Nov/Dec 2014Issue by St. Cloud Area Chamber of Commerce

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IN EVERY ISSUE 8

6 President’s Letter

Editor’s Note

Business Calendar

Top Hats

Network Central

CONTENTS

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32 Management Tool Kit

Non-Solicitation Agreements in the Age of Social Media

Always a muddy issue, the advent of social media has made non-solicitation agreements even more troubling.

34 Records Retention

Upfront

10 Book Review

The Upside of Aging; How Long Life is Changing the World of Health, Work, Innovation, Policy, and Purpose, Edited by Paul H. Irving, Milken Institute; and Rita Beamish, John Wiley & Sons

12 Your Voice In Government The new Graduate Employment Outcomes tool

14 Getting Going

A Production Function Model

Having a pricing plan is useful, just don’t be too rigid.

15 New at the Top

Colleen Cunningham Orne

Executive Director of Child Care Choices, Inc.

22 The Trouble with Business Considering Contracts

Handshake deals are a thing of the past.

Do Values and Ethics Really Matter in the Workplace? You bet they do!

N E T WOR K

Values in Action

Whether in school, work, or life, Abdul Kulane has big goals and the confidence to achieve them.

30 Entrepreneurism:

Great Expectations

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Business Tools

44 Cover Story

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NOVEMBER/DECEMBER 2014

G RO W

Profit

GROW • NETWORK • PROFIT

If you’re like many business owners, you err on the side of keeping more information than may be necessary.

36 TechStrategies Learning LinkedIn

P ROFIT

This Issue 50 Feature

TrendWatching

Companies must become trend watchers in order to improve business and delight customers.

54 Special Focus Steps to Success

Securing funding for your business is easier than you think.

62 Business Spotlight Terry Pladson, CentraCare Health

P ROFIT

Special Section 55 Financial Services; Retirement Trust & Financial Planning

LinkedIn is challenging its professional users to connect, engage and show their thought leadership.

40 Economy Central

Big Data A series of new reports allow for visual representation of business formation in Central Minnesota and beyond

ONLY ONLINE •• Cloud vs. hard storage

•• Be a Better Delegator

•• Improving Customer Loyalty

•• Presentation Prep

www.BusinessCentralMagazine.com 4

Business Central Magazine •• NOVEMBER/DECEMBER 2014

Making It Easier to Manage and Improve the Health and Safety of Employees HealthPartners Occupational and Environmental Medicine Services specialize in preventing and managing workplace injuries in a cost effective manner. We understand the challenges you face and our goal is to help you manage the health and wellness of your employees, while exceeding your needs and expectations. Our services include: • Workers compensation injury care and return to work • DOT exam and pre-placement exams • OSHA medical and other surveillance exams • Respirator clearance/fit-testing programs • Hearing conservation programs

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for more information, contact Nicole Anderson

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This service is available to all companies. HealthPartners insurance is not needed.

PRESIDENT’S LETTER NETWORK Main Phone 320-251-2940 Automated Reservation Line 320-251-2940, ext. 126

Be a Leader

Program Hotline 320-251-2940, ext. 125 email: information@StCloudAreaChamber.com www.StCloudAreaChamber.com ST. CLOUD AREA CHAMBER OF COMMERCE STAFF President | Teresa Bohnen, ext. 104 Vice President | Gail Ivers, ext. 109 Director of Administration Judy Zetterlund, ext. 106 Special Events Coordinator Virginia Kroll, ext. 105 Communications & Workforce Development Coordinator Whitney Bina, ext.130 Membership Sales Specialist Jaime Buley, ext. 134

Chamber President Teresa Bohnen (far left) with past chairs of the Chamber’s Board of Directors.

ecently I’ve been thinking about leaders. My thoughts started this summer when Minnesota Chamber President David Olson died from cancer. His colleagues across the state had been told he was cancer-free only weeks before. But it came back and took him quickly while we were still celebrating his return to work. David Olson was a Leader with a capital “L”. He was focused and communicated clearly and concisely. People were motivated to follow him, contribute to his efforts and celebrate wins. I know David was a notable leader by the void his absence has created in the Minnesota chamber industry. At a recent conference, I kept waiting for him to burst through the door, apologizing for his lateness, and tell us all what we must do to keep Minnesota business on the right course through the upcoming elections. Charge!!! Marco CEO Jeff Gau was our keynote speaker at the St. Cloud Area Chamber’s Leadership class kickoff. His comments were focused, precise and challenging: “Be BOLD!” “Give credit and appreciation freely and fiercely” “Measure everything so you know when you’re improving.” I think much of Jeff’s leadership success is because he is so much fun to be around. His optimism and enthusiasm for all he does flows through his veins and envelopes the people around him. People want to follow Jeff, because they want

to be part of the excitement that surrounds him. In fact, they want to help create it. The Chamber’s volunteer leader is the chair of the Board of Directors. A few weeks ago, Past Chair John Herges, Falcon National Bank, hosted a reception for 17 business leaders who have served as chairs of the Chamber Board since I became president in 1998. During introductions they discussed the most fun and the most critical events that happened during their tenure. I was struck by the depth and breadth of leadership skills that the group referenced as they spoke. From the fallout of members and budget management required after September 11, 2001 to political battles, relocation and construction projects, and the joys of 5 Star Accreditation (twice!), they cited accomplishments that have placed our Chamber as a leader in the industry for decades. I realize I have learned and mimicked leadership skills from each one of them, and for that I’m grateful. My challenge to you is to stretch YOUR leadership skills. Reach out to others and help them discover their own leadership skills and talents. Step out and be BOLD! Be that person who people want to follow.

Administrative Assistant Vicki Lenneman, ext. 122 Administrative Assistant Cindy Swarthout , ext. 100 Administrative Assistant Sharon Henry, ext. 124 CONVENTION & VISITORS BUREAU STAFF Main Phone: 320-251-4170 Executive Director Julie Lunning, ext. 111 Director of Convention Sales Lori Cates, ext. 113 Director of Sports & Special Events Kelly Sayre, ext. 128 Director of Visitor Services Jean Robbins , ext. 129 Sales Manager Nikki Fisher, 112 Sales & Marketing Coordinator Dana Randt, 110 Administrative Assistant Carrie Zwack,, ext. 100 2014-15 BOARD MEMBERS Jason Bernick, Bernick’s, Board Vice Chair Dan Bittman, Sauk Rapids-Rice School District Dave Borgert, CentraCare Health Neil Franz, Franz Hultgren Evenson, Professional Association Jayne Greeney Schill, St. Cloud Area School District #742 Jim Gruenke, Mark J. Traut Wells Jason Hallonquist, AIS Planning John Herges, Falcon National Bank, Past Board Chair Dennis Host, Coborn’s Inc. Diane Mendel, Playhouse Child Care Dolora Musech, Batteries Plus Bulbs Kris Nelson, Custom Accents, Inc., Board Chair Mark Osendorf, Xcel Energy

Teresa Bohnen President

Dr. Earl Potter, III, St. Cloud State University Roger Schleper, Premier Real Estate Services Melinda Vonderahe, Times Media Bea Winkler, Pine Cone Pet Hospital Chriss Wohlleber, Le St. Germain Suite Hotel

Business Central Magazine •• NOVEMBER/DECEMBER 2014

Everyone has a Legacy. For over 40 years, Rinke Noonan has been synonymous with quality legal advice and exceptional client service. And while those core values remain, the firm has certainly changed over time. Weâ&#x20AC;&#x2122;ve continually added expertise, practice areas, and talent. We have first hand knowledge of what it takes to successfully grow and strengthen an evolving business, just like yours. Now, more than ever, our unique blend of experience, innovation and energy makes us the legal resource you need for your business and your life.

At Rinke Noonan, our legacy is our commitment to enhancing yours.

Proudly congratulates

Stefanie Brown on her appointment to the U.S. Bank Mid Minnesota Advisory Board.

Suite 300, US Bank Plaza P.O. Box 1497, St. Cloud, MN 56302 320.251.6700 1.888.899.6700 WWW.RINKENOONAN.COM

EDITOR’S NOTE NETWORK

Publisher Teresa Bohnen Managing Editor Gail Ivers Associate Editor Dawn Zimmerman

“No matter what you hear or read about what people in other countries say, everyone in the world believes that America is the land of opportunity.”

It’s not every day you meet a naturalized American citizen. To my knowledge, I’ve only met two: the father of one of my friends, who came to the U.S. from Canada, and Abdul Kulane, the subject of this issue’s cover story (see page 44). Abdul came to the U.S. in 2008 and became a naturalized citizen in 2011. He admits that times have not always been easy for his family or for him since their arrival in the U.S. In fact, their lives in Kenya may have been better. “Then why come to the U.S.? Why stay?” I asked. “Because this is the land of opportunity,” Abdul said. The puzzlement must have shown on my face. “You don’t believe this because you have always lived here,” he said to me.

“But out there,” and here he gestured to the world in general, “out there, this is the land of opportunity. In America anything can happen. In America anything is possible. No matter what you hear or read about what people in other countries say, everyone in the world believes that America is the land of opportunity.” I didn’t know what to say. As we wrapped up the interview, I explained to Abdul that the Business Central cover is what I call a personality photo. Our goal is to introduce the people we profile to our readers before they even open the magazine. The easy way to do this is to go to their place of business. However, since Abdul does translation and interpretation, we were going to have to take a somewhat different approach.

Business Central Magazine •• NOVEMBER/DECEMBER 2014

Plan B is to use a prop. For theater owner Bob Ross, it was a bag of popcorn. For Sue Poser, Gruber’s Quilt Shop and Yarn, it was colorful balls of yarn. For Byron Bjorklund, Custom Catering, it was a giant bowl of fresh vegetables. I showed these, and other cover photos to Abdul, encouraging him to bring to the photo shoot something that could represent who he is, that would tell our readers something about him. When he arrived at Butkowski Digital Imaging carrying his prop, Abdul said, “This was the only thing I could think to bring. This tells you what matters to me. This tells you who I am.” Abdul brought an American flag. Until next issue,

Gail Ivers

Vice President

Editor

ADVERTISING Associate Publisher/Sales Wendy Hendricks, Hendricks Marketing Ad Traffic & Circulation Yola Hartmann, Hazel Tree Media ART Design & Production Yola Hartmann, Hazel Tree Media Sarah Sucansky Cover Photo Joel Butkowski, BDI Photography ACCOUNTING Judy Zetterlund WEBSITE Vicki Lenneman CORPORATE SPONSOR

Joel Butkowski, BDI Digital Imaging

Props

Editor Gail Ivers with Abdul Kulane, The Language Bank

CONTRIBUTING WRITERS Lori Athmann Jovanovich, Kadlec & Athmann,PLLP King Banaian St. Cloud State University Whitney Bina St. Cloud Area Chamber of Commerce Teresa Bohnen St. Cloud Area Chamber of Commerce Luke Greiner Minnesota Department of Employment and Economic Development Sharon Henry St. Cloud Area Chamber of Commerce Dr. Fred E. Hill St. Cloud State University Gail Ivers St. Cloud Area Chamber of Commerce Tracy Knofla High Impact Training Mary MacDonell Belisle mary macdonell belisle - wordingforyou James P.A. Morrighan Hughes Mathews Greer, P.A. Donniel Robinson Robinson Writes Greg Vandal Vox Liberi Dawn Zimmerman The Write Advantage

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 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 2014 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.

Book Review

Your Voice in Government

Getting Going

New at the Top

Business Calendar

Point of View

The Trouble With Business

UPFRONT

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As this is written, I’m 67, as active as at any time in my life. But, compared with some of my octogenarian and nonagenarian colleagues, friends, and tennis partners, I’m just a youngster. Age is more than a number. It’s all about perception. Are you old…or just feel like you’re old? The book consists of three parts and sixteen chapters. Part One: Opportunities and Innovations. Part Two: A Changing Landscape. Part Three: Perspectives and Possibilities. For this review, I report briefly from three chapters. Chapter 3: The Bold New World of Healthy Aging. Chapter 5: A Longevity Market Emerges. Chapter 15: New Transitions, A Changing Journey of Life and Health. Chapter 3: The next two decades promise a revolution in collecting, analyzing, and deploying medical data – with an immense, positive effect

Business Central Magazine •• NOVEMBER/DECEMBER 2014

Michael Milken, chairman of The Milken Institute, writes in the Forward:

can be met with positive solutions for people of all ages.

An aging revolution is changing the world, a titanic shift that will alter every aspect of human existence. This book moves beyond the stereotypes of dependency and decline that have defined older age to look at aging in a new way. Exploring the vast potential of longer lives, The Upside of Aging reveals how the challenges

We may chase the youth market, but it’s the 98 million Americans over 50 who turn out to be the most affluent group in history. Reviewed by Fred E. Hill

From the dust jacket of The Upside of Aging:

An Aging Revolution

Edited by Paul H. Irving, president, Milken Institute; and Rita Beamish, John Wiley & Sons, Hoboken, New Jersey, 2014 ISBN 978-1-118-69203-5

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News & people that make up the chamber network

BOOK REVIEW

The Upside of Aging; How Long Life is Changing the World of Health, Work, Innovation, Policy, and Purpose

G R O W N E T W OR K P R O F I T

on our health, starting with patient-doctor relationships. The universal use of electronic medical records will reshape the ways people interact with their physicians. Chapter 5: Until now, most businesspeople have operated on the belief that the youth market is expanding with growing numbers of freespending consumers. However, today, the 98 million Americans already over 50 turn out to be the most powerful and affluent group in history. Chapter 15: Our life journey is less about starts and stops, or beginnings and endings, than about transitions, discoveries, and redirections. It’s about transition points and opportunities for creating additional knowledge and purpose. This is a great book. A challenging, but fruitful, read. BC Dr. Fred E. Hill is an emeritus professor from St. Cloud State University.

N E WS R E E L IIW’s Leapaldt receives award; Hendrie joins firm David Leapaldt, IIW Minnesota, received the American Institute Leapaldt of Architects (AIA) Minnesota Louis Lundgren Award. This award recognizes one Minnesota architect annually for dedication to the profession of architecture through community volunteer activities and professional leadership. Leapaldt receives his award at the annual AIA Minnesota “Let’s Celebrate” awards dinner on December 5. –––––––––– Christian Hendrie joined IIW Minnesota as an architect. He Hendrie brings experience in senior health care and a specialization in historic preservation to the firm. He has over 15 years of experience working on education, municipal, housing, hospitality and health care facilities. St. Cloud Hospital earns recognition St. Cloud Hospital’s cardiac surgery program received the top rating for heart bypass surgery from Consumer Reports magazine. The St. Cloud hospital is the only facility to achieve this recognition in Minnesota, North Dakota, South Dakota and Iowa.

SMART BUSINESS: Northwestern Mutual

What’s your financial IQ? Provided By: Josh Longnecker, Northwestern Mutual

Four out of five Americans admit they know more about a variety of topics than their own finances. to permanent life insurance, as only a small percentage of Americans seem to know even the basics of this type of risk protection. Knowledge is power, though – and Americans recognize it. Nearly eight out of ten consumers feel the need to learn as much as possible about their personal financial situation. I’ve certainly seen this to be true in my practice. As for where they find that information and whom they trust, I was glad to learn that, when asked to rate the reliability of several sources of financial information, Americans rated financial advisors as the most reliable source. Are you curious what your financial IQ might be? Find out by completing the survey at http://financialmattersquiz.com/.

magine you’re on a TV quiz show. The host turns to you and offers a list of topics, one of which is Your Personal Finances. Based on your knowledge, is this a category you would choose? If you answered no, you’re not alone. Four out of five Americans admit they know more about a variety of topics than their own finances. That’s about the same share that would choose to answer questions about subjects far less personal, such as current events, entertainment, or science and technology. These results were gathered as part of a research study, sponsored by Northwestern Mutual, to help gauge the American public’s overall financial knowledge – as measured by a financial IQ index – and its understanding of insurance products. For me, the results were a powerful reminder of the reason I make it a point to help

clients fully understand their personal finances, so they can make the informed choices that are right for them. The survey found that some basic financial concepts are well-understood, including the best way to minimize losses in investments (88% answered correctly), asset allocation (79%), and dollar-cost averaging (57%). Likely because of their self-explanatory names, high numbers of Americans also recognize what disability income insurance and long-term care insurance are designed to do. More often than not, however, Americans fail to understand many key financial concepts – like the average inflation rate over the past decade (known by about one in three), or the product that has traditionally mitigated inflation risk the best (less than one-third answered correctly). The lack of financial knowledge appears to be particularly acute when it comes

About the research

On behalf of Northwestern Mutual, independent research firm Mathew Greenwald & Associates, Inc. conducted an online survey of 1,664 Americans ages 25 to 65, between June 1 and June 8, 2010. Study participants were members of Synovate’s leading Global Opinion Panel. Survey data were weighted by gender, age, education, and household income to reflect the makeup of the U.S. population ages 25 to 65. Population statistics were based on data from the 2008 Current Population Survey.

Northwestern Mutual 3315 Roosevelt Rd, Ste. 300, St. Cloud, MN 56301, 320.223.6639, www.joshualongnecker.com Securing futures. Enhancing lives. Creating legacies.

Article prepared by Northwestern Mutual with the cooperation of Josh Longnecker. Josh Longnecker is a Managing Director with Northwestern Mutual, the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, Wisconsin, and its subsidiaries. Josh Longnecker is based in Saint Cloud, MN. To contact Josh Longnecker, please call (320) 223-6639, e-mail at joshua.longnecker@nm.com, or visit joshualongnecker.com

N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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 NETWORK

N E WS R E E L CentraCare announces new CEO, employee recognitions Kenneth D. Holmen, MD, was named president and Chief Executive Officer Holmen of CentraCare Health. Holmen will take office January 1, 2015. Previously, Dr. Holmen was vice president of physician strategies and business development for HealthPartners, headquartered in Bloomington. –––––––––– Greg Klugherz, chief financial officer for CentraCare Health, has been named to the Becker’s Hospital Review list of “150 Hospital and Health System CFOs to Know.” –––––––––– Albert J. Mercuri, MD, a hospitalist at CentraCare Clinic – River Campus, was recently honored with the Physician of Excellence award. –––––––––– The organization hired four new hospitalists: Nichole Boettcher, MD; Sarah Polcher, DO; Christopher Wieland, MD; and Cory A. Yarke, MD PhD. –––––––––– Chris Thompson, MD, joined CentraCare Clinic – Health Thompson Plaza as a family medicine physician. Thompson’s interests include skin conditions, sports medicine and children. –––––––––– CentraCare Health System’s laboratory services received reaccreditation by the College of American Pathologists (CAP). This accreditation covers both the St. Cloud Hospital and CentraCare Health Plaza and represents the highest standard of care for all patients.

YOUR VOICe IN GOVERNMENT

They Pay What?

The new Graduate Employment Outcomes tool shows how recent graduates fared in the job market. By Luke Greiner Employment for Bachelor Degree Graduates From Engineering Programs 9%

21%

Professional and Tech. Services

Management of Companies

Administrative and Waste Services

Wholesale Trade

40%

Source: DEED Graduate Employment Outcomes tool

Manufacturing

raduating college is a long awaited celebration for the roughly 450,000 Minnesotans currently enrolled. However, after the party hats are set aside and we stop cramming for final exams, the reality of finding a job will soon consume as much or more of our time. Thanks to an all new tool provided by the Department of Employment and Economic Development, users will be able to find out the employment outcomes for every major educational program offered in Minnesota. This is illustrated here by showing the top five employing industries for Engineering Bachelor Degree program graduates. The Graduate Employment Outcomes tool shows how many recent Minnesota graduates found Minnesota jobs one and two years after graduation. It also shows the median wages earned and the top

Business Central Magazine •• NOVEMBER/DECEMBER 2014

industries where graduates found jobs. You can search by year, location, award type, institution type, and instructional program. Reports will be updated with a new cohort of graduates each year. (However, we only include those programs reported to the Minnesota Department of Higher Education which have at least 10 graduates. And outcomes are only shown when there are at least 10 graduates with valid wage records.) Who will use it? •• Prospective students, to set realistic expectations for employment and wages following graduation in a specific program •• Parents and career counselors, to help prospective students explore prospects for employment and earnings as they plan their education •• Education program planners interested in more closely aligning program

offerings to labor market demand •• Policy makers interested in identifying potential undersupply or over-supply of skilled labor in strategic sectors of the economy or evaluating the state’s return on investments in higher education Using Engineering Bachelor Degree graduates like the example here you can find out that graduates earned a median wage of $26.06/hr. 12 months after graduation, then $28.90/hr. 24 months after graduation. Two years after graduating 56 percent were employed year-round and 47 percent were employed year-round and full time. Going to school for something we are passionate about is great, but knowing if we can pay the bills after graduation is worth looking into. BC Luke Greiner is a regional analyst for Central and Southwest Minnesota, for the Department of Employment and Economic Development (DEED).

Online now To try the tool, visit www.BusinessCentral Magazine.com

People to know

Seven Elected to Chamber Board The following individuals have been elected to fill three-year terms on the Board of Directors of the St. Cloud Area Chamber of Commerce.

Dan Bittman

Neil Franz

Jason Hallonquist

Dennis Host

Dolora Musech

Mark Osendorf

Sauk Rapids-Rice ISD 47

Franz Hultgren Evenson, Professional Association

AIS Planning

Coborn’s, Inc.

Batteries Plus Bulbs

Xcel Energy

Times Media

(320) 252-6552 jason @aisplanning.com

(320) 252-4222 dennis.host @cobornsinc.com

(320) 257-8270 dolora @frontiernet.net

(320) 255-8610 mark.f.osendorf @xcelenergy.com

(320) 255-8700 mvonderahe @stcloudtimes.com

(320) 253-4703 daniel.bittman @isd47.org

(320) 253-7130 nfranz @FHElawyers.com

Melinda Vonderahe

N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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 NETWORK

N E WS R E E L

Freese

Novak

Freese joins PineCone Vision Center; Novak appointed to AOA committee Dr. Kelly Freese, OD, joined the PineCone Vision Center staff. She graduated with honors from Cathedral High School and St. Cloud State University, and attended the New England College of Optometry in Boston. Jennifer Novak, certified paraoptometric and practice administrator at PineCone Vision Center was appointed to the Communications Content Committee of the American Optometric Association (AOA). PleasureLand RV opens new location PleasureLand RV Center, Inc. opened the new PleasureLand RV Budget Lot in St. Cloud, off of Hwy. 10 and Airport Rd. The second St. Cloud location features lower to mid-priced, pre-owned RVs as well as pre-owned ice/ fish houses, utility and cargo trailers. Women’s Fund awards $94,000 The Women’s Fund of the Central Minnesota Community Foundation awarded $94,000 in grants to area organizations and programs this year. Recipients include the St. Cloud Children’s Home, St. Cloud Hospital and Whitney Senior Center. Erickson receives award Daniel Erickson, ProcessPro product manager, was presented with a Silver Stevie® Award in the Product Developer of the Year category. Stevie Award winners are selected by more than 240 executives worldwide who participated in the judging process.

Getting Going

A Production Function Model Having a pricing plan is useful, just don’t be too rigid. By Greg Vandal

s a school superintendent, I advocated at the state level for changes in how public education should be funded. The districts I served were relatively poor in terms of their property tax bases and, as a result, were not nearly so well funded as their property rich counterparts. I offered testimony on many occasions before House and Senate education finance committees on changes I hoped would be made. When asked by legislators how funding should be structured, I often found myself advocating for a common business model. The premise was pretty simple: on a student-need basis, calculate the costs of the inputs associated with delivering the education outcomes desired and then set the funding accordingly. The concept, in private sector manufacturing, is called the Production Function Analysis. My father, a manager in a jewel bearing plant for most of his life, tried to do this very thing in his work. Dad used to describe efforts to secure the best raw materials at the most affordable prices. He’d carefully calculate the

Of course, I’ve learned that once a not-to-exceed contract amount is set, the best calculations are still subject to the fates. expenses associated with processing those materials – time, labor, machinery, transportation, and the like – as he determined a total investment in the product. In his particular sector, a unique public/private partnership, a given margin was added to account for a desired profit, and the units were offered for sale to prospective customers. The demands for increased productivity and lower costs over the years called for the constant juggling of the key components of Production Function. When it came time for me, an emergent consultant, to set project rates for the work I intended to deliver, I fell back on that same Production Function thinking. I scanned the marketplace to determine what a competitive rate might be. Since I was entering a fixed-sum field rather than one in which project costs could float based on hours worked, I was obsessive at the start about tracking the time

associated with my projects so that I could clearly determine the difference between my actual investment of time versus what I had projected to be the case. I carefully considered the softer costs of overhead as I tried to establish project bids that were competitive and returned a desired margin. Of course, I’ve learned that once a not-to-exceed contract amount is set, the best calculations are still subject to the fates. Some things inevitably take longer than originally planned. Sometimes even the best predetermination of conditions doesn’t reveal the hidden expenses associated with delivering a service. And, of course, the pressures of competition often force all of this careful analysis to be tossed out the window simply because work is needed. Still, Production Function thinking has helped me set the price of doing business in my small slice of the marketplace. BC

About the writer Greg Vandal is the sole proprietor of Vox Liberi, a consulting business that delivers planning and project management services to clients in the public, private, and nonprofit sectors. He can be reached at greg.vandal@voxliberi.com.

Business Central Magazine •• NOVEMBER/DECEMBER 2014

New at the Top

Colleen Cunningham Orne Executive Director of Child Care Choices, Inc. Age: 45 Previous employer: Children’s Day Montessori School, St. Cloud, Executive Director 2009 – 2014; Episcopal Community Services, Minneapolis, Director of Development 2000 – 2009. What will you miss most about your previous position? With the start of a new school year at Children’s Day Montessori, I will certainly miss the wonderful

things the young students would share with me…insightful stories about family outings, morning routines before arriving at school, friends and pets…all through the eyes of three- and four-year olds. These fresh and innocent “quotes” would brighten anyone’s day! When did you start in your current position? May 2014 What are you looking forward to the most in your new position? I am most looking forward to building connections with other

community organizations and determining creative ways to fill the gaps in early childhood care and education. I believe there are great resources within the community and I look forward to connecting with them in ways that further our efforts and theirs. Where did you grow up? Ortonville, MN What are your hobbies? Reading, swimming, boating, biking Fun fact about yourself: In 2011-12, my husband, Jason,

our three children, Lily (11), Emily (9) and John (8) and I lived in England. In addition to the incredible sightseeing and hands-on history lessons, our journey across the pond brought life-long friendships. In fact, our neighbors from Oundle, England are immigrating to New Jersey in September and we are all eager to reconnect with them in 2015! BC

SUN UP TO SUN DOWN. Nothing beats hands-on experience when you’re managing a business. Well, we’ve been around for over 70 years and have more than $8 billion in assets. So if you’re looking for expert advice and financial support tailored to your business, talk to a seasoned Bremer business banker today.

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Bremer.com Downtown St. Cloud 251-3300 • West St. Cloud 656-3300 Sauk Rapids 252-1938 • Sartell 255-7121 • Rice 393-2600 800-908-BANK (2265) Member FDIC. ©2014 Bremer Financial Corporation. All rights reserved.

14-BRE-007_Print_BC_Sun_75x4875_1003.indd 1

7/1/14 8:40 PM N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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 15

C Jo P S A D

UPFRONT NETWORK

N E WS R E E L Birthline receives donations Birthline of Central Minnesota received over $3,000 from Catholic United Financial, a cooperative headquartered in St. Paul. Each year, Catholic United Financial designates a project where members can charitably give support to areas in need. This year, Birthline of St. Cloud was selected as the outreach project. The local organization also received blankets, diapers and clothing for infants to help support parents facing unplanned pregnancy. Ebert elected organization president Dyan Ebert, an attorney Ebert with Quinlivan & Hughes, P.A., was elected president of the Minnesota Defense Lawyers Association (MDLA). The MDLA, composed of 750 members, serves the needs of lawyers engaged primarily in the defense and trial of civil disputes. Ebert focuses her practice on employment and governmental liability, insurance coverage and general casualty law. Local businesses recognized as fastestgrowing companies Two local businesses earned recognition on the 2014 nation’s fastestgrowing companies from Inc., a magazine and online business news source. Both companies have been on the list for three years. Out of 5,000 businesses, Netgain of St. Cloud was ranked 3,082 overall and Horizon Roofing was ranked 4,464. The annual list is comprised of independent companies based in the United States. Businesses are ranked according to the percentage growth of their annual revenue over a three-year period.

BUSINESS CALENDAR NOVEMBER - DECEMBER 2014 •• Visit events.StCloudAreaChamber.com for a detailed calendar.

Can’t-miss opportunities to influence, promote and learn Chamber Connection Birthday Party This fun-filled event celebrates the anniversary of Chamber Connection. 7:30-9 a.m. No reservations are required. December 5: At the Best Western Kelly Inn, 100 4th Ave. S, St. Cloud.

Nov. 5 & Dec. 3

Lunchtime Learning Educational networking events that give busy professionals a chance to stay on the cutting edge. Meets the first Wednesday of the month from noon-1 p.m. at the Chamber office, 110 6th Ave. S. Registration is required: $15 for Chamber members, $22 for the general public. November 5: Sponsored by Custom Accents Promotions & Apparel, with Cliff Robbins, Cohlab, presenting “Mobile Applications for Businesses and Organizations.” December 3: Sponsored by Central Minnesota Society for Human Resource Management with Lisa Reddick, Innovative HR Solutions, presenting “Knowing Your ROI by Knowing Your Talent.”

Nov. 6 & Dec. 4

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

Business Central Magazine •• NOVEMBER/DECEMBER 2014

4:30 - 6:30 p.m. November 6: Hosted by the Stearns History Museum, 235 33rd Ave. S, St. Cloud December 4: Hosted by St. Cloud Technical & Community College, 1540 Northway Dr., St. Cloud

Nov. 14 & Dec. 12

Government Affairs A discussion of local government issues on the second Friday of the month, 7:30 - 9 a.m. at the Chamber office, 110 6th Ave. S. November 14: Election Outcomes December 12: Legislative Preview

Nov. 14 & Dec. 12

Waite Park Chamber For businesses interested in Waite Park issues. Lunch is provided by the host when you register at least two days in advance. 11:30 a.m. – 1 p.m. November 19: Hosted by J. F. Kruse Jewelers, at Waite Park City Hall, 19 13th Ave. N, Waite

Park, with a presentation on “Workplace Bullying,” by Alicia Mages, City of Waite Park. December 17: Hosted by Sentry Bank at the Moose Family Center, 1300 3rd St. N, Waite Park. The meeting includes entertainment by Tech High School singers, sponsored by Forsberg Investments & Insurance.

Nov. 20 & Dec. 18

Sauk Rapids Chamber For businesses interested in Sauk Rapids issues. Lunch is provided by the host when you register at least two days in advance. 11:30 a.m. - 1 p.m. at the Sauk Rapids Government Center, 250 Summit Ave. N., Sauk Rapids. November 20: Hosted by CentraCare Health with a presentation by Tracy Zwilling, The Chip Shoppe, on “Brand Strategy.” December 18: Hosted by BankVista at the Sauk Rapids Government Center. Holiday party and networking. For information on these or other business events, call 320-251-2940.

Team building at the Children’s Home

IT HAPPENED WHEN?

September,1991

St. Cloud Area Chamber Leadership

very September, the St. Cloud Area Chamber Leadership Program kicks off with a new class. The ninemonth program, designed by the St. Cloud Area Chamber of Commerce, includes a twoday retreat and eight full-day sessions from September through May. In April 1991, the inaugural program began accepting applications. The program was created not as a leadership skills program,

but as a leadership resources program, according to Jim Hoolihan, chairperson of the Chamber’s Board of Directors in 1991. “Our leadership program gives potential leaders the opportunity to learn about the community and how to be effective in it,” he said. Seminars and retreats were designed to acquaint potential leaders with community needs and concerns, while at the same time honing their

Lisa Koster

communication and problem solving skills. Nearly 50 people registered for the Leadership Program the first year, but the class size was kept to 35. Selection for the first class was based on an application and interview process that remains in place today.

Members of the Leadership Program participate in small group discussions at the retreat, September 1991

Since its inception, over 600 people have graduated from the Chamber’s Leadership Program. BC For more information, visit StCloudAreaChamber.com.

Ashley Ohlemann

Joy Schafer Linda DooleyBauer

Melissa Theisen Rich Remer, President

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A strong team for business. Bank on it. AMERICANNATIONALBANK OF MINNESOTA

MEMBER FDIC | EQUAL HOUSING LENDER

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N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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 NETWORK

N E WS R E E L Draewell joins Rajkowski Hansmeier Michelle M. Draewell joined Rajkowski Hansmeier as an associate attorney. Draewell holds a degree from the University of Minnesota Law School. She focuses her practice in the area of insurance defense and serves as a criminal prosecutor for the City of Waite Park. Bus operator, Gillman, honored The Minnesota Public Transit Association (MPTA) Gillman named Metro Bus driver Jerry Gillman as the Minnesota Bus Operator of the Year. Gillman has worked as a Dial-a-Ride Driver for St. Cloud Metro Bus since 1999. Gillman is the second Metro Bus driver to receive this award since its inception.

Save the Date

World of Opportunity

Looking to expand your business? Think globally! Following are some of the events hosted by the Minnesota Trade Office in the next few months. ––––––––––––––––––––––––––––––––––

Mexico Trade Mission: Mexico City, Monterrey and Guadalajara –––––––––––––––––––––––––––––––––– Sign-Up Deadline: January 5, 2015 Trade mission dates: March 1-6, 2015 The goal of this mission is to assist small to medium-sized companies in the Great Lakes region with exporting products and services to Mexico.

Business Central Magazine •• NOVEMBER/DECEMBER 2014

––––––––––––––––––––––––––––––––––

Canada: Capture Your Market Potential

–––––––––––––––––––––––––––––––––– Wednesday, November 5, 2014, 8:30 a.m. – 4:30 p.m.; University Center, Sioux Falls, SD On-site: $65, includes catered lunch - OR - Webinar: $35 The event is followed by a 1.5 hour networking reception, hosted by the Canadian Consulate General of Canada.

––––––––––––––––––––––––––––––––––

WEBINAR: “Export Essentials: Online Resources for Export Market Research”

–––––––––––––––––––––––––––––––––– Thursday, November 13, 2014, 2 – 3 p.m. Learn where to find the best sources of no-cost export marketing research for food and agricultural products from the Food Export Association of the Midwest USA.

N E WS R E E L Marco expands, receives recognition Marco received the Microsoft SMB Partner of the Year Award for the Central Region for providing outstanding solutions and service and demonstrating excellent engagement. Gena Petrella, Marco, Inc., accepted the award on behalf of Marco at the 2014 Microsoft Worldwide Partner Conference in July.

––––––––––––––––––––––––––––––––––

Discover Global Markets: Healthcare & Life Sciences

–––––––––––––––––––––––––––––––––– Monday, November 17 – Tuesday, November 18, 2014, 8 a.m. – 5 p.m. Radisson Blu Plaza Hotel, Minneapolis

Features include: • A wide variety of international healthcare industry experts available to answer questions • In-depth sessions on hot markets for health technologies, connected health in the global marketplace, and international regulations and standards.

The company also expanded with the purchase of Northeast Photo Company, Inc. (NEP), a copier and printer company located in Appleton and Green Bay, Wisconsin. NEP’s 38 employees join the Marco team.

Cook

Diebel

Diederichs

Kalla

Schefers Schulzetenberg Thompson

Marco recently hired the following people:

ONLINE NOW

A more comprehensive list of acceptable SHIP program areas can be found at www. BusinessCentralMagazine.com

BE FEATURED AT

The Central Minnesota

FARM SHOW 2015

The January issue of Business Central Magazine will contain an 8 page or higher section devoted to the 2015 Central Minnesota Farm Show. Including: • A list of vendors • Your ad • A map of the exhibit halls

Distributed to over 9,000 people in Central Minnesota. Deadline: November 20, 2014

To learn more or to reserve a space

contact Wendy Hendricks at (320) 656-3808 or whendricks@BusinessCentralMagazine.com 38

Business Central Magazine •• NOVEMBER/DECEMBER 2014

Space is limited!

Doing Good

Customized Giving

hen a client has a piece of jewelry designed at J.F. Kruse Jewelers, usually their purpose is to be unique. Once a custom piece is created, the client owns the design and the jeweler won’t replicate it for anyone else. When Tara (Tollefson) Gronhovd asked Melissa Kelley, co-owner of J. F. Kruse Jewelers, to help her design a custom piece of jewelry to symbolize Gronhovd’s faith in 2010, both women assumed the pendant would be one of a kind. After being asked several times where

the piece could be purchased, Gronhovd approached Kelley with an idea that would allow J.F. Kruse Jewelers to give back to the community while encouraging others in their faith. Gronhovd launched Becoming In Christ, LLC and J.F. Kruse Jewelers signed an exclusive contract to create and sell the Becoming jewelry, based on the original design. The jeweler produces each piece by hand and keeps a few pieces in stock at all times. The pendant, charm and tie tack are all kept in stock in sterling silver.

Becoming Ring Limited Edition

Gronhovd and Kelley agreed that one third of proceeds from each Becoming sale would be directed to young moms in crisis. So far, money has been distributed to Pregnancy Resource Center, Youth For Christ’s Embrace program, Birthline, and the YMCA scholarship program. “We are always looking for innovative ways to give back to the community and Becoming provides both focus and income for J.F. Kruse Jewelers to give back in a very special way,” Kelley said.

Gronhovd runs the ministry side of Becoming through Facebook and a blog, which also function as marketing tools for the jewelry. J.F. Kruse recently released some limited edition Becoming pieces to help drive awareness and increase giving. BC

N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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

ECONOMY CENTRAL PRESENTED BY FALCON BANK

BY THE NUMBERS

A series of new reports allow for visual representation of business formation in Central Minnesota and beyond.

he School of Public Affairs Research Institute, in cooperation with the Office of the Minnesota Secretary of State, has recently released a series of reports on the formation of new businesses in Minnesota. The data are unique insofar as they provide us with street level and zip code data for every new business that registers with the Secretary of State. SOPARI has used the data to release maps like the one shown here, which

New Business Formation in the St. Cloud Area

focuses on St. Cloud and nearby communities, to look at the formation of new corporations and limited liability companies (LLCs.) Each dot on the map represents a new corporation or LLC registered since January 2010. Corporations are blue squares and LLCs are red dots. Each dot is geocoded from the street address and zip code data within business filings.

Business Central Magazine •• NOVEMBER/DECEMBER 2014

The “bunchiness” of the dots indicates that businesses locate near other businesses. Development economists often call these ‘agglomeration economies,’ that the value of your business is enhanced by having other businesses nearby. One will also see that the corporations tend to lie on major highways compared to the LLCs. LLCs are more uniformly distributed, particularly in residential areas. Some argue that these LLCs are more likely to be non-business entities making use of legal forms of protecting individuals from taxes and liability for other activities that do not involve employment and production. Incorporation is selected for those persons choosing to produce and hire. In the St. Cloud Area Quarterly Business Report, incorporations are used as a leading indicator of local economic activity. The Secretary of State data extends back into the 19th Century, while SOPARI has worked so far only with data since 2000. This is “big data” with a host of stories to tell for communities around Minnesota. BC Source: King Banaian, Economics Department, St. Cloud State University; Photo courtesy of School of Public

% expect profits to increase or remain the same in 2014

% report an increase in sales as a result of the North Dakota oil boom

52 46

% expect an increase in revenue in 2014

% expected increases in revenue in 2013

% expect inflation to increase

ECONOMIC N E W S

SBA lends $29 billion The U.S Small Business Administration (SBA) enjoyed its third highest year of SBA lending to date, surpassed only by two record years of supporting more than $30 billion in FY 2011 and 2012. In FY 2013, SBA supported more than $29 billion in lending to America’s small businesses, giving small businesses critical access to the capital they need to start and grow their business. In FY 2013, SBA also supported more than 7,700 504 loans, which provide small businesses with long-term, fixed-rate financing to acquire real estate and major fixed assets, for a total of more than $11.7 billion.

Affairs Research Institute

Economy Central presented by

Source: U.S. Small Business Administration; DEED survey of 241 randomly selected Minnesota business services firm.

Big Data

Service firms are optimistic about the economy.

$90,578

Economic Indicators Trends Sartell St. & Cloud

No. 181 19 167 140 69 75 23 83 20 8227 7 of8 permits 7 13 31 38

$3,109,988

$2,405,789

Sartell Sauk Rapids

$1.5M

$0 D

O M

N A

D M

M A

47 8

45 13

7 24

831

7 44

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Compiled by SharonWaite Henry,Park data current as of 10/12/14 Sauk Rapids

RESIDENTIAL BUILDING RESIDENTIAL PERMITS BUILDING PERMITS $250k

$2M

Sartell

permits No. of permits 40 52 No. 48 of27 10 50 11

58 104 160 154 155 141

Commercial Building Permits

$2M

$2,306,680

$2,534,086

$3,627,700

$2,097,018

$2,643,759

$2,119,248 $2,550,400

$1.5M

$2,622,023

$3,325,100

$2,750,900

$2,021,194

$3,109,988

$2,405,789

$2,306,680

$2,534,086

$2,097,018

$1.5M

$2,287,838

$2M

St. Cloud

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No. of permits 50

$1.5M

$2M

$200k $1.5M

St. CloudWaite Park Sauk Rapids

$234,300

58 104 160 154 155 141

$438,745

$486,300 $4,080,908

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$3,627,700

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No. of permits 181 167 140

Sartell St. Augusta Waite P Sauk Rapids

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 RESIDENTIAL BUILDING PERMITS BUILDING PERMITS BUILDING PERMITS BUILDING PERMITS BUILDING PERMITS RESIDENTIAL BUILDING PERMIT $150k

permits No. 181 19 167 140 69 75 23No. 20of82 27 58 22 1042916035154 41 155 65 141 21 7 of8 permits 7 13 31 38 83 $200k $200k

Sauk Rapids Sartell

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permits 29 of 35 41 66 63 27 62 16 683 of182 2 122 No. 46 3permits 50 421 11230 No. 2 44of 1permits permits 831 No.44 7of permits 13 19 40 52 48 27 28 10No. 11of permits 40 331 60 40 31 6 31 0 38 2 75 No. 565 15 722 of334 1 130 2 10 13 138 13 1 24 1 31 No. $800k $400k $800k $400k

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$1,000

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St. Joe

$90,578

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$901,692

J 44 7

$600k$1,000

$150k

$50k

$1M $1M $0 $0 FA MS A AA SM O J NJ DA J M

$9,790,410

$112,500

$9,976,366

$12,840,741

$8,241,705

$5,137,891

$3,627,700

$19,854,821

A M N D $100k 24 7 31 8

St. Augusta St. Augusta

St. CloudWaite Park Sauk Rapids

Sartell

M O 45 13

$90,578

$462,175

F S 47 8

$200k

$800k

$.5M

$1,025,737

$250k $250k $0 AF M AA SM O J NJ DA J

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A S $400k No. of permits 40 52

$800k

$200k $50k

$1M

$0 O N D J A $2M No. permits 48 of27 10 50 11

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RESIDENTIAL BUILDING PERMITS BUILDING PERMITS RESIDENTIAL

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$0 J FA MS

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$100k

$462,175

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$250k

$2M

$250k

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$9,976,366

$112,500

$12,840,741

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$2,534,086 $5,137,891 $2,306,680

$2,750,900

$600k

RESIDENTIAL BUILDING PERMITS BUILDING PERMITS RESIDENTIAL

$.5M

58 104 160 154 155 141

$486,300

$4,080,908

No. 7 of 8 permits 7 13 181 19 167 140 31 38 69 75 23 8320 8227

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$112,500

O 45

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TS BUILDING PERMITS AL A

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$1.5M

$112,500

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$1M $0 J F A MS AO MN J D J J A F

$234,300

$3M

$231,218

$5M $1M

$1M $1M

$2M

$1.5M

$.5M

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$4M

$.5M

$2M

$1M

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$800k

$200k

$100k ST. CLOUD

N M

No. permits 16 of10 3 13

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$0 $0 $0 A OA NMA DJ S JJ O FA NM DA JM A F J S JM OAA N M D J $60k J2 J F A M 3 $400k No. 811 No. 16 10 3 of 6permits 3 10 10311 31010 312 12 of 118 $100k 91110 12 15 12 5 11 34 of9 permits 22 1227 13 7 8 8 1611 6 permits 3 1113 10 1012 No. 5 of permits 16 3 8No. $120k

S M

713

$0 J

150

0.4

O M

5 15

$0 -0.4

0.0

A -0.6S

3AJ

F S

M O

A N

M D

J F

A M A -0.8 0 46 3 -1.0

100 MA A S MO J N J D A J $0 $60k A S

M J $0 J FA

No. of permits 8

16 of10 3 No. permits 13

6 1

8 2

11 1

A D

$30k Food & Beverage Collections ax Dollars Food Tax & Beverage Tax Collections Rates St. Augusta Unemployment St. Joe ST. CLOUD 1 ST. CLOUD St. Augusta St. Joe 2013-2014 J

-1$0

$0 -0.4

DA -0.6 JS

100

12 1

-2 -3

A -0.8 0

$300k

4th Quarter

$30,580

$234,300

$438,745

$1,348,147 $30,580

$800k

$600k

$700k 4 0

FO MN

$400k

1 1 $120k

$400k 0

No. of permits 3

$21,7

J J A $0 D J AF

No. 0 of permits 0 0 82

COMMERCIAL BUILDING PERMIT COMMERCIA $800k

$400k

$200k

$500k

STEARNS COUNTY2013-14 QUARTERLY % CHANGE IN REAL GDP $700k $300k $300k $120k $120k 5 25 $400k

$600k

AD MJ $0

$600k

$60k 15

Food & Be Unemployment Rates $600k

$200k

4 $90k

$90k 20 $100k

XXXX SM

$200k

Gross Domestic Product Sheriff ’s Foreclosure Auctions

$150k

$100k

N$60k 2D

$0 J

$400k OA NM DJ

2.6%

No. of permits 5

6 No.8 of permits 7 1 5 0 6 6 610 811 $300k

1 $30k 0

$30k 10

$300k

$150k

10%

$21,733

4.6% ST. CLOUD

WIDE 4.1%COUNTRY $500k

$200k 11

6 10 $120k

XXXX

8%$200k

N/A

$100k

$90k

$100k FO MN AD MJ $0

$60k

No. of permits -2.9%

-1.0 J F 1st Quarter

$30k Unemployment Rates Unemployment Non Farm JobsRates 3rd Quarter

$500k

ST. CLOUD

$150k

OA NM DJ 0.2 $200k 05 No. 034 022 0273 2 5$120k 1 0 1 0 0 00 of permits

1 $30k

$200k

$100k

$600k

$1M

ST. CLOUD 4.6%

$0 2.6% NJ D J J A AF

S A

JJ AF $700k 0 12 1 10

Lodging Dollars Food & Beverage Tax Tax Collections

0.6

St. Joe

$500k COMMERCIAL BUILDING PERMITS, BUILDING CONSOLIDATED COMMERCIAL PERMITS, CONSOLIDATED $150k $150k

0.8 $100k

$100k

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

UNITED STATES - MONTHLY % CHANGE 2013-14$200k QUARTERLY % CHANGE $200k IN REAL GDP $120k 1.0 5 150 $400k $800k $90k

COMMERCIAL BUILDING PERMITS,BUILDING CONSOLIDATED COMMERCIAL PERMITS, CONSOLIDA 0 $0 $800k $800k

M J $0 J FA

$500k

Sales Closed 4- Total Lodging TaxHome Dollars

$300k

100

Gross Domestic United ProductStates Nonfarm Jobs

$200k

0.0

2 of 1permits 3 60 No.

$400k

D M

$250k

$100k $21,733 ST. CLOUD

Employment

A O

N A

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

-0.2 -0.2 Building departments for the $200kfollowing cities: St. $100k Sources: Cloud, Sauk Rapids, and St. Joseph.$90k$200k $50k 0$0Sartell, Waite Park, St. Augusta, $21,733 1 $90k $90k

M $0

XXXX

No. of permits 1

0.6

0.4 $0 M AA 0.2 permits 11 50 of16 2 No. 2 8 812 JD

100 M

M JS

$200k5

$21,733

100

=$200k exceeds 5$0 chart scale

$50k

COMMERCIAL $300k

1.0 0.8 $200k

$0 OA

O M

$400k $100k

$50k

$21,733

St. Joe

$50k

$21,733

$19,000

150

$0 AM D SJ O D AJ 7M FA N JJ N FA M $100k $400k 1 2 3 81 5 1530 1804 No. 410 of 12permits 1permits 30 852

150

$19,000

$600k

$1M

$500k

FS MO AN MD J J J F AM A $200k 10No.12 11$100k 910 1211 1310 1512 511 349 2212 2713 $400k of permits 15

$0 $0 $0 $0 $60k FA MS AO MN A JD S JJ OAF NM DA JMA F JS JJ FA M AA SM O J NJ DA J $400k $200k of permits 11 113 958 12 permits 16 13No. 16 28 11 1 10 33 11100 1012 1 12 0 No. of1permits 3 No.15of permits 116 2 810 716 828 No. 13 of10 13 3 15

$0 M AO A N M AD MJ JAF JS $100k 18 41 No. 46 04 of permits 32 500 5662 15 48 1112 2 713

$3,269,962

No. 2 of 1permits 3 60

UNITED STATES - MONTHLY $400k $200k $400k % CHANGE

$200k BENTON COUNTY $0 $0 $0

$150k

200

$400k

United States Nonfarm Jobs 7

$8,024,900

$800k

CLOUD

S 1

$800k

Sheriff ’s Foreclosure Auctions ome Sales Closed - Total $0 $0

$1M

$400k

$200k

COMMERCIA COMMERCIAL BUILDING PERMIT $300k $600k

$0 D JA

$1,000

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

$1M

$400k

M $0

No. of permits 1

$600k CONSOLIDATED BUILDING CONSOLIDATED $600k COMMERCIAL BUILDING PERMITS, $600k PERMITS, 8 200

$250k

$200k

J$500k F

$19,000

COMMERCIAL $600k

230 22 $800k

$800k

$3,269,962

e Auctions Sauk Rapids Sartell

$462,175

$800k

35 41 66 65 421 3 50

$1,025,737

$800k

AO MN JD

$400k 10 No. of permits $120k

$200k

$30k

$200k

$3,269,962

No. 29 6 of1permits 2 122 46

$150k

$600k

$1,348,147 $30,580

$500k $0 N D

$1,348,147 $462,175

$500k M A

$30,580

$1,025,737

$0 J FA MS

of permits 6

$1M J D

$1,348,147

$1M

$90k

TS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS,BUILDING CONSOLIDATED ESIDENTIAL BUILDING PERMITS RESIDENTIAL BUILDING PERMITS BUILDING PERMITS AL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL PERMITS, CONSOLIDATED RESIDENTIAL BUILDING PERMITS RESIDENTIAL 0 0 0 $500k $1M $1M $0

$486,300

$200k

1 St. Augusta St. Augusta

$200k

St. Joe

$50k

$800k

5 4

100

$250k

$1M SM

$90,578

$600k$1,000

Waite St. Joe 1 Park Waite Park

$400k

COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED $600k $600k $150k 200 $150k $150k

$0 J 7 AF

$.5M

$150k

$200k

$100k

$30,580

$800k

$100k

$3,269,962

$800k

$200k

$1,025,737

$8,024,900

$486,300 $4,080,908 $6,653,806

$901,692

$9,790,410

$0 $0 $0 $0 $0 $0 JJ J A AA SM O J NJ DA J F A MS AO MN JAD JSJ AOF NM DA JM FA J MS J AO A MN JD JJ AF M AA SM O J NJ DA 3A J F M 3 $400k $100k permits 31 44 40 722 of334 163 140 227 10 1311of 13 permits permits 683 of182 2 122 No. 46 29 of 35 3 50 41 566 65 15 421 11230 No. 30 52 62 16 2 44of 1permits permits 8 No. 7of permits 13 31 19 6 31 0 38 2 75 No. 48 27 2810No. 8 13 1 24 1 31 No. 40 331 60

$1M

M D

St. Augusta St. Augusta apids $200k

$200k $0

$3,269,962

24 7

$200k

$5,000

A N

13 45

$200k

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

$5,000

M O

8 47

$800k

$1M

$200k

$1,348,147

F S

$50k

$1M

$0 $0 S O J M A M A J J A N D A $2M $400k No. permits 48 10 50 11 22 of 34 63 40 30 52 27 No. 62 of27 permits

$200k

$800k

$200k

$500k

$250k

$1,348,147

$1M

$250k

$400k

6 $200k

$1M $1M M J

OA NM DJ JJ FA M $100k 11 No.7 of permits 3 $2M 1 5 1 152 1110 716 328 113 113 2

$400k

$1,000 BUILDING COMMERCIAL BUILDING PERMITS, COMMERCIAL PERMITS, CONSOLIDATED $150k $600k $150kCONSOLIDATED 8 200 $250k

$6,653,806

No. of $400k permits 5

$0 J

$1.5M

$8,024,900

$50k

$901,692

$3M

$9,976,366

$9,790,410

$.5M $90,578

$0 $9,976,366

$5,137,891

$.5M

$600k

$4M

$8,024,900

$800k

831 13

$112,500

44 11 40 5213 4824 2731 10

$5M $1M A M

$12,840,741

$8,241,705

$12,840,741

$50k

$19,854,821

$1M$1M OA NM DJ

$8,241,705

Sheriff ’s Foreclosure Auctions Sartell BENTON COUNTY Sauk Rapids

St. Cloud

$1,000 COMMERCIAL BUILDING PERMITS, CONSOLIDATED$3M COMMERCIAL BUILDING PERMITS, CONSOLIDATED $600k 8

$200k

$19,854,821

$4M

$5,137,891

$3,627,700

$2,643,759

$2,550,400

$8,024,900

$800k

$3,325,100

$1.5M

$2,750,900

$90,578

$100k

$1M

$250k

$2M

$234,300

$100k

$2,021,194

$901,692

$1.5M

Sartell

$250k

$5M

$438,745

$1M

$2M

$4,080,908 $6,653,806

$9,790,410

$9,976,366

$2M

M A M 2nd Quarter

N$60k D

J J A $0 J M AF S

0 of permits 0 0 82 No. J$30k A

$0 5

-1$0

A O

M N

0 16

0 10

-2J -3

O M

NA $0

D M

No. 6% of permits 5

$60k N D

M J $0 J AF S

6 No.8 of permits 7 1 -2.9%

30 5

$30k Minnesota Nonfarm Jobs Minnesota Nonfarm Jobs

J 3rd FQuarter M A 4th M Quarter J J

1st A Quarter

2nd Quarter

N/A

COUNTRY WIDE MINNESOTA - MONTHLY % CHANGE - MONTHLY % CHANGE COUNTRY WIDE MINNESOTA 2013-2014 % CHANGE OMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING $150k PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED 2.0 10% 2.0 $150k 10% 0 0 $0 $0 0 $0 $0 4% $500k $800k J J A J J J F M A M J J J J AA A S O N D J$500k J A S O N $800k DA JS FO MN AD MJ JF JM A M J J A S O N JD AJ SF OM NA DM JJ F M A M 8%F M A A S M O J N J D A J F M A M J J A 2.5% 1.5 1.5 NGE 2013-14 QUARTERLY % CHANGE UNITED INSTATES REAL$700k GDP - MONTHLY % CHANGE STEARNS COUNTY2013-14 QUARTERLY % CHANGE IN REAL GDP STEARNS COUNTY MINNESOTA $700k $120k 2.0% $120k $250k1.0 5 5 25 25 1.0 1.0 $400k $400k 1.5% $600k $600k 7% 8% 8% 0.8 4 4 0.5 0.5 $90k 4.1% . CLOUD MINNESOTA - MONTHLY % CHANGE ST. CLOUD $90k ST. CLOUD ST. CLOUD COUNTRY WIDE ST. CLOUD 4.6% 4.6% 1.0% 4.1%COUNTRY WIDE $500k $500k 20 20 0.6 $200k $300k $300k 2.0 150k $150k 10% $150k $150k 10% 200 3 3 0.5% 0.0 0.0 0.4 $400k 6% $400k $60k $60k 2.6% 2.6% 1.5 2 0.0% MINNESOTA -0.5 $150k-0.5 UNITED STATES - MONTHLY2% CHANGE IN STEARNS COUNTY MINNESOTA -14 QUARTERLY % CHANGE STEARNS COUNTY2013-14 QUARTERLY % CHANGE6% BENTON AND STEARNS COUNTY 15 REAL GDP 15 0.2 $200k $200k IN REAL GDP 6% $300k 120k $120k $300k $120k $120k $250k $250k 5 25 1.0 5 25 1.0 150 1 1-0.5% 0.0 -1.0 -1.0 5% $30k $30k $200k $200k 8% St. Cloud 8% St. Cloud 0.8 N/A -1.0% N/A $100k 10 10 -0.2 4 $100k 4 0.5 $100k -1.5 Paul Minneapolis/St. Paul Minneapolis/St. -1.5 $90k 4.1% $90k $90k 4.1% $90k 4.6% 0 4.6% 0 0.8 Minnesota Minnesota 20 0.6 $100k 20 $200k $100k -1.5% $200k -0.4 United States 3 3 United States 0.0 100 -1$0 -1 4% -2.0 $0 4% -2.0 J J J F AM SA OM NJ D J A S O N D M OA NM DJ JJ F M 4% J J A S O N -0.6 J F M A M5 J J J F A M S A O M N J D J A 0.4 M J J JD JJ AF SM OA NM DJ J F M A M J A S O N $50k 5 J F M A M -2.0% $0 $0 $0 $0 0.6 St. Cloud $60k $60k A S O 2.6% N D J FA MS AO M A S O N $60k M $60k N JD JJ AF M A M J J A N JD JJ AF M A M J J A 2D J FA MS AO 2.6% 2 -0.5 $150k -2 -2 $150k Minneapolis/St. P 15 0.2 15 -0.8 No. of permits -2.5% 6% 6% permits 3 5 0 No. 0 of 0permits 0 2 1 1 0 0 0 0 5 6 6 8 7 1 0 6 10 11 1 9 7 No. of permits 5 3 5 0 0 0 0 2 1 1 0 0 0 0 6 8 7 1 0 6 10 11 1 9 7 Rochester -2.9% -2.9% 1 0.0 1 0.4 -1.0 $0 50 -3 -1.0 0 -3-3.0% 0 3% A S O N D J $30k F M A M J J$30k A S O N D A S O N D J 3rdFQuarter M A 4th M Quarter J J 1st A Quarter S AO M N JD JJ AF M A M J J 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 2nd Quarter A S O N D J FA M $30k $30k A S O N D J F MSt. CloudA M J J A $100k $100k A S O N D J F 10 M A M J J A N/A N/A 10 -0.2 0 0 -1.5 Minneapolis/St. Paul

Gross Domestic United ProductStates Nonfarm Jobs

$3,269,962

odging TaxHome Dollars Sales Closed - Total

Food & Beverage Tax Tax Collections Lodging Dollars

XXXX

-1$0

XXXX

-0.4

Source: www.positivelyminnesota.com 0

uctions Auctions oreclosure J

DA -0.6 JS

Y-2

-3

-0.8

-2.9%

-1.0 J F 1st Quarter

MINNESOTA

NTRY WIDE

4th Quarter

$250k

COUNTRY WIDE 10%

M A M 2nd Quarter

$250k

$200k

MINNESOTA

employment Rates Unemployment Rates Economy Central presented by 3rd Quarter

$0 5

Median Housing Prices Median Housing Prices

FO MN AD MJ

$200k

XXXX XXXX XXXX

Gross Domestic Product Sheriff ’s Foreclosure Auctions

$19,000

oss Domestic United ProductStates Nonfarm Jobs

Sheriff ’s Foreclosure Auctions Median Housing Prices

XXXX XXXX X XXX XXX

Unemployment Rates Food & Beverage Tax Collections

Minnesota Unemploy Nonfarm J

Sheriff ’s Foreclosure Auctions Median Housing Prices

Median Local Nonfarm JobsHo

$5,000

Sheriff ’s Foreclosure Gross Domestic Auctions Product

$5,000

$3,269,962

arm Jobs

St. Cloud Source: www.positivelyminnesota.com -1$0 Minneapolis/St. Paul 4% $0 J F M A M 5 J J J J A A SS OO NN D N JD AJ SF O M N A D M JJ F M A M $50k J J D Minnesota BENTON AND STEARNS COUNTY MONTHLY %COUNTY CHANGE - MONTHLY % CHANGE -2 BENTON AND- STEARNS United States

Local Nonfarm Jobs Local Nonfarm Jobs

Minnesota United States J

-2.9%

-3

Minnesota Nonfarm JobsNonfarm Jobs Minnesota A

J 3rd FQuarter M A 4th M Quarter J J

1st A Quarter

MINNESOTA - MONTHLYMINNESOTA % CHANGE - MONTHLY % CHANGE0.8 2.0

2.0

2nd Quarter

A F

S M

O A

N M

D J

F A

St. Cloud Minneapolis/St. Paul Rochester A

0.2 Benton & Stearns Counties Minnesota -2.0 4% J F M $50k A M JJ United States 0.0

-0.2

$0 J

NOVEM B E R / D E C E M B E R 2 0 1 4 • • 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 0.8

M AJ S J O

$60k S

$90,578

$200k

47 45 $30k

1 M

2 A

N1 1 M

$30k Economic Indicators & Trends O

XXXX

No. of permits 8 O N D J

Housing/Real Estate J

100

$200k

7 F

8 M

16 A

10 M

3 J

12 S

J F FM M A

No. of permits 3

J A-1.0 J A

St. Cloud Minneapolis/St. Paul Minnesota United States

D 10

United States 01 1 0 0

-0.5

$300k

-2.0

No. of permits 5 A M J J

-1.5

Gross Domestic Product

0.0

$200k $90,578

$100k $200k $0 $0 A S O N D J F M $0 A S O N D AJ SF OM NA DM JJ FJ MA A M -1.0 40 52 48 27 10 11$100k No. of permits 8 13 50permits 40 52 No. No. of 48of permits 27 10 8 11 15 8 1813 424 231 044 240 831 12 13 1 St. Cloud $0 J F Minneapolis/St. M A M J Paul J A A -1.5 $0 J3 F3 Minnesota M6 A8 M J A12 No. of permits 3A 11 J3 10

XXX $400k $200k $90,578

$.5M

1.0

$1,000

N/A

1.5

$400k

$500k

0.5

$200k

8% $50k

D PRESENTED BY FALCON BANK

No. of permits 1 N D J F

XXXX XXXX

$.5M

$50k

1.0

$400k

150

$0 0.5$21,733 $0 $0 $06% 3$0 $0 $0 A S O N D J $200k F M A M J J A $0 $100k A S O N D J F M A M J J $0 $21,733 $0 J J A J J A A S $0O N $0D J A F S M O A NM D J J J F A M A M A S O N D J A F SM OA NM D J J J F A M A M No. of permits 181 167 140 69 23 20 27 58 104 160 154 155 141 No. of permits 50 47 45 7 8 7 13 19 31 38 75 83 of permits 16 28 13 13 No. of permits 181 167 140No.69 No. of permits 50 47 2 23 20 40 2752 584810427160 1015411155 814113 24 31 44 40 31 45No.7of permits 8 7 5 1315 1911 31 7 38 3 75 1 83 182 2 10 0.0 $30k $0 $0 N/A J F M A M J J A A S O N A S O N D J F M A M J J A $0 $0 1 -0.5 S O N D2 J1 F46 M3 A50 M66 J4 J2 A No. of permits No. of permits 8A 7 8 16 6% A1 S1 O2 N1 D 3 J 0 F 1 M 1 A 3 M5 J 0 J 4 A 0

$90k $50k

31 38 75 83 82 $0 A S O N $60k $0 A0 S2 O6 No. of permits 6

$.5M

$400k

$60k

ECONOMY CENTRAL M

$90k $.5M $231,218 $.5M

$.5M

$120k $100k

$300k2.0

$19,000

$400k

$100k

$112,500

$90k

10% $600k $231,218 $100k

$112,500

$150k $150k

-2.0

St.Rapids Cloud Sartell Sauk Rapids Waite Park St. Augusta St. Cloud Sauk Sartell Sauk Rapids COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, United States Nonfarm Jobs Gross Domestic Product Product Creation AL BUILDING PERMITS, CONSOLIDATED COMMERCIAL PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOL COMMERCIAL BUILDING PERMITS,BUILDING CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED COMMERCIAL BUILDING PERMITS, CONSOLIDATED heriff ’s Foreclosure Auctions Median Housing Prices Local Nonfarm Jobs Home Sales Closed Total Lodging Tax Dollars Unemplo Food & Beverage Tax Collections UNITED STATES 2013-14 QUARTERLY % CHANGE IN REAL GDP BUSINESSES CREATING IN LAST YEAR TEARNS COUNTY ST.Lodging MINNESOTA BENTON NEW ANDPRODUCTS STEARNS COUNTY - MONTHLY % CHANGE CLOUD ST. CLOUD COUNTRY WIDE ST. CLOUD Tax Dollars Unemployment Rates Minneso Food & Beverage Tax Collections 5 0.8%

$30k $30k

0.3%

-0.6

$200k $21,733

$200k

St. Cloud -0.8 Minneapolis/St. Paul -1.0 N/A 0.0% Rochester $0 J F

$3,269,962

$1,348,147

1.5 8%1.0

0.4

0.2

$100k

$200k

$50k

$100k

0.5

$100k

0.0

-1

6% $30k

0.0

MINNESOTA 10% 2.0

4.6%

$150k 2.6% $300k = exceeds chart scale

2 $150k

$60k = exceeds chart scale

0.1%

$200k

$19,000

XXXX $200k

$400k

$90k 8%

$400k

0.2%

$120k

4.1%

$200k

XXXX XXXX XXXX

-0.2 -0.4

0.4

0.6

0.4%

0.0

0.6

$8,024,900

0.8

$600k

$8,024,900

$6,653,806

$9,790,410

$9,976,366

$901,692

$8,241,705

$12,840,741 $6,653,806

$800k

$250k

$500k

$250k

COUNTRY WIDE $150k .79% 10%

.71%

0.5% $600k

0.2

0.8

$50k

$100k $30k

$600k

$60k $60k

$1M

$50k

$1M

0.7%

0.6

$150k $60k

$800k

$400k

$100k

0.8

Local Nonfarm Jobs

$90k $90k

$2M

$100k

$2M

MONTHLY % CHANGE $1M

1.0

CHANGE $120kBENTON AND STEARNS COUNTY - MONTHLY %0.6% 0.4 $120k

$150k

$90k $200k 100

$9,790,410 $19,854,821

$3M

ST. CLOUD $150k $150k

$901,692

$200k

$150k

$9,976,366 $5,137,891

$8,241,705

$3M

$4M

$200k

$12,840,741

MINNESOTA 150 $250k $120k

$19,854,821

$5,137,891

$4M

$1M

$250k

Median Housing Prices

$5M

$250k

$5M

ST. 200CLOUD $150k

$50k $0

-2

-1.0

-2.9%

N/A

6% -0.5 $0

St. Cloud $0 $0 $0 1st Quarter A 2nd $0 A S O N D J F 0.2 M A M J J A J N F DM A M J J A S Quarter O N D J F M $0 $0 Quarter M ACentral M A MN J S J O A N S D O Minnesota 3rd 4th Quarter O N D J F M A M J J A J J A NA DM JJ FJ M-1.5 J J A A S O N D J A F S M O A NM D J J J F A M A M A S O N D J A F SM OA NM D J J J F A M A M A S O N Minneapolis/St. D AJ SF OM Paul A A M $0 22 29 35 41 65 21 30 22 34 63 30 27 62 0 No. of permits No. of permits -0.2 No. of permits 1 6 0 2 6 1 2 $01 46 3 50 66 4 2 1 2 1 34%0 1 1 Minnesota 0 $0 F M A M J J A J F M A M J J A S O N D M A M J J A A S O N D J No. of permits No. of permits No. of permits 2 A 6 S 1 O 2 N 1 D46 J 3A F50 66 4 2 1 1 2 1 3 0 1 1 3 5 0 4 0 8 7 8 16 10 3 3 6 8 11 3 10 12 No. of permits No. of permits No. of permits 22 29 35 41 65 21 30 22 34 63 30 27 62 6 0 2 6 1 2 1 46 3 50 66 4 2 1 1 2 1 3 3 0 5 1 0 1 0 3 05 00 24 1 0 1J 0F S O N D J F M A M J J A J A S O N D J F M A M J J J J A S O N D J F M A M J United States $50k Sources: Minnesota Compass led by Wilder Research; Bureau of Economic Analysis www.BEA .gov. $0 $0 4% -2.0 St. Cloud J F M A M J J A S O N D J A S O N D J F M A M J J J 0.0J A S O N D J F M A M J J F Minneapolis/St. Paul Rochester $0 -0.2 $0

-3

Commerce/Services

Gross Domestic Product Sheriff ’s Foreclosure Auctions Median Housing Prices Local No QUARTERLY % CHANGE IN REAL GDP STEARNS COUNTY MINNESOTA BENTON AND ’s Foreclosure Auctions Median Housing Local Nonfarm Jobs Sheriff ’s Foreclosure AuctionsPrices Home Sales Closed - Total Lodging TaxRates Dollars les Closed 2013-14 - Sheriff Total Lodging Tax Dollars Unemployment Food & Beverage Tax Collections Sheriff ’s Foreclosure Auctions Home Sales Closed Total Lodging Tax Dollars STEARNS COUNTY MINNESOTA BENTON AND STEARNS COUNTY MONTHLY % CHANGE BENTON COUNTY ST. CLOUD ST. CLOUD $250k 5 25 ST. CLOUD BENTON COUNTY

25 4

4.1% 2.6%

2 1 0

-3

3rd Quarter

0 D

A J

S J

4th Quarter O A

2nd Quarter

J A

J S

A O

$0 N

0 DJ

0 $0 A MO

S AN

O MD

N JJ

D JF

J AM

AF A

S M M

O A J

N M J

United States By the numbers SheriffNonfarm ’s Foreclosure Auctions Jobs United States Jobs Nonfarm

ERLY % CHANGE IN REAL GDP

M0 A

M A

J J

J O

A N

MINNESOTA 2013-14 QUARTERLY % CHANGE IN REAL GDP 5 $250k 5

1.0

XXXX XXXX

-0.4

St. Cloud, MN - 1st Q

95.7 -0.6

-2.9% St. Cloud, MN - 2nd Q

94.8

1st Quarter

2nd Quarter

105.5 5 109.8

-0.8 -1.0

Minneapolis, MN

107.6

St. Paul, MN

-0.4 -0.6 -0.8

78.2 75.4

83.1

105.1

115.5

89.7

108.5

105.6

116.7

Mankato, MN

95.6

101.4

Cedar Rapids, IA

93.2

Eau Claire, WI

Sioux Falls SD

99.9

83.1

-1.0 J F M A M J M D A M A A M S J O J N A D SJ OF N

A J

S A

$100k

-1 111.8 105.2 $50k -2

95.3 J J

$150k

G Se ood rv s/ ice s

-0.2

2.6%

T po ran rta stio n H Ca ealt re h

0.0

Ut ili tie s

Ho us ing

G Ite roc m ery s

Al l It em s 4th Quarter

0.2

109.6 105.0 N

-3

3rd Quarter

4th QuarterA

101.7

100.6 111.1

88.9

104.9

101.5 111.5

80.7

87.9

100.7

106.2 103.8

92.5

84.4

99.7

97.4

101.1 95.7

94.8

96.6

79.2

90.4

101.4

108.4 103.1

99.1

96.2

93.9

103.6 94.6

Business Central Magazine •• NOVEMBER/DECEMBER 2014

$0A

M J

J S

J O

-0.2

A N

D 4% N

J D

$0 J JF FM

A S O N D J MA AM M J J J J A

J F

F M

ACCRA Index 4.6%

4.6%

Sheriff ’s Foreclosure Auc Local Nonfarm Jobs Sheriff ’s Foreclosure Auctions STEARNS COUNTY

STEARNS COUNTY BENTON AND STEARNS COUNTY - MONTHLY % C 25 25 0.8

217.0 New York (Manhattan) NY 20 2.6% Honolulu HI 167.5

0.6

167.2 New York (Brooklyn) NY

161.6 San Francisco CA

15 0.4

0.2

150.2 Hilo HI

-2

Cloud 147.0 Truckee-NevadaSt. County CA Minneapolis/St. Paul

-3

-2.9%

0.0

Rochester

145.6 Orange County CA 1st Quarter 2nd Quarter

3rd Quarter 4th Quarter S1st Quarter O N D2ndJQuarter F M

XXXX

-2.9%

-1

141.6 Stamford CT

-0.2 J

0 JF

A S FM MA

O A M

N M J

D JJ

J AJ

138.7 Framingham-Natick MA 138.2 Washington-Arlington-Alexandria DC-VA Among the 279 urban areas participating in the second quarter of 2014, the after-tax cost for professional/managerial standard of living ranged from more than twice the national average in New York (Manhattan) NY to just over 20 percent below the national average in Harlingen TX.

101.8 104.3

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 three times a year by the St. Cloud Area Chamber of Commerce. Small differences should not be interpreted as showing any measurable difference, according to ACCRA. 42

M J

0.0

250

0.0

-0.2

4.1%

$200k

0.4

200

0.2

150

0.4

2.6%

0.2

St. Cloud $30k Minneapolis/St. Paul Rochester

$30k

N/A

100

4.1%

0.6

3 For Minnesota and other Upper Midwest cities of comparable size 3 to St. Cloud 0.6

0.0

0.8

$60k

A S O N D J -0.2 0 A S O N D J F M AJ M F J M J A A M J F JM A A SM O J N J DA J F M A M J

4.6%

Minneapolis/St. Paul Rochester

0.4

Sources: Tax Collections – City of St. Cloud Incorporations - MN Secretary of State, Graph courtesy of SCSU

ACCRA COST OF LIVING INDEX - 2nd QUARTER 20144

$90k

$60k

0.2

$50k

Gross Domestic Product Median Housing Prices Gross Domestic Product 2013-14 QUARTERLY % CHANGE IN REAL GDP

UNITED STATES - MONTHLY % CHANGE STEARNS COUNTY UNITED STATES - MONTHLY % CHANGE 1.0

0.4

$100k

50 $30k St. Cloud

0.6

= exceeds chart scale

$90k

100

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/

mestic Product

XXXX XXXX X

0.6

$60k

$50k

$120k

$90k 100

1st Quarter F

$30k

0.8

$150k

$100k

-2.9%

150

$60k

0.8

$200k

$150k

$120k 150

$150k

COUNTRY WIDE $150k 10%

ST. CLOUD

$90k

200

$200k

6 5

-2 5

7 $120k

-1

4.6%

320

ST. CLOUD 200 $150k

ST. CLOUD

$250k

$150k

Now online

Check out the list and more details about each of the included cities at BusinessCentralMagazine.com.

Economy Central presented by

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personal profile

Abdul Kulane

Owner, Language-Bank, LLC age: 32 Hometown: Nairobi, Kenya Education: High School in Nairobi, graduated Saint John’s University, Collegeville, with majors in Sociology and Conflict Resolution Work History: International Rescue Committee (IRC) Kenya; Amahl Bank, Nairobi; New Flyer; 33rd Street Convenience Store; Language-Bank Family: Wife Asha Ali, two daughters ages 6 and 7; mother and one sister live in St. Cloud, father lives in Columbus, OH; a brother in Fargo; three sisters in Australia Hobbies: Watching soccer, football, and basketball; playing softball. “I want to try golf.” Reading - “I read five books a month.”

Expecta

Whether in school, work, or life, Abdul Kulane has big goals and the confidence to achieve them. Written by gail ivers

44 B u s i n e s s

Photos by Joel Butkowski, BDI Photography

Central Magazine •• NOVEMBER/DECEMBER 2014

tations N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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

Abdul Kulane arrived in the United States with one thing. Not money… not a home …not a job. What he brought with him was confidence.

“I

’m resilient,” he said. “I do what I set myself to do.” And what he set himself to do was take advantage of what he saw as the boundless opportunities of his new home. “Here is where everything is possible,” he said. “You can beg in the streets or you can work hard and do well. You can study hard and learn, or you can drop out of school and become a criminal.” After a short stay in Columbus, OH, he moved to St. Cloud where his brother was living. Here he found a job at New Flyer and quickly integrated into the local Somali/East African community. He and two partners purchased a convenience store on 33rd Avenue and 3rd Street North in St. Cloud. “It was a little traditional convenience store,” Kulane said. “I would work mornings at the store, then leave at 2 p.m. to go work at New Flyer. I wasn’t paid for working at the store – I just received a revenue split at the end of the year.” It didn’t take long before he decided that his future was not with the store. “The only people who came to the store were East African and Somali,” Kulane said. “We didn’t get mainstream customers. We weren’t able to grow or expand because our customer base was too small.” So he sold his shares in the business and applied for school at Saint John’s University. “When I went to Saint John’s I thought ‘What is going on in Somalia? We’re 26 years in conflict. How do you resolve this? How do you anticipate conflicts? How do you

intervene and stop or prevent them.’ It was because of these thoughts,” he said, “that I studied sociology and conflict studies.” After graduating in 2012 he started applying for jobs. But the economy was still struggling and instead of hiring, businesses were downsizing. “I had three ideas when I graduated,” Kulane said. “I could work for a corporation where I could get a promotion. It wouldn’t matter where I started in the business, I thought, because I would get a promotion. I know myself and I would work hard and make that happen. Or, I could start my own business. Or, I could move on to graduate school – law school.” He chose self-employment, starting The Language-Bank in 2012. Kulane provides interpretation and translation services in Somali, Swahili, Arabic, and Spanish. He’s received a number of certifications that qualify him to translate complex legal documents that must be accurate and grammatically correct. Organizations such as the St. Cloud HRA, St. Cloud School District 742, and Stearns County District Court have used his services. Of course, his services aren’t limited to legal documents. One of Kulane’s niche services is what he calls cultural translation. A strict translation often fails to communicate thoughts and intent accurately. “That’s where Language Bank can be of service,” he said. “Our expertise includes an understanding of how cultures impact understanding, and how to translate the intent of the message

Business Central Magazine •• NOVEMBER/DECEMBER 2014

accurately and respectfully.” Kulane also offers training to help staff adapt to a diverse society, and upper and mid-level management understand the culture of potential clients and customers. “This is particularly important,” he said, “when you have customers and you don’t understand their culture and way of life.” The business has grown slowly. He uses qualified independent contractors to assist with interpretation services, but does most of the translation himself. (Translation is written, rather than oral, communication.) He also does sales and management. “I make sure the contractors are qualified, have the correct certifications, and that they show up on time and do the job they agreed to do,” Kulane said. “That’s my job. And I also translate and interpret.” Despite the slow start, Kulane is not discouraged. “I am making a living, but I want to do more,” he said. “I am determined to make the Language-Bank work but I want to do something bigger and better. Sometimes challenges are my biggest motivators.” That’s probably a good thing. Kulane was born in Somalia in August 1982. The civil war began in January 1991. “I was going to school and suddenly rockets started going off over our city. I ran back home. We were trapped in our home. We knew there were rebels in the area. My dad knew this was coming – he knew the government would fall.” Within a few days Kulane and his family walked to the other side of the city where it was safer, then moved to south Somalia. Fifteen days later they crossed into Kenya. Kulane and his family – parents, four sisters and one brother – lived in a refugee camp in Kenya for about a year. “It was a long time,” he said. “There was no school, no hospital, no sanitation. People were dying. We had a little

“Here is where everything is possible. You can beg in the streets or you can work hard and do well.” –Abdul Kulane, Owner, The Language Bank

timeline 1991 – Civil War breaks out in Somalia; the Kulane family leaves for Kenya 2000 – Kulane’s brother immigrates to the United States; two of his sisters immigrate to Australia 2002 – Abdul Kulane begins working for the International Rescue Committee (IRC)

January 17, 2006 – Kulane arrives in the United States. He travels to Columbus, OH for 17 days, then moves to St. Cloud 2006 – Kulane begins work at New Flyer in St. Cloud; buys a convenience store with two partners

2008 – Kulane sells his shares in the convenience store Fall 2008 – Kulane starts school at Saint John’s University in Collegeville; he resigns from New Flyer 2011 – Kulane becomes a U.S. Citizen

2012 – Kulane graduates from Saint John’s University with a major in sociology and conflict studies; he joins the Chamber of Commerce and opens The Language-Bank, providing interpretation and translation services in four languages 2014 – Kulane runs for St. Cloud City Council

N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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

w o o w a h d soo

karibu o d i n e v n bie

business profile profile business

Language-Bank, LLC address: 18 23rd Ave N, St. Cloud, MN 56303-4899 Phone: (320) 310-1172 Email: akulane@lang-bank.com WEB: www.lang-bank.com Owner: Abdul Kulane Business Description: Interpretation, translation, and cultural training. Primary languages: Somali, Swahili, Arabic, Spanish, English Number of employees: 1; primarily uses independent contractors for interpretation services

welcome

oil, some beans, yellow corn, cooking utensils, and a tent for the eight of us. It was a tough life.” His father eventually went to Nairobi where he found work fixing cars. “We were lucky because there were no jobs. But he had technical skills so he was able to find work.” The rest of the family soon followed. The national language of Kenya is Swahili. Kulane spoke Somali and had just started learning English in Somalia before they left. “It was a struggle,” he said. “You had to understand Swahili and English to go to school. It was tough. It was also necessary. I had to learn the languages to survive. It’s all about the mentality of the individual.” Kulane’s mentality was that he had to graduate from high school, speak two languages and excel in his academics. “Our parents had high expectations for us. They made sure we were safe. They talked to our teachers. They made sure we had tutors if we needed them.” His interest in business began shortly after he graduated from high school, when he started working for the International Rescue Committee (IRC). As a field officer he worked with the micro-loan program, helping refugees become self-supporting. He would spend his days at the refugee camps looking for people who were doing something that showed initiative. “We would interview people to see if they had any business knowledge,”

Business Central Magazine •• NOVEMBER/DECEMBER 2014

Kulane provides interpretation and translation services in Somali, Swahili, Arabic, and Spanish. Organizations such as the St. Cloud HRA, St. Cloud School District 742, and Stearns County District Court have used his services.

Kulane said. “If it seemed like they did, we would send them to school for eight months to teach them economic skills. If they finished that and were still trustworthy and came up with a business proposal, we would give them money.” Once the money was distributed, it was Kulane’s job to follow-up regularly with his clients, check their books, watch their sales, and ensure that they were following the repayment agreement. “I learned a lot about human interaction and a lot about business,” he said. “You needed to ask good questions so you could tell if people were on the right track, if things were going the way they said. Some of our clients fell behind, but we had very few businesses that ever failed.” The field agents took the business failures personally. Kulane’s clients never defaulted, but others did. “Every failure came back to us. We failed at making a good decision. Maybe we rushed into a decision. Some business ideas were not sound. We worked with one man who was a talented craftsman, but there was no market for his goods. The field agent didn’t stop to think about the market for the product.” There were far more successes than failures. Kulane helped set up many shops, and even a beer factory. One budding entrepreneur wanted to start a bar soap factory. Kulane did a background check by asking friends

and neighbors if the man had the skills he claimed to have. “There were no social security numbers for us to check. We just had to talk to people and try to determine if we were hearing the truth. I told my manager, ‘This guy has these skills. I believe he does.’ We gave him $25,000 and he paid it all back.” At his peak, Kulane had 65 clients and was making 15 visits a day. In the early 2000s, Kulane’s brother immigrated to Columbus, OH, and his three older sisters to Australia. By 2005 the brother was in a position to sponsor his parents, Kulane, and his youngest sister. Immigration was a long and complicated process. Kulane could no longer spend days in the refugee camps working with clients. He had to be available in Nairobi for interviews, background checks, screenings, DNA testing, finger and eye printing, and unlimited paperwork. He quit his job with the IRC and went to work for Amahl Bank in Nairobi while he waited for their petition to the U.S. to be approved. In 2006 Kulane and his family landed in Newark, NJ in a snow emergency. “That was different,” he said. As were many other things. “Drinking fountains. That’s not something I knew, not something we had. Power dryers for drying your hands in the restroom. In Kenya you can eat a good lunch for a $1. When we arrived we had to pay $1 to make a three-minute phone call. My dad said, ‘Don’t make those comparisons. We’re not in Kenya.’” Working for the IRC was a hectic life, according to Kulane. That’s what he likes - a fast-paced life with lots of things happening. In addition to running the Language-Bank, Kulane is considering a job offer from Charter Communications. It is a residential sales job working evenings and weekends. It won’t interfere with his work at the Language-Bank, but it will force him to

“My life depends on me. I have this education…this experience…this commitment. Some people may not consider that. They may consider the color of my skin or my accent. This does not deter me. These are a small minority who think like that. And when we talk, we find we have common goals.” do sales. “I have to learn to do sales if I’m going to be in business,” he said. “This is a skill that I need to learn and build so I can bring it back to my business.” Kulane is already working on his sales skills in a different way – he’s door knocking. As of this writing he is running for St. Cloud City Council. “I’m not a long-term political guy,” he said. “I just want to see things better in my community.” His focus is on improving the safety in his neighborhood and cutting down on the number of abandoned and rental properties. “The neighbors are complaining about the short-time renters and the properties are not being maintained,” Kulane said. “Some of the families are very emotional about it, wanting to move. Things are getting worse and worse. We need a leader to help make a difference and I think I can do that. The City is responsible for public safety so you need to be a city official to have influence.” Door-knocking has been a valuable experience, according to Kulane. “I learn a lot. I learn the concerns of the people. I’ll knock on every door. I’ll listen to them on whatever they want to say – city, business, safety, whatever.” So far he has enjoyed the experience. “I enjoy the variety. The people guessing where I’m from. I’ve had a good reception – 99.9 percent of the people are positive.”

So is Kulane. “My life depends on me. I have this education…this experience… this commitment. Some people may not consider that. They may consider the color of my skin or my accent. This does not deter me. These are a small minority who think like that. And when we talk, we find we have common goals.” One of those goals is be a very successful person in business, Kulane said. “Either my own or someone else’s business.” He’s working on that by building his own company, improving his skills, and engaging in the community. “I might invest some money in a business in Kenya some day,” he said. “If you know how to do it you can be successful. I don’t see myself ever living there again; it’s just a place I know.” When he was in college thinking about conflict and ways to anticipate and intervene in conflict, it was in part because he thought those skills would help him if he ever moved home. But today home has a new meaning for him. “Where is home,” Kulane mused. “In 2008 it was Kenya. Now this is home. This is where I know how to live. This is where I can call a friend and say what I need. And here is where I want to contribute.” BC

Gail Ivers is vice president of the St. Cloud Area Chamber of Commerce and managing editor of Business Central Magazine.

N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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

FEATURE

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PROFIT

TrendWatching Companies must become trend watchers in order to improve business and delight customers. By Mary MacDonell Belisle

Business Central Magazine •• NOVEMBER/DECEMBER 2014

>> Kodak patented the first digital camera, but failed to commercialize it.

onsumers fall into five social sciences’ behavioral categories––innovators, early adaptors, early majority, late majority, and laggards. The innovators herald trends. “Successful marketers need to detect trends and respond to them, avoiding the fads,” said Dr. Lisa Lindgren, associate professor of marketing, College of St. Benedict. Lindgren suggests businesses gather, sift, and use every bit of information available––demographic, economic, political, ecological, technological, and societal. “Find your innovators, the consumers constantly chasing the next new thing. Keep your antennas up,” she said.

Technology connected Technology is rapidly shaping consumer behavior. Times Media previously produced the daily newspaper. Today, the newsroom is being restructured for digital delivery and consumers’ desire to be in-the-know fast, 24/7, and with high-value content. Reporters now carry iPhones, shoot video, and blog. A recent partnering with USA Today is a response to requests for more national news. Pay-per-click (PPC), SEO, website development, email, retargeting, network buys, and social media products are offerings of a newspaper repurposed as a media outlet. “Times Media is part of an industry

Borders allowed Amazon to handle its online sales distribution, beginning in 2001, but waited too long to launch its own website in 2008.

in transition. As our readers continue to move to digital consumption of news and information, we must adapt our product offerings to meet those needs,” said Publisher Melinda Vonderahe. Vonderahe said the company relies on market data collected in Gannett surveys, telephone interviews, questionnaires, and via social media.

Mobile phone accessible Times Media is also becoming more mobile phone friendly. Ditto for Executive Express. Why? According to a January 2014 Pew Research Internet Project, 90 percent of American adults own cell phones, 58 percent of which are smartphones. A Mobile Path-to-Purchase Study by Telemetrics found that 60 percent of smartphone users purchased after mobile activity. Mobile phone use cannot be ignored. “We’ve acted on that knowledge, engaging with consultants to make our website mobile-friendly, faster, and less cumbersome,” said Executive Express owner Larry Logeman, St. Cloud. Eventually, all airport shuttle and charter drivers will use some type of mobile device to facilitate reservations, payments, communication, and GPS-assisted transport.

Fast and convenient Logeman also has an eye on consumer demand for WiFi, especially for charters.

Nokia had a smartphone before Apple created the iPhone, but missed the smartphone revolution by settling on old technology.

Bonnie Rodness, operations director for the Holiday Inn & Suites, has moved on this trend toward fast and convenient, especially since guests have demanded more bandwidth for games, entertainment, and conducting business. The Holiday Inn has put considerable resources into new infrastructure to bring WiFi capability from 7.5MB to 20MB.

Total unique experience Rodness feels it’s important to stay ahead of the competition by offering a better guest experience. “Today, ‘good’ just isn’t good enough,” said Rodness. “Expectations are higher, even from five years ago.” In food service, the Holiday Inn sees a trend toward semi-casual and self-service due to guests’ desire for instant gratification. Rodness is also aware of a national trend toward digital self check-in, but acknowledges it won’t work for the Holiday Inn & Suites and Holiday Inn Express, which offer a variety of guest accommodations. Self check-in is more conducive to hotels with uniform rates, rooms, and reservation formats. “If the guest is willing to pay for the amenity, rule-of-thumb is that the behavior isn’t a fad,” said Rodness, explaining that many hotels lost money installing waterparks and Sleep Number® beds, two fads the Holiday Inn avoided. She and her team collect data from guests (every day), the Minnesota

N O V E M B E R / D E C E M B E R 2 0 1 4 • • 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

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photo credit: Metro Bus

PROFIT

State Lodging Association, franchisor, trade publications, and Trip Advisor. “It can be easy to think we know our customer base, but we do our research. Assume, and you put yourself into a dangerous position,” said Erin Bitzan, fashion buyer for D.J. Bitzan Jewelers, Waite Park. She tracks trends by attending trade shows, reading trade magazines, talking to her peers and customers, and hosting focus groups. Bitzan finds her network of vendors and designers, cultivated over three generations of family business, “invaluable.” An overarching industry trend is the desire for an individualized experience. Customers – a growing number of them women – expect more attentiveness by staff and attention to their individuality. Secondary is the product, where shoppers are looking for signature and custom-designed jewelry pieces to reflect their uniqueness. Consumers still want to see, touch, try on, and model unique products for themselves, so the memorable in-store retail experience remains vital.

Meaningful and memorable Consumers are looking for the stories of

Concern over its carbon footprint inspired St. Cloud Metro Bus to become the first transit agency in Minnesota to switch to hybrid engines in its New Flyer buses and to the use of compressed natural gas (CNG), which is cleaner and cheaper than diesel fuel.

identity that lie behind the product. GNP Company, St. Cloud, a national provider of premium quality poultry products, introduces consumers via website videos to the farm families who raise its chickens. These folks speak plainly and proudly of their efforts to raise healthy, natural birds for consumer consumption. “We’re seeing more through consumer research that consumers want to understand the companies they buy from and want to trust these companies,” said Rory Bidinger, brand advocacy and marketing manager. “Sometimes, companies can be ahead of a trend,” said Tracy Miller, GNP Company’s director of product development, St. Cloud. In 2000, the company introduced an organic

Business Central Magazine •• NOVEMBER/DECEMBER 2014

line of chicken, but consumer interest was not strong enough. Today, the company is re-introducing Organic Just BARE® Chicken exclusively to Super Target shoppers prior to a potential national launch. “We’ve learned to read trends better and not react as fast, conducting additional in-depth research to gauge how fast people’s behaviors will change,” she said.

Commitment to sustainability Social media has become a huge platform on which to hold a company’s feet to the fire with regard to social responsibility. GNP Company shares its business objectives with the public in its “Farm to Fork Report.” Two of their sustainability practices (among many)

GNP Company, St. Cloud, a national provider of premium quality poultry products, introduces consumers via website videos to the farm families who raise its chickens.

are the wastewater treatment facility, which reuses water from processing, and the lifecycle assessment the company conducts to reduce the carbon footprint of their products. Concern over its carbon footprint inspired St. Cloud Metro Bus to become the first transit agency in Minnesota to switch to hybrid engines in its New Flyer buses and to the use of compressed natural gas (CNG),

which is cleaner and cheaper than diesel fuel. Twenty-three of the company’s 82 vehicles use CNG. Upon retirement, busses will be replaced with CNG versions. Aging in place. St. Cloud Metro Bus opened its Mobility Training Center in July – the first public transportation agency in Minnesota to do so. The center facilitates the use of fixed bus route services by the

aging population and for persons with disabilities, by familiarizing and instructing consumers on how to use the city’s bus service. “Aging in place” has implications for communications, financial services, healthcare, homecare technology, housing, remodeling and construction, security, and transportation industries, among others. Few companies can predict with 100 percent accuracy their customers’ immediate and future behavior. (It remains to be seen if Apple’s iPhone 6, with its larger, megapixel color screen, will “Wow!” consumers.) However, wise companies will invest time, money, and resources toward monitoring all trends because if they snooze, they’ll likely lose. BC Mary MacDonell Belisle is a St. Cloud area freelance writer-for-hire who can be contacted at wordingforyou.com.

www.scr-mn.com

Formerly St. Cloud Refrigeration CentRal | metRo diViSion St. Cloud 320-251-6861 MetRo 800-827-1642

RefRigeRation HVaC SeRViCe Building automation food SeRViCe

noRtHeRn diViSion BaxteR 800-273-9071

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PROFIT

Steps to Success Securing funding for your business needs is easier than you think. By Whitney Bina statement predicting business success, Jessica Bitz, vice president/senior lender, Falcon National Bank, said. For established business owners, three years of financial records are required. This includes both personal and business tax returns, a personal financial statement, business history and future projections, according to Bitz. When preparing a plan, consider using local resources to help. “At our bank, we use a lot of local non-profits and business development programs,” Jay Johnston, CEO and president, American Heritage National Bank, said. “Our local partners include the Initiative Foundation, the Small Business Development Center, and the Anderson Center.” Story continues on page 56.

FINANCIAL Services; Retirement Trust & financial planning

usinesses need money and banks have the funds. What can business owners do to secure loans for their startups and expansions? Learn what banks are looking for and follow these steps to ensure you receive funding for your next project. 1 Find the right bank “Business owners need to do their homework on both their business and their bank,” John Herges, president and CEO, Falcon National Bank, said. Because

there are many banking options in today’s market, business owners need to shop around to find a bank that aligns with their goals. 2 Create your business plan Arguably the most important step in securing a loan, a business plan should be as detailed as possible. For new businesses and startups, a business plan should include projections, market studies and backgrounds for your industry, personal financial records, and a personal

About the writer Whitney Bina is the communications and workforce development coordinator at the St. Cloud Area Chamber of Commerce.

Business Central Magazine •• NOVEMBER/DECEMBER 2014

Learn more about the variety of financial & professional services available to businesses in Central Minnesota on the following pages.

Financial ServiceS: Retirement Trust & Financial Planning

Stearns Bank

N.A.

Plaza Park Bank

Rinke Noonan Law Firm

Jennifer Elston-Brondell Nate Lloyd

Jim Schleper

AVP/SBA & Commercial Lending 320-258-4824 NateL@stearnsbank.com www.stearnsbank.com

Exec Director of Commercial Lending NMLS #769488 jschleper@plazapark.com 320-257-3305 •• www.plazaparkbank.com

Stearns Bank is a local, employee-owned bank with $1.7 billion in assets with locations in Minnesota, Florida, Arizona, and Georgia. As a nationwide Preferred Small Business Lender & Equipment Finance Provider we are able to approve and process loans and leases in-house quickly. We are dedicated to providing customized banking solutions to fit both your business and personal finance

“We are locally owned and managed, which makes a difference—each week we’re making decisions that we feel are best for our clients. Business owners like knowing that the people making the decisions all live and work in our community. Each of us at the bank has a genuine desire to do what is best for you (the client) and I think that comes through in how we conduct business.”

Visit Jim in our Waite Park location today!

goals. Our motto is: “We get the job done!”

American National Bank of MN

Tammy Reis Vice President - Loan Officer 320-253-0142 treis@anbmn.com www.anbmn.com Tammy has 28 years experience in real estate financing. She can help finance your first home, lake home, investment property, land purchase, home construction and home improvements. American National Bank is celebrating 30 years of business in St Cloud! We can meet all your personal and business loan needs. Our Simply Free personal and business checking accounts have many free benefits including free ATM use anywhere! You can get started with all your banking needs by contacting Tammy today! Member FDIC, Equal Housing Lender

Attorney 320-251-6700 jelston@rinkenoonan.com www.rinkenoonan.com Whether addressing general estate planning, elder care issues, disability planning, or minimizing gift and estate tax consequences, Jennifer Elston-Brondell is dedicated to providing clients with effective, individualized solutions, with your specific goals and concerns regarding families, their care and their assets. Her practice includes the preparation of Wills, Trusts, and incapacity documents, medical assistance advice, as well as probate and trust administration. She also has a particular interest in special needs estate planning.

Falcon National Bank

American Heritage Bank

John Herges President and CEO 320-223-6300 jherges@falconnational.com www.falconnational.com

Where more than just money… relationships are our business.

A DOOR THAT’S ALWAYS OPEN. Mine. We understand that no two businesses are alike; that’s why we offer a unique, personalized approach to business banking. If you value a dedicated staff, local decision-making, and money to loan when you’re ready to borrow, you’ll appreciate Falcon National Bank. That’s reality. Member FDIC.

West St. Cloud – (320) 654-9555 East St. Cloud – (320) 257-5000 Offices also in Long Prairie and Browerville

Member FDIC

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Financial ServiceS: Retirement Trust & Financial Planning

CDS Financial Services, LLC

Carlson Advisors

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PROFIT

Brian Chance Hooper CPA, CFP®, PFS TM, AAMS®

Michael Benusa, CPA

Wealth Manager (320) 235-3311 •• chooper@cds-financial.com www.cds-financial.com

Principal 320-203-0254 mbenusa@carlson-advisors.com www.Carlson-Advisors.com

CDS Financial Services, LLC is an independent firm dedicated to providing experienced guidance on all aspects of wealth plan management. Our experienced team will work with you to identify your personal needs and values, then implement and monitor a plan designed to help you pursue financial independence. Our wealth management strategies include: retirement planning, investment planning, education planning, tax strategies, estate planning, business strategies, insurance, risk management and gifting strategies. Call us at (320) 235-3311 to schedule a free, no-obligation consultation and discover how we can help you pursue your financial goals. Securities offered through LPL Financial, member FINRA/SIPC. • There is no guarantee that an investment strategy will yield positive outcomes. Investing involves risk, including loss of principal.

Build a business with Carlson Advisors… Proven perspective, insight and experience to help you achieve your business vision. That’s Carlson Advisors, a team of seasoned advocates ready to help you identify and maximize every business opportunity. We are a CPA and business consulting firm, but that doesn’t begin to communicate the depth of our commitment to going beyond client and industry expectations. You will notice the difference from your first conversation with us – a deeper understanding of your operations. Partner with us. We understand your concerns and are dedicated to results.

CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

Mike

Zager CPA Partner

Alyssa Bertram Accountant

Brett Aamot, CPA Managing Partner

Heather Thompson Firm Administrator

Kari Means, CPA

Exceptional service, dedication to detail and technical competence are the foundation of our firm. SERVICES Tax Planning & Preparation  Accounting  Auditing  Business Consulting

St. Cloud-Sartell | Willmar | Benson | Morris | Litchfield

Business Central Magazine •• NOVEMBER/DECEMBER 2014

First impressions are important. “If you have your business plan ready, confidence and competence will show,” he added. 3 Consult with a loan officer and submit your request After you have your business plan prepared, schedule a meeting with a loan officer. Your lender may need you to prepare follow-up paperwork before you can submit your loan request. The sooner you get this done, the better, Johnston said. After your request has been submitted, maintain consistency, Bitz said. “Don’t change major operations and stay in touch with the bank and your lender throughout the entire process. “ 4 Be patient and wait

Quality | Dedication | Integrity

LOCATIONS

Story continued from page 54.

www.cdscpa.com

Call us toll-free at (800) 862-1337

for a decision Banks meet regularly to determine funding decisions for loans, but you might have to be patient. “Depending on the complexity of the loan, lenders could get back to you in days or weeks. It all comes down to the size of the requested transaction,” Johnston said. At both American Heritage National Bank and Falcon National Bank, a committee meets weekly to determine funding requests. Businesses need money. Banks have funding and want to help you with your loan requests. “Securing a business loan is not complicated. Be prepared and be honest with your banker,” Johnston said. “We want to make loans and help local businesses grow. BC

SMART BUSINESS: Carlson Advisors

Build a business with Carlson Advisors. Consultants are a rare mix of numbers’ sense, strategic passion

Call us Today STRATEGIC PLANNING Training, Performance Management, Strategic Marketing Support, Ownership Planning, Exit Strategy MANAGEMENT

Certified Public Accountant. A Carlson Advisors consultant assumes many roles throughout the course of a relationship with a businessperson like you. Certainly, at the foundation of each relationship is the assurance that your advisor has the credentials and expertise to understand the numbers and speak to you in an intelligible manner as to what those figures reveal about the health of the business today. Your accountant wants to see that the numbers are accurate, the books balance, payroll is made, and the taxman is paid his due. However, we at Carlson Advisors are first and foremost business consultants, and substantially more than “number crunchers,” as important as that may be!

Advocate. Confidante. Teammate. When you allow a Carlson Advisors business consultant to share your deepest aspirations and strategic vision for your company and its future, you access a wealth of imagination and creativity. And when you work in concert with your advisor toward your strategic goals for the future, you ignite a fire of entrepreneurial enthusiasm in your new “partner.”

“

The exuberance you feel after nurturing

CONSULTING Projections,

a business to a successful outcome is the most

Benchmarking,

rewarding emotion, from a business standpoint,

Workflow, Cost Studies,

that one could feel,” says Michael Benusa, Principal. “Success is such an affirmation

Succession Plans, Restructuring, Financing, Contract CFO

of the value we’ve brought to the client,

”

and that is so satisfying.

TAX PLANNING &

Discover and make the most of every opportunity. Call us TODAY.

Individual/Corporate

We can help with your attest requirements, personal and business income and estate tax planning, litigation and valuation support, consultation to any size business, and succession planning. And because we are not investment advisors, our objectivity is not compromised with any concerns about a managed investment portfolio.

Multi-State, Quarterly

PRESENTATION Tax, Entity Structure, Plans, Cost Segregation, R&D, Tax Audits AUDIT & ACCOUNTING SERVICES

Carlson Advisors – Taking Your Future Into Account

Audit/Review/ Compilation, Internal Control Evaluation, Benefit Plan Audits,

Consultants: Michael Benusa & Joseph Maiers Contact Us: 320.203.0254