Clarity, Compassion, Character, Competency, Commitment, Connection, Contribution, and Consistency. Pillar Three, Character, seems to be especially insightful. Horsager notes that “people notice those who do what is right over what is easy.” Business and political discussions — wherever one goes — seem to consistently make the point of doing what is right. It should be an easy choice to make. Sadly, it often is not. David Horsager tells of the two dimensions of trust. They are time and depth.

Business Central Magazine ••JANUARY/FEBRUARY 2012

He says, “Deep trust is generally established over time. It can withstand adversity and is often born of personal experiences.” Time and depth are in constant interplay and have a huge influence on the strength of trustworthiness. Trust is always a risk. Horsager discusses 12 barriers to overcome in building trust. They include conflicts of interest, technology, fear, and negative experiences. Each of the 12 might not be found at every location. Moreover, certain ones could have priority over others. But, they are there and they can be overcome. This book has an abundance of help and support to do so. Horsager has written an excellent work, with many pages of things to discuss, think about, and apply. There are also 14 pages of references, including many websites, magazines, and trade journals. BC Dr. Fred E. Hill is a professor of Learning Resources Services at St. Cloud State University.

Nack

Strack

Strack Companies promotes staff

John D. Nack has been named Chief Operating Officer of Strack Companies and will assume corporate management duties of the St. Cloud-based firm. As COO, Nack will direct the firm’s daily operations. Matthew S. Strack has been named vice president. Strack Companies currently operates in four states serving the private commercial and industrial markets with projects in all segments with special emphasis in health care and food processing.

Doherty Staffing Solutions earns Certification

Doherty Staffing Solutions is the first in Minnesota to be awarded Workers’ Compensation Risk Certification (WRC). WRC recognizes staffing companies that practice bestin-class risk management to reduce workplace injuries and related costs.

GNP Company wins Meatingplace’s 2011 Jesse Jewell Award

Gold’n Plump Poultry grew, changed its name to GNP Company, and now has won the Jesse Jewell Award given by industry publication, Meatingplace. Each year, the Jesse Jewell Award is given to “a poultry processor whose products, processes or overall approach to marketing or management have improved not only its own bottom line, but raised the standard of excellence for the entire poultry industry, just as Jesse Jewell did.”

POINT OF VIEW

Business Central asked readers: What kind of person would you consider to be the ideal networker?

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Somebody who is easy to approach and is comfortable approaching others.”

Shari Wahlin Big Brothers, Big Sisters of Central Minnesota

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Someone who can move gracefully through multiple conversations while making everyone feel important.”

Chris LeDuc St. Cloud Area Family YMCA

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Someone who is willing to talk to people and put themselves ‘out there.’”

Corey Boe Cartridge World

“ Justin Wacker Steam Brothers/ SB Restoration

A very outgoing individual- someone who’s not shy and is willing to take chances.”

“ Laura Tangen Edina Realty

The ideal networker is outgoing, friendly, likes to talk to new people, and is confident about the business he or she works for.”

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UPFRONT

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NETWORK

N E WS R E E L Wolf joins Birthline

Sara Wolf has joined Birthline, Inc. as director of development. Wolf Birthline is a local nonprofit organization serving women and men facing an unexpected pregnancy.

Kellen named Minn. Transit Professional of the Year

Tony Kellen, director of operations and technology for Metro Bus, was named Minnesota Transit Professional of the Year at the Minnesota Public Transit Association annual conference in St. Paul. This award is presented to individuals who have designed and implemented specific programs demonstrating innovative concepts or effective problem-solving techniques of proven value. Kellen

Nurse practitioner joins HealthPartners

Nicole Marti, Certified Nurse Practitioner, joined HealthPartners Central Minnesota Clinics. Marti is a graduate of Minnesota State University in Moorhead and received her Family Nurse Practitioner Certification from Minnesota State University in Mankato. Marti

PineCone Vision Center staff attain certification, join committee

Dr. Nicolas Colatrella and Dr. Stacy Hinkemeyer of PineCone Vision Center have attained American Board of Optometry Certification. This voluntary process establishes standards demonstrating that the doctor has exceeded basic requirements and maintains the appropriate knowledge, skills, and experience needed to deliver quality patient care. Jennifer Novak, practice administrator at PineCone Vision Center, has joined the American Optometric Association’s Para Optometric Awards and Recognition Committee. Novak

YOUR VOICE IN GOVERNMENT

The New Normal

Changing demographics demand that government examine and restructure its operations. By David C. Olson

onvene a conversation with Tom Stinson or Tom Gillaspy, and the “New Normal” is likely to quickly surface. For years, the state economist and state demographer have warned that changing demographics demand that government examine and restructure its operations. Now you can add the voice of the statewide business community to the call for greater government efficiency, as revealed in the annual Minnesota Business Barometer Survey conducted by the Minnesota Chamber of Commerce and Himle Horner, Inc. No one suggests that government redesign alone can solve the cycle of budget shortfalls. But four in 10 respondents believe that restructuring services can make a significant dent. Stinson and Gillaspy were in unison as they described the New Normal at a session of Leadership Minnesota, a Minnesota Chamber program that focuses on the state’s changing economy and the issues that will shape its future. What does this all mean? We are presented a whole new set of opportunities, Stinson and Gillaspy say. Government at all levels must embrace a new

What is the New Normal? •• An aging population and more diverse workforce.

•• Greater demand for public services.

•• Slower economic growth. Scarcity of labor and talent.

•• Chronic government deficits and cuts in service.

mind-set as it examines what products and services to provide and how to deliver them. We must meet the challenge to preserve the Minnesota quality of life. Initial steps were taken at the 2011 legislature, and more work remains if we are to restore long-term stability to Minnesota’s balance sheet. Reform will be a common thread in the Minnesota Chamber 2012 agenda. Among our preliminary initiatives: Adopt priority-based budgeting. Examine all public programs and services and stop simply building a budget based on past practices. Implement the federal waivers in the Medicaid system as a follow-up to the 2011 legislation. Purchase services through competitive sourcing. Evaluate those commercial services performed by government agencies on the basis of efficiency and customer service.

About the writer David Olson is president of the Minnesota Chamber of Commerce. For more information, visit www.mnchamber.com.

Business Central Magazine ••JANUARY/FEBRUARY 2012

Reform the prevailing wage law. The current calculation tends to increase taxpayer costs for state-funded projects. Evaluate highway projects. Ensure management systems are in place so taxpayers receive the greatest value for their transportation dollars. Reform public employee compensation and benefits. These systems must align more closely with what is provided in the private sector. Creativity and innovation have enabled businesses to survive the recession and, in many instances, emerge stronger. Similar principles must guide government if Minnesotans are to adjust to the New Normal. It won’t be easy, but as Stinson and Gillaspy suggest, “Creative destruction/ disruptive innovation will change the way we deliver services.” The statewide business community stands ready to help government rethink how it can deliver services at lower per-capita cost and still preserve Minnesotans’ quality of life. BC

PEOPLE TO KNOW DAVE BORGERT St. Cloud Hospital/CentraCare Health System

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Phone: (320) 229-4978 E-mail: borgertd@centracare.com Chair, Government Affairs Committee, St. Cloud Area Chamber of Commerce

Phone: (320) 257-2000 Email: thansen@msbcollege.edu Chair, VIP Committee, St. Cloud Area Chamber of Commerce

Phone: (320) 632-9255 E-mail: mkilian@ifound.org Chair, Marketing Committee, St. Cloud Area Chamber of Commerce

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The Marketing Committee is responsible for the over-all marketing efforts of the Chamber of Commerce, including communication materials, advertising, publications, the website, promotional programs, and organizational research.

GREG THEIS Greg E. Theis Remodeling

ROGER SCHLEPER Premier Real Estate Services Phone: (320) 259-4554 Email: Roger@PremierHomeSearch.com Chair, Membership Division, St. Cloud Area Chamber of Commerce The Membership Division is responsible for all marketing and membership activities, including workforce development, networking programs and all of the Chamber’s special events.

MATT KILIAN Initiative Foundation

The VIP (Value Information Promotion) Retention Committee calls on Chamber members to share information about coming events, inquire about membership satisfaction, and encourage businesses to take full advantage of their membership.

The Government Affairs Committee researches legislative issues, makes recommendations to the Board of Directors regarding legislative policy positions, organizes trips to the Capitol and legislative updates during the session, and maintains contact with area legislators and other elected officials throughout the year.

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TAMMY HANSEN Minnesota School of Business

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Phone: (320) 253-2312 E-mail: grege@GETRemodeling.net Chair, Central Minnesota Farm Show Committee, St. Cloud Area Chamber of Commerce

This committee is responsible for planning and organizing the Central Minnesota Farm Show, the largest agri-business expo of its type in the Upper Midwest. The annual three-day show starts the last Tuesday in February at the River’s Edge Convention Center in St. Cloud.

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UPFRONT

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NETWORK

N E WS R E E L KDV expands with merger David B. Campbell, Ltd. Has merged with KDV. The merger broadens KDV’s portfolio of expertise, services and clients as it strengthens its presence in the Twin Cities. Because of the merger, KDV is now one of the largest accounting and consulting firms in Minnesota.

Brewington appointed to Board Jared A. Brewington, Brewington Green Energy

Products, was recently appointed to the Board of Directors of Compatible Technology International.

Clifton Gunderson, LarsonAllen announce merger Clifton Gunderson and LarsonAllen, ranked as two of the nation’s top 20 certified public accounting and consulting firms, announced plans to merge and form one of the top 10 accounting firms in the United States. The merger took effect Jan. 2, 2012. The new firm is called CliftonLarsonAllen (CLA). CLA has more than $550 million in combined revenue, employs more than 3,600 professionals, including 500-plus partners, and operates from 25 states and Washington, D.C.

BUSINESS CALENDAR

Can’t-miss opportunities to influence, promote, and learn JANUARY-FEBRUARY 2012 Visit events.StCloudAreaChamber.com for a detailed calendar.

Government Affairs A discussion of local government issues on the second Friday of the month

7:30 - 9 a.m

January 13: “The River’s Edge Convention Center – Expansion Update and Bonding Progress”

Special Event, January 24:

Waite Park Chamber or businesses interested in doing business in Waite Park. Lunch is provided by the host when you register at least two days in advance.

11:30 a.m.-1 p.m. Location: Waite Park City Hall, 19 13th Ave. N, Waite Park.

For businesses interested in doing business in Sauk Rapids. Lunch is provided by the host when you register at least two days in advance.

11:30 a.m. - 1 p.m

Session Priorities Banquet with the Minnesota Chamber at River Center, St. Paul, MN, from 4-9 p.m.

Big Brothers Big Sisters receives $300,000 donation

Sauk Rapids Chamber

Location: Chamber office, 110 S 6th Ave.

January 18: Hosted by Rejuv Medical with

The Federated Insurance Foundation donated $300,000 to BBBS of Central Minnesota. The donation comes from funds that were raised at the Federated Challenge for Kids of Minnesota (FC). Since 2005, BBBS of Central Minnesota has received $1.6 million from the FC, which represents the largest single source of funding in the organization’s history.

guest speaker King Banaian, St. Cloud State University, discussing Central Minnesota’s economy. February 15: Hosted by Minnwest Bank

Location: Good Shepherd Fellowship Hall, 1115 4th Ave. N, Sauk Rapids January 26: Hosted by BankVista with guest speaker Julia Krengel, Rejuv Medical, presenting “Post Holiday Plan: Realistic Health Goals and Nutrition Tips.” February 23: Hosted by Liquid Assets/Westside Learning & Events Center with guest speaker Lisa Braun, City of St. Cloud, discussing the Community Emergency Response Team

Business After Hours A complimentary open house for Chamber members and guests. Bring lots of business cards and prepare to grow your network!

4:30-6:30 p.m. January 12: Hosted by Northwest Professional Center, at 2351 Connecticut Avenue, Sartell February 16: Hosted by Gaslight Creative, LLC, at 501 West Saint Germain, Suite 304

Business Central Magazine ••JANUARY/FEBRUARY 2012

Lunchtime Learning

Educational networking events that give busy professionals a chance to stay on the cutting edge. Meets the first Wednesday of the month, noon-1 p.m. at the Chamber office, 110 S 6th Ave.

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January 4 Sponsored by Executive Express with speaker Sharon Sorenson, Heartland Organizing, presenting “Get Organized Month: Learn to A.C.T. (audit, commit, tackle)” Registration is required: $15 for Chamber members, $22 for the general public.

For information on these or other business events, call 320-251-2940

IT HAPPENED WHEN?

March 1977

What’s in a name? Crossroads Center was the site of the Material Handlers Show in March 1977. What’s changed since then?

•• The Material Handlers Show is now known as The Central Minnesota Farm Show. This show has grown to be the largest show of its kind in the Upper Midwest. In 2012, the show will take place at the St. Cloud River’s Edge Convention Center, featuring 300 booths and over 4,000 attendees. •• Jerry “Peanut” Hagemeier (L) and Ron Theisen of Traut Well Drilling also appeared at the Material Handlers Show in March 1977. When the original owners dissolved the company in 1982, Mark and Dave Traut revived the business, calling

it Mark J. Traut Wells. Best known as Traut Companies, the company now drills nationwide, and was named “St. Cloud Area Small Business of the Year” in 1998. •• St. Cloud Area Vocational Technical Institute, now known as St. Cloud Technical and Community College, advertised the programs at the school at the Material Handlers Show in 1977. Today, the college has 90-plus majors and serves over 12,000 students each year.

J A N U A R Y / F E B R U A R Y 2 0 1 2 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

UPFRONT

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NETWORK

N E WS R E E L Jewell joins Quinlivan & Hughes

Sarah R. Jewell recently joined the Jewell law firm of Quinlivan & Hughes, PA. Jewell started as a law clerk with the firm in June 2010 and was admitted to the Minnesota Bar in October 2011. She received her J.D. from Hamline University School of Law.

CSB, SJU are No. 1 in study abroad participation

For the second consecutive year, the College of Saint Benedict and Saint John’s University are ranked No. 1 nationally among baccalaureate institutions with students who participate in mid-length study abroad programs, according to a report by the Institute of International Education (IIE). Compiled by Alexa Sandbakken

THE TROUBLE WITH BUSINESS

PARTNERS

The best partnerships start with a written agreement. By Alexa Sandbakken

here can be huge advantages to a business partnership. You can work together to make something better than you could have individually, and you can build off each other’s strengths. Starting a new business requires many different skills in the areas of invention, marketing, sales, accounting, and much more. How do you know if you should enter into business with a partner? According to the “Starting a Business Guide” in the Wall Street Journal, “taking on business partners should be reserved for when a partnership is critical to success,” whether because of finances, connections, or skills. Consider whether it might be better to hire the other person as an employee or contractor instead. If you decide to move forward with a partnership, you need to have an attorney draft

a legal agreement spelling out the arrangement. In addition to outlining financial issues, it should explain the roles and responsibilities of each partner, how the workload will be divided, how conflict will be handled, and how a partner can leave. If it’s down on paper, you won’t have to worry about this later. If you decide to partner in business with a friend, make sure you both realize that you will now have a business relationship. You’ll need to establish firm ground rules. Your “values, goals and personalities need to be aligned toward profit,” explains Brad Sugars, author of What to Consider Before Teaming Up With a Partner. As partners, you’ll need to have shared vision about your company’s short-term and long-term goals. What do you want to happen in one year? What about in five or ten years? As the business

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grows, how will you adjust? Your partner may have different ideas about success for your company. Make sure you have shared expectations and goals. You’ll also want to determine each person’s strengths and weaknesses. Do you have the same kind of work ethic and values? Good communication is one of the keys to success. You must be able to share honestly and openly with your partner, about both the good and the bad. Finally, you’ll need to have strategies in place for people to enter and exit the partnership. As your business grows, family members such as spouses or children may wish to join. How will they become part of the business plan? Exit strategies are also important. Decide how things will be divided if or when a partner leaves as well as how each partner will be compensated. Having a plan in place ahead of time will prevent problems. BC Alexa Sandbakken was the communications intern at the St. Cloud Area Chamber of Commerce in fall 2011.

Think it Through

Cherie Burbach, author of 5 Things to Ask Yourself Before Going Into Business With A Friend, recommends that you consider the following before developing a business partnership: How well do you and your future partner resolve conflict? If your potential partner clashes with you over simple disagreements, think about how work conflicts will be resolved. You might decide to have an impartial third-party to act as a mediator for arguments. Does your partner have habits that annoy you? Just like in marriage, it’s the little things that can aggravate you the most. Is your partner lazy, disorganized, or a procrastinator? How will these

traits affect the business and your partnership? You need to decide how to get past the little things in order to prevent them from becoming big things. How much time will you put toward the business? A new business takes a lot of time and hard work. How much time can each partner put toward the business? How will this affect other obligations? Be on the same page with your partner about time expectations.

J A N U A R Y / F E B R U A R Y 2 0 1 2 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

UPFRONT

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NETWORK

NETWORK CENTRAL

Grow!

St. Cloud Area Chamber Leadership Program participants spent two days earlier this year learning about leadership styles, ethics, and each other.

Larry Logeman, Executive Express, helped class members develop a personal mission statement.

The Leadership program involves group interaction, discussion, and plenty of networking

Profıt!

The Chamber’s annual Technology and Education Conference gives vendors the opportunity to show off their latest products and services, while providing valuable information to participants.

Business Central Magazine •• JANUARY/FEBRUARY 2012

Dr. Julia Espe, St. Cloud School District 742, discussed ethical leadership and the behaviors that make for ethical leaders.

Bruce Miles, The Big River Group, helped class members determine their leadership styles.

Network!

Team Daylily Spa Salon won the networking challenge at the 2011 Chamber Connection birthday party. Daylily was one of several birthday party sponsors.

TOP HATS | New Locations, New Ownership & Expansions

We are here when you need us! Continuing to Make a Difference!

One Hour Heating & A/C, 2 21st Ave. S, St. Cloud. Pictured: Owen Peterson, Don Opheim and Shannon Templin.

TOP HATS | New Members

The Good Shepherd Community, a comprehensive senior retirement community and nursing home, 1115 4th Ave. N, Sauk Rapids. Pictured: Diane Ohmann, Jodi Speicher, Good Shepherd Community board member Terry Kurash, Roger Schleper, Chad Spoden, and Rhonda Pohl.

Celebrating 40 Years of Excellence in Caring for You! St. Cloud Camera & Photo, camera equipment and services, including photo processing, 212 Waite Ave. S, St. Cloud. Pictured: Bob Lien, Diane Larson and Brenda Eisenschenk.

The Apothecary, pharmacy, compounded and natural medications, 165 19th St. S, Suite 102, Sartell. Pictured: Chris Panek, Steve Mareck, Steve Anderson and Jason Bernick.

Accredited by Accreditation Association for Ambulatory Health Care, Inc.

St. Cloud Surgical Center 1526 Northway Drive • St. Cloud • 251-8385 • 800-349-7272 www.stcsurgicalcenter.com

The Legends at Heritage Place, senior campus for 55+, independent living, assisted living townhomes, 673 Brianna Drive, Sartell. Pictured: Kris Nelson, Jodi Dotson, Melinda Fast, Lynn Johnson, David Muellner and Jason Bernick.

Thrivent Financial for Lutherans, financial services, 49 2nd Ave. N, Waite Park. Pictured: Roger Schleper, Erik Hanson, Steve Reetz and Brenda Eisenschenk.

We’ll make sure your meeting hits the jackpot. Thrivent Financial for Lutherans, financial services, 549 25th Ave. N, St. Cloud. Pictured: Roger Schleper, Tim Ronning and Bob Lien.

TOP HATS | New Businesses

Uncle Sam’s Flag & Pole, full service flagpole business offering residential/ commercial sales and installation, 1413 W Division St., Waite Park. Pictured: Roger Schleper, Rick Zimmer, Aaron Kranz and Inese Mehr.

IRET Properties, owner and operator of apartment communities and commercial properties in the St. Cloud and surrounding area, 4150 2nd St. S, Suite 410, St. Cloud. Pictured: Owen Peterson, Claudia Notermann, RoseAnn Wong, Andy Martin, Angie Janni, Chad Bloom, April Jacques and Roger Schleper.

Cooking for Fun! Recreational cooking school for kids and adults, 408 Great Oak Drive, Waite Park. Pictured: Inese Mehr, Russ Panek, Chris Panek and Tauna Quimby.

Let us make your next meeting, banquet, or special event truly memorable. With two spacious casino hotels, 24-hour gaming action and award-winning dining, we

Grand Casino Mille Lacs Events & Convention Center

Grand Casino Hinckley Events & Convention Center

For more details, call 800-626-5825, ext. 8515

For more details, call 877-447-2631

grandcasinomn.com

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TECH STRATEGIES

Clean Your House Before the Party

Developing, organizing and implementing user-focused content is the first step to increasing search engine rankings for your website. By Mikaela Krenzen Do your research Research is necessary to develop an effective search strategy. What keywords would you like people to use to find your content? Start by developing a seed list of all the relevant terms that come to mind. To refine it further use a free tool, such as Google AdWords external keyword tool to build a list of attainable keywords to include in your website.

earch engine optimization (SEO) has two major divisions. On-page SEO employs optimizing techniques on your website pages — using keywords in page titles and copy is one common technique. Off-page SEO involves driving traffic to your website and increasing your popularity. Generating links from trusted websites greatly boosts off-page SEO performance. For this article, I’ll focus on the former category. I firmly believe you need to clean up your house (in this case–your website) before you can invite people over. While off-page SEO factors can often have a quicker, more significant impact on your search rankings, it won’t serve any good if you don’t have the music (or content) to entertain your guests. Build your on-page elements first, then work on sending your invitations.

Organize your content Content themes should be broken into separate pages within your site architecture, but there must be enough valuable content to support a full page. Since critical keyword placements are limited, separate pages can maximize exposure for the keywords.

and in anchor text of cross-links that exist elsewhere on the site. Another great spot for keywords is an alt tag associated with a photograph, as long as it represents the image accurately. Include target keywords in the meta keyword and meta description tags. Many have denounced the importance of these tags; however, they should not be disregarded entirely. Although the meta keywords tag is hidden to the average user, it helps set the tone for the page and establishes a guideline for copywriters. The meta description tag will display in some search results and allows you to control the message delivered to potential customers.

Implement Once your research and site architecture are complete – get to work! Create separate pages for each theme and start plugging target keywords (1-2 per page) into these trigger locations:

Don’t force it! If it feels and sounds unnatural, then search engine crawlers and site visitors will probably interpret it the same way. Find a healthy balance between on-page SEO elements and readable, valuable content – keeping in mind that the latter is most critical to a website’s success. BC

Include selected keywords in the HTML page title and page URL. Located near the top of the page, these locations will be a first stop for automated web crawlers. Both are included on the search results page – with bolded keywords, if you play your cards right.

Mikaela Krenzen is a digital/interactive strategist with the Flint Group/Hatlingflint. Her focus is on search engine optimization (SEO) and search engine marketing (SEM). She is certified in Google AdWords.

Remember keyword inclusion in your copy. Headlines and sub-heads are important placements for keywords. You should also include references within the body copy

Business Central Magazine ••JANUARY/FEBRUARY 2012

Now online

For more information visit www. BusinessCentralMagazine.com.

BY THE NUMBERS

DID YOU KNOW?

Android users love their apps!

NOT YOU FATHER’S VENDING MACHINE

1 billion

the number of Android apps that were downloaded by 2010

2 years

the length of time it took to download the first billion Android apps

Vending machines are becoming interactive. Accepting credit cards is just the beginning. Now you can purchase in bulk with just one payment or use a touch screen to find out the nutritional information about your desired purchase.

60 days

the length of time it took to add the most recent billion download

TECH NEWS

A NEW KIND OF TOUCHSCREEN

the total number of Android apps that have been downloaded

New technology called OmniTouch can turn any surface into a touchscreen. First, you create a screen wherever you want – an arm, hand, pad of paper. Then, just like any touchscreen, you use your fingers to navigate it. Think: dialing a phone number on the palm of your hand. Figuring out how to get the system to understand fingers was the biggest hurdle. Now, making it small enough – and affordable – is next.

Source: Tech News Daily

Source: www.Smartplanet.com

4.5 billion

BC Jan-Feb 2012 Ad_Layout 1 11/28/11 4:33 PM Page 1

“

& ideas.

I was comfortable with their

”

approach

–Tom Griffin, Quarry Cinema

Tom Griffin saw the need for another family entertainment option in the Cold Spring area. This vision materialized in 2005 when the Quarry Cinema 5 opened.

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BUSINESS TOOLS

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G R OW

MANAGEMENT TOOLKIT

Game-Changer

A new report from the National Labor Relations Board suggests social media policies often go too far and are not enforceable. By Dawn Zimmerman

hat an employee can – and cannot – say on Facebook has been debatable over the past few years. Court cases about employees being fired because of a post they made put the fear in most employees – and made employers believe they had the ability to limit negative comments about the company. But a new report from the National Labor Relations Board on case developments related to social media has some striking findings that are changing the way businesses can react. I sat down with Hayden Creque, principle attorney at Creque Law, a full-service St. Cloud-based law firm that specializes in business, employment privacy, information security and internet law, to unwind the legal speak and gain a better understanding of what it means to employers.

What do you see as the biggest takeaway from the report? A: It is unlawful to discharge – or even Q

discipline – employees who use a social network platform to engage in or initiate discussions with other employees related to working conditions or terms of employment. Such a discussion may be protected activity even when it includes related criticisms, sarcasm, and swearing.

engages in egregious name-calling. The employee crosses the line when it becomes maliciously false.

This seems to be somewhat one-sided. Is the employer protected at all? A: Although the protections Q

afforded employees are broad on their face, they actually are quite narrow in scope. Employees are only protected to the extent that it is a “concerted activity.” That means individual gripes or comments made for the employee’s personal amusement are not protected. Employers can take action – and many have.

What role do the social media usage policies created by employers play in all of this? A: It has become common for employers Q

How far can it go? A: An employee’s

criticism of supervisory actions, when they reflect several employees’ concerns, is protected. That means posting to Facebook or another social networking platform may be protected even when the employee

to institute social media policies to outline certain conduct, but they often go too far and are not enforceable.

About the writer Dawn Zimmerman is Chief Executive Officer of The Write Advantage, a St. Cloud-based communications company that specializes in social media.

Business Central Magazine •• JANUARY/FEBRUARY 2012

What are some examples of social media policies that go too far? A: Employers often include broad Q

prohibitions on disparaging comments, inappropriate discussions, and the use of generally offensive language. In many cases, the policies do not contain limiting language or examples to inform employees that the policy excludes protected activities.

What is the best piece of advice you have for businesses given this report? A: There is nothing in the report Q

that precludes an employer from having a social media policy. Businesses should see this as their opportunity to review and revise their social media policies. Businesses that do not have one should create one. Reference specific employee rights and provide detailed guidelines on monitoring employer-related comments and the respective disciplinary action. At minimum, every employee handbook should include a “catch-all” provision like ‘Notwithstanding the foregoing, nothing in this policy shall be construed to limit, in any way, your rights under any applicable federal, state or local laws.’ BC

WORKING WELL

AHHHHHHHHHH-CHOO

IN THE NEWS

Honoring the Hill Museum & Manuscript Library

Keep the flu out of the office this winter with a few simple steps. PREVENTION Support flu vaccination in the workplace in order to ensure productivity all year long. The flu season occurs over coldweather months – for many reasons, including close proximity indoors during school days and dryer air, impeding the body’s ability to hydrate and cleanse itself. The easiest way to prevent illness is to tell employees how they can access no or low cost vaccinations. Have you ever been sick the day after a vaccination? It takes two weeks for protection to develop in the body. Employees can even spread the flu 24 hours before symptoms develop.

CONTROL MEASURES If you do come down with an illness, stay home in order to avoid infecting others. Flu germs are easily passed through tiny droplets of fluid that transfer from one person to another. Cover your mouth and nose thoroughly when you sneeze and wash your hands thoroughly. Do not rub your eyes or nose or touch your mouth. Source: Centers for Disease Control and Prevention

The Hill Museum & Manuscript Library (HMML) at Saint John’s University has been awarded the National Medal for Museum and Library Service. The National Medal is the nation’s highest honor for libraries and museums and is sponsored by the Institute of Museum and Library Services. U.S. Rep. Betty McCollum (D-MN) nominated HMML for the award. The 2011 award winning libraries and museums will be honored at a Washington, D.C. ceremony. Each library and museum also receives an honorarium of $10,000.

Green Economic Growth

How Natural Resources Will Shape Our Economy & Community

February 29 - March 1, 2012 www.stcloudstate.edu/winterinstitute

Featuring: • Keynote speeches: Lynn Scarlett James Hamilton Richard Morgenstern • The annual economic outlook panel • A new business panel “Going Green: The Whys & the Hows” with regional entrepreneurs and innovators • A luncheon speech with Chris Farrell

CEO

Corporate Education & Outreach

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BUSINESS TOOLS

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G R OW

MANAGEMENT TOOLKIT

Plan Now for Compliance

Private employers—unionized or not—must soon post the NLRB notice of collective bargaining rights. By Dorraine A. Larison and Mark S. Mathison

on-unionized private employers, as well as employers with unions, will be required to post for employees a notice of union-related collective bargaining rights beginning January 31, 2012. The new requirement from the National Labor Relations Board (NLRB) has created a storm of controversy. The NLRB’s final rule is currently the subject of three lawsuits from the business community seeking to block its implementation. Because the likelihood of a blocking court order cannot be predicted, employers should begin planning for compliance now, including training

managers on the employer’s position on unions and on how to respond lawfully to employee questions about the posting. Many employers subject to this new notice-posting requirement have not understood that it applies to them. With limited exceptions, both union and nonunion employers must post the 11x17 notice, which is available from the NLRB at its regional offices and also available for download at https://www.nlrb.gov/sites/ default/files/documents/1562/employee_rights_ nlra.pdf. The notice must be posted where other workplace notices are typically posted.

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Brian Hart 220 Park Avenue South, Suite 100 St. Cloud, MN • 320-224-2121 www.brianhart.sandler.com S Sandler Training Finding Power In Reinforcement (with design) and Sandler Training are registered service marks of Sandler Systems, Inc. © 2009 Sandler Systems, Inc. All rights reserved.

Business Central Magazine •• JANUARY/FEBRUARY 2012

A fact sheet with further information about the new notice-posting rule is available on the NLRB Website or at www.BusinessCentralMagazine.com. Employers with questions or concerns about the posting requirement should seek counsel from an attorney practicing in labor law. BC Dorraine Larison and Mark Mathison are attorneys with the law firm of Gray Plant Mooty. Larison offices in St. Cloud and can be contacted at dorraine.larison@gpmlaw. com or (320) 202-5331. Mathison offices in Minneapolis and can be contacted at mark. mathison@gpmlaw.com or (612) 632-3247.

GOING GREEN

A Bright Idea

The new Philips 10-watt LED light bulb is officially the greenest replacement for a 60-watt bulb. It passed a number of rigorous tests and won Philips $10 million in the Department of Energy’s L Prize competition, which sought “high performance, energysaving replacements” for the incandescent bulbs most of us still use. But get ready – the price will most likely top $40 per bulb. If everyone switched to these more efficient bulbs, we’d save $3.9 billion in electricity a year. Plus, the 60-watt bulbs we use now generally last for only 1,000 to 3,000 hours, which means you have to change each light bulb every year or two. If this new bulb lasts for the anticipated 25,000 hours, you could use it for about 35 years without buying a new one. Source: GOOD: www.good.is

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ECONOMY CENTRAL

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PRESENTED BY FALCON BANK

HOLDING STEADY

CENTRAL MINNESOTA’S COST OF LIVING REMAINS BELOW NATIONAL AVERAGE. EDITOR’S NOTE Beginning with this issue we are offering a graphical look at economic activity in Central Minnesota. We hope that the charts and graphs on these pages will help you follow local business activity and make well-informed decisions for your own organization. If there is information missing that you would like to see here, please let us know!

he St. Cloud area continued its trend of below average cost of living expenses as we headed into the final quarter of 2011. The results of the ACCRA Cost of Living index showed St. Cloud’s “All Items” index at 96.0, or 4 percent below the national average of 100 for the third quarter of 2011. This matched closely

the previous two quarters when St. Cloud had an all items index of 96.1 in the first quarter and 94.0 in the second quarter. Overall, the area is on track to have a lower cost of living than in 2010, when the all items index was 98.3 for the year. As with previous quarters, the cost of housing in Central Minnesota remains low compared to other communities. During the third quarter of 2011, the region’s cost of living index for housing was 70.0, compared to Minneapolis at 120.1 or Eau Claire, Wisconsin at 83.8. Not all expenses are low in Central Minnesota. Grocery items showed an index of 108.1, just 1.2 percent behind Minneapolis (109.3), and 12.1 percent above Eau Claire (96.0).

Cost of Living - Minnesota ACCRA COST OF LIVING INDEX

Third Quarter 2011

Among the 309 urban areas participating in the third

G Se ood rv s/ ice s

H Ca ealt re h

T po ran rta stio n

Ut ili tie s

Ho us ing *

G Ite roc m ery s

Al l It em s

Minnesota and other Upper Midwest Cities of Comparable Size to St. Cloud

98.3

101.6

80.5

117.4

99.9

101.8

105.8

St. Cloud, MN (1st Qtr)

96.1

99.4

79.9

106.5

105.4

102.5

102.3

104.0

77.3

100.2

99.9

102.6

100.0

NY to almost 20 percent below the national average in Harlingen, TX. CITY

Manhattan NY

223.9

Brooklyn NY

3rd Quarter 2011 St. Cloud, MN

managerial standard of living ranged from more than twice the national average in New York (Manhattan)

St. Cloud, MN 2010 Annual Average

St. Cloud, MN (2nd Qtr) 94.0

quarter report, the after-tax cost for a professional/

96.0

108.1

70.0

99.8

98.2

104.3

104.1

Honolulu HI San Francisco CA

Minneapolis, MN

111.8

109.3

120.1

101.5

107.5

105.5

110.9

St. Paul, MN

110.8

107.9

116.0

100.3

108.4

106.5

111.9

Rochester, MN

105.4

96.3

104.2

116.9

108.3

108.5

105.2

Dubuque, IA

94.7

99.8

89.4

94.5

101.5

100.9

94.7

Eau Claire, WI

91.0

96.0

83.8

78.5

102.3

107.6

93.6

Wausau, WI

94.8

101.6

85.8

103.4

97.8

101.7

95.6

185.5 167.1 161.3

Queens NY

154.4

San Jose CA

152.4

Truckee-Nevada County CA Washington, D.C. Nassau County NY

148.4 147.5

143.5

The Cost of Living index measures regional differences in the cost of consumer goods and services, excluding taxes and non-consumer expenditures, for professional and managerial households in the top income quintile. It is based on more than 90,000 prices covering almost 60 different items for which prices are collected quarterly by the St. Cloud Area Chamber of Commerce. Small differences should not be interpreted as showing any measurable difference, according to ACCRA. *Includes single-family and multi-unit residential housing

A GOOD TIME TO BORROW The U.S. Small Business Administration’s Small Business Investment Company (SBIC) program lent a record $2.59 billion in fiscal year 2011 to small businesses. That’s a 63 percent increase over last year’s $1.59 billion. Source: The U.S. Small Business Administration

Business Central Magazine •• JANUARY/FEBRUARY 2012

Economy Central presented by

ECONOMIC INDICATORS TRENDS Sartell St. & Cloud

$0 M J J F J MA A S MO J N J D A

6 No. 13of permits 23 44 1239 10 40 1443 3855 4452 37

121 152 141

Waite Park Sauk Rapids

RESIDENTIAL BUILDING RESIDENTIAL PERMITS BUILDING PERMITS

$2M

$1.5M

Sauk Rapids Sartell

No. of permits 5

Commercial Building Permits

$2M

$2,544,033

$1.5M

$2,841,238

$1.5M

St. Cloud

$2,076,302

$2,544,033

Sartell

permits 14 No. 38 of 44 37 4341 41121 58 152 136 141 224 200 233 256 241 206

RESIDENTIAL BUILDING RESIDENTIAL PERMITS BUILDING PERMITS

Residential Building Permits $2M

$0 J

F 10

Sauk Rapids Sartell

RESIDENTIAL BUILDING RESIDENTIAL PERMITS BUILDING PERMITS $2M

No. of permits 12

136 224 200 233 256 241 206

$1.5M

St. CloudWaite Park Sauk Rapids

Sartell

$2M

$1.5M

$10,914,217

No. of permits 43

Sartell St. Augusta Waite P Sauk Rapids

RESIDENTIAL BUILDING PERMITS BUILDING PERMITS BUILDING PERMITS BUILDING PERMITS BUILDING PERMITS RESIDENTIAL BUILDING PERMIT COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDA COMMERCIAL BUILDING PERMITS,RESIDENTIAL CONSOLIDATED COMMERCIAL BUILDING PERMITS, RESIDENTIAL CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED RESIDENTIAL RESIDENTIAL BUILDING PERMITS RESIDENTIAL RESIDENTIA

$1M A

$1M

$.5M

$1M

$0 J

permits 14 No. 38 of 44 37 4341 41 121 58 152 136 141 224 200 233 256 241 206 $.5M

F 6

$10,914,217

$2M $0 J

$2M

14 No. 38 of 44 37 4341 41121 58 152 136 141 224 No. 200 of permits 27 241 32 206 51 permits 233 256

$10,914,217

$0 J

NA 30

$1.5M

Sauk Rapids Sartell

of permits 35No. 45 41 425

$.5M

$1.5M $.5M

$2M $0 $0 M J J F J M A A S M O J N J D AJ

$2M $0 J

$1.5M

$2M

$1.5M $.5M

$1.5M

$1M

3 No. 0 of permits 6 5 5 3 6 2 13 4 23 4 44

F A MS

St. Joe

A O MN J D 39

St. Joe

$1M S

$.5M

$0 J

No. of permits 5

$.5M

RESIDENTIAL BUILDING PERMITSBUILDING PERMITS RESIDENTIAL

$2M $0 $0 $0 AO J MN F JD M J A A M S J O J J NF A DM S A O M N J D J

6 No. 13of permits 23 44 1239 10 40 1443 3855 44 52 of 0 45 6 41 5425 3 6 2 13 4 23 4 44 32 8of permits 5128 30315 40 5 41 3 35No. No. No. of 7 152 9 141 10 No. 5 of permits 5 1 273 No. 2 of permits 37permits 41 121 39permits 40 43

$1.5M

$2M

$1M

$1M $0

RESIDENTIAL BUILDING PERMITSBUILDING PERMITS RESIDENTIAL

$10,914,217

$5,434,857

$23,240,100

$1M $1M $0 M A M J J F J MA A S MO J N J D A S O $2M No. 13 of permits 23 44 1239 1040 1443 3855 4452 37 41 121 152 141

St. Augusta St. Augusta

St. CloudWaite Park Sauk Rapids

Sartell

$1.5M

$1M

$0 S OJ

$1.5M

$.5M

RESIDENTIAL BUILDING PERMITSBUILDING PERMITS RESIDENTIAL

No. of permits 5

$1M

of permits 12

$.5M $3M

$1M

$1M A S

$4M $1.5M $.5M

$2M $1M

$2M

$5,173,500

$10,914,217

$5,434,857

$5,173,500 A

$1.5M

$2M

$5M $1M

$2M $1M

$2M

$1.5M

$.5M

Waite Park Waite Park

TSBUILDING PERMITS AL $0

$3M

$0 J $2M No. of permits 12

3 256 241 206

apids

$4M

$.5M

$2,544,033

$1.5M

$2M

$1M

$23,240,100

$1.5M

$5M $1M

$2,841,238

$2M

$2,076,302

$2M

$2M $0 $0 J O FJ N M J D A A DM J J F J M A A S M

$1.5M

Sauk Rapids Sartell St. Augusta Waite Park

M S

permits 9 3of10 1 No. 0 1 7 3 No. 11 5 3 75 0 31 55 525 of permits

JO J N J

43 No.108of permits 19 28 19 315 12

$1.5M

St. Joe Waite Park Sauk Rapids

St. Augu

BUILDING PERMITS BUILDING PERMITS BUILDING PERMITS RESIDENTIAL BUILDING PERMITS BUILDING PERMITS RESIDENTIAL BUILDING PERMITS TS,RESIDENTIAL CONSOLIDATED COMMERCIAL BUILDING COMMERCIAL PERMITS, RESIDENTIAL CONSOLIDATED BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING COMMERCIAL PERMITS, BUILDING CONSOLIDATED PERMITS, CONSOLIDATED COMMERCIAL BUILDING COMMERCIAL PERMITS, CONSOLIDATED BUILDING PERMITS, CONSOLID RESIDENTIAL BUILDING PERMITS RESIDENTIAL RESIDENTIAL RESIDENTIAL

$.5M

COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED$3M 20

$2M $1M AM SA

$5M $1M A S

40 6

43 13

52 44

$.5M

$1M

$0 S OJ

of permits 5No. 45 41 425

$23,240,100

$4M $1.5M $.5M

$1M$0

$0 M

$2M 3No. of0 permits 6 5

$.5M

$1.5M

$1.5M $.5M

$2M $1M SA OM 40

$2M $1M S O

$1.5M $.5M

$2M $1M SA

$2M $1M S O

4No. of 10permits 19 19 7 15

12 3

23 4

27 10

17 19

$1M $0

$1.5M $.5M

$1M $0 M

$1M $0

$2M

of permits 7

$0 J

10 No. 5 of permits 5 1 273 32 8 5128 3031 40

$1M $.5M

$1.5M $.5M

S$0 O

N F

$1M $0 $0 DM J J F J M A A S JM O FJ N MJ D AA

No. of permits 2

$1M

permits 1 No. 0 1 7 3 No. 9 3of10 11 5 3 7 5 0 3 1 55 525 of permits

1 No. 5 of permits 0 1 7 3 9 3 1011 5 3 5 0 1

SF 45

$.5M

$1M

$2M $1M

1.0

ome Sales Closed - Total Sheriff ’s Foreclosure Auctions $1.5M $.5M

$1.5M $.5M

$.5M 0.8

BENTON COUNTY

150

4 3of10permits 3 No. 1119 3 19 7 0 12 3

0.6

23 4

27 10

0.0

S O $0 J

No. of permits 2

$80,000$.5M

Employment A

MO AN $0

S O N D J $0 J J J F A M S A O MN J D J 5 No. 0 of permits 13 4 2 6 1 5 5 11 0 14 1 $700,000 3 3

No. of permits 5

-1.0

0.6

$40,000 No. of permits

60 A

A M

S O N D $0 J J J F A MS

D J

5 No. 0 of permits 13 4 2 6 1 5

0.4% J F

0.0%

2nd Quarter

Gross Domestic United ProductStates Nonfarm Jobs

$4M

2.0%

$4M

1.0

$80,000 odging TaxHome Dollars Sales Closed - Total

. CLOUD

ST. CLOUD

$3M

0,000

150 8%

2.0%

$80,000

$1M S O

$100,000

$80,000 $60,000

JJ-0.6 FJ D -0.8

0.6

1.5% $60,000

$60,000

1.3% oss Domestic United ProductStates Nonfarm Jobs

$40,000

0,000

$20,000

N/A

OM $0

0,000 o. of permits 0% A

0,000

5%$0

$1M 90 6%

DJ F

0 O

0.4% J F

A S 1.3%

N/A

0.0

-0.2

0.5%$0

S A

O M

N J

0.4% J F

D J

0.0%

1st Quarter

JJ-0.6FJ

-0.8 -1.0 3rd Quarter J F

10%

J-0.6 JF J

$300,000 40

$300,000

OM $0

$40,000 No. of permits

-1.0 J F 3rd Quarter

$100,000

2nd Quarter

MINNESOTA

$200,000 4th Quarter M A M

$200,000 J

COUNTRY WIDE 10%

1.5% N/A $60,000

$40,000 2 of3permits 12 No.

O $0 M

1.3%

10 4%

A M

S A

O M

23 3

10 2

10 12

M A M 4th Quarter

$150,000

5 0

N J

S $20,000

1.0%

J $20,000 J15 10 $0

$4,430

$100,000 30 N/A $60,000 SA

6%0.0%

5 0

MO $0

10 J

D -1.5%

0.0%-2.0%

M A M 4th Quarter

J Quarter J A 1st

S Quarter O N 2nd

D Quarter 3rd

2.0

0.8

4th Quarter

0 No.0of permits 1 05

$40,000 2No. of3 permits 12 23 3 1.0%

$400,000 AM SA

53 $300,000 10 73 2

10 12

0.5%$0

10 $0

$1M

MINNESOTA

1st J Quarter J A

2.0

N/A A

$200,0001.0

40 1.0

$150,0000.0 -0.5

$100,000-1.0

6% $100,000

D Quarter 3rd

4th Quarter

A M $20,000 15

M S A O MN J

XXXX XXXX X XXX XXX F

2.0

BENTON AND STEARNS COUNTY MINNESOTA

20 -1.0

1.0

15 -1.5

0.5

10 -2.0 M

10%

Local Nonfarm JobsHo Median 1.5

25 -0.5

$200,000

0.8

$150,000

0.0

SA 0.6

-0.5

-0.2 S

$100,000

0.4 -1.0

F A M S A O MN J D J

S O N D United States St. Cloud 0.0 Minneapolis/St. Paul Rochester

St. Cloud Minneapolis/St. P 6% Rochester

St. A Cloud S O N D -1.5 Minneapolis/St. Paul 0.2 Minnesota Benton & Stearns Counties United N/A States Minnesota -2.0 $50,000

MN J

MINNESOTA - MONTHLY % CHANGE COUNTRY WIDE

30 0.0

$40,000

S Quarter O N 2nd

4th Quarter

Minnesota Unemploy Nonfarm J

St. Cloud 35 -1.5 Paul Minneapolis/St. Paul Minneapolis/St. Minnesota Minnesota United 30 States United States $60,000 $50,000 -2.0

3rd D Quarter

STEARNS COUNTY

MINNESOTA

St. Cloud $80,000

$40,000 2 No. 3of permits 12 230

2nd S Quarter O N

J F M A M J J A Sheriff ’s Foreclosure Auctions Median Housing Prices 1.5 1.5

J J F AM S A OM N J D J

AM S A OM N J D J A S O N $0 $0 J F M A M JJ J

MINNESOTA - MONTHLY % CHANGE - MONTHLY % CHANGE MINNESOTA N/A

STEARNS COUNTY $100,000

N/A

$60,000

Minnesota Nonfarm Jobs Minnesota Nonfarm$20,000 Jobs

ST. CLOUD

$200,000

N/A

No. of permits 3

0.0%

XXXX $80,000

$4,430

$3M

$100,000 $2M

$200,000 8%

$20,000

O M

J J J

$5M

$120,000

1.3%

$0 M

S A

ST. CLOUD

10%

J J J F A M S A O M N J D J 5 0$40,000 1 0 5 0 5 0 5 0 0 0 13 0 4 No.0 of permits 6

A M

$600,000

$100,000

$120,000

COUNTRY WIDE $4,430 $500,000

1.5% $60,000

1.3% Housing Median Prices Sheriff ’s Foreclosure Auctions

2.0% Unemployment Rates Food & Be

$200,000 $80,000

$20,000

Local Nonfarm Jobs Local Nonfarm Jobs

0.0%

JD F

$800,000

0.4% J J J F

10%

JN J

COMMERCIAL BUILDING PERMIT COMMERCIA

$4,430

$40,000 No. of permits

$60,000

COUNTRY WIDE

J Quarter J A 1st

MO $0

No. of permits 0

$400,000

St. Cloud N/A N/A $50,000 10 0.5%$0 0.4% 4% $0 Minneapolis/St. Paul J F M A M J J J F A MS M J J J F AM S A OM N J D J A S O N D Minnesota BENTON AND STEARNS COUNTY MONTHLY % CHANGE - MONTHLY 5 BENTON AND -STEARNS COUNTY % CHANGE United States

MINNESOTA - MONTHLY % CHANGE- MONTHLY % CHANGE MINNESOTA 2.0

10 M

Minnesota Nonfarm Jobs Minnesota Nonfarm Jobs J

$100,000

N/A

-1.0% $150,000 0.5% 4% A M JJ0.4% JF A M SA O M NJ

2.0% Unemployment Rates Food & Beverage Tax Collections 0.5 0.5

-0.5%

J D J

0.5%

1.0%

2.0%

$200,000 $80,000

2.0%

$200,000 $80,000

nemployment Rates Unemployment Rates Economy Central presented by

UNTRY WIDE

$400,000

Median Housing Prices Median Housing Prices JN

1.5%

STEARNS COUNTY2011 QUARTERLY % CHANGE IN REAL $100,000 $100,000 6% GDP

-0.2

-0.8

XXXX $400,000

-0.4

1st Quarter

$120,000

Sheriff ’s Foreclosure Auctions Gross Domestic Product

2nd Quarter

N/A Source: www.positivelyminnesota.com 0

uctions Auctions oreclosure

$120,000

-0.4

XXXX

O0.4 N D $0 M J JF A M 0.2 0 0 1 0 0 0 No. of permits 0 0 A 60

$500,000

$4,430

0.6

0.2

1.0%

QUARTERLY % CHANGE IN REAL GDP STEARNS COUNTY2011 $100,000 $100,000 $700,000 $300,000 $300,000 2.0% 40 $4M

XXXX XXXX XXXX 8%

ST. CLOUD

$500,000

0.0

$20,000

0.8

$1M

5% 0,000

2.0%

$600,000

ST. CLOUD

0.4

QUARTERLY % CHANGE IN REAL GDP - MONTHLY % CHANGE UNITED STATES 0,000 $2M $2M $40,000 120 0% 1.0 1.0%

$600,000

$700,000 $600,000

$400,000

$80,000$.5M

$40,000 No. of permits

-1.0 J F 3rd Quarter

2.0% 1.5%

8% Food & Beverage Tax Tax Collections Lodging Dollars

0.8

30 $60,000

Sheriff ’s Foreclosure Gross Domestic Auctions Product

$700,000

$100,000

COUNTRY WIDE COUNTRY WIDE 2011 COUNTRY WIDE - % CHANGE COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED $120,000 10% N/A $120,000 10% 0 $0 $0 0 0 $0 $5M $800,000 J F M A M $5M J J JA FS MO AN MD J J F M A $800,000 M JJ FJ MA AS MO JN JD A J F M A M J J A S O N D S O N D 10% 2.0% NGE 2011 QUARTERLY % $100,000 CHANGE UNITED IN REAL STATES GDP - MONTHLY % CHANGE STEARNS COUNTY2011 QUARTERLY % CHANGE IN REAL GDP $100,000 $700,000

arm Jobs

$.5M $1M

Gross Domestic Product Sheriff ’s Foreclosure Auctions

$120,000

Unemployment Rates Unemployment $20,000 Non Farm JobsRates$20,000 1st Quarter

$200,000 35

XXXX

0.0

0.5%$0

511 014 1

$1M $.5M

$.5M

$500,000

$1M

$120,000$3M

1.3%

$600,000

ST. CLOUD

0.4 $0 A DM JJ JF AM SA A J S F O M N60 0.2 $100,000 $2M $40,000 No.147 of permits 1 0 00 00 50 0 44 17 450 440 50 0No. of0 permits N J

A O MN

Food & Beverage Lodging Tax Tax Collections Dollars St. Joe St. Augu ST. CLOUD ST. CLOUD

$2M

ST. CLOUD

-0.4 $0

$2M $1M S O

Food & Beverage Tax Tax Collections $80,000 Lodging Dollars

0.8 $1M

$60,000

0 J

$500,000 COMMERCIAL BUILDING PERMITS, BUILDING CONSOLIDATED COMMERCIAL PERMITS, CONSOLIDATED $120,000 $120,000

2.0%

1.5% $60,000

O M

St. Joe

$4M

$.5M

30 & Beverage Tax Collections ax Dollars UnemploymentFood Food & Beverage Tax Collections $20,000 Rates St. AugustaCOUNTRY St. Joe ST. CLOUD ST. CLOUD St. Augusta St. Joe WIDE 30

$20,000Sartell, Waite Park, St. -0.2 -0.2 Building departments for the following cities: St. Cloud, Sauk Rapids, Sources: Augusta,$1M and St. Joseph. 90

J -0.6F $0 M J J F J MA A S MO J N J D A -0.8 5 of permits 0 1 7 3 9 3 1011 5 3 5 0 1 No. 3 8 M

1.0%

$.5M

= exceeds chart scale 10

$1M

150

XXXX

D J

-0.4

$1.5M $.5M

ST. CLOUD

$120,000

147

COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDA N/A 0 $0 $800,000 $800,000

Gross Domestic United ProductStates Nonfarm Jobs

0.4 $1M $0 $0 $0 $0$1M JJ JF AM SA JOM FNJ MDJ AA MS J O JFN M AD S A A J S F O MN A D M 0.2 $100,000 13 65 of permits 55 11 14 17 17 45 54 No. 0 16 13 114 19 6 120 5 4411 147 14 11 No. of22permits 19 No. 19of permits 12 23 5 27 5 17 5No. of0 permits 16 19 44 22

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St. Joe

UNITED STATES 2011 QUARTERLY % CHANGE IN REAL GDP - MONTHLY % CHANGE $2M $100,000 $2M 120 1.0 2.0% $4M

ST. CLOUD 10

$1M $1M $0 $0 SA J OM F NJ M DJ A A M S J O JF N M A DS A

31of permits 11 30 7 01 3 o. 120 5

Lodging TaxHome Dollars $80,000 Sales Closed - Total

$.5M

$5M

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UNITED STATES - MONTHLY % CHANGE 120

CLOUD

$3M COMMERCIAL BUILDING PERMITS, CONSOLIDATED $3M COMMERCIAL BUILDING PERMITS, CONSOLIDATED 150 $120,000

20 $1M

44 22

$20,000

$1.5M

United States Nonfarm Jobs

$2M $1M

$5M $1M SA

$3M

43 No. 108of permits 19 28 19 315 12 5 23 3 27 0 17$40,000 5 6No. of5 permits 3 2

$.5M

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St. Augusta St. Augusta

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St. Joe

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COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED 150 $2M $1M

19 22permits 44 147 No.120 of 16

$80,000$.5M

Home Sales Closed Sheriff - Total ’s Foreclosure Auctions Lodging TaxHome Dollars Sales Closed - Total Waite Park Sauk Rapids ST. CLOUD St. Augusta Waite Park ST. CLOUD BENTON COUNTY ST. CLOUD

$1.5M

No. of permits 16

$1.5M

COMMERCIAL BUILDING PERMIT COMMERCIA

$4M

e Auctions Sauk Rapids Sartell $1.5M

$100,000

ITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED RESIDENTIAL BUILDING PERMITSBUILDING PERMITS RESIDENTIAL BUILDING PERMITSBUILDING PERMITS AL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED RESIDENTIAL RESIDENTIAL 0 0 0 $5M $2M $2M $2M $2M $5M $0

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Sheriff ’s Foreclosure Auctions Sales Closed - Total Home Sales Closed - Total Lodging TaxHome Dollars Waite Park Sauk Rapids St. Augusta Waite P

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$2M $1M

$2M

BENTON COUNTY ST. CLOUD ST. CLOUD ST. CLOUD COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED 20 COMMERCIAL BUILDING PERMITS, CONSOLIDATED 150 150 $120,000

No. of permits 5

$5,173,500

55 23

$5,434,857

$1.5M

$10,914,217

$4M

Sheriff ’s Foreclosure Auctions Sauk Rapids Sartell BENTON COUNTY $1.5M $.5M

$2M

$2M $1M

$2M

$5,434,857

$1.5M

St. Cloud

$10,914,217

$5,434,857

$1.5M

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$2M

$5M $1M

$5,173,500

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$2M

$23,240,100

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Gross Domestic Product A

Sauk Rapids

United States Nonfarm Annual change in realJobs GDP COMMERCIAL BUILDING PERMITS, CONSOLIDATED Sartell UNITED STATES - MONTHLY % CHANGE COUNTRY WIDE

$2M

$700,000 $.5M

$1M

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No. of permits 5

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$200,000

$4,430

$20,000

$100,000

No. of permits 7

No. of permits 3

Sauk Rapids

RESIDENTIAL BUILDING PERMITS

No. of permits 3

St. Augusta

$.5M

S O MJ J F JM A A SM O J N J DA N/A $0 1 No. 5of permits 0 $0 1 0 3 0 3 0 11 0 J3 1 F0 0 M 0 A 0 M 0 J 0 J F M A M J J A S O

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$80,000

$.5M

$.5M $600,000

RESIDENTIAL BUILDING PERMITS

No. of permits 0

$2M

St. Joe

Gross DomesticCOMMERCIAL Product Auctions Median Housing Prices BUILDING PERMITS, CONSOLIDATED Sheriff ’s Foreclosure COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCI Sauk Rapids Waite Park St. Aug 2011 QUARTERLY % CHANGE IN REAL GDP

STEARNS COUNTY

$2,544,033

$2,841,238

$2,076,302

$1M

Sartell

RESIDENTIAL BUILDING PERMITS

$600,000

$3M

A $300,000 S O N D AM SA OM NJ D J N/A $0 10No. of 5 permits 5 15 $0 35 8 5 280 J 3113F 4M 6A 5M 11J 14J A S J F M A M J J A S O N $200,000 No. of permits 0 0 0 0 1 0 0 0 0 $4,430 $100,000

St. Cloud

No. of permits 5

$3M

$2M

ECONOMIC INDICATORS & TRENDS

No. of permits 2

$80,000 $60,000

$.5M

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$1M

COMMERCIAL BUILDING PERMITS, CONSOLIDATED $100,000

$1M $800,000

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ECONOMY CENTRAL

$1M

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MINNESOTA

COMMERCIAL BUILDING PERMITS, CONSOLIDATED PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED es Closed -3.5% Total Lodging Tax Dollars COMMERCIAL BUILDINGHome & -Beverage Unemployment Rates COMMERCI Sheriff ’s Foreclosure Sales Food Closed Total Tax Collections Lodging Tax Dollars 2.0%Auctions $200,000 ST. CLOUD ST. CLOUD COUNTRY WIDE BENTON COUNTY ST. CLOUD ST. CLOUD Lodging Tax3.0%Dollars Food & Beverage Tax2.0% Collections Unemployment Rates Minnesota Nonfarm $2M

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Housing/Real Estate St. Cloud J

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5 12 No. of permits

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$120,000

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$1.5M

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$100,000 $.5M

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$120,000

150

$60,000

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$1.5M

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$80,000

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$5M

$1.5M

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ST. CLOUD $1M

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$2M

$1M

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$100,000

$1.5M

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ST. CLOUD

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Sauk Rapids

COMMERCIAL BUILDING PERMITS,

mestic Product SheriffNonfarm ’s Foreclosure Auctions Median Housing Prices Local Nonfarm Jobs Minneso States Jobs Food Domestic Product Sheriff ’s Foreclosure Auctions Lodging Tax DollarsUnited & BeverageGross Tax Collections Unemployment Rates Y % CHANGE IN REAL STEARNS COUNTY - MONTHLY % CH UNITED STATES - MONTHLY % CHANGE 2011 QUARTERLY %MINNESOTA CHANGE IN REAL GDP STEARNS COUNTY BENTON AND STEARNS COUNTY MINNESOTA ST.GDP CLOUD Auctions ST. CLOUD COUNTRY heriff ’s Foreclosure Median Housing PricesTax Dollars Local Nonfarm Home Sales Closed - Total Lodging FoodJobs &WIDE Beverage Tax Collections Unemploy $5M

$100,000

Median Housing Prices

1.3%

0.6

120 MINNESOTA $80,000 $200,000

0.4

90 $60,000

0.0

MINNESOTA $4M

$200,000

ST. CLOUD $120,000

$3M

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$2M

$80,000

$100,000

$20,000 $100,000 30

-0.8

5 2nd Quarter J

3rd Quarter M

$0 4th Quarter J

0 J J J F $50,000

A M

A SA

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J NJ

0.6

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Sheriff ’s Foreclosure Auctions STEARNS COUNTY Gross Domestic Product

M $0J

0.0%

O N/A

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2nd Quarter

3rd Quarter

4th Quarter

J 0

MSA M

OMN

Housing/Real Estate sources: St. Cloud Area Association of Realtors, http://stcloudrealtors.com/pages/statistics; Benton County Sheriff’s Civil Process; Stearn’s County Sheriff’s Office; http://thething.mplsrealtor.com/

DID YOU KNOW?

N F

D M

O M

N/A

United States Nonfarm Jobs

UNITED STATES - MONTHLY % CHANGE

-2.0 S

Expect the unexpected

BENTON AND

$120,000

$150,000

0.6

expect utility $100,000 60 costs to rise

0.4

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The US ranks third among top entrepreneurial performing countries, 0.8 0.6 behind both Denmark and Canada, according to a report from the US Small 0.4 Business Administration’s Office of Advocacy. According to the report, 0.2 the US ranks first in entrepreneurial aspirations, sixth in entrepreneurial 0.0 attitudes, and eighth in entrepreneurial activity. Source: Citibank small business survey 2011 -0.2

0.0

-0.2 A J S F O MN A D M

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2.0%

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64%

0.6

$60,000

say they would $40,000 start their business again even if they knew then $20,000 what they know now

J F M say rising raw material prices pose their biggest challenge

23%

0.8

73% XXXX

2011 QUARTERLY % CHANGE IN REAL GDP

1.0

St. Cloud Minneapolis/St. Paul $0 Rochester J

0.4

0.2

0.0 A

J -0.2

would recommend entrepreneurship as a’s Foreclosure Auc Sheriff STEARNS COUNTY career to their children 40

2.0%

say increasing healthcare 1.5% costs pose their 1.3% biggest challenge

Source: Citibank small business survey 2011

1.0%

30 25 20 15

0.5%

-0.6

0.4%

10 5

-0.8

-1.5

Gross Domestic Product

ENTREPRENEURSHIP DECLINES

-1.0

BY THE NUMBERS

St.30 Cloud Minneapolis/St. Paul Rochester

83%

$100,000

120

A 4% S O J $0 A M J

M J J 4th Quarter

$200,000

F Quarter M A 3rd -0.2

-1.0 6%

St. Cloud $0 J F M Minneapolis/St. Paul No. of permits 2 1 5 Minnesota -0.2 United States 0.0

150

$40,000

EntrepreneursMINNESOTA share their opinions about starting and staying in business.

$150,000

1.3%

= exceeds chart scale

0.0

-0.5

Local Nonfarm Jobs Home Sales Closed - Total Lodging Tax Dollars BENTON AND STEARNS COUNTY - MONTHLY % CHANGE ST. CLOUD ST. CLOUD Median Housing Prices Local No

STEARNS COUNTY $200,000

Oct-10 6% Oct-11

Oct-09

0.2 $0

St. Cloud Minneapolis/St. Paul N/A $0 0.0% Rochester 1st Quarter 2nd QuarterJ

-0.2

0.5%

0.4 20 Visit www.BusinessCentral $.5M 15 Magazine.com 0.2

$60,000

Oct-08

0.5 8%

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$80,000

0.4

$1M

St. Cloud Sources: Tax Collections – City of St.J Cloud J F M A M J A S O Minneapolis/St. N D 5 Paul 0.0 Secretary$20,000 Incorporations - MN of SCSU No. of permits 7 9 10 5 of 5 State, 1 3 Graph 8 28courtesy 31 Rochester

1.0%

D M

1.5%

1.0

0.6

0.0

2.0%

Oct-07

$50,000

0.4%

Median Housing Sheriff ’s Foreclosure AuctionsPrices BENTON COUNTY MINNESOTA Sheriff ’s Foreclosure Auctions

2011 QUARTERLY % CHANGE IN REAL GDP 40 2.0%

N JO 0.2F

St. Cloud Minneapolis/St. Paul Rochester

0.5%

0.4 35 45

No. of permits 27 32 51 30$20,000 40 41 N/A 0 $0 J O F N MD A J M F J M J A A M S J O J N A D S

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$0 $50,000

$.5M 0 Oct-06

10% 1.5

0.8

$100,000

0.6

0.8

$60,000

$1M

$1.5M 35

Now online XXXX XXXXXX XXXX

0.8 $1M

COUNTRY 2.0 WIDE

$120,000

$100,000

1.0%

$60,000

-0.4 -0.6

$1.5M

Local Nonfarm1.5%Jobs

$80,000

2.0%

$150,000 20 BENTON AND STEARNS COUNTY - MONTHLY1.3% % CHANGE

XXXX 15

BENTON AND STEARNS COUNTY - MONTHLY % CHANGE ST.10% CLOUD

$200,000

2.0%

$100,000

$150,000

-0.2

$150,000 $40,000 60

30 25

0.2

$5,434,857

0.8

$5,173,500

150

35 30

1.0

2.0%

$23,240,100

TEARNS COUNTY ST. CLOUD $120,000

$2M

Business Central Magazine ••JANUARY/FEBRUARY 2012

0.0%

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Economy Central presented by

Music Men

[

“This business is all about relationships.” –Tommy Vee

]

Business Central Magazine ••JANUARY/FEBRUARY 2012

[

“Everything we do is about music.” –Jeff Vee

]

Managing Bobby Vee’s career and traveling the world in his band turned out to be more than just a good time for his sons, Jeff and Tommy. It also turned out to be good business. BY GAIL IVERS / / PHOTOS BY JOEL BUTKOWSKI / BDI

Rockhouse Productions, LLC ADDRESS:

23 W Minnesota St. PO Box 757 St. Joseph, MN 56374-0757 PHONE: (320) FAX:

363-1000

(320) 363-0722

EMAIL:

info@rockhousepro.com

PROLOGUE It’s the stuff of legends. International rock stars die unexpectedly while in route to a performance in the Midwest. Local musician with big dreams volunteers to fill in. A star is born and a career is launched. In a nutshell that’s what happened to Fargo native Robert Velline, known today as Bobby Vee. Buddy Holly, Ritchie Valens and The Big Bopper were on their way to a concert in Moorhead when their plane crashed in Clear Lake, Iowa, killing all three. Velline was only 15, but a week earlier, he had pulled together a small group of friends to form a band. Calling themselves The Shadows, they answered a plea by the local radio station to fill in for the rock and roll legends. Velline was on his way. Buddy Holly died in 1959. That same year Bobby Vee made his first single, “Suzy Baby,” that brought him to the attention of the major record labels. By 1961 he was topping the charts in the United States, UK, Australia and Asia. In December 1963 he married Karen Bergen of Detroit Lakes, whom he had met at the Detroit Lakes Pavilion in 1960 when he was just starting out. They moved to

California and started raising their family while Bobby built his career. But there was something about the Midwest that never left Bobby and Karen’s bones. They went home to Minnesota regularly in the summers to the family cabin. Their children thought of Minnesota as their second home. When their eldest son, Jeff, was 16, Bobby and Karen decided it was time to leave California. “It probably would have been better for Dad’s career if they had stayed in California,” Jeff Vee said. “But they wanted us to have those Midwest values.”

WEB:

www.rockhousepro.com OWNERS: Bobby,

Jeff

and Tommy Vee STARTED: 1989 NUMBER OF EMPLOYEES:

Four, including Jeff and Tommy Vee who work in the business full time BUSINESS DESCRIPTION:

Entertainment and event production; audio and video recording; artist management, development and booking. REVENUE BREAKOUT:

STAGE ONE When Jeff was in college, Bobby separated from his management company. “Things hadn’t been going that well with the management company. He’d always been really involved in managing his own career,” Jeff said, “but when he had a tour of England fall apart abruptly, their agreement came to an official end.” Bobby turned to his sons, Jeff and Tommy, to help put the tour back together. That was in 1992 and the threesome have been a family team ever since. “We managed to put the tour back together in two years,” Tommy said, “which

50 percent from events; 50 percent from artist management; less than 1 percent from the recording studio. WHERE THEY WORK:

Rockhouse Productions’ events include: an annual fundraiser for the Hospice of South Central Indiana; the Clovis, NM Music Festival; Lamar State University’s annual fundraiser in Port Arthur, TX; The Halfway Jam, Royalton, MN; and the July 4th JoeTown Rocks Concert, St. Joseph, MN.

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was really quick. We had to interview locations, set up new relationships, make plans – it takes a lot of time.” But the two showed that they had what was needed to manage the career of a major star. “It helped that it was massively successful,” Jeff said. The brothers added an Australia tour to Bobby’s schedule, a venue he had not been doing. Then came Branson for three years, followed by two years on the road with the Branson show. Not only were they managing Bobby’s career, they were part of the show. Talented musicians in their own right, Jeff and Tommy played in Bobby’s band from the 1990s until just this past year when Bobby retired. “Dad could get us on stage,” Tommy said, “but if we couldn’t handle it we wouldn’t have been able to stay.” The exhilaration of performing on stage in large international venues can’t be beat, the Vees agree. “It’s hard letting go of the music,” Tommy said. “There’s no way to duplicate that experience.” “We still perform,” Jeff said. “Sometimes for fun, like at JoeTown rocks, sometimes for money, sometimes for both. But it’s different from what we were doing with Dad.” “I suppose it’s like major league baseball versus a local pick-up game,” Tommy said. “They’re both fun, but they aren’t the same thing. It’s hard to perform successfully at that level and run this business, too.”

1959

Buddy Holly dies in a plane crash and Bobby Vee takes his place on stage in Moorhead.

1960

Bobby Velline, now known as Bobby Vee, tops the charts in the U.S.

1961

Bobby Vee has his first No.1 hit.

[

“We have that good small town Minnesota work ethic – we say what we mean and we do what we say. We learned that from Dad. — JEFF VEE

]

Rockhouse Productions family: Tommy, Bobby and Jeff Vee.

STAGE TWO Managing their father’s career and traveling the world in his band turned out to be more than just a good time. The younger Vees watched their father interact with international companies. They learned how to develop relationships that were reliable

1963

Bobby Vee and Karen Bergen marry; they move to California for Bobby’s career.

1980

Bobby and Karen move their family from California to St. Cloud.

1981

Bobby and Karen Vee start a fundraiser for Cathedral High School that eventually becomes known as the Rock Around the Clock. This annual event continues for 24 years.

Business Central Magazine ••JANUARY/FEBRUARY 2012

and would last. They discovered what made the difference between an exceptional event experience and an adequate one. In 1996 Jeff and Tommy turned their event participation experience into an event planning business. Today, organizing and planning major musical events across

1989

Bobby, Jeff and Tommy Vee build a recording studio onto the family home and establish Rockhouse Productions.

1992

Jeff and Tommy Vee begin managing their father’s career; Jeff, Tommy, and their younger brother, Robby, join their dad’s band. Touring over the next 15+ years takes them to the UK, Australia, the Far East and all across North America many times over.

1996

Jeff and Tommy expand the business to include major concert event planning and management.

1999

The Vees co-produce “Buddy Holly Week” at the Roseland Ballroom in NYC with Paul McCartney.

2000

Jeff and Tommy purchase the old First State Bank building in St. Joe and relocate the business, expanding the studio and multi-media services.

JOETOWN ROCKS the U.S. accounts for about 50 percent of their work. “We know how events need to be run, how to make money and save money,” Jeff said. “Based on years of relationships, we know what it should cost. People who put on events one time a year are really naive – and I don’t mean that in a mean way. They just have no way of knowing what top level performers should cost. We know when we’re getting the best deal possible.” A few years ago, the organizers of the Halfway Jam in Royalton, Minn., approached them for help. “We got a sense that if it was done right it could grow,” Tommy said, “so we agreed to work on it. It’s in the seventh season – different bands, classic rock theme, and people love it.” The two also provide all the entertainment for two casinos: WinnaVegas Casino in Sioux City, IA, and Cher-Ae Heights Casino in Eureka, CA. Talking about the casinos caused the Vees to point out that the music business is not all fun and games. Last spring Sioux City experienced severe flooding. The WinnaVegas Casino was shut down for three months. “We had to cancel $3 million in contracts,” Jeff said. “All the artists sent their deposits back,” Tommy said. “This is where those relationships really matter. We gave the money back to the casino. It hurt, but it didn’t kill us. There were people down

2004

•Rockhouse Productions, in cooperation with Wirth School of Music and St. Cloud Community Education, create “School of Rock” Day Camp for children ages 11 – 16 •The Vees co-produce “At the Drive In” televised concert with Austin City Limits/PBS

2006

•The Vees create The Original Stars of American Bandstand show featuring Bobby Vee, Fabian, and other stars from the 60’s. The show runs for three years in Branson,

Jeff and Tommy Vee have travelled around the world performing with their famous dad, Bobby Vee. They talk daily with Broadway stars. They set up musical events that draw thousands. And yet they call St. Joseph, Minn., home. “We’re proud to be part of this community,” Jeff Vee said. “We have no intentions of changing that.” “If we hadn’t travelled so much already, probably we would have moved away,” Tommy Vee said. “But the fact is that this is a nice place to come home to.” This isn’t just lip service. The Vees have played a critical role in creating JoeTown Rocks, a local summer festival that has been headlined by Bobby Vee. Even though Bobby is retiring, Jeff and Tommy are still committed to the event. “We do JoeTown Rocks because this is home, it’s fun, and we want it to work,” Tommy said.

there who hurt a lot worse because they lost their jobs for three months.”

STAGE THREE When Bobby told his sons he wanted to cut back, it gave them pause. Not only did this mean a lifestyle change for everyone, it meant a change in their business model. “Strategically Dad was over half of our income,” Jeff said. “We needed to come up with other work. I guess that made us more open to working with the Broadway programs.” By Broadway programs, Jeff means specifically The Midtown Men and The Broadway Dolls, two shows that Rockhouse Productions has been working with extensively. By far, the biggest growth in the company has been associated with The Midtown Men. “Broadway wasn’t a circle we were running in,” Jeff said.

then goes on the road for two more years. •Rockhouse Productions begins working on Halfway Jam in Royalton, MN, and creates JoeTown Rocks in St. Joseph, MN

2009

Rockhouse Productions organizes a 50th Anniversary celebration of Bobby Vee’s career, in conjunction with the 50th Anniversary of the plane crash that killed Buddy Holly, Ritchie Valens and the Big Bopper. It is at the Surf Ballroom in Clear Lake, IA and lasts five days.

Tommy laughed. “It’s a long way from St. Joe, Minnesota to Manhattan.” The Midtown Men are the four stars from the original cast of Broadway’s Jersey Boys. The Vees hired the group for an event. “They were struggling with their management,” Tommy said. “They were Broadway trying to enter the Rock and Roll world.” The Midtown Men asked the Vees if they would be interested in managing the group. “We thought they were crazy,” Jeff said. “But we took a closer look and found we could answer their questions. Then it was just a matter of whether or not we wanted to do it.” “With Dad’s retirement we had the time,” Tommy said. “And it does take all of Jeff’s time. We’re booking these guys and handling their PR – you’d never hear of such a thing normally. It’s much more common to have two different companies handling those two functions.”

The show includes guest performances by Graham Nash, Los Lobos, The Crickets and others. In conjunction with the Rock and Roll Hall of Fame and Austin City Limits, Rockhouse co-produces the film 50 Winters Later.

2010

Rockhouse Productions begins managing The Midtown Men, a show featuring four stars from the original cast of Broadway’s Jersey Boys.

Early 2012

(anticipated) – The Vee family creates a new album they are calling a family scrapbook. “We recorded 10 tracks in the garage – new tunes and family favorites,” said Jeff Vee. “We’re doing it entirely for ourselves, and everyone is involved – Mom, Dad, brother Robby, our sister Jennifer, and our brother-inlaw, Barron. We don’t care if we sell a single one…but we will, of course, because it’s Dad.”

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[

This business is all about relationships. If this isn’t the right opportunity now, that doesn’t mean it won’t come back and be the right opportunity later.

But it’s worth it right now for the Vees who believe the Midtown Men “are on the edge of what could be a substantial ride,” Jeff said. For instance, they are talking with symphony orchestras, many of which are struggling and turning to pop music to bring in new audiences. The Midtown Men plan to commission musical charts to be written that combine their 60’s music with instrumentation for a symphony to create a 90-minute show, Jeff explained. At $1,000 a minute, it’s a substantial investment, but one the Midtown Men will recoup by performing the show at multiple venues. The group recently signed on to perform with the Houston, Omaha and Atlanta Symphony Orchestras and is exploring television opportunities. “That’s the kind of thing we’re talking about,” Jeff said. “There could also be a PBS special and many album projects. These guys have that kind of potential.”

— TOMMY VEE More in the development stage are The Broadway Dolls. This group of female Broadway stars developed their show around songs they have actually sung on Broadway…not necessarily on the most popular tunes from their shows. While this makes for a fine theme, it doesn’t necessarily make for a great show, according to the Vees. “Just because they’re creditable Broadway singers isn’t enough,” Jeff said. “People go to Broadway for a play. They go to Vegas for a revue. A revue takes a story…a theme…that speaks to a broader audience.” “The Broadway Dolls have an act that’s good enough for New York, but not for the Midwest,” Tommy explained. “Their repertoire is their biggest problem – the audience needs to know the music. And their wardrobe needs work – you don’t want to be as racy in Nebraska as in New York or LA.” But they haven’t given up

]

The Midtown Men is a broadway program comprised of singers, Christian Hoff, Michael Longoria, Daniel Reichard, and J. Robert Spencer. By far Rockhouse Production’s biggest growth has been associated with The Midtown Men.

PERSONAL PROFILES Tommy Vee

Jeff Vee

TITLE: Owner/Producer

HOMETOWN: St. Cloud AGE: 44

HOMETOWN: Avon, Minn. AGE: 46

EDUCATION: Graduated from

EDUCATION: Graduated from Cathedral High School in St. Cloud in 1983. Business Degree from Concordia College in St. Paul, 1993

Cathedral High School in St. Cloud in 1984. Attended 2.5 years at SCSU, got so busy performing never finished WORK HISTORY: Performing

musician since high school. Rockhouse Productions since 1992 FAMILY: Wife, Kathy, works at Reach Up/Headstart in St. Cloud.

They met at a show in Rochester, Minn. They have two sons: Bennett, 9 and Liam, 7

WORK HISTORY: Recording and touring musician.

Event/concert production, booking and artist management. Teaching “Audio Production” in the Mass Communications Dept. at St. Cloud State University (2001-2006) FAMILY: Wife, Cindy, contract administrator for the Major

League Baseball Players Association, offices in St. Joseph, Minn.; they met at a show in Clovis, New Mexico. Daughter, Saima Rose, 4

HOBBIES: Fishing

HOBBIES: Music, “It’s a hobby, too!” Fishing, cross-country skiing, barn dances – polka bands. Looking for a trailer for my tractor so I can give hay rides.

INSTRUMENT: The bass

INSTRUMENT: Drums

FAVORITE SONG: “The Maker” by Daniel Lanois

FAVORITE SONG: “Forever Young” by Bob Dylan

ADVICE TO A WOULD-BE ENTREPRENEUR: Try to find a way to

ADVICE TO A WOULD-BE ENTREPRENEUR: It helps to love what you do. Have passion – keep an eye on the long road and form lasting, mutually beneficial relationships.

make money doing what you love. If it works you will never work a day in your life (Corny, but true.) BEST ADVICE YOU’VE RECEIVED: “It’s all Peggy Sue”

by Joe B Mauldin/The Crickets. It’s another way of saying: Keep it simple.

Business Central Magazine ••JANUARY/FEBRUARY 2012

BEST ADVICE YOU’VE RECEIVED: Honesty, integrity matter. Treat people well. Give it your all and that is the reputation that will follow. Take nothing and nobody for granted. Enjoy the journey. I suppose this came mostly from my dad – noting how he does his life and business.

SCHOOL OF ROCK Every August for two weeks Jeff and Tommy Vee introduce kids to rock and roll. Since 2004, the

on The Broadway Dolls. “We have a lot of eggs in very few baskets,” Jeff said. “We talk about that a lot and what we should do about it.” Agreeing to work with just any performer or event isn’t the answer for the brothers. “We don’t want to just be sales guys,” Tommy said. “We want to really be part of the show. The musical experience, the magic that got us into this business in the first place is what’s important to us.” “If it was just about business, we’d have more acts and do less with them,” Jeff agreed. “But our focus is to have a few shows and have a bigger hand in their careers.”

STAGE FOUR

two owners of Rockhouse Productions have partnered with the Wirth School of Music and St. Cloud Community Education to create the “School of Rock.” “It’s a day camp for kids,” Jeff Vee said. “We have about 60 kids, ages 11 to 16. All the instructors have had professional careers in rock and roll.” Participants need a working knowledge of an instrument, but they don’t need to be proficient. The highlight of the two weeks is when the students, now grouped into ten bands, perform two songs each. “It’s one of my favorite things to do in the community,” Tommy Vee said.

Rockhouse Productions started in 1989 as a recording studio put on the back of the Vee’s family home. “It’s a sandbox for our family to play in – a passionate hobby,” Jeff said. “It needs to pay for itself and pay for the building. It’s by far the smallest part of the business.” And yet this incidental portion of the company could be the doorway to their next big client, a singer named Emma Kay. “She lives in St. Cloud,” Jeff said. “She just walked in the door one day with one of our recording studio flyers in her hand. She has the potential to be the next big thing…and I mean big.” “She doesn’t have the pizzazz of the Broadway Dolls,” Tommy said, “but she has soul. She’s soul food. We need that. It helps us do some of the other projects. We do music back-up for her. She writes great lyrics.” But that isn’t enough, according to the Vees. “We’re helping her learn,” Jeff said. “To be successful in this business you have to be active in your own career. We can’t make you into a star – you have to have it already. But we can help make you successful. Emma Kay has all the ingredients. If something hits with her, it could really change our direction as a company.” BC Gail Ivers is the vice president of the St. Cloud Area Chamber of Commerce and managing editor of Business Central Magazine.

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FEATURE

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WHAT’S

Your Plan?

Companies should plan ahead to avoid the potentially crippling impact of unexpected events By Lawrence Schumacher

ou’d think the destructive tornadoes in Wadena and Minneapolis would be a wake-up call. Or that the flooding in Moorhead and southwestern Minnesota in recent years would be enough to focus businesses on planning for disaster. But John Unger says you’d be wrong. Especially in outstate Minnesota, businesses are less likely to take steps in advance to ensure that a natural or man-made disaster doesn’t close their doors, said Unger, president of Vaultas, a Minnetonka-based business with locations in St. Cloud and Alexandria. The company specializes in providing secure data storage for businesses. “If a business closes its doors for five to 10 days following a natural disaster, there’s a 93 percent chance it will never reopen or will file for bankruptcy in the following 12 months,” he said. “And I’m not just talking about tornadoes.

Business Central Magazine •• JANUARY/FEBRUARY 2012

Extended power outages, a roof collapse from snow, a chemical spill, these things happen every day.” More businesses are moving toward disaster preparation and planning, largely because banks and other financial backers are insisting upon it, said Chris Shorba, partner at KDV, a business, financial and technological consulting firm with locations in St. Cloud and Bloomington. “It’s market-driven, more than advisory or awareness,” he said. “Financers who extend large amounts of credit to a business want to know what their plan is if something

“Financers who extend large amounts of credit to a business want to know what their plan is if something forces them to close their doors suddenly.”

GETTING STARTED The good news is there are simple things businesses can do before disaster strikes to minimize their exposure or shorten the down time following a disaster, said Marvin Klug, Stearns County’s director of Emergency Management. “The first thing any business needs is a continuity

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that serves them well most of the time, but disaster planning and preparation is about making sure all your employees are involved, know what to do, and can help to keep the plan current, Klug said. “You can have a plan, but if you write it yourself and put it away, it’s not really a plan.”

of operations plan,” he said. “That means identifying the potential hazards your business may be exposed to, identifying the critical functions of your business and identifying which employees are essential to performing those critical tasks.” Putting together such a plan is not something to take lightly, however. Owners of many small businesses have a do-it-yourself attitude

forces them to close their doors suddenly.”

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electronic records to a secure location, according to Unger. Many businesses don’t back them up at all, or back them up on a separate hard drive at the same location as their primary systems. “Anybody who relies on data to produce their product, service their customers, or keep track of their finances can find themselves out of business for a long time if their data is lost,” Unger said. “The cost has come down so far for data storage in the past three years that you can now prevent catastrophe for as little as $50 a month.” In the process of auditing a business, KDV informs clients when they need to reduce their exposure to disasters or beef up their disaster recovery planning, Shorba said. The company’s technology services division provides technology support, including reducing security risks and preventing equipment failure. One client had spent a lot of money on a state-of-the-art server room, but had no secure, offsite data storage, he added. KDV also helps businesses assess the risk to “human systems,” employees and their ability to continue carrying out job duties in the wake of a disaster. OTHER STEPS If a company plans ahead, it can have telephone lines up and running over the Internet within a day so that calls can continue coming through to an existing phone

Business Central Magazine •• JANUARY/FEBRUARY 2012

line, Unger said. Employees working from a laptop at home can continue to do most of their business, even if the office is in ruins. “There was a telephone company that lost its central office due to a fire. It was offline for five weeks,” he said. “It supported 2,900 small businesses, and of those, 1,900 never came back because their phone lines were down.” Other advance steps can also help, such as keeping an up-to-date employee contact list in a secure location, knowing which vendors can help you replace lost equipment quickly, and finding a commercial real estate agent in the area who can provide information about temporary relocation sites for your business, Stearns County’s Klug said. NO EXCUSES Disaster preparation has been a growing industry since at least the Sept. 11, 2001 terrorist attacks, Shorba said. The lessons learned from watching Manhattan businesses try to recover from catastrophic loss prompted a lot of thought on how to minimize risks from disruption. And with so many businesses now offering services that help companies prevent or recover from disruption, there is no excuse for businesses to be caught flat-footed, Unger said. “It’s just a basic business responsibility for owners to provide themselves with some

level of protection,” he said. “And it makes financial sense now. Having a recovery plan can get you a break on your insurance costs that more than makes up for any other expenses.” BC

Larry Schumacher is the creator and owner of Wordbender Communications LLC, a communications consulting and freelance writing firm. He lives in St. Cloud with his wife and two children.

LEARN MORE Here are some of the tips FEMA (Federal Emergency Management Agency) and other business experts recommend to minimize the disruption to your business: Keep a master list of emergency documents, including insurance coverage, financial records, equipment and inventory, employee information, customer and vendor lists. Keep one copy of those crucial documents in a waterproof, fireproof, portable container and another off-site. Create a crisis communications plan with an eye toward communicating with customers, vendors, employees, the public, and government. Review insurance policies on a regular basis with an eye toward physical losses, flood coverage and business interruption.

Establish a plan for paying employees and vendors during a disruption. Prepare a continuity of operation plan for serving customers if your facility is not available. Keep an eye on suitable vacant industrial and commercial buildings and real estate contact information.

WORKING WITH PEOPLE, NOT JUST NUMB3RS.

Keep first aid kits on hand and have emergency response and evacuation plans in place and practiced to help minimize employee injury. Contact FEMA, the Small Business Administration or the Farm Service Agency following a disaster to learn more about lowinterest business disaster loan options.

For information about state and national disaster relief resources, visit www.BusinessCentralMagazine.com.

BRIAN MACKINAC & STEVE SCHUELLER, C.P.A.’S with Jim and Linda Hilmerson of Hilmerson RV

“The Schlenner Wenner accounting firm is like family to us. We can call anytime we need to and they are right here if we have any questions from business to setting up of corporations, or tax questions and so on. The rock of our business success is Schlenner Wenner.”

– Jim Hilmerson, Hilmerson R.V.

www.swcocpas.com Little Falls 320.632.6311 Albany 320.845.2940

Maple Lake 320.963.5414 Monticello 763.295.5070

St. Cloud 320.251.0286

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PROFIT

RETHINKING

Risk

For the past several years businesses and organizations have been turning away from ideas with higher risk attached. Now St. Cloud State University is partnering with local companies to combat the growing trend against medical innovation. By Alexa Sandbakken

ver a decade ago, many leaders in the biomedical industry grew to dislike the risk that came with research and development for drugs. Since then, new drugs have been harder to come by, leading many to believe that biomedical companies need to return to the times of risk and innovation and start discovering new medical therapies again. The industry used to be led by creativity and exploration. Now, most biomedical companies function on the same processes they have used for the past 15 years. Cardiologist Andrew Marks, a founder of the Wu Center for Molecular Cardiology at Columbia University, claims that academic institutions and the National Institutes of Health have moved away from innovation, turning away from ideas with higher risk attached. According to the Council for American Medical Innovation, “there is

a palpable fear of new technology doing harm or costing more.” Bernard Munos, founder of the InnoThink Center for Research in Biomedical Innovation in Indianapolis, Indiana, explains that “the impact on innovation has been severe: new drug approvals have steadily declined; 22 of the 25 most prescribed drugs are now generic; and 78 percent of prescriptions were filled by generics in 2010 (up from 46 percent in 2001).” According to Jeremy Hsu, author of “Fear of Risk Threatens Medical Innovation,” the Food and Drug Administration received 45 applications for new drugs in 1996 and only 23 applications in 2010. Yet, there are many new ideas in the works in the biomedical field today. Scientists currently could be exploring “synthetic biology, tissue engineering,

Business Central Magazine •• JANUARY/FEBRUARY 2012

nanotechnology, stem cells,” and more, Munos explained. Steve Burrill, President and CEO of Burrill & Co., said there are over 4,000 biomedical companies today, but the “financial criteria by which new drug candidates are assessed make it very difficult for the products of this new science to compete against ‘safe’ projects.” Burrill explained that returns on safer products come with less risk than financing the next “speculative breakthrough.” Turning to educational institutions may be the answer. St. Cloud State University is partnering with local companies to combat the growing trend against medical innovation. On Oct. 27, Governor Mark Dayton helped break ground on the final part of St. Cloud State’s Science Initiative, a new 100,000-square-foot Integrated Science and Engineering

HEALTH CARE & MEDICAL SERVICES

Laboratory Facility (ISELF). According to the St. Cloud State University Facilities Management website, ISELF is set for completion in 2013, and will “support Minnesota companies that are global leaders in medical devices, pharma/ biologics, animal science, bio-agriculture and renewable energy.” David DeGroote, dean of the College of Science and Engineering, believes this new facility will help bridge the gap between academia and private enterprises by allowing St. Cloud State University faculty and students to “do more collaborative research with businesses and earn more National Science Foundation grants.” One interested local business is Microbiologics, Inc., a company that specializes in producing lyophilized microorganism preparations for use in

HEALTH CARE & MEDICAL SERVICES

Turn the page to learn more about the variety of Health Care & Medical Services available to businesses in Central Minnesota.

the clinical, pharmaceutical, cosmetic, dietary supplement, food, water, environmental and educational industries. Brad Goskowicz, CEO, explained that his company has been partnering with SCSU in many areas. According to Goskowicz, SCSU and Microbiologics currently work together to develop products and new technologies, and ISELF will help that partnership expand. At the groundbreaking ceremony for ISELF, SCSU biology professor Matt Julius explained how educational

institutions can help curb the growing tide of fear regarding medical innovation. Julius emphasized that the purpose of ISELF “is to bridge those barriers that crop up, for whatever reason, between the community, the private sector, and academia.” With this new building, Central Minnesota is taking the next step in medical innovation. BC Alexa Sandbakken was the communications intern at the St. Cloud Area Chamber of Commerce in fall 2011.

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Certif ied Healthcare Constructor

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ongratulations to Douglas, J. Boser who has brought Boser Construction, Inc. to

the next level by attaining Certified Healthcare Constructor status through the American Hospital Association. As the business owner, Doug has created a thriving construction company over the past 15 years that has become an area leader in Commercial, Medical and Institutional construction. His dedication to the medical construction industry is evident through his processes, employee training and continued education in this field.

Business Central Magazine •• JANUARY/FEBRUARY 2012

r. Timothy Hiesterman D.O. is the latest addition to St. Cloud Orthopedics, expanding the specialty of Orthopedic Trauma Surgery. Dr. Hiesterman treats fractures of the upper and lower extremities, pelvis and acetabular fractures, malunions, and nonunions. He also provides orthopedic care for hip and knee replacements, arthroscopic surgeries, and sports-related injuries. He brings an extensive knowledge of musculoskeletal care and orthopedic trauma to St. Cloud Orthopedics and is now accepting appointments.

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St. Cloud Medical Group

Dr. Ann Lee Board Eligible Family Medicine 320-240-2180 www.stcloudmedical.com

Not the biggest—but one of the best.

r. Ann Lee received her Doctor of Osteopathic Medicine Degree from Lake Eric College of Osteopathic Medicine and completed her residency at the St. Cloud Hospital Family Medicine Residency program. Dr. Lee sees patients of all ages. She has special interests in women’s health, obstetrics, and osteopathic manipulation. Appointments with Dr. Lee can be made at the St. Cloud Medical Group South Campus at 1301 33rd St. South by calling (320) 240-2180.

At St. Cloud Medical Group, you’re a neighbor— not a number. So from the front desk to the examination room, we make sure you feel comfortable. Our compassionate staff of physicians and specialists gives you personal attention every time you visit. The relationships we form with our patients are the most important and rewarding part of our care. And it shows—99% of our patients would recommend our clinic to family and friends.

Growing with St. Cloud It’s the genuine care and respect we have for our patients that makes the difference.

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South Campus 1301 33rd Street South 251-8181

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t SkinFitNessMD, healthy skin is never out of style. We are not your typical spa. The MD in our name means that all of the treatments and products we offer are Medically Directed. At SFNMD, we transform unhealthy, lazy skin by using the most clinically proven and safe technologies and treatments. Under the skillful direction of our Board Certified Plastic Surgeon, Dr. John Allan Ness MD, and our Certified Clinical Esthetician, Maretta Johannes, we will develop a cosmetic treatment plan to exercise and transform unhealthy, lazy skin to beautiful, healthy and radiant skin. Please call for a personalized complimentary consult.

NEW NAME. NEW SPACE. SAME GREAT LOCATION. ALL NEW CENTRAL MINNESOTA FARM SHOW 2012. The new River’s Edge Convention Center expansion will enhance the former St. Cloud Civic Center Farm Show venue with: • 35,000 square feet of new exhibit space • 13,000 square feet of additional pre-function space and convenient on-grade load-in access • More flexible space for exhibits of all types • Same convenient location in Central Minnesota • Familiar staff members who take great care of exhibitors • Bigger entrance doors

2012

• Wash bay

Booth space NOW available. For more information, please visit www.StCloudAreaChamber.com or call 320-251-2940, ext 105.

www.StCloudRiversEdgeConventionCenter.com

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BUSINESS SPOTLIGHT PROFIT

Lessons Learned The Great Recession took its toll on local retailer MCI, but they are returning stronger than ever with an eye on growth. By Gail Ivers

BC: What was the hardest part of the recession for you? Ryan Corrigan: Closing the Metro Division was a hard, big decision for us as a management team. When they crashed, they just couldn’t recover. We had to focus on being profitable as a smaller company. BC: When did things turn around? Corrigan: We’ve seen steady and continued growth since the beginning of 2011. We spent a full year at the bottom. If business hadn’t started coming around when it did we don’t know how much longer we could have stuck it out. You get so burned out just

At a Glance MCI Carpet One Floor & Home 26 1st Ave N Waite Park, MN 56387-1299 (320) 253-5078 Fax: (320) 253-9458

www.mcicarpetone.com Started: 1976 as Multiple Concepts Interiors by Rick Lindmeier and Warren “Nik” Nikodym

Current Ownership: 66.5

Harold Loch, Brian Poepping, and Ryan Corrigan

percent owned by the ESOP; the rest is divided equally between

trying to hold on, to keep the business open. ‘ BC: You had to downsize. Corrigan: We were part of the housing boom. We had grown so substantially it was not sustainable. We went from $28-$30 million to $36 million in a couple of years. Today we’re at $22 million in sales – about where we were 10 years ago. At our peak, we had 80 employees. Today, we have 56. BC: But now you’re expanding. Corrigan: The industry has changed so much you can’t sit back. You have to be on

the move. We dealt with the recession, dealt with the business fall out, and learned to do business in that environment. Now we feel we’re in a position to expand and we’re targeting Minnesota and the Dakotas. BC: Were there any particular lessons? Corrigan: If we had not been diversified, we may not have made it. We were diversified not just with residential and commercial, but within those segments. That made it possible to focus on the segments that weren’t hit as hard, like hospitals and long-term care. BC

Ryan Corrigan, CEO/CFO; Brian Poepping, senior vice president in charge of commercial sales and business development; and Harold Loch, senior vice president in charge of residential sales and business development

Number of employees: 56 Business Description: Providing interior design products and services for residential and commercial customers in five states. Products include, but are not limited to: floor coverings, wall coverings, window treatments, lighting fixtures, and home accessories

Sales: $22 million Service Area: 75 percent of MCI’s business is commercial work in a five state area

FUN FACT Before MCI joined the Carpet One coop, their mascot was a hippo.

Joined the Chamber in 1976

Lindmeier picked the hippo because “it was big – big savings, big store, big deal.”

Timeline 1976

At its peak it accounts for one-third of MCI’s volume and has 25 employees.

1997

2004

2006

Brian Poepping joins MCI

The second phase of the ESOP sale takes place

Lindmeier and Nikodym retire, selling their remaining shares to key managers outside of the ESOP

Rick Lindmeier and Warren “Nik” Nikodym start Multiple Concepts Interiors in Waite Park

1985

1984

Harold Loch joins MCI

The first phase of the ESOP sale starts

MCI expands into the Twin Cities, creating the Metro Division which focuses on residential sales.

1993

2003

MCI joins the Carpet One Floor & Home Cooperative

2000

Ryan Corrigan joins MCI

Business Central Magazine •• JANUARY/FEBRUARY 2012

2005-06 MCI remodels, replacing the former warehouse with a lighting showroom

2009 MCI experiences the worst of The Great Recession from

4th Quarter 2009 to 4th Quarter 2010. They close the Metro Division and let all of the employees go.

2011 MCI opens a commercial sales office in Sioux Falls.

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