November/December 2011

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Editor’s Note

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NOVEMBER/DECEMBER 2011

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Business Tools

22 Management Tool Kit Hiring for Retention

A good employee retention plan will help ensure that your employees aren’t among the 22 percent who plan to change jobs this year.

PROFIT

This Issue 36 Feature

Followership

With a little effort – and patience – businesses can engage and gain customers through social media.

40 Special Focus Found Money

23 Tech News 24 Entrepreneurism

SCSU’s Microloan Program offers a funding alternative to Central Minnesota’s low-income entrepreneurs.

The new year is a good time to review practices that can help you grow your business.

Business Spotlight Greg Warnert, Mexican Village Restaurant

Business Builders

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25 Going Green

Go Green – and Save Some, Too

Earn rebates, save energy and improve your bottom line.

PROFIT

28 COVER STORY

RISK FREE For Netgain founder Scott Warzecha, starting a business is about analyzing opportunity, not controlling risk. N E T WO R K

Upfront 10 News Reel

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

26 Economic Review A Case for Economic Gardening

Rather than luring firms with a promise of low costs, economic gardeners help local entrepreneurs become the pioneers of innovation.

Special Section

11 People to Know

41 Financial & Professional

12 Your Voice In Government

Services

Make a Difference

from around Central Minnesota.

There is no better time to get involved with your government than right now.

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16 Regional Round-Up

•• Getting Paid

•• Choosing a Franchise

Meet Cathy Mehelich

•• Social Media Made Easier

•• Energy Saving Opportunities

Book Review Fun Is Good; How to Create Joy & Passion in Your Workplace & Career by Mike Veeck and Pete Williams

New Face in Town

Moving & Shaking

Economic development news in Central Minnesota

ONLY ONLINE

www.BusinessCentralMagazine.com



PRESIDENT’S LETTER

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NETWORK

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

Fruition

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love it when things come to fruition. I love completing fiscal years and starting over. I love making apple pies from the fruit of my backyard apple trees. I love New Year’s Eve. And I adore the grand finale at fireworks displays. It should come as no surprise that when I recently walked through the nearly completed Rivers’ Edge Convention Center (formerly the St. Cloud Civic Center), I loved it! I cannot wait to be at the grand opening of the building. Seeing it filled with people marveling at the size of the hall and the features of the building will fill me with community and civic pride. I am especially excited to view the artwork that will span both levels and encompass the open stairwell of the building. Melissa Gohman, Paramount visual arts director is responsible for the project: a huge mural representing the river and scenery lying outside the center’s walls. The artwork features plants and animals native to the area in life-sized, 3D splendor. The building has small conference areas on the second floor that overlook the massive convention floor below. As I stood looking out the window that is yet to have glass placed in it, I pictured thousands of people milling around hundreds of vendors, all with big dollar bills in their pockets waiting to spend them in our community. The St. Cloud Area Convention and Visitors Bureau staff and Rivers’ Edge staff have been hard at work informing current and potential customers about the new facility and the size of meetings it can handle. I cannot wait for the first large consumer show in the building. I want to see the reaction of people who are visiting the building for the first time.

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email: information@StCloudAreaChamber.com ST. CLOUD AREA CHAMBER OF COMMERCE STAFF

It’s important for us to achieve balance in the needs of all the building’s customers, including the local community, as we seek the best uses for this new asset.

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 Membership Sales Specialist | Wendy Franzwa, ext. 134 Administrative Assistant | Vicki Lenneman, ext. 122 Administrative Assistant | Cindy Swarthout , ext. 100 Administrative Assistant | Sharon Henry, ext. 124 Communications Intern | Alexa Sandbakken

It’s important for us to achieve balance in the needs of all the building’s customers, including the local community, as we seek the best uses for this new asset. Consumer shows bring people from our community into the building, educating them on its size, purpose and profitability. Conventions and meetings bring in participants from out of town to spend money in our area and put heads in hotel beds, generating tax dollars that fund promotion of the building into the future. I’m looking forward to the Chamber’s Central Minnesota Farm Show. I anticipate standing in one of the conference rooms gazing down on the hundreds of pieces of equipment and 4,000 participants roaming the big hall. I wonder if it will taste as sweet as my apple pie?

CONVENTION & VISITORS BUREAU STAFF Executive Director | Julie Lunning, ext. 111 Sales Manager | Lori Cates, ext. 113 Director of Sales & Marketing | Judy Okerstrom, ext. 112 Director of Sports & Special Events | Kelly Sayre, ext. 128 Director of Visitor Services | Jean Robbins , ext. 129 Receptionist | Nikki Fisher, ext. 100 2011-12 BOARD MEMBERS Jim Beck | Minnesota School of Business Gary Berg | G.L. Berg Entertainment, Performing Artists & Speakers Craig Broman | St. Cloud Hospital/ CentraCare Health System, Board Vice Chair Linda Feuling | Westside Liquor Neil Franz | Neils-Franz-Chirhart, Attorneys at Law Todd Fritz | InteleCONNECT, Inc. Jayne Greeney Schill | St. Cloud Area School District #742 Diane Hageman | College of Saint Benedict Steve Hahn | HahnMark, LLC John Herges | Falcon National Bank Scott Johnson | Times Media Dolora Musech | Batteries Plus

Teresa Bohnen President

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

Kris Nelson | Custom Accents, Inc. Bernadette Perryman | Past Board Chair Rick Poganski | Principal Financial Group Dr. Earl Potter, III | St. Cloud State University Jodi Speicher | The Good Shepherd Community Bill Winter | St. Cloud Federal Credit Union, Board Chair



EDITOR’S LETTER

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NETWORK

Now the typewriter – there was a good idea.

Bad Ideas

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ny time I start to get too impressed with my own cleverness, someone is usually willing to point out some of my bigger blunders. When Luke Cesnik, (now of Computech, then of Simplified Software Systems) approached me years ago about starting a group that would meet at 7 a.m. every Friday, I thought he was crazy. In fact, I told him he was crazy. We couldn’t get 20 people to meet once a month, how could we possibly get them to come to a weekly meeting? Luke was undeterred. He had been associated with a similar group in Oregon. He was certain the concept would be welcomed in St. Cloud. I told him there was no precedent. He didn’t care. I told him he’d have to recruit his own committee. He said that was fine. I told him I wouldn’t help plan or coordinate the meetings. He said OK. The end result is the Chamber Connection, the best networking group in Minnesota, and possibly in the Chamber firmament. Staff from other chambers of commerce come to St. Cloud just to attend the Chamber Connection to see what it is that makes it work. But it remains unique. I think it works because it was developed by members and for members. They did the planning, the scheduling, and the programming. They didn’t have staff getting in their way or pushing a different agenda. I’d like to take

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credit for this, but I know better than to confuse strategy with stubbornness. It’s a good thing for the Chamber that Luke is stubborn, too. A few years back I was at a meeting where someone announced that Scott Warzecha had quit his job of many years at Marco to start his own business. He was going to start a company where his clients would pay him a monthly fee and he would provide software to them through a secure Internet portal. I didn’t know Scott, but I knew this was a crazy idea. Who would do that? After paying a monthly fee for a few years, you could purchase your own software license. Why would a business give up control in that manner? How could Scott afford to purchase software licenses for all the industry-specific software that would be needed? (To find the answers to these and other questions, see this issue’s cover story on page 28.) This was crazy talk. And yet Scott projects that his brainchild, Netgain Technology, will have $8 million in sales in 2011. I hear good and bad ideas all the time. I try to keep an open mind. I’ve launched several excellent programs that have fallen flat. (Does anyone remember the Ambassadors Club? How about Good Morning St. Cloud Area?) I have managed to associate myself with some pretty successful concepts – when was the last time you were at a Waite Park or Sauk Rapids Chamber meeting? After all these years at the Chamber, I think I have a pretty good sense of what will and won’t work. For instance … Facebook? It’ll never catch on.

Gail Ivers

Vice President

Editor

Photo by Joel Butkowski, BDI Photography

Staff from other chambers of commerce come to St. Cloud just to attend the Chamber Connection to see what it is that makes it work. But it remains unique.


Publisher Teresa Bohnen Managing Editor Gail Ivers Associate Editor Dawn Zimmerman CONTRIBUTING WRITERS Jill Copeland Jobs2Web

Mary E. Edwards Professor Emeritus St. Cloud State University Fred Hill St. Cloud State University Gail Ivers St. Cloud Area Chamber of Commerce Mary MacDonell Belisle mary macdonell belisle-writerforhire Alexa Sandbakken St. Cloud Area Chamber of Commerce Larry Schumacher Wordbender Communications LLC Samantha Bishop-Strand Doherty Staffing Solutions Dawn Zimmerman The Write Advantage ADVERTISING Associate Publisher/Sales Wendy Hendricks, Hendricks Marketing

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

Cover Photo Joel Butkowski, BDI Photography ACCOUNTING Accountant Judy Zetterlund

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

Let’s think big, and see how much your business can grow. You don’t have to be big to think big. Combine your positive outlook with our financial expertise and you have the right ingredients for success. Let us show you how to take your business to the next level. Let’s take action. Your business. Our bank.

Downtown St. Cloud 251-3300 West St. Cloud 656-3300 • Sauk Rapids 252-1938 Sartell 255-7121 • Rice 393-2600 Call 1-800-908-BANK or visit Bremer.com. Member FDIC. ©2011 Bremer Financial Corporation. All rights reserved.

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

People to Know

Your Voice in Government

It’s Made Where?

Business Calendar

Point of View

Regional Roundup

UPFRONT

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by Mike Veeck and Pete Williams Rodale, Inc. • USA • 2005 ISBN 13.978-1-59486-152-9

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By Fred Hill

early every organization can implement the Fun Is Good philosophy, according to authors Mike Veeck and Pete Williams. It means laughing, joking, keeping things light, and having a positive attitude. It is building relationships and creating an office or organizational community. With it we may be more

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Finken Water celebrates 50 years

Author Mike Veeck has a simple, no-fail formula for business success: Make work fun.

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Lighten Up

How to Create Joy

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likely to treat co-workers and customers the way they should be treated – with respect and dignity. And, of importance, it is taking a proactive, hustling approach to building a career based on one’s own interests. The book consists of three parts. Part I: Fun is Good: It’s all in your Heart and Head. Part II: Lighten Up. Part III: Spread the Word. Each of the three parts consists of four chapters. Each chapter has a chapter summary with some helpful exercises. I’ve chosen samples from four chapters to illustrate the book’s possibilities. Chapter 4: The Human Touch. Tap into the talents of your staff, not just those that fit the job description. Surprise colleagues and employees with kindness and random time off. Write a personal marketing plan. Chapter 7: The Business of Laughter. Everyone wants to laugh at work. Everyone should feel comfortable suggesting ideas, no matter how outlandish. Employing

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

current events can help work be fun and productive. Chapter 10: Customer Service. Customer service is just as important as product and price. Deal with complaints headon. Owners and executives need to work the front lines of customer service. Make customers laugh. Chapter 11: Giving Back. Volunteer work is personally rewarding and also good for business. Give employees time off for volunteer work. Companies need to take an active role in their communities. Mentor someone. Train someone to do your job. Make yourself indispensable by developing talent. As the workplace becomes more fun and productive, Veeck suggests, potential conflicts are often lessened. BC Dr. Fred E. Hill is a professor of Learning Resources Services at St. Cloud State University.

Finken Water Center opened in Melrose in 1961. Currently the company maintains a headquarters in St. Cloud, with four other Minnesota locations: Melrose, Litchfield, Osseo, and Albertville.

Noonan, Bursch join Community Foundation Board

Mike Noonan, Rinke Noonan law firm, and Fred Bursch, Bursch Travel, have been appointed to the Central Minnesota Community Foundation board of directors.

Rising Star, Super Lawyers selected from Rajkowski Hansmeier

Poetz Troy A. Poetz, shareholder with the Rajkowski Hansmeier law firm in St. Cloud, was recently selected for inclusion in the 2011 Minnesota Rising Stars. The Minnesota Rising Stars are based on peer recognition and professional achievement. Only 2.5 percent of lawyers in the state are named to the list. Fellow shareholders Frank J. Rajkowski, Gordon H. Hansmeier, Paul A. Rajkowski, and Kevin F. Gray were recently selected for inclusion in the 2011 Minnesota Super Lawyers. Only the top 5 percent of lawyers in the state are named to this list.

Evavold joins Westwood

Darin Evavold joined Westwood Professional Services, Inc. as an engineering technician in the land group. He brings more than 17 years of construction experience to Westwood.


PEOPLE TO KNOW

Six 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.

JIM BECK Minnesota School of Business (320) 257-2000 jbeck@msbcollege.edu

STEVE HAHN HahnMark, LLC (320) 253-1463 sfhahn@cloudnet.com

GARY BERG G. L. Berg Entertainment Performing Artists & Speakers (320) 654-6901 gary@glberg.com

SCOTT JOHNSON Times Media (320) 255-8700 sejohnso@stcloud.gannett.com

NEIL FRANZ Neils-Franz-Chirhart Attorneys at Law (320) 253-7130 neil@nfclaw.com

JODI SPEICHER The Good Shepherd Community (320) 252-6525 jodispeicher@ goodshepherdcampus.org

In the News

reboot Bend without breaking When your stride becomes a limp, it’s time to put your foot down. From rehab to replacement, St. Cloud Orthopedics will help you restore your flexibility and get you moving again.

Diane Hageman was appointed to fill a one-year vacancy on the St. Cloud Area Chamber’s Board of Directors. Hageman is the director of media relations at the College of Saint Benedict and past chair of the Chamber’s Board of Directors.

1901 Connecticut Ave S, Sartell

StCloudOrthopedics.com OrthopedicSportsCenter.com

320.259.4100 General Orthopedics • Sports Medicine Joint Replacement • Trauma • Knee & Shoulder Hand Center • Spine Center • Foot & Ankle

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

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NETWORK

N E WS R E E L Hall elected chair of industry group

Loran Hall, president of Mathew Hall Lumber Company, was recently elected chairman of the board of the Lumbermen’s Merchandising Corporation (LMC). Hall has served on the finance, audit, building materials, forest products, and executive committees. He will serve as chairman of the board through 2013.

Ebert joins Lawyers Association committee

Dyan J. Ebert, Quinlivan & Hughes, P.A., joined the executive committee of the Minnesota Defense Lawyers Association. She serves as secretary and then advance to treasurer, president elect, and eventually president in 2014. Ebert

Knutson

Mrozek

Marco’s Knutson, Mrozek receive top honors

The Minneapolis/St. Paul Business Journal announced Steve Knutson, Marco, Inc., as an honoree for the corporate level for its inaugural CIO of the Year Awards. Knutson has been with Marco since 1999 and became CIO/CTO in 2004. His profile appeared in a special Business Journal publication. Finance & Commerce recently named Jennifer Mrozek, CFO at Marco, as one of the Top Women in Finance for 2011 for making notable contributions to her profession and community. Mrozek has been with Marco since 1998 and became CFO in 2003. Marco also added four new staff: John Wallenfeldt, network engineer; Darlene Gately, leasing coordinator; Robert Wilczek, accounting assistant; and Chris Grazlewicz, copier service technician.

YOUR VOICE IN GOVERNMENT

Make a Difference

There is no better time to get involved with your government than right now.

A

dd your voice to those of businesses making a difference. Following are a variety of ways you can make your voice heard now and into the spring.

The St. Cloud Area Chamber’s Government Affairs Committee meets the second Friday of each month from 7:30 to 9 a.m. in the Chamber’s main conference room. Policy and legislative information is always on the agenda, plus local legislators regularly attend these meetings, providing convenient access for participants.

••••••••• Session Priorities

Tuesday, January 24, 2012 RiverCenter, St. Paul, Minnesota This Minnesota Chamber of Commerce gathering allows businesses across the state to hear from our governor and senate and house leadership about the 2012 legislative session.

••••••••• Legislative Session Conference Calls Minnesota Chamber of Commerce lobbying staff provide up-to-the-minute reports of activities at the State Capitol. Specific call dates will be available at www.StCloudAreaChamber.com in December.

••••••••• St. Cloud Evening at the Capitol

Tuesday, March 13, 2012 - 5 – 7 p.m. St. Paul Hotel, St. Paul, Minnesota The St. Cloud Area Chamber of Commerce showcases St. Cloud, Sauk Rapids, Sartell, Waite Park, St. Joseph and St. Augusta for all Minnesota legislators. Businesses are invited to participate in this gala reception for an evening of networking, business and fun.

••••••••• DID YOU KNOW?

$3.51 Billion

total dollars spent by lobby groups on federal issues in 2010

Minnesota Business Day at the Capitol

Bill Winter

Wednesday, March 14, 2012 Crown Plaza, St. Paul, Minnesota Join hundreds of business leaders from across the state to speak out on issues critical to Minnesota’s competitive business environment. This is an excellent event for people interested in learning more about how to be involved with the legislative process.

••••••••• St. Cloud Area Goes to Washington, D.C.

April 16–19, 2012 Each spring St. Cloud Area Chamber members travel to Washington, D.C., to meet with members of Minnesota’s Congressional delegation in their D.C. offices. The U.S. Chamber of Commerce provides a briefing session on up-to-the-minute issues and policy. A bonus of this trip is the camaraderie and relationships that are built among attendees. For more information and pricing for these events, please contact Sharon Henry at (320)251-2940, ext. 124, or email shenry@stcloudareachamber.com.

11,674

total number of registered lobbyists in 2011 Source: Center for Responsive Politics

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Business Central Magazine  ••  NOVEMBER/DECEMBER 2011


IT’S MADE WHERE?

St. Cloud, Minnesota RHL produces vinyl wraps for a variety of applications including: •• Vehicle wrap advertisements

•• Store window designs •• Covering marred paint

•• Protecting vehicle paint jobs

4 Windows have a different vinyl called vision film that allows for sight.

6 A UV inhibitor acts as “sunscreen” to slow fading from the sun.

5 A proof is provided that superimposes graphics on the precise measurements of the vehicle.

7 Pricing is based on square footage.

How do they do it?

2 Hard measurements are taken with a traditional tape measure. 3 Dimensional comparison is completed with the computer design department.

RHL – BLACK SIGNS 25113 21st Ave. •• St. Cloud, MN 56301-7709 (320) 252-7680 •• www.rhlinc.com

CENTRACARE WOUND CLINIC

CDI IMAGING SUITES

HEALTHCARE CONSTRUCTION & REMODELING SPECIALISTS

COUNTRY MANOR RAPID RECOVERY

Photos courtesy of RHL.

1 Two-inch wide magnets are placed on the vehicles for measurements.

At Boser, we deliver a single-source construction solution. From design to move in, we effectively coordinate and deliver results for a variety of healthcare new construction & remodeling projects. But it is our certifications, thoughtful planning and attention to detail that has made Boser Construction a leader in the commercial construction industry for 15 years. WE TAKE HEALTHCARE CONSTRUCTION SERIOUSLY.

320.393.3185 | www.boserconstruction.com

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UPFRONT

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NETWORK

N E WS R E E L Rinke Noonan adds attorney Jennifer ElstonBrondell recently joined the law firm ElstonBrondell of Rinke Noonan. Prior to joining Rinke Noonan, she worked for several years in the area of estate planning at a local firm.

BUSINESS CALENDAR

Can’t-miss opportunities to influence, promote, and learn NOVEMBER-DECEMBER 2011 Visit events.StCloudAreaChamber.com for a detailed calendar.

Waite Park Chamber

Marcus Theatres adds restaurant Marcus Theatres is completely renovating their Parkwood Cinema location in Waite Park. Replacing one of the existing auditoriums, the new Zaffiro’s Pizzeria and Bar will feature a carryout service, live acoustic music on Fridays, patio seating, and iPads for guests’ enjoyment. Another feature of the renovation will include Zaffiro’s Express, allowing movie-goers to purchase items from Zaffiro’s menu and dine as they watch a movie.

Microbiologics breaks ground Microbiologics, Inc. broke ground in September 2011 on a 19,200 square foot expansion that will nearly double the size of their existing building. Completion of the project is scheduled for April 2012.

Schlenner Wenner promotes staff Schlenner Wenner & Co. has announced the following promotions: Jon Archer, CPA, and Craig Ritter, CPA, have been promoted as audit managers. Mark Branson, CPA, has been promoted to a senior accountant. Kyle Gregory and Aaron Smith have been promoted to in-charge accountants.

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

4:30-6:30 p.m.

Government Affairs

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

11:30 a.m.-1 p.m. November 16: Hosted by Tully Tube Network at Waite Park City Hall December 21: Hosted by Sentry Bank at Waite Park City Hall

November 17: Hosted by STRIDE Academy, 3241 Oakham Lane December 13: Hosted by Williams/Integracare Clinic, 100 2nd St. S, Sartell

Meets to discuss local government issues at the Chamber office, 110 S 6th Ave.

7:30-9 a.m. November 11: “K-12 Funding: Where We’ve Been, Where We’re Going” December 9: “Legislative Session Preview” with legislators invited For information on these or other business programs, call (320) 251-2940.

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

Lunchtime Learning

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

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

November 17: Hosted by

November 2

CentraCare Health System at C & L Distributing, 1020 Industrial Dr. S, Sauk Rapids December 22: Hosted by 360 Chiropractic at the Good Shepherd Community Fellowship Hall, 1115 4th Ave. N, Sauk Rapids

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

••

Sponsored by Title Professionals and Abstract Company with speaker Sheri Moran, Spirit 92.9 presenting “Networking Skills: An Investment in YOU” December 7 Sponsored by Dijital Majik Computer Clinic with speakers Brad Grabham and Gordon Schrubbe, Jr., St. Cloud State University, presenting “Malware: Employees are the weakest link”

••

Registration is required: $15 for Chamber members, $22 for the general public.


POINT OF VIEW

Business Central asked readers: What time of year is your business the busiest, and why?

Eric Alf Charter Business

Back to school! With all the students coming back to town, they need to get set up with Internet and TV.”

Tim Ronning Thrivent Financial for Lutherans

Early spring/ February-March because the holidays are done. From midNovember to the middle of January, it’s hard to get clients in.”

Angie Ansah Panera Bread

Julie Matrick The Best of Coupons

All year for us! We don’t really have too many slow times.

Ours is all year- there’s always other businesses advertising with our business.

Don Blonigen Dijital Majik Computer Clinic, Inc.

Our busiest times are right after Christmas and right before school starts. Right after Christmas people find out they need new technology or they break it, and of course, August is back to school. Or anytime there’s a major virus outbreak.”

and that speaks volumes Wouldn’t it be nice to have someone to share your technology problems with? Someone who listens long enough to really understand your business issues? With Marco, the conversation isn’t about us. It’s about you and how you do business. We help you connect the right technology to the right business objective. We believe that listening is one of the most important services we can provide. If you’re having technology issues, we’re all ears.

Find out how Marco has helped other organizations apply technology to improve how they do business. Read their stories at www.marconet.com/ListenLouder

marconet.com

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

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NETWORK

REGIONAL ROUNDUP

Moving & Shaking

St. Cloud’s new economic development director wears many hats, all geared to helping businesses succeed.

Here are some examples of private and public economic development and infrastructure projects that are moving and shaking the St. Cloud area this summer and fall:

NEW FACE IN TOWN

St. Cloud St. Cloud Hospital: Ongoing $225 million, 360,000-square-foot expansion to enhance surgical suites, add private patient rooms, expand and relocate ICU, renovate women’s and children’s center and transform NICU. Cowboy Jack’s Saloon: Renovation of downtown entertainment venue. Former SCSU Bookstore: Renovation along 5th Avenue Live! corridor to include two restaurants and two retail sites by 2012. Tenvoorde Ford: Construction of a freestanding service building at current location. By Lawrence Schumacher

C

all her a concierge, a point-ofcontact or a navigator. Cathy Mehelich, St. Cloud’s new economic development director, wears many hats in City Hall, but all of them are geared toward making life a little easier for businesses thinking about starting, relocating or growing in St. Cloud. “If you’re not sure where to start to pursue a business opportunity, we’re a good place to start in City Hall to navigate that process,” said Mehelich, who started with the city in June. “We can help ease the risk and leverage the opportunities businesses have knocking on their doors.” Mehelich, a graduate of St. Cloud State University’s Local and Urban Affairs program, is a Sauk Centre native who returned to Central Minnesota after 15 years in municipal economic development with cities including Olivia, Virginia and Elk River.

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Her office in City Hall provides four main services to the business community, she said: • Site selection and demographics help for relocating businesses • Connecting existing businesses with resources for expansion and workforce training • Administering city development and redevelopment services • Advocating inside City Hall for businesses going through the development or redevelopment process Mehelich said she’s seeing a lot of businesses that are interested in expansion, but cautious coming out of the Great Recession about the risks. She points to the upcoming $2.5 million, 20,000 square-foot expansion of Microbiologics Inc. as an example of how City Hall can help reduce those risks and encourage growth. BC

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

West Metro Corridor: Realignment and reconstruction of Stearns County Road 4/Stearns County Road 134 intersection underway. St. Cloud River’s Edge Convention Center: $34 million, 85,000-square-foot expansion to be completed this year. National Hockey Center, St. Cloud State University: $31.1 million expansion and renovation, scheduled for completion in 2013. Integrated Science and Engineering Laboratory Facility, St. Cloud State University: $44.8 million classroom and laboratory construction. Marco: $6 million construction of new facility to retain existing business in St. Cloud. Construction beginning this fall. 25th Avenue/Minnesota Highway 23 intersection reconstruction underway. University Drive/Fifth Avenue: Roundabout project underway.


N E WS R E E L

••••••••• Sartell Emerald Court: Construction of 34-unit apartment complex at former Daisy-A-Day site. Construction expected to begin this fall.

Sauk Rapids Sauk Rapids City Hall: $6.3 million, 31,000-square-foot government center under construction.

Benton Corner: Redevelopment of a singlefamily home into a convenience store. Construction expected to begin this fall.

Walgreens: New 15,000-square-foot store built on location of old City Hall opening this fall.

•••••••••

SuperAmerica: $1.5 million convenience store under construction at Golden Spike Road and U.S. Highway 10.

St. Joseph Stearns Electric Association: Construction of new, 36,000-square-foot branch office and warehouse, to be completed this fall. Minnesota Street Market: Run by St. Joseph Food Coop. September grand opening. St. Joe Meat Market: Expansion at current location on Minnesota Street. Cone Castle: Drive-thru restaurant construction.

•••••••••

Advanced Care Pet Hospital wins contest

Advanced Care Pet Hospital, Sartell, was among the top five selected for the 2011 Google Uptick Awards for small businesses after composing a 350 word essay explaining how they regularly use 11 Google services. Advanced Care Pet Hospital was awarded a $3,000 professional video production along with two Google Chromebook computers, valued at $1,000.

••••••••• Waite Park, St. Augusta Nothing to report at this time, according to city officials.

Noble

Wenner

Lundrigan

Times Media adds staff

Compiled by Lawrence Schumacher, the creator and owner of Wordbender Communications LLC, a communications consulting and freelance writing firm.

Times Media and the St. Cloud Times have added three new staff members: Jennifer Noble, marketing manager; Rachael Wenner, social media commerce manager; and Aaron Lundrigan, advertising account executive. Compiled by Alexa Sandbakken

BusinessConnection Your connection to business answers.

Everyone’s got an answer...

...ours will GROW your business. We know times aren’t easy for Minnesota businesses these days. You need a resource that provides direct and immediate help for all of your important business questions. BusinessConnection is your free, go-to service in Minnesota for any and all business questions. Its purpose is to help Minnesota businesses grow by breaking down barriers, opening doors and answering questions – so you can get back to business.

Connect anytime: www.mnbizconnect.com Call toll-free: 1-888-MINN-BIZ / 1-888-646-6249 Personal assistance is available 9 a.m.-5 p.m. Mon.-Fri. BusinessConnection is a service of Grow Minnesota! and sponsored by the Minnesota Chamber of Commerce, its local chamber partners and the Minnesota Department of Employment and Economic Development.

Connect online: www.mnbizconnect.com BC_Ad7.5x4.875_020110.indd 1

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UPFRONT

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NETWORK

NETWORK CENTRAL

The Night the Stars Came Out

It was an evening of fun, fine food, and stellar networking as the St. Cloud Area Chamber of Commerce honored their volunteers at the 2011 Star Studded Celebration! Photos by Dropp’s Unique Portrait Design

Teresa Campa (L), Robbie Plombon and Michelle Castellano, Advantage 1 Insurance Agency

Devinder Malhotra, St. Cloud State University

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(L-R) Darell Nelson, Aria; Jared Brewington, Green Energy Products; Kris Nelson and Beth Putz, Custom Accents; Sue Wendt, Coborn’s, Inc.; Roger Schleper, Premier Real Estate Services

Bernie Perryman, retiring chair of the Chamber’s Board of Directors, tries on her long-awaited top hat

Brett Weaver, Preferred Credit, vice chair of the Chamber’s Star Studded Celebration Committee

Matt Kilian, Initiative Foundation and Jeanne Kilian

Mark Larkin (L), CentraCare Health Foundation; Diane Hageman, College of St. Benedict; Dan Ochsner, Leighton Broadcasting

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011


Dianne Fortier, Country Inn & Suites-East and Neil Fortier, Sand Companies

Jean Dotzler (L), Events Extraordinaire by Jean, chair of the Chamber’s Star Studded Celebration Committee and Bernie Perryman, retiring chair of the Chamber’s Board

Glen Sunder and Rachael Bonn, Peters Body Shop; Tauna Quimby, Girl Scouts of MN & WI Lakes & Pines; Roger Bonn, Peters Body Shop

Brenda Eisenschenk (L), InteleCONNECT, Inc. and Addie Turkowski, St. Cloud State University

Dave Mahowald, Mahowald Insurance

Tauna Quimby (L), Girl Scouts of MN & WI Lakes & Pines; Pam McIntosh, Rasmussen; Traci Richter, Schlenner Wenner; Stephanie Court, NewCore Wireless

John Herges (L), Falcon National Bank; Tama & Greg Theis, Greg E. Theis Remodeling

N O V E M B E R / D E C E M B E R 2 0 1 1 • •   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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We are here when you need us! ~Including Overnight Recovery Unit ~

UPFRONT

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NETWORK

TOP HATS | Milestones 1991

2011

20 years in business - Central Landscape Supply, wholesale distributor of lawn and garden plants and equipment, 4026 County Road 74, St. Cloud. Pictured: (above right) Inese Mehr, Herman Roerick, Tom Meier and Jill Magelssen.

Celebrating 40 Years of Excellence in Caring for You!

TOP HATS | New Members

Accredited by Accreditation Association for Ambulatory Health Care, Inc.

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

LPL Financial, comprehensive financial planning, 2907 Clearwater Road, St. Cloud. Pictured: Jason Bernick, Michael Trnka, Lana Kozak and Owen Peterson.

Restore 24, 24 hour emergency disaster restoration services, 1745 Quebecor Road, St. Cloud. Pictured: Luke Cesnik, Jim Alvord, John Mondloch and Dan Bates.

Aria, creative telemarketing and handwritten direct mail programs for clients. 717 W Saint Germain St., St. Cloud. Pictured: Dan Bates, Chuck Lucas, Anthony Segale and Luke Cesnik.

Gypsy Lea’s, antique, unique, vintage and shabby chic, recycled, repainted, repurposed items for your home and office, 115 Division St., Sauk Rapids. Pictured: Inese Mehr, Jami Lea Lewison and Jill Magelssen.

dealeebob.com, offering discounts from local merchants, 1550 Utica Ave. S, Suite 595, Minneapolis. Pictured: Kris Hellickson and Russ Adams.

Green Energy Products, LLC, providing clean, earth friendly alternatives to traditional energy concepts, 1315 W Central St., Springfield. Pictured: Jill Magelssen, Joe Simmer and Roger Schleper. NEW MEMBER LISTING Bockorny Group, 1101 16th St. NW, Suite 500, Washington, D.C., a leading bipartisan federal government affairs consulting firm specializing in a wide range of public policy areas.

NOT A MEMBER YET? VP Vacations, specializing in aironly and vacation packages to Mexico, Jamaica, and the Caribbean. 21695 53rd Ave., St. Cloud. Pictured: Jill Magelssen, Mark Dvorak and Bob Lien.

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Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

Call Wendy Franzwa, Membership Sales Specialist at (320) 656-3834 for more information.


WORKING WITH PEOPLE, NOT JUST NUMB3RS. TOP HATS | New Businesses

The Children’s Place, a leading specialty retailer of children’s merchandise, ages newborn to 14 years old. 4101 W Division St., St. Cloud. Pictured: Inese Mehr, Gerilyn Thomas, Amber Speranza, Sarah Moorhead and Diane Ohmann. Not pictured: Danica Meyer and Kimberly Ohman.

Texas Roadhouse, legendary food, legendary service! 345 2nd St. S, Waite Park. Pictured: Inese Mehr, Laura Nelson, Tom Scheel, Shawn Mason, Andy the Armadillo, Dan Peterson, David Skur and Jill Magelssen. STEVE SCHUELLER, C.P.A.

with Jerry Smude of Evergreen Equipment

“As our business grew, we knew we needed more expertise. We turned to Schlenner Wenner & Co. to help lead us through this growth. With a local office and an experienced reputation, they get the job done right.” -Jerry Smude

www.swcocpas.com ReStore – Central MN Habitat for Humanity, new to used building materials, 2801 W Saint Germain St., St. Cloud. Pictured: Owen Peterson, Elizabeth Ferguson, Vicki Morgan, Mayor Dave Kleis, Kathy Grochow and Diane Ohmann.

Super Smokes, 264 2nd Ave. S, Waite Park. Pictured: Owen Peterson, Todd Long, Nate Zirbes and Roger Schleper. With a second location at 108 E Saint Germain St., St. Cloud.

Little Falls 320.632.6311 Albany 320.845.2940

Maple Lake 320.963.5414 Monticello 763.295.5070

St. Cloud 320.251.0286

An Independently Owned Member, McGladrey Alliance

TOP HATS | New Locations, New Ownership and Expansions

Corporate eduCation & outreaCh offers the training you need for the job you do. Goodwill/Easter Seals MN, providing transitional employment, skills training programs, and retail operations to support programming, 50 2nd Ave. S, Waite Park. Pictured: Brenda Eisenschenk, Michael Wirth-Davis, Rick Miller, Mitzi Overman, Maureen Gaedy, Kim Clubb, Joe Barsky and Diane Ohmann.

Array Services Group, professional outsourcing solutions, customer service calls, 250 14th Ave. E, Sartell. Pictured: Chris Panek, Kiel Christensen, Roberta Kelash, Jim Christensen, and Kris Nelson.

We work with you to develop specialized training to advance or upgrade your workforce: Soft, Hard or Technical Skills Topics designed for your business needs Workshops Seminars Conference planning More Information:

NewCore Wireless, wireless services company, 3717 23rd St. S, Suite 201, St. Cloud. Pictured: Albert Kanges, Roger Schmitz, Jim Jech, Joan Scherping, Brenda Fussy, Chris Super, Stephanie Court, Paul Vershure and Kris Hellickson.

RTE, business consulting, software and services, 220 Park Ave. S, Suite 100, St. Cloud. Pictured: Kris Hellickson, Bruce Hagberg, Chris Sieben and Richard Witteman.

The Village Family Service Center, a non-profit financial counseling agency, plus outpatient assessments and mental health treatment for children and adults, 4140 Thielman Lane, Suite 303, St. Cloud. Pictured: Diane Ohmann, Terri Heinen, Victoria Knight, Fred Frenette, Waneta Perkins and Roger Schleper.

Tammy tammy@scsutraining.com 308.4252

Gail

sc . ww

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gail@scsutraining.com 308.5759

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CEO

Corporate Education & Outreach

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

Entrepreneurism

Going Green

Economic Review

BUSINESS TOOLS

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NETWORK

PROFIT

RESOURCES THAT HELP YOUR BUSINESS GROW

MANAGEMENT TOOLKIT

Hiring for Retention

A good employee retention plan will help ensure that your employees aren’t among the 22 percent who plan to change jobs this year. By Samantha Bishop-Strand

I

n the summer of 2009, the U.S. economy officially emerged from the worst recession since the Great Depression. You may have been forced to make cuts, but your company survived, your employees stayed with you through the lean times, and the worst is behind you. However… According to the Conference Board, an independent business research company, job satisfaction levels among American workers is at the lowest level in 20 years.

“While one in 10 Americans is now unemployed, their working compatriots of all ages and incomes continue to grow increasingly unhappy,” said Lynn Franco, director of the Consumer Research Center of The Conference Board. “Through both economic boom and bust during the past two decades, our job satisfaction numbers have shown a consistent downward trend.” Even more worrisome is that 22 percent of the survey respondents say they do not expect to be in their current job in a year. Studies by American Management Association estimate the cost of employee turnover to be between 25 percent and 250 percent of the annual salary per exiting employee. Entry-level, unskilled positions are at the lower end of the cost range, while executive, managerial and sales positions are at the higher end. The staggering costs associated with turnover make it clear that one of the greatest threats facing employers is losing their best and brightest employees. While some turnover is unavoidable, a small amount of effort now can make a big difference in employee retention. Here are three key steps you can take now to create an effective employee retention plan:

LOSING STARS The staggering costs associated with turnover make it clear that one of the greatest threats facing employers is losing their best and brightest employees.

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Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

Start with a solid onboarding and orientation program. The old saying “You never get a second chance to make a good first impression” is especially true with new employees. The highest level of turnover occurs during the first 90 days on the job. The purpose of onboarding is to assimilate the new person into your organization, so make the first few days a positive, memorable experience. Build a flexible workplace. Workplace flexibility is no longer a perk; it’s a business imperative, according to the White House. Today’s employees want to decide when and where they work in order to balance their personal and professional lives. This flexibility benefits business by increasing productivity, lowering turnover and reducing absenteeism. Provide career development. One of the primary reasons employees leave an organization is lack of career growth. One study found that more than 40 percent of the respondents would consider leaving their present employer for another job with the same benefits if that job provided better career development and greater challenges. Retaining your best employees is critical to the long term health and success of your business. By employing these three steps, you can help retain and attract the best talent. BC Samantha Bishop-Strand is the marketing manager for Doherty Staffing Solutions.


TECH NEWS

EMAIL OVERLOAD

BY THE NUMBERS

Local News Goes Mobile

42

the percent of mobile device owners who receive weather updates

Source: Pew Research Center

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the percent of the total American adult population that has an app on their mobile device to get local information or news

1

the percent of all adults who pay for a mobile app to connect to local news and information

47

the percent of American adults who get at least some local news and information on their mobile device

How many times each day do you check your email? If you say 10 or more, you’re in good company. A poll by SmartBrief on Entrepreneurs shows that 70 percent of their readers check their email 10 or more times each day. If you find it hard to get other work done, one productivity consultant suggests turning off the signal that alerts you when new mail arrives. As for the rest of the survey respondents: 1-9 times per day: 18.5% 2-3 times per day: 9% 1 time per day: 2.5%

UP, UP, AND AWAY IN MY BEAUTIFUL…CAR? If you’ve been waiting to buy that new car until you can have one that flies, you’re going to be disappointed. There are tiny planes with fold up wings that can be landed at the airport and driven home. There are large planes that can take off and land vertically. But the technological challenges of a vertical take-off and roadway driving are pretty substantial. Even so, there are plenty of people trying to make it happen. Source: Innovation News Daily

A Tradition of Building Success for More Than 50 Years

CHECK OUT OUR NEW DIGITAL FORMAT. We invite you to experience the Rice difference. Our unique in-house capabilities, knowledge of municipal processes, time-tested subcontractors and expansive client list prove Rice Building Systems to be the leader in design/build construction.

www.BusinessCentral Magazine.com

You can depend on Rice Building Systems to handle everything from concept and design through to the completion of your project.

Building Relationships Since 1953

BUILDING SYSTEMS, INC.

1019 Industrial Drive South Sauk Rapids, MN 56379 320.252.0404

www.ricebuildingsystems.com

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

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G R OW

ENTREPRENEURISM

Business Builders

The new year is a good time to review practices that can help you grow your business. By mary macdonell belisle customers. Calculate the time, personnel, and money you assign your most challenging clients. End those relationships that aren’t producing an acceptable return on investment.

3 Conduct an annual strategic planning session. Without pro-active planning, a business can drift. Perhaps you want to develop a new product line or discontinue an unprofitable one. What is the market telling you? 4 Review compliance issues,

financials, and have defensible income data. Kent Gustafson, SafeShield,

Your business can be better in 2012. Here are 9 ways to become more effective and efficient in the new year. 1 Review your vendors. Companies habitually use vendors with whom they’re comfortable and have history. However, a vendor can become complacent. Are you being taken for granted? Has customer service suffered? What about pricing? This may be a good year to ask for competitive bids. “Keep vendors on their toes,” says Barry Kirchoff, director of the Minnesota Central Region Small Business Development Center at St. Cloud State University. “This can often work in your favor.” 2 Evaluate customer relationships. If 90 percent of your business comes from a few clients, they’ve got the advantage. You’ve invested extra personnel and equipment in this business, but what if the client bails? Can you recover? The risk warrants diversifying your client base. Sometimes businesses coddle difficult

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says many small businesses neglect their corporate records and formalities, forgetting to note annual meeting minutes or Board actions and appointments, or failing to

5 Ask for help. Enlist professionals who complement your expertise. Admit to your limitations. 6 Complete that employee handbook. The key word in human resources is consistency, according to Kirchoff, observing that it keeps morale high and hedges against lawsuits. Put your policies into a handbook to be poised for greater success. 7 Reevaluate your role. Ask, “Do I own a business, or did I buy myself a job?” Kirchoff suggests. Also, put procedures and systems into place to ensure the business could function without you. This may include grooming excellent employees for higher organizational roles.

“We live in some very challenging times for small businesses. Business owners need to ask, ‘Where have I been, and how will I get better?’” —BARRY KIRCHOFF, SMALL BUSINESS DEVELOPMENT CENTER organize important paperwork – financials, bank records, lines of credit, purchase agreements, etc. How about annual filing with the Secretary of State’s office? Businesses often assume others handle this, according to Gustafson. Arnie Kahara, CPA, says current financial statements are critical. How much was made? Where did the money go? How much should we have made? How can I improve my bottom line? Am I compliant with governmental requirements and paying the minimum legal amount of taxes? “How do you know you’re winning if you don’t keep score?” Kahara said.

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

8 Prepare for the next generation of customer challenges. Look at your technology, social media, and marketing efforts, or lack of, and adjust accordingly. Business is not “as usual;” it’s constantly in flux, and you need to flex with it. 9 Develop an exit strategy. Owners need to keep the value in the company for a merger or sale prior to retirement. BC mary macdonell belisle – writerforhire wordsmiths for businesses and nonprofits in central Minnesota


©2011 LarsonAllen LLP Illustration by Alan Pranke

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BUSINESS TOOLS

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G R OW

ECONOMIC REVIEW

A Case for Economic Gardening

Rather than luring firms with a promise of low costs, economic gardeners help local entrepreneurs become the pioneers of innovation. By Mary E. Edwards, Ph.D.

O

n September 13, 2011, the Bureau of Economic Analysis (BEA) released estimates of gross domestic product (GDP) by metropolitan area. Comparing year-to-year growth rates for St. Cloud MSA and Minnesota shows negative “growth rates” for five of the last nine years for St. Cloud, and only one (between 2008 and 2009) for Minnesota. Growth of real GDP should mirror employment growth, but not for this area. Annual employment data for the same time period suggests that St. Cloud slightly leads the state in overall economic performance. Why the discrepancy? A standard measure of productivity is GDP per worker, which shows an alarming trend for St. Cloud (Figure 1). Since 2001, the average output of the St. Cloud MSA averaged 70 percent of that of the state. In 2010, for every $1 workers in the rest of the state produced, St. Cloud workers produced only

74¢. This is down from a high of 83¢ per $1 in 2004. St. Cloud is hiring slightly more, less productive and lower paid workers. Low productivity causes low wages. Figure 2 shows that for every $1 in wages paid in the rest of the state, St. Cloud workers earn 70¢. The cost of living in St. Cloud MSA is not 70 percent that of rest of the state, so well-trained employees will work elsewhere. Data confirm that St. Cloud draws a population with significantly lower investments in education. The ratio of average wage and salary distributions for St. Cloud compared to the state shows a steep decline in the early 1980s, and a consistent trend downward in St. Cloud wages relative to those of the rest of the state. Not only do local employees earn less, so do firm owners. Figure 3 points out that the

growth in nonfarm proprietors’ incomes has declined more sharply in St. Cloud than in the state. In 2009, nonfarm proprietors in St. Cloud earned 89¢ for every $1 earned by their counterparts in the rest of the state. In 2002, they earned an average of $1.02 for every $1 earned elsewhere in the state. How do we escape our persistent doldrums? Perhaps the lower productivity, profits and wages are due to the industry mix. Perhaps the result of a long-standing habit of enticing new firms based mainly on cheap labor. Firms that come because of artificially low wages or low taxes often leave when the benefits expire. Firms are like boyfriends. If you can attract a boyfriend away from someone else, a third can charm him away from you. Low wages repel well-qualified workers,

Figure 1 source: Bureau of Economic Analysis, Real GDP by Metropolitan Area and by State (millions of chained 2005 dollars); Bureau of Labor Statistics, Local Area Unemployment Statistics; Figure 2 Source: U.S. Department of Commerce, Bureau of Economic Analysis, Regional Income Division, April 2011; Figure 3 Source: U.S. Department of Commerce, Bureau of Economic Analysis, Regional Income Division, April 2011

GIFT GIVING – OUTSIDE THE BOX

What do you give to the business-obsessed entrepreneur? From the faculty and staff at the University of Maryland’s Robert H. Smith School of Business come these suggestions: ETACTS.COM — a tool that integrates LinkedIn and Gmail and helps you remind yourself to touch base with key contacts at regular intervals

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Awesome BUSINESS CARDS with an impressive title

AN EXTRA BATTERY for the laptop or smartphone

CAFFEINE – and lots of it

Source: Washingtonpost.com

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011


decreasing the probability of benefiting from a knowledge economy. Instead, successful economic development means an area grows its own firms, i.e., Economic Gardening. Rather than luring firms with a promise of low costs, economic gardeners help local entrepreneurs find their niche markets and discover the next innovation — before their competitors — and seize the profits of those new ideas. Areas with colleges and universities are able to work with professors to create a sustainable, but ever changing business landscape, if the professors can find sufficient release time from teaching. Locally grown businesses can be the pioneers of change rather than the ones constantly running just to keep up. BC Mary E. Edwards is Professor Emeritus at St. Cloud State University.

BY THE NUMBERS

Form Over Function?

Favoritism —defined as the use of criteria other than performance— abounds in business, according to this new study from consultants Penn Schoen Berland.

92%

of senior executives polled say they have seen favoritism determine who gets promoted

84%

of the executives surveyed reported they had witnessed favoritism at their own companies

29%

of those polled said they have considered only one person for a promotion

HARNESSING TECHNOLOGY. UNLEASHING

YOUR POTENTIAL.

23%

of executives admitted that they themselves had relied on friendship or other personal affinity, rather than merit, in their promotion decisions

56%

of those polled said that when more than one person was in the running, they knew at the outset whom they wanted to promote Source: Penn Schoen Berland

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RISK

FREE FOR NETGAIN FOUNDER SCOTT WARZECHA,

starting a business is about analyzing opportunity, not controlling risk. BY GAIL IVERS / / PHOTOS BY JOEL BUTKOWSKI / BDI

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Business Central Magazine  ••  NOVEMBER/DECEMBER 2011


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S

cott Warzecha is a self-described computer geek. The president and majority owner of Netgain, a technology services company in St. Cloud, Warzecha’s technology roots were planted at Team Electronics. After four years selling Apple computers at Team Electronics, he decided he needed to know more about the competition. “It was about the time that businesses were moving from mainframe computers to personal computers,” Warzecha said. “I needed – wanted – to learn more about IBM products because that’s the direction businesses were heading.” Warzecha joined the staff at Marco. He spent four years as a technologist and four years in sales where he became what he calls “a solutions person. My title was Advanced Technology – SCOTT WARZECHA Specialist,” Warzecha recalls. “That meant I would work with clients to make sure they had the computer solutions they needed – hardware, software, security, intranet – whatever made sense.” He also chaired Marco’s Technology Steering Committee, which was responsible for researching and selecting the company’s new products. “My clients were within 80 miles of St. Cloud,” Warzecha said. “So I’d drive to Brainerd, set up a system, and if it broke while I was driving home I’d turn around and go back and fix it. These were pretty complex systems so the customer either had to hire staff to maintain the system or they had to pay me to drive back and forth.”

I’m built on profitability. I want growth, but I want to be profitable at the end of the year, too.

A NEW APPROACH Warzecha was sure there had to be a better way and he set out to find it. What he found was information technology outsourcing. Rather than buying and maintaining their own computer servers, companies contract with an IT outsourcing company to house and run the software from a data center located off-site. In the case of Netgain, the data centers are located in downtown St. Cloud and in Minneapolis.

30

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

Businesses access the software remotely through public or private network connections, what today is called “cloud computing.” The outsourcing company then becomes responsible for providing the infrastructure and maintenance, relieving the client of the frustration of system failures, updates, and upgrades. For this the client pays a monthly fee and no longer owns the server hardware. In the case of software, companies continue to own their own industryspecific software, though this, too, is housed at the data center. Netgain provides the licensing for certain types of software, including Microsoft application and system software. “Outsourcing wasn’t my own creative seizure,” Warzecha said. “This was something that was happening across the country. What I knew was that customers didn’t like futzing with their computers and here was a way that I could take away the pain. I could take away the things they didn’t like and maintain their systems and they’d pay us for it. But in St. Cloud it wasn’t just an obscure idea, it was unfathomable.” All the same, Warzecha put together a proposal for his Technology Committee and Marco. “Basically it was a mini-business plan: this is the industry, this is why it’s an adoptable model; this is the anticipated training; here are the start-up costs.” The reception was less than enthusiastic. “People thought it was a bad idea, that it was a fad, that it would fade away. They just didn’t want to do it,” Warzecha recalls. But the more he thought about it, the more convinced he was that it would work. “In the end they said let’s do it, but I wasn’t confident that they would let me run with it to the extent that I wanted to make it happen.”

TAKING THE LEAP In a defining moment, Warzecha was at the Cinema Arts movie theater watching Saving Private Ryan. “One of the characters says ‘Tell me I lived a good life. Tell me I did everything I could.’ And I thought ‘Am I going to live in someone else’s shadow or do I need to create my own shadow?’ I was 38 years old, at that entrepreneurial age, and I thought ‘It’s time for me to go and try to do my own thing.’” What causes someone to leave a secure, successful position and leap into the unknown? Warzecha has an easy answer. “I never really reflected on that because I never really saw the risk,” he said. “I would take something abstract


Jim DeWaard, Virtualization Team member

My customers are happier outsourcing than with an in-house system. That makes me happy. – SCOTT WARZECHA

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I achieved what I set out to do – survive by my own wits.

and build computer systems for clients. This was no different. I looked at the risk, I determined what could go wrong, I planned and calculated and there was no risk.” Don’t misunderstand – that doesn’t mean starting the business was easy. It just means Warzecha never questioned his ability to succeed. “I hocked the house – that was tough. We used personal money to bank roll the business. I had to buy equipment and find office space.”

CHALLENGES AHEAD Warzecha’s first client was Kuefler Property Management. “I contacted them about leasing space and explained what I was doing. He said ‘Maybe I should be your customer.’ I said, ‘Yeah. Love to have you, Dave.’” Kuefler was followed by R.A. Morton, GeoComm, Mathew Hall Lumber, and Youth for Christ. “I also did some web development – that really paid the bills. Everyone was getting websites at that time.” While Warzecha insists he never saw starting a business as risky, he acknowledges that it had its challenges. “It took

720 W Saint Germain St., Ste 200 St. Cloud, MN 56301-3501 PHONE: (320) 251-4700, 877-797-4700 FAX: (320) 251-5030

BUSINESS DESCRIPTION: Netgain is a

STARTED: January 2000

Matt Riley is vice president of operations. Warzecha was working at Marco when he met Riley. “Matt saw what I was doing, knew what it meant, understood it, and wanted to be part of it,” Warzecha said, adding with a grin, “He came begging to work here. Write that down.” Riley owns 10 percent of the business.

. . . .

WEB: www.netgainhosting.com

healthcare information technology provider to physician practices and rural hospitals. Netgain’s dedicated cloud and private cloud offerings allow organizations of all sizes and specialties to experience cloud computing benefits without compromising control or security.

. . . . . . . .. ..

NUMBER OF EMPLOYEES: 57 2011 ESTIMATED SALES: $8 million

.. . . ..

. .. . ..

Scott Warzecha is founder, president, and vice president of sales. He owns 80 percent of the company.

Scott Baynes is vice president of technology. He worked at Marco with Warzecha and left at the same time to start Netgain with Warzecha. He owns 10 percent of the company.

EMAIL: info@netgainhosting.com

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LEADERSHIP TEAM:

Franco Cusipag is vice president of finance.

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

.. .. ..

.. .. .. .. ..

Netgain

COM PAN YP RO FIL E

three times the money and three times the time to build the company over what I anticipated,” he said. “From the time you invoice to the time the customer pays can be one to three months. I still remember going to the mailbox everyday looking for a check.” And his original vision has changed. “When I founded,” he said, “I thought it would be local, but it was a pretty tough sell. People didn’t want to give up their data…give up control.” Instead, Warzecha found a reseller in Minneapolis. Then he found a second one. Today about 70 percent of Netgain’s business comes from the Twin Cities, 10 percent is local, and the rest comes from out of state. “I never thought we’d have 450 users in the Santa Barbara, California area,” Warzecha said.

. . . . . . . . . . . . . . . . . . . . .. .. . .. .. .. . .. .. .. ..

. . . . . . . . . . . . . . .. .. . . .. . . ..

– SCOTT WARZECHA

DEFINING FOCUS Those users reflect Netgain’s new strategic focus. “About three years ago we made a strategic decision to work just in healthcare. This has really paid off,” he said. Most of their business comes from ambulatory clinics with multiple sites. “Their data is highly regulated with lots of compliance, often too complicated to do it in-house. And with multiple sites it makes sharing software complicated. We can simplify the process.”


I’d like Netgain to be a more innovative company, but we’re really just alert followers. – SCOTT WARZECHA

Recently Netgain expanded within healthcare to serve small community hospitals, unaffiliated with larger healthcare systems. “Working with hospitals will increase our percent of out-of-state business to 50 percent within the next five years,” Warzecha predicted. Reaching into rural communities forced Netgain to adjust its business model this year. Many small, rural communities do not have access to reliable high-speed telecommunications. “They might have 250 users and need on-site equipment for speed,” Warzecha said, “but they don’t have the time or skill to make the most complex computer systems work, even though they have their own IT staff for the everyday things that come up.” In response to these unique needs, Netgain has extended their services into the hospital itself. “We have our equipment in their location,” Warzecha said, though he still shudders a little at the thought. “This is a big step for Netgain – this is heresy. Our company was founded on taking equipment out of companies and now here we are putting equipment back into the businesses. This is the complete opposite of what we’ve been doing for the last 12 years.” What allows them to commit this heresy, according to Warzecha, are the best practices developed through their data center operations. “It’s not just about the equipment,” he explained. “It’s about our ability to

monitor, manage and maintain the client’s equipment remotely. Our guys can run the client’s systems from our office when they need upgrades or troubleshooting. If the hospital systems fail, it rolls over to our data center here in St. Cloud.”

president of technology

A GROWING FUTURE

Network teams. He has

With the anticipated growth in healthcare, Warzecha is confident that the industry will be large enough to fulfill his growth ambitions. “We plan to achieve 50 percent year-over-year growth for the next five years,” he said. “We should be at 200 employees in five years.”

Scott Baynes is vice and co-founder of Netgain. He is responsible for setting overall technical direction and leading the Virtualization and a Master’s degree in physics and worked in a supercollider tunnel in Berkeley, CA. “He’s really, really smart,” says Scott Warzecha.

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Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

Image of the Federal Building is from: http://heschistory.blogspot.com/2011/02/more-st-cloud-postcards.htm

Netgain’s headquarters

is located in the Federal In December 2005 Netgain began its Building on St. Germain move into the newly renovated Federal Street. The building Building on St. Germain Street in originally opened in downtown St. Cloud. “It wasn’t until 1938 (above) and served we had been here awhile that we as the St. Cloud Post learned people have strong feelings Office for 27 years. about this building,” said Scott Warzecha, principle owner of Netgain and a partner in the building. “People want to come in and look around. They can retrace their steps to where their original post office boxes used to be.” Opened in 1938, the building served as the St. Cloud Post Office for 27 years. In 1965, it was closed, remodeled, and reopened later that year as the Federal Building. It has housed Social Security, IRS, FBI, Fish and Wildlife, and for awhile even housed the office of Minn. Congressman Vin Weber. Gradually, these offices moved to other locations and in September 2005 the building was put up for online auction by the U.S. Government Services Administration (GSA). The timing was perfect for Netgain. “We knew that in order to grow Netgain we had to grow our data center. But that meant making some pretty significant improvements to a building in order to provide the necessary power and fiber optics.” Warzecha was unwilling to make those improvements on a building where he didn’t control the lease. The Federal Building offered several benefits. It had good proximity to the Qwest Central Office, essential to providing the telecommunications services required for Netgain’s data center. It was architecturally tornado proof. “As a kid, I remember seeing the fallout shelter signs on the building,” Warzecha said. “If you’re housing critical data for other companies, you need a building that is not going to blow down.” And, it turned out, it was affordable. “It was a god-send to us,” Warzecha said. “We got it for a good price, but it hadn’t been updated since 1965. We had to pull out asbestos tile from down stairs, remove a false ceiling and replace the ceiling that had been ruined, we even took the architectural drawings for the lights and had a company build them for us.” For Warzecha, it feels a little like coming home. “I’m a downtown guy,” he said. “I like the culture. My dad owned a business in downtown St. Cloud for 35 years.” Warzecha also likes the contrast of being a high tech firm working out of a historic building. “We’re trying to build a national brand and having a building like this helps position us solid and reliable. We’re here for the long-term.”

. . . . . . . . . . . . . . . . . . .. . . .. ..

IT’S A NICE BUILDING


. . . . . . . . . . . . . . . . . . . . ..

TITLE: President/founder of Netgain

.. ..

St. Cloud and they’ll plant me on a hill here one day.”

High School; attended three years at St. Cloud State University; graduated from Concordia College in Moorhead with a degree in marketing; graduated from the St. Cloud Technical and Community College with a degree in electronics.

WORK HISTORY: Four years at Team

Electronics; 13 years at Marco; started Netgain in January 2000.

FUN FACT: “I’m the son of a watchmaker.

My dad was an entrepreneur. He ran Dom’s Watch Repair.”

Work is my hobby. I go for runs and swimming with my wife. I don’t do well on weekends, much less think about retirement.”

BEST ADVICE RECEIVED: “Lots of good

advice. I don’t think I’ve ever had an original thought.”

ADVICE TO A WOULD-BE ENTREPRENEUR:

“Starting or operating a business shouldn’t be an adventure or an exciting time. It’s a matter of ample planning to predict the obstacles and outcomes that are to come. As the leader, you are the visionary; you need to clearly see the future state of your company so you can lead others (employees, suppliers, customers) to it.”

.

. .. . .

HOBBIES: “I’m a simple man.

CentraCare. “Behind every successful entrepreneur is an employed spouse. I met her at Perkins. I was a host and she was a waitress. We’ve been married 24 years.” They have two sons, one is a sophomore at St. John’s University and the other graduated from St. John’s in 2011 and is working in the Twin Cities.

. . . . . . . . . . . . . . . . . . . . .. .. . .. . . .. .

EDUCATION: Graduated from Cathedral

ILE OF PR

HOMETOWN: “I was born and raised in

. . . . . . . . . . . . . . . .. . . . .. .. . .. .. .. . . ..

COMING JANUARY 2012

Medical Health Care SPECIAL ADVERTISING SECTION

.. ..

Scott Warzecha, 50

PE RS ON AL FAMILY: Wife Gloria works at

This is what keeps Warzecha up at night. Not risk. Not bank loans. Not a catastrophe in the data center. Growth. “Small companies work with small companies. Medium with medium. Large with large,” according to Warzecha. “Right now we’re considered small. As we grow our market opportunities increase. Banks watch growth and as long as you grow you can borrow. Either you’re growing or you’re dying.” But those are just excuses. The part of growth that keeps Warzecha up is much more fundamental to his entrepreneurial spirit. “I want to hit that 50 percent growth,” he said. “I want to out-grow my competitors.” BC Gail Ivers is the vice president of the St. Cloud Area Chamber of Commerce and managing editor of Business Central Magazine.

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FEATURE

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PROFIT

FOLLOWERSHIP L With a little effort – and patience – businesses can engage and gain customers through social media By Dawn Zimmerman

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ike many business leaders, Marco CEO Jeff Gau is always looking for tools to effectively engage and gain customers. He knew the value of digital marketing and had encouraged his marketing team to make it a part of the company’s strategy. But when the idea of him starting a blog surfaced, he was hesitant. “I thought ‘Who really wants to hear from me?’” he said. “We are just a small

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

business in outstate Minnesota that has been successful.” After only a few blog postings, Gau had leaders he respected telling him they were reading his blog on Leadership Culture and finding it valuable. Now, he has close to 1,000 subscribers and receives a comment from a business or community leader at every social engagement he attends. “I cannot go to an event without someone coming up to me and giving me positive feedback,” he said.


Facebook fan ads are among the most effective ways to increase followership in a short period of time.

Gau also receives emails, phone calls, LinkedIn messages, and positive comments from Marco’s direct sales team members who are using it to acquire, retain and extend customer relationships. “It’s become my silent sales call,” Gau said. Today’s growing and emerging social media tools make it easy for organizations to have a presence, but it takes more than that to garner followership. That takes time, intention, strategy, and a commitment to see it through. While followership may come quickly, the return on investment in terms of sales takes both patience and persistence. Following are five ways businesses are increasing followership and leveraging social media to engage and gain customers.

find value in leadership tips delivered in a quick-read format from a person who has lived it. I believe this is mentoring for today’s emerging leaders’ learning style.” Gau believes the blog’s unique content and company’s credibility are driving followership. “If the company was not performing and I wrote a leadership blog, it wouldn’t be followed,” he said. Delivering valuable content requires knowing and speaking directly to a particular audience. “We developed a very specific strategy for Facebook that helped us focus our audience and message,” said Tara Tollefson, director of client experience for Plaza Park Bank, a locally-owned community bank with locations in Waite Park and Sartell. “It’s so tough to stay focused on Facebook—tempting to be everything to everyone. That planning process has inspired some of our best ideas.”

Value-Driven Content

Ad Campaigns

Social media users want to be engaged, educated or inspired – not sold to. Businesses that make delivering valuedriven content their primary focus and leave their product and service agendas at the virtual doorway see better results. In many cases, this means offering tips or tools specific to the industry or business. Although Gau’s blog was designed as a sales tool, it never promotes any products or services Marco provides. Its purpose is to provide meaningful content that C-level executives and other leaders would want to read. “Developing the leadership blog has been the single most successful online strategy we have implemented,” said Barry Opatz, marketing director at Marco, a St. Cloud- based company that delivers voice, data, video and print solutions to organizations of all sizes. “Today’s leaders

Strong organic fan growth is natural when the social media tool delivers value, but organizations can accelerate followership by promoting it through a Facebook ad campaign. The Facebook ad platform allows administrators of business pages to create clickable ads that link to a Facebook business page, an event posted on Facebook or an external website link. Marco has used the Facebook ad tool to inform a broader audience about the blog and direct users to specific blog postings they may find of interest. Ads about Gau’s posting on “Promotable Behaviors” led 320 people to click to the blog on the company’s web page in less than a week’s time. Facebook fan ads are among the most effective ways to increase followership in a short period of time. The cost is reasonable with organizations currently spending an average of $1 for each person that

becomes a fan of their Facebook page. It was a move SpeedStop, a St. Cloud-based gas and convenience store chain, made earlier this year to share the valuable offerings on the company’s Facebook page. “After having our Facebook page active and running for a few months, it became apparent that we needed an extra boost to build up our fan base,” said John Allen, social media administrator and a store manager for SpeedStop. “We then made a decision to run a few ads. Although it is not a free service, the ability to target a certain area or people is quite a handy tool. With a catchy ad and the right content when sent to the page, we were able to gain and keep a few hundred extra fans.”

Deals and Giveaways Social media users are always looking for a good deal and a giveaway will not only increase followership, but also engagement. SpeedStop has seen consistent results by regularly uploading gas coupons and special discounts for Facebook fans in addition to posting monthly specials or initiating contests. “Facebook is a big help to drive business to the stores,” Allen said. Weekly trivia associated with even a low-cost giveaway also spur followership by encouraging fans to post on the page, which also then appears on the newsfeeds of their network of friends. “When it comes to social media, the possibilities are virtually endless once you throw your business out there,” Allen said. “As long as we, as a company, keep our material fresh and appealing, business is easily gained through Facebook.”

Giving Back Social media users also are socially aware and respond well to organizations that

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FEATURE

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PROFIT

“Convincing people to switch banks is about positioning and patience .”

TAKE ITSIDNAYS THUR . N. LEAD

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share their commitment to a cause or community. Organizations can garner followership and give back to charity at the same time through a giving campaign. During a typical campaign, an organization posts on its Facebook page that it will donate $1 to a named charity for every person that becomes a fan. The campaign often is limited by either time or a total dollar value. Looking to help the cause, fans naturally share the post with their friends and encourage them to become fans. The charity also often gets involved in the promotion. While the concern may be that the fans acquired this way will not remain fans, the reality often is that typically the majority continue to remain fans because they appreciate the company’s values.

Interactive Campaigns

SMART BOARDS FOR YOUR BUSINESS ®

– TARA TOLLEFSON, DIRECTOR OF CLIENT EXPERIENCE FOR PLAZA PARK BANK

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HIGHLY EFFECTIVE PEOPLE ®

An interactive campaign will bode the best results, but it takes time and planning. Looking to use Facebook to refocus its brand message, Plaza Park Bank initiated a Family Who Saves Together Challenge. This multi-faceted campaign focused on Facebook, but used radio, print and other media to communicate the message. For the Family Who Saves Together, Plaza Park intentionally chose three families who were not customers to complete the challenge. Each family set a financial goal – saving for a vacation, donating to

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Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

charity, etc. – and then shared their experiences. Plaza provided financial tools as well as a flip camera to each family to allow the members to capture moments throughout the campaign. Those moments then were shared on the company’s Facebook page and in radio advertisements. The campaign focused on building relationships with one of the bank’s key demographics – growing families – and communicating Plaza’s commitment to financial literacy. The campaign drew 100 new fans to the Facebook page in the first week alone, Tollefson said. About 50 percent of Plaza Park’s Facebook fans are not current clients of the bank. “We’re positioning ourselves for when someone is ready to switch banks,” Tollefson said. “We have had both online and offline feedback from non-clients telling us that they love how personable and down to earth Plaza Park Bank seems.” But, seeing bottom line results does not happen overnight. “Convincing people to switch banks is about positioning and patience and we do believe our Facebook strategy is achieving our branding goals and trust it will help us with attracting new clients,” Tollefson said. BC Dawn Zimmerman is CEO of The Write Advantage Inc., a St. Cloud-based writing and communications firm that specializes in social media strategy and implementation.


SMART BUSINESS: LARAWAY FINANCIAL ADVISORS

Ask seven questions of a financial advisor candidate Selecting the right Financial Advisor is important.

3 Do you have a clean record with the Securities Exchange Commission (SEC)?

Steven A. Laraway, Laraway Financial Advisors, Inc., approaches his vocation with integrity, with the goal of making mutually beneficial business relationships, even friendships. He invites questions like these: 1 What are your qualifications? Ask about education, advanced degrees, and certifications. Steve Laraway is a certified financial planner (CFP), an attorney, and certified public accountant (CPA). Continuing education required to maintain these designations keeps Steve “up-to-date” with industry trends.

2 What is your experience? Ask your advisor how many years he/she has been in the financial advising business. A broad base of formal knowledge and experience gained over years in up and down markets helps Steve evaluate the full scope of your financial picture and future possibilities, a real plus.

1219 33rd St. S., St. Cloud, MN www.larawayfinancial.com

Check Laraway Financial with Financial Reporting Advisors at www.finra.com, or access the SEC directly at www.sec.gov/ investor/brokers.htm. The company has a clean record with regulators.

4 What services do you offer? Steve Laraway is an advisor with multiple areas of expertise and takes a holistic approach to advising your actions or acting on your behalf. Laraway’s services include financial planning and offering investment advice as a Registered Investment Advisor, presenting individual and business insurance products and advice, and providing business consultation for employee benefits and corporate retirement plans.

5 What is your approach? Focused on investment performance or long- or short-term objectives? Laraway Financial will work with you. Sit down with Steve Laraway, set the objective, and work together to manage it.

6 Are you independent or

affiliated?

services that speak to your goals. Laraway Financial has no proprietary products to “push.”

7 How do you get paid? Commission or fee-based? Laraway Financial does both.

REMEMBER: Get an

Investment Management Agreement in writing.

So, ask the questions. Odds are you’ll find your advisor. — mary macdonell belisle

CHECKLIST u Qualifications? u Experience? u Clean record? u Services? u Approach? u Affiliated or Independent? u Commission or Fee-based?

Laraway Financial is independent and will work to present to you products and

BUSINESS DESCRIPTION: Laraway Financial Advisors, Inc., is an Independent Registered Investment Advisor, headquartered in St. Cloud. LFA has its own well-defined investment process and focuses on providing the right solution for clients, using a team approach.

Laraway Financial Advisors, Inc., 1219-33rd St. S., St. Cloud, MN, 320.253.2490, 800.758.8916 Securities offered through Cambridge Investment Research, Inc., a Registered Broker/Dealer, Member FINRA/SIPC. Investment Advisory Services offered through Laraway Financial Advisors, Inc., a Registered Investment Advisor. Cambridge Investment Research, Inc. is not affiliated with Laraway Financial Advisors.

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SPECIAL FOCUS

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FINANCIAL SERVICES

FOUND MONEY

SCSU’s Microloan Program offers funding alternative to Central Minnesota’s low-income entrepreneurs. By Jill Copeland

A

fter founding Cru Wine Online, owner Nick Barth realized he needed additional capital. “Most banks don’t lend for marketing purposes or for working capital, especially in this current market,” Barth said. Barth’s assets included drive, passion and vision, but not dollars. Enter the St. Cloud State University Microloan Program. “They were willing to take a chance on us and we got the funding we needed to get our business off the ground – it was a great experience,” Barth said. SCSU is the administrator of resources designated for people interested in starting or expanding a microenterprise. The goal of the program is to help build the local economy while making the resources of the university available, providing

value to businesses, and offering invaluable learning experiences for students. The lending program was created to be a link between the greater St. Cloud community and the Herberger Business School. Program Director Matt Wells says the business college is uniquely positioned to help deliver microloans for Central Minnesota’s low-income entrepreneurs. “We want to help build the local economy by providing technical/entrepreneurial expertise, educational assets, and small loans for individuals that ordinarily would not qualify for traditional financing.”

Now online

For more information about SCSU’s Microloan Program contact Matt Wells at (320)308-2500 or visit www.BusinessCentralMagazine.com.

The Business Plan

To qualify for a loan through St. Cloud State’s Micro-loan program, Program Director Matt Wells encourages applications that focus on a business plan. Templates are available to help define business goals, according to Wells. Business plans are required in order to submit a loan request and coaching and consulting are available. To qualify for a micro-loan, individuals need to meet the following requirements: ••Be start up/newly established micro enterprises

••Have proof of residency in St. Cloud or a surrounding community

••Demonstrate financial need (funds may not be used to refinance existing debt)

••Engage in any legal business, with the exception of retail alcohol, pornography, speculative real estate, and gambling

Micro-loan program guidelines:

••Maximum available loan is $25,000 per applicant. If more funds are needed, the service can help locate additional sources of capital.

••The timeline for approval varies with each case, typically one to five months. ••Minimum loan is $1,000.

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••Be U.S. citizens ••Have acceptable credit or be able to explain the reason why it is poor

••Business loans are structured for up to five years and interest rates are dependent upon business credit risk and the current interest rate environment. Typically, interest rates fall between 8 and14%.


FINANCIAL & PROFESSIONAL SERVICES

Plaza Park Bank

FINANCIAL & PROFESSIONAL SERVICES

Jacki Templin

Learn more about the variety of financial & professional services available to businesses in Central Minnesota on the following pages. The program has helped 64 clients as of September 2011 and has provided three loans since the program started two years ago. Wells says the best advice he can give is to have a business plan worked out before applying for a loan. “When I explain what needs to go into a business plan, some people will either never talk to me again or they will slowly start to develop it.” What characterizes the successful applicants? “They are willing to put the

work in,” Wells said. Like most ventures, the more research that is done up front, the lower the failure rate for that investor. “If someone is thinking about it, they need to sit back and take a look at their life – do they want to put all of that work and effort into it? Are they willing to do what it takes?” BC Jill Copeland is the former communications and workforce development coordinator at the St. Cloud Area Chamber of Commerce.

Commercial Lender 320-257-3309 •• jtemplin@plazapark.com www.plazaparkbank.com Plaza Park Bank proudly welcomes Jacki Templin, Commercial Lender. Jacki has 15 years of expertise in commercial credit and has worked locally as a business banker for the past 6 years. She has a passion for working with business owners; understanding the operations of a business in order to help them achieve their goals. In accepting the position and coming to Plaza Park Bank, Templin says, “I am excited to get back to a community bank where employees are engaged, clients are number one and all decisions are truly made locally.” Visit Jacki in our Waite Park location today!

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ABC Investment Company

FINANCIAL & PROFESSIONAL SERVICES DO NOT:

separate your company name from the Laraway Financial & Merchants LPL Financial logo with aFarmers dash. Advisors State Bank

ABC Investment Company Or

ABC Investment Company Michael D. Trnka Financial Advisor / Owner 320-257-0078 •• michael.trnka@lpl.com

Eric Peterson

Steve Laraway ®

®

President & CEO, J.D., CPA , CFP (320) 253-2490 •• steve@larawayfinancial.com

When co-branding using these options mentioned above, you must reflect www.lpl.com/michael.trnka www.larawayfinancial.com your relationship with LPL Financial and display the following disclaimer pursuant FINRA rule 2210 (d) (2) (c) (ii): I joined LPLtoFinancial in August of 2009, At Laraway Financial Advisors, we believe

opening an office in South St. Cloud. your financial future is a journey that should My vision for my clientele is simple and be embarked ABC Investment Company is not an affiliate company not of LPL Financialon alone. We are as invested straightforward: Understand their needs as in your financial freedom as you are and are completely as possible and offer nonwith you every step of the way. Steve Laraway proprietary financial products to help them has over 30 years of experience in the financial ABC Investment pursue their individual goals. Coming from a Companyplanning/investment management field. background in the trust and investment He has extensive knowledge on investment NAME GOES HERE CFS management area,YOUR I understand the strategies, tax planning, securities, employee LPL Financial registered principal importance of “doing homework” to benefit plans and estate planning. Securities 1234my Main Street 555 123 4567 direct Anytown, CA 12345 for my provide sound financial guidance offered through Cambridge Investment 555 123 4567 ext. 5555 yourname@yourwebsite.com clients and their families. Research, Inc., Member FINRA/SIPC.

Commercial Loan Officer 320-252-5121 •• eric.peterson@fmpierz.com fmpierz.com Farmers & Merchants State Bank has the knowledge and experience to offer you everything you’d expect from a full-service bank, and more. As a leader in Central Minnesota offering financing solutions for local businesses, we have employees with local roots and experience to help your business grow. Stop by or give us a call today.

Securities offered through LPL Financial Member FINRA/SIPC

LPL FinancialABC • Member InvestmentFINRA/SIPC Company is not an affiliate company of LPL Financial 2907 Clearwater Road St. Cloud, MN 56301

br a nd m a nua l 4

Because Experience Still Counts… At Farmers & Merchants State Bank, we’re proud of our people. That’s because they have the knowledge and experience to offer you everything you’d expect from a full-service bank, and more. We believe you want a banker to do more than just hand you an application. You want someone who understands you and your business. We offer just that – employees with local roots and experience to help your business grow. If experience still counts… think Farmers & Merchants. Stop by or give us a call today!

Roger Poganski, Chief Credit Officer 30 years experience, St. Cloud native

Serving Sauk Rapids since 1995, and a part of Pierz since 1908.

Sauk Rapids 1301 2nd St N. 320.252.5121

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Pierz

80 Main St. 320.468.6422

fmpierz.com

Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

Eric Peterson, Loan Officer 9 years experience, Rice native


FINANCIAL & PROFESSIONAL SERVICES

Rinke Noonan Law Firm

www.rinkenoonan.com Established over 40 years ago, our attorneys stand ready to support you as assertive advocates. Rinke Noonan is accessible and responsive, committed to providing large firm impact and distinction, with the individualized attention and cost efficiency of a midsized law firm. We are committed to protecting your interests and taking a proactive approach to meeting your needs. While our attorneys have a high level of experience and respect in their individual specialty practice areas, our collaboration is what makes us unique.

www.rinkenoonan.com

Falcon National Bank

Super Consulting Services, LLC

John Herges

Michelle Super

President and CEO (320) 223-6300 •• jherges@falconnational.com www.FalconNational.com

Owner www.hrsolutionsmn.com •• 612.281.9381 msuper@hrsolutionsmn.com

My partners and I started Falcon National Bank in 2003 with the vision of a community bank that would be owned locally, managed locally and concerned locally. I am happy to say that here we are in 2011 with a successful community bank that still carries that vision. Part of being with Falcon from the beginning has allowed me the pleasure of getting to know each and every customer and employee along the way. Together we have been able to grow Falcon into a strong community partner by providing exceptional banking solutions with friendly service to the communities we serve. Thank you to our customers, thank you to my employees and thank you to my partners.

Your outsource HR resource. Michelle Super, Super Consulting, knows your strengths lie with running the operation, not with HR. Recruiting. Hiring. Evaluating. Training. Policies. Procedures. These tasks showcase Michelle’s talents. Small-to-medium size business owners successfully hire her for their HR, says Michelle, who’s resolved staff challenges over her 12-year business career. For a reasonable fee, she will ease your HR burden so you can do what you do best – run your company more efficiently, productively, with less stress. Super Consulting Services, LLC. Your Human Resources Solution.

Firmly Committed. Delivering Results Through: • Client Focused Pilosophy • Innovative Solutions • Exceptional Service Visit our new website at: www.rinkenoonan.com

Suite 300, US Bank Plaza.1015 W. St. Germain St. St. Cloud, MN 56301 320-251-6700 N O V E M B E R / D E C E M B E R 2 0 1 1 • •   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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FINANCIAL & PROFESSIONAL SERVICES

Central Minnesota Credit Union

Af lac

Gaslight Creative

Travis Moore

Deborah Krump

Kelly Zaske

St. Joseph Branch Manager 888.330.8482 •• myCMCU.org facebook.com/myCMCU

Independent Agent 320-217-6040 •• deborah_krump@us.aflac.com

Marketing Strategist 320-290-5909 •• kelly@gaslightcreative.com

Deborah Krump, an independent agent representing Aflac since 2003, services many businesses and individuals in the Central Minnesota area. Aflac offers voluntary insurance policies that pay cash benefits directly to the policyholder if they are sick or hurt. These benefits can be used for whatever they choose including out-of-pocket expenses such as: Deductibles • Out-of-network costs Travel and lodging • Everyday living expenses like monthly mortgage payments, rent, car notes, groceries, and utility bills. Aflac offers short-term disability, accident, hospital confinement indemnity, cancer, life, vision, and dental insurance policies.

Kelly Zaske has been directing the marketing initiatives for Central Minnesota businesses for nearly 20 years. As a principle in Gaslight Creative, she collaborates with businesses to clarify their marketing goals, develop strategies to best meet their needs and implement campaigns to reach these goals – on time and within budget. She and partner Jodie Pundsack assemble their team to bring the full scope of experience and enthusiasm to each project. Gaslight Creative offers an array of services from web and print advertising to branding and social media to public relations and special event planning.

Central Minnesota Credit Union is a full-service financial institution providing all the same products and services as a traditional bank. As a not-for-profit financial cooperative, earnings are returned to members through better rates and lower fees. Our St. Joseph branch features extended drive-up hours: Monday-Thursday: 7:00 am – 6:00 pm Friday: 7:00 am – 7:00 pm Saturday: 8:00 am – Noon

Customized solutions tailored for your business! At CMCU, our business lending experts are dedicated to helping you turn your plans for business growth into reality. We partner with business owners to learn your company’s dynamics and goals so we have a thorough understanding of the financial factors that drive your business credit needs. Then we develop customized financial solutions for your business by configuring our business credit services in ways that meet your specific needs.

Discuss your business goals with our lending experts today!

888.330.8482

Smart Business

Feature your work and successes in a unique fashion!

Smart Business profiles present your business or leadership story in editorial style through paid advertising (writing and photography are included). Both full and half page

options are available.

myCMCU.org | facebook.com/myCMCU Federally Insured by NCUA

Equal Opportunity Employer

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Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

For more information call Wendy Hendricks at 320.656.3808 or whendricks@BusinessCentralMagazine.com

Visit us online at www.BusinessCentralMagazine.com


FINANCIAL & PROFESSIONAL SERVICES

Conway, Deuth & Schmiesing, PLLP

Michael A. Johnson CPA, CVA, ABV and Partner 320-252-7565 •• mjohnson@cdscpa.com www.cdscpa.com Mike has over 30 years of public accounting experience including over 20 years owning and managing his own practice. Mike specializes in helping businesses analyze acquisition and sale opportunities, including business valuation, income tax planning, business consulting and accounting. Business owners can be assured knowing that Conway, Deuth & Schmiesing, PLLP strives to provide quality, efficient, and responsive tax, accounting, auditing and management advisory services. Exceptional service, a dedication to details and technical competence are at the foundation of our firm.

Stearns Bank

Isaac Flenner Vice President 320.253.6607 •• isaacf@stearnsbank.com www.stearnsbank.com Stearns Bank is a local, employee owned bank dedicated to providng customized banking solutions to fit both your personal and business finance needs. Originally chartered in 1912, Stearns Bank has grown to a $1 billion in assets offering checking & savings, business loans, equipment leasing, home mortgages, online banking and much more. We are proud to support the communities we serve through contributions made by the Norman C. Skalicky Foundation. Give Isaac a call today to get a free banking analysis. We get the job done!

N O V E M B E R / D E C E M B E R 2 0 1 1 • •   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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BUSINESS SPOTLIGHT PROFIT

Personal

Greg Warnert Age: 37 Education: Graduated from Apollo High School, completed Dale Carnegie training and other industry seminars and workshops Hometown: A dairy farm between St. Joseph and Sartell, Minn. Hobbies: Continues to work on the family farm with his brother, where they raise corn and soybeans; fishing; 4-wheeling; working.

A Work in Progress Business Central: How did you end up working at Mexican Village? Gerg Warnert: I had a friend who worked here and his older brother worked here, too. I needed a job, it seemed like a good place to work. I worked as many hours as possible while I was in high school. BC: Did you try to buy Mexican Village, Too? Warnert: No, Mexican Village, Too, didn’t interest me. I think both restaurants would have been too much for me anyway, and I was more interested in the downtown store. I like more interaction…more people…more

staff…more customers. I had come from this store and been trained here. This was where I wanted to be. BC: Did you make any changes when you took over? Warnert: A few. We expanded the menu and changed it to four color. We created a website and did some décor upgrades. If you can’t do some things to improve it, why buy it? Any business is always a work in progress. BC: What’s your five-year plan? Warnert: I hope that the expansion of the Convention center will create some expansion opportunities for us.

Greg Warnert, Mexican Village Restaurant. By Gail Ivers

We have a sidewalk café permit and plan to put in an outdoor patio, for sure at the street level, with semi-permanent fixtures that would go out in spring and come in at fall. If the Convention center generates enough traffic and the ramp is completed, we might do more. Possibly put in a second floor with roof-top dining. BC: Have you done anything differently because of the recession? Warnert: It’s been a difficult couple of years with all the construction downtown. It’s hard enough to maintain what we have, to say nothing of thinking about expansion. Everyone is

At a Glance The Mexican Village Restaurant PO Box 965 •• 509 West St. Germain, St. Cloud, MN 56301 •• 320-252-7134 •• Fax: 320-252-7478 Website: www.mexicanvillagestcloud.com •• Owner: Greg Warnert •• Business Description: Full service restaurant with meeting space and event catering •• Member of the Chamber since1978

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Business Central Magazine  ••  NOVEMBER/DECEMBER 2011

watching their money, including me. I’ve had to reevaluate how we spend money here. It could have been worse and it still could be. Fortunately we kept our good customer base. BC

WORK HISTORY

Greg began working at Mexican Village as a dishwasher when he was 15 years old. He worked at Peters Body Shop for about six months in 1993 to try something different. He returned to Mexican Village and worked his way up in the company, buying the business in June 2002.


“If we can’t beat another dealers best price we will give you a check for $1,000”

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Describe your most unique car selling experience. Corey: One of my most unique experiences was a very good customer of mine purchased 11 different vehicles in 2 years. The family thought it would be funny to get him a trophy for Christmas, what a great gift.

auto How long have you been in the Brandl? business, and how long with dl for 12 years Corey: Since 1995 and with Bran dl. Bran with Jim: 32 years total, 2 , wife?? What are your hobbies, kids Where do you live?? my family, Corey: spending time with people. fishing, hunting and meeting life. my all Rice in d live I’ve Snowmobiling. Jim: Boating. Driving Jeeps and e Wife – Tami/Hospice nurs /22/college Kids-Ryan/24/college & Erin r rive Live in Sartell on the

Jim Unger

r years in the auto business? What has changed over you changing. One of the biggest stry Corey: Our indu is ever . It allows consumers the changes has been the Internet ons at the click of a finger. opti y man ore expl to nity opportu the technology that been has ge chan Jim: The biggest with the electronics ly cial goes into the product espe . ures feat ty safe and the

What is your advice for people in the market for a car? ket Corey: When you’re in the mar ip. ersh own y happ to service as the key for your next vehicle consider stay with and t trus you that son sper Jim: Find a dealership/sale run is not as important as the them. A few dollars in the long service they provide.

Corey Friedrich

r next vehicle purchase? Why choose Brandl for you the hase your vehicle that’s only Corey: I feel once you purc to ard forw look I and tionship beginning to long lasting rela ds. nee r you helping you with all ler a high volume/ low price dea Jim: GREAT reputation as . sale the r afte re, during and with exceptional service befo

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