September/October 2011 by St. Cloud Area Chamber of Commerce

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Falcon business specialists Josh nelson, John Herges, & Jessica bitz

Falcon Helped Turn THeir plans inTo realiTy.

dan & Mark barth

paco, alina & don Manea

tama & Greg theis

Pioneer Place

Manea’s Meats

Greg E. Theis Remodeling

ST. CLOUD 320-223-6300 1010 West st. Germain st. suite 150

FOLEY 320-968-6300 183 cedar drive

www.falconnational.com

IN EVERY ISSUE 8

6 President’s Letter

Editor’s Note

Business Calendar

Network Central

Top Hats

CONTENTS

R END

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26 Welcome Students! Pull-out poster

29 Management Tool Kit

Stay Cool If cold-calling leaves

Profit

32 Cover Story

you with cold feet, these tips might help you warm up the process.

30 Economic Review Cost of Living Report

Merchant Man John Schlecht, owner of Crafts Direct, likes to go his own way – as long as it’s what his customers want.

E V

R END

D E

Leveraging Facebook’s advertising platform to reach the right people and see real-time results.

Pay for Performance

Book Review Wisdom is Not Enough: Reflections on Leadership & Teams, by Jeff Appelquist

24 TechStrategies

around Central Minnesota.

S APP

offer unique opportunities to promote and sell your products.

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

Business Tools

Fair Game Summer fairs

10 News Reel

September/October 2011

22 Entrepreneurism

Upfront

G ROW

N E T WOR K

PROFIT

•

NETWORK

•

GROW

S APP

P ROFIT

This Issue 40 Feature River City

The St. Cloud area’s most overlooked natural resource – the Mississippi River – could be a key to boosting the area’s economy.

44 Special Focus Projecting Growth

Central Minnesota has been setting the pace for employment expansion for more than three decades.

Business Spotlight Bob Lien, Robert’s Fine Jewelry

Special Section

12 People to Know

45 Central Minnesota

15 Your Voice In Government

Growth Guide

Community Priorities

16 The Trouble with Business

ONLY ONLINE

Deal Breakers

When the goal is a mutually acceptable agreement for an acquisition, merger, or sale, all stakeholders want to avoid deal-breakers.

•• Craft Cold-Calling Scripts •• MN Green Careers

•• SBA’s Guide to Getting Out of Business •• Commercial Construction Statistics

www.BusinessCentralMagazine.com

PRESIDENT’S LETTER

NETWORK

A Win is a Win

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

he ongoing saga of the St. Cloud Civic Center Expansion concluded another chapter as the Republicans again stripped our funding from the bonding bill right before the close of the 2011 Special Session. Now officially called the St. Cloud River’s Edge Convention Center, I have worked on the expansion for most of my 14 years with our Chamber. Disappointed? Absolutely. Defeated? I don’t know the meaning of the word. We have a major interest in the center because we work to bring meetings and conventions to Central Minnesota through our Convention and Visitors Bureau. Four years ago we determined something needed to be done differently to get funding for the expansion we needed so desperately to meet our customers’ needs. At that point, the Chamber took a lead role in advocacy for the project. We secured $3 million in planning money and planned a most wonderful expansion project. Since the plan was completed, we’ve visited with the entire legislature to educate them about what we

are trying to accomplish. Even so, we’ve had Governor Jesse Ventura line item veto us out, followed by the same treatment from Governor Tim Pawlenty. Governor Dayton believed in our project and fought for us, but somehow House Bonding Chair Representative Larry Howes got the idea that we would proceed with the final stages of the project whether we received the funding we needed or not. I’m confused where this information came from, but once he got that in his head, he became immovable. In November we will open an expanded, state-of-the-art convention center — with no parking for the people who will be visiting us. Hmmmmmmmm. Could this be an example of more shades of political dysfunction? We’re not giving up, however. We’re regrouping. I have publically praised Mayor Dave Kleis’ foresight and bravery in moving ahead with the project for the good of our city. His actions helped us realize millions of dollars in savings from favorable construction and supply costs. When we open the building this fall, I will be there all bright and smiling, celebrating victory. Even if I have to park several blocks away and walk in. I’m pretty sure we will be back to ask for what we need once again next year. In the immortal words of Yoda, “Do or do not, there is no try . . .”

email: information@StCloudAreaChamber.com ST. CLOUD AREA CHAMBER OF COMMERCE STAFF President | Teresa Bohnen, ext. 104 Vice President | Gail Ivers, ext. 109 Director of Administration | Judy Zetterlund, ext. 106 Special Events Coordinator | Virginia Kroll, ext. 105 Communications & Workforce Development Coordinator | Jill Copeland, ext. 130 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 | Jacob Longworth 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 St. Benedict Steve Hahn | HahnMark, LLC John Herges | Falcon National Bank Scott Johnson | Times Media

Teresa Bohnen President

A WELCOMING STATEMENT The St. Cloud Area Chamber of Commerce encourages you to welcome all students to your business. To show your support gently remove the center spread and place it in on your store front.

Business Central Magazine •• September/October 2011

Bill Winter | St. Cloud Federal Credit Union, Board Chair

Do St. Scholastica grads have a secret handshake? Or some other secret?

EDITOR’S LETTER

NETWORK Publisher Teresa Bohnen Managing Editor Gail Ivers Associate Editor Dawn Zimmerman

Simple Gifts

CONTRIBUTING WRITERS Teresa Bohnen St. Cloud Area Chamber of Commerce

hen I was a little girl, I announced to my mom that I wanted to try cross stitch. Being a good mom she found a pattern, ironed it onto a bed sheet, and handed off the project. Some time later, seeing no action on my part, she went in search of the sheet with a certain amount of disgust. “It was finished,” she told a friend at the time. “I couldn’t believe it. I never saw her work on it. I thought it would take her a month, but it was completely done.” Her skepticism was well placed as I am known for procrastinating. But in this case, I had completed it immediately and in the process found a life-long hobby. My friends and family are often the recipients of my hand-made gifts. Many a baby has spilled mashed bananas on my hand-decorated bibs. On some occasions I take on larger projects. As a wedding gift for Tom’s niece, I made and embroidered a set of napkins and placemats. Though it took forever, I did manage to get them done for the wedding. My own niece has not been so lucky. She celebrated her first wedding anniversary in July and is still waiting for her wedding gift. The Christmas tree skirt I am embroidering turned out to be more time consuming than I had anticipated. Two years into this project I am determined to complete it by Thanksgiving! Just as I am a giver of these simple gifts, I am also the recipient. We have a large needle-point picture from Tom’s mom. It shows mallards flying into cattails and reflects Tom’s interest in wildlife and hunting. On a shelf immediately below the picture are some wood cattails from my brother. My mother’s quilts adorn our bed and walls. John Schlecht from Crafts Direct, (see story on page 32) tells me that the craft industry is recession proof. He attributes

Jill Copeland St. Cloud Area Chamber of Commerce Fred Hill St. Cloud State University Gail Ivers St. Cloud Area Chamber of Commerce Jacob Longworth St. Cloud Area Chamber of Commerce Mary MacDonnell Belisle mary macdonnell belisle-writerforhire Larry Schumacher Wordbender Communications LLC Dawn Zimmerman The Write Advantage ADVERTISING Associate Publisher/Sales Wendy Hendricks, Hendricks Marketing

Ad Traffic & Circulation Yola Hartmann, Hazel Tree Media Megan and Scott’s wedding gift – a work in progress.

that to people reverting to hand-made gifts because they don’t have enough money for store-bought items. No doubt he’s right. But I can’t help but think there’s more to the giving of hand-crafted items than that. A woman I worked with many years ago gave me a framed picture of a rose she had done in cross-stitch. She was a single mother with small children. She worked full-time. For her it wasn’t about money. A few stolen moments for handwork each evening were her reward for a wellorganized day. Her gift is special because I know that during some of those precious moments she was thinking of me. Sometimes it really is the thought that counts. Until next issue,

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.

Gail Ivers

Vice President

Editor

© 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.

Business Central Magazine •• September/October 2011

Comprehensive, coordinated care Delivering comprehensive, coordinated care eﬃciently to you — it’s part of our commitment to quality care.

www.centracare.com9

S e p t e m b e r / O c t o 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

Book Review

Point of View

People to Know

It’s Made Where?

Business Calendar

Your Voice in Government

The Trouble with Business

UPFRONT

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ISBN 13:978-1-59298-373-5

By Fred Hill

eff Appelquist is the founder and president of Blue Knight History Seminars, LLC. His company offers individual leadership and team development training that is centered on history and historic landmarks. He believes that leadership lessons are everywhere if one just looks closely enough. Appelquist’s book is a compilation of 40 of the essays he wrote for the Dakota

Edina, Minnesota, 2011,

S APP

Law firm adds shareholder

Jeff Appelquist draws on his love of history to provide insight into great leaders and effective teams.

Beaver’s Pond Press, Inc.,

N E WS REE L

Leadership Lessons

by Jeff Appelquist,

News & people that make up the chamber network

BOOK REVIEW

Wisdom is Not Enough: Reflections on Leadership & Teams

R END

PR O F I T

N E T W OR K

GROW

County Tribune Business Weekly between spring 2009 and fall 2010. His mission was to forge great leaders and teams by using the power of history as a learning tool. The book is organized into five parts: Decision Making, Strategy, Communication, Relationships, and Learning. There are a number of themes that consistently run through the five parts and 40 chapters of the book. The themes are: •• Great leaders make good decisions. •• Great leaders see strategy as the evolution of a compelling common purpose. •• Great leaders are great communicators. •• Great leaders know that nothing is possible without a foundation of strong, trusting relationships. •• Great leaders think differently, and they foster a diverse culture that permits others to think differently, too.

in 1976 by three men – Steve Jobs, Steve Wozniak, and Ron Wayne. Wayne had a 10 percent stake. He became concerned with “Job’s extravagant spending and Wozniak’s occasionally weird thinking.” He sold back his shares for $800. His 10 percent today would be worth $22 billion.

Here are two examples: Chapter Six, Small Decisions Matter: Apple Computers was founded

Dr. Fred E. Hill is a professor of

Business Central Magazine •• September/October 2011

Chapter Thirty-Five, Be Present, Listen, and Learn: Dan Rosensweig is the president and chief executive of Chegg, a company that rents textbooks online and via mail. He was asked about how he runs meetings. He said, “Be present. It’s so easy to get distracted in the worlds of BlackBerrys, iPhones, Twitter, Facebook, and 500 emails a day. Our meetings start on time, end on time, and no technology. We stay focused, and have a much more healthy conversation. Wherever you are - be all in.” This is a great read! BC

Learning Resources and Technology Services, at St. Cloud State University.

Nicholas R. Delaney is a new shareholder in the Delaney law firm of Rinke Noonan. Delaney obtained his law degree from the Hamline University School of Law. He practices in the areas of civil litigation and family law.

Brenny named chair of trucking association

Joyce Brenny, owner of Brenny Transportation and Brenny Specialized, has been elected chair of the Minnesota Trucking Association Board of Directors. She is a former truck driver and has served on the MTA Board since 2005. Currently, Brenny is one of three women serving on the MTA Board and the first to be elected as chair. Brenny

Schroeder receives state honor

Phil Schroeder, vice president of

Schroeder student affairs

at St. Cloud Technical and Community College, was recognized by the Minnesota State Colleges and Universities system for making significant contributions to the development of academic programming at his institution.

Pawn America relocates

Pawn America recently relocated its St. Cloud store to 2550 W Division Street, increasing its space from 8,000 to 22,000 square-feet. The St. Cloud market has consistently performed well for Pawn America, according to company owner Brad Rixmann.

POINT OF View

Business Central asked readers: Is your business going green?

“

Andrea Lodermeier Minnwest Bank

“

We recycle here at the bank and do our best to be energy efficient. We bring our cans to the recycle center and do not throw them in the garbage and all our paper from the office is shredded for recycling and so is the cardboard.”

”

“

Christine Tollefson Tully Tube Network

We are going green by using video advertising verses print. By providing video impressions that don’t take paper or ink, it is less harmful to the environment.”

Mark Downing ARRO Land Surveying

Valerie Amberg CDS Administrative Service

“

We have gone paperless. All of our files are now saved electronically and our older files have been scanned and transferred into the computer system. This saves on both ink and paper.”

“

We recycle all of our paper. We don’t use any pollutants other than gas for our vehicles and we’ve started using more hand tools and less gas-powered machinery.”

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.

S e p t e m b e r / O c t o 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

UPFRONT

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NETWORK

N E WS REE L

Phillipi

Lange

Johnson Group adds staff Johnson Group Marketing added two new members to their staff, Shayla Lange and Morgan Philippi. Both Lange and Philippi are St. Cloud State University graduates and are responsible for designing and producing advertising materials for Johnson Group clients.

Godtland

Novak

PineCone Vision adds staff, awards scholarships Dr. Ragna Godtland joins PineCone Vision Center, Sartell, as a board certified residency trained optometrist. She will provide direct patient care to children with learning-related vision problems through a targeted vision therapy program. PineCone Vision awarded college scholarships to three local high school seniors. Students were chosen based on academic excellence, volunteerism and a desire to pursue a degree in healthcare. Jennifer Novak, practice administrator at PineCone Vision, was elected to the Minnesota Optometric Association’s Paraoptometric Board.

Marco, Werner Electric, PAM’s Auto in Top 100 Workplaces Marco, Inc. was ranked 9th and Werner Electric was ranked 12th in the midsize business category Top 100 Workplaces in Minnesota for 2011. This is the second consecutive year that both Marco and Werner have been included in the Top 100. PAM’s Auto was ranked 24th in the small business category in the Top 100 Workplaces in Minnesota. The rankings in the Star Tribune Top 100 Workplaces are based on survey information collected by Workplace Dynamics.

PEOPLE TO KNOW

A Helping Hand Bill Winter looks forward to connecting with Chamber members during his tenure as chair of the Chamber Board of Directors. By Gail Ivers

ill Winter likes people. He likes meeting them … he likes working with them … he likes learning from them. And he can’t think of a better place to do that than at the St. Cloud Area Chamber of Commerce. “Because of my involvement with the Chamber of Commerce I have had the opportunity to meet lots of different people that I probably wouldn’t have had the opportunity to meet if I hadn’t been part of the Chamber,” Winter said. President of St. Cloud Federal Credit Union, Winter began his one-year term as chair of the Chamber’s Board of directors on Sept. 1. Winter reluctantly admits that he doesn’t really have a lot of goals for the Chamber during the coming year. “Chairing a five-star Chamber – which is the highest industry rating a chamber of commerce can receive – is either very hard or very easy. There’s nothing to fix, which is good. But there’s nothing to fix, so you can’t focus your energy on that.” But, Winter cautions, “If we sit back and think we’ve made it to the top, we’ll probably be at the bottom before we know it. So we can’t become complacent.” Winter has a long history of volunteerism. He has served on a number of committees and boards for industry associations, on the board of directors for the St. Cloud Area Family YMCA, as chair of the Chamber’s government affairs committee, and for three years on the Chamber board. “The Chamber is different than a trade association,” Winter said. “When I was on those boards, I knew the industry, I knew the specific challenges we were facing and what needed to be done, and I was driven to get it done.” It’s not as easy to pin-point the challenges the Chamber should be addressing, Winter

Bill Winter

“If we sit back and think we’ve made it to the top, we’ll probably be at the bottom before we know it. So we can’t become complacent.” said, because the Chamber is more diverse in membership than a trade association. “I guess I need to listen more. I need to remember that there are a lot of businesses in the Chamber with a lot of their own issues and we need to recognize that. But members have an obligation to speak up so we know what their concerns and issues are in order for us to help where we can.” Despite two different stints as chair of the Chamber’s Government Affairs Committee and a number of years participating in Executive Dialogue groups, Winter expresses regret that he didn’t become more involved even earlier in his career. “I assigned that responsibility to other people in our organization,” he said. “I guess I was too busy, or too focused on other things. Now, when I learn someone isn’t a member of the Chamber, I say ‘It’s a shame you’re not a member. You’re missing a lot of opportunities.” BC

HOW TO REACH HIM You can reach Bill Winter at St. Cloud Federal Credit Union, (320) 252-2634, info@stcloudfcu.org

Business Central Magazine •• September/October 2011

IT’s Made WHERE?

Images provided by Blow Molded Specialties.

Made in Foley, Minn.

Blow Molded Specialties PO Box 310, 222 Bronder Dr., Foley, MN (320) 968-7251 www.BlowMolded.com

Above Left: A molded tank is removed from the blowmolding press. Above:The finished tank is assembled and ready for installation on the customer’s production line.

Blow Molded Specialties, established in 1992, is a manufacturer of blow-molded parts and sub-assemblies. The end products feature hollow plastic parts for structural, functional or aesthetic applications. The company can produce custom parts as heavy as 60 pounds and as long as 78 inches with a variety of resins and additives. The finished part can hold additional parts, including moving pieces. Other services include: •• Concept development and design aid

•• Warehousing

•• Sample runs

•• Materials selection and color matching

•• Assembly, decorating and packaging

•• Just-in-time delivery

•• Tool maintenance

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NETWORK

N E WS REE L St. Cloud Refrigeration honored ContractingBusiness.com awarded its top honor, “Commercial Refrigeration Contractor of the Year” to St. Cloud Refrigeration (SCR). SCR received the award for excellence in customer service, refrigeration system installation and maintenance, business management, innovation, growth strategies and SCR’s contributions to the community and industry.

Lindmeier joins GLTArchitects Katie Lindmeier joins GLTArchitects as a job captain. Lindmeier Lindmeier earned her Master of Architecture degree from North Dakota State University and was awarded the Henry Adams Medal in recognition for graduating first in her class.

Gaslight receives national award St. Cloud-based marketing communications agency, Gaslight Creative, received a CSS Design Award for excellence in website design. The award recognizes the marketing company’s own website, www.gaslightcreative.com.

BUSINESS CALENDAR

Can’t-miss opportunities to influence, promote, and learn September - October 2011 Visit events.StCloudAreaChamber.com for a detailed calendar. Waite Park Chamber

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. September 15: Hosted by Schlenner Wenner & Co., 630 Roosevelt Rd. October 5: Hosted by Bernick’s Beverages & Vending, 801 Sundial Dr, Waite Park.

Waite Park Chamber After Hours

For businesses interested in doing business in Waite Park. Lunch is provided by the host when you register at least two days in advance. Unregistered attendees pay $5 at the door. Waite Park City Hall, 19 13th Ave. N.

A complimentary open house organized by the Waite Park Chamber for all Chamber members.

4:30-6:30 p.m. September 29, hosted by Rejuv Medical, 210 3rd St N, Waite Park.

11:30 a.m. – 1 p.m. September 21: Hosted by Restoration Professionals with guest speaker Sara Prom, Conflict Management Center, discussing conflict in the workplace. October 19: Hosted by Bremer with guest speaker Alanna Shoquist, Second Harvest Heartland, discussing hunger relief efforts in Minnesota.

Call (320)251-2940 for details on any of these events.

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.

CentraCare constructs office building Work will begin this fall on a CentraCare Health System administrative services building. The new building will be located on the CentraCare Health Plaza campus near the intersection of Minnesota Highway 15 and Stearns County Road 120. The project’s $11.4 million price tag will be funded by the health system’s capital budget. The building is expected to open in spring 2012.

11:30 a.m.-1 p.m. September 22: Hosted by Northstar Visitor Guides and Brenny Transportation at C&L Distributing, 1020 Industrial Drive S, Sauk Rapids October 27: Hosted by Sauk Rapids-Rice Schools at the High School Community Room, 1833 Osauka Rd NE, Sauk Rapids. The program includes a presentation about St. Cloud State’s Microloan Program.

Business Central Magazine •• September/October 2011

Star Studded Celebration

This celebration honors the many contributions of Chamber volunteers who make the St. Cloud area a better place to live, work, and play. Lots of networking with a short program. Everyone is welcome. Think of it as Business After Hours on steroids. September 22

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5-9 p.m. Hosted by the Best Western Kelly Inn, 100 4th Ave. S, St. Cloud

Reservations are required. Cost is $25, includes grand hors d’oeuvres and the program.

YOUR VOICE IN GOVERNMENT

Community Priorities

By Teresa Bohnen

Streamlining regulations is one of 10 critical community priorities identified by area residents.

n early spring, a process was started to identify and build consensus around 10 community priorities that will move the St. Cloud area aggressively forward. The vision is that if all community groups, civic organizations, governments, and activists work toward the same priorities in ways that make sense for their organizations, we will all benefit and excel in our efforts. One of the priorities that is gaining momentum is “Streamline local regulations for new and growing businesses.” No one knows exactly what the priority means. Most agree that working on it is an important step to furthering the business growth and development of our local economy. In the Grow Minnesota! retention calls conducted by the St. Cloud Area Chamber

of Commerce, we often hear that local and state government can impede the ability of businesses to efficiently grow their workforce, facilities and revenues. At a recent planning retreat, the Chamber’s Board of Directors and committee leadership focused on the role the Chamber could play in helping streamline regulations. The outcome of the discussion was for the Chamber to be the lead convener, advancing this important community priority. Currently, we are seeking support and partnership with all our area cities. We also look forward to more clarification and discussion with the Initiative Foundation and Central Minnesota Community Foundation who have been partners in leading the Community Priority Process.

We often hear that local and state government can impede the ability of businesses to efficiently grow their workforce, facilities and revenues. We are planning to study shared services this fall as a kick-off to our discussions. We know our area cities are already working together in many ways. We hope to provide an easy visual that will aid in assessing all that is already being done, and identify future efficiencies that can be gained from even greater cooperation. BC Teresa Bohnen is president of the St. Cloud Area Chamber of Commerce

Check around for prices. John did. He saved $560. Even within Central Minnesota, medical prices vary greatly. Here’s John’s story… John’s surgeon recommended an MRI exam to diagnose problems he was having and plan for surgery. As a small business owner, John knew he could save money by calling around to compare quality and cost.

Beyond Cost At CDI we pride ourselves on quality and consider this as important a consideration as price. Our radiologists are experts in their area of imaging (neuro/spine, musculoskeletal, body imaging), offering a full range of services including MRI, CT, x-ray, ultrasound, mammography, pain management injections and more.

One provider quoted John’s out-of-pocket costs at $1,200 for the MRI. When John called Center for Diagnostic Imaging (CDI), he learned his out-of-pocket costs would be $741, a savings of 43% on the same exam. If you would like a cost estimate, call us at 320.229.4646.

We can help you and your employees find the answers you need. 320.229.4646 | CentralMnCDI.com S e p t e m b e r / O c t o 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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NETWORK

THE TROUBLE WITH BUSINESS

N E WS REE L Andzenge joins MidCountry Bank Julie Andzenge joined MidCountry Bank as community Andzenge bank president. Andzenge received an MBA in corporate finance from Western Michigan University.

Deal Breakers

When the goal is a mutually acceptable agreement for an acquisition, merger, or sale, all stakeholders want to avoid deal-breakers. By Mary MacDonnell Belisle

Women’s Fund awards grants

Neglecting to Plan “The purchase or sale of a business isn’t a situation where you can go to LegalZoom.com and get what you need,” said M&A lawyer Ryan C. Gerads, of Gray, Plant, Mooty, St. Cloud. “You’re reducing the likelihood of a future problem when you work with a lawyer and rely on other professionals.” The negotiating team should include experienced M&A professionals – an attorney, CPA, valuation expert, and business consultant, maybe a broker or investment banker. Plan early with your team, and get your documents organized and available for scrutiny.

The Women’s Fund at the Central Minnesota Community Foundation recently awarded $28,500 to several local projects. The Julianne Williams Fund, part of the Women’s Fund, awarded $5,200 in grants to three projects that promote selfesteem, safety, confidence and overall empowerment of girls and young women through the use of physical activities.

McAlpine Schwegman

Ford

Quinlivan & Hughes attorneys recognized, certified

Thomson Reuters selected Michael Ford and Steven Schwegman as ‘Minnesota Super Lawyers’ and James McAlpine was selected as a ‘Rising Star.’ Steven Schwegman was recertified as a Board Certified Civil Trial Law Specialist by the Minnesota State Bar Association. This achievement has been earned by fewer than 3 percent of all licensed Minnesota attorneys.

Walking Billboards receives recognition Walking Billboards, Waite Park, was named Business of the Month by Imagine Chiropractic. The award recognizes innovation in the promotion of employee and community health and wellness. Compiled by Jacob Longworth

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ny merger of business or of relationships should be based on mutual needs, not necessarily the same needs,”said Tom Williams, whose business merged in 2008 to become Williams Dingmann Family Funeral Homes. “My personal need to have a smooth transition of ownership to quality funeral people after I retire is assured, and the Dingmann family’s desire for growth is met.” Other goals for M&A or sale can be expansion into new geographic areas, creditor satisfaction, the conversion of assets for cash due to personal reasons, or others. According to Loren Viere, managing partner at Kern, DeWenter, Viere, a CPA and business advisory firm based in St. Cloud, financial deals primarily involve making the numbers work, while strategic deals involve people, expectations, and emotions. Each has its deal breakers.

Business Central Magazine •• September/October 2011

Overpricing the Business Your team will determine value and price. The discussion includes recognition of the current financial climate, such as economic indicators and lending availability, as well as trends in buying activity. Unrealistic pricing is often a deal breaker. “Understand what drives the price so as the buyer you’re not overpaying and can focus on your due diligence efforts,” Gerads advised. Surprises during Due-Diligence Are the financials in order? How do the physical assets look? Dated inventory? What about accounts receivable? Are titles clear? Taxes current? Liens? What is the firm’s reputation? Are vendors getting paid? “If your due diligence encounters something unexpected, it might be the type of thing that can be handled by reducing the purchase price, and not walking away from the deal,” Gerads said. Otherwise, it’s a deal breaker. Divergent Culture and Values Can you reconcile a merger where one party wants to grow to $100 million and the other to remain at $10 million? Or if one firm believes in brokering non-propriety products, while the other

“Don’t get married to a deal. It’s much better to walk away from a deal, rather than after the deal’s been put together.”

Not the biggest—but one of the best.

– Loren Viere, KDV

wants to promote its own branded investments? “Identify early on that the cultures aren’t a good fit,” Viere said. Breach of Confidentiality Loss of key employees, clients, and business during negotiations can be a deal breaker. “Typically, my recommendation to leadership is that they agree negotiations are going to be confidential,” Viere said. “If the news gets out, handle it head-on. Manage it versus running from it.” Overlooked Benefits and Human Capital “Look at employee concerns,” Gerads said. “Understand their benefit packages, and if there’s a union, there may be labor concerns.” Explore employee expectations, fears, and potential problems. What costs are involved with terminations? Difficult Partners Sometimes, one party tries to micro-manage the proceedings, take control, or rush the process. Inflexibility is also a concern. All can be deal breakers, so, keep emotions in check. “Let the deal go at its own pace,” Viere said. Too Much Time Viere has seen deals made in as little as one-and-a-half months (“Unusual”, he says) to a maximum of two years. If the process toward closing is not expeditious, time becomes the deal killer. BC Mary MacDonnell Belisle owns mary macdonnell belisle-writerforhire in St. Cloud and is a frequent contributor to Business Central Magazine.

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

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

StCloudMedical.com

South Campus 1301 33rd Street South 251-8181

Clearwater Clinic 615 Nelson Drive 558-2293

Northwest Campus 251 County Road 120 202-8949

Cold Spring Clinic 402 N Red River Avenue 685-8641

Family Practice + OB/GYN + Pediatrics + Express Care Physical Medicine & Rehabilitation + Occupational Medicine + Surgery

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NETWORK

Network Central

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College to Career

Each year the Chamber hosts a networking reception for area college students and businesses. The goal is to help students understand the wide variety of entry level jobs available in Central Minnesota.

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Eric Reisinger, US Bank, practices his elevator speech.

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Larry Logeman, owner of Executive Express, presents to NEXT-St. Cloud

Business Central Magazine •• September/October 2011

NEXT-St. Cloud meets with St. Cloud Mayor Dave Kleis

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St. Cloud Area Evening at the Capitol

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Sen. Julianne Ortman, Chanhassen (L); Sartell City Council Woman Sarah Jane Nicoll, lobbyist Mike Wilhelmi

Rep. Tim O’Driscoll, (L); Sartell City Councilman Steve Hennes

Sen. John Pederson, Amcon Block (L); Marv Faber, Viking Coca-Cola

Scott Mareck, Area Planning Organization (L); Rep. King Banaian, SCSU

St. Cloud Mayor Dave Kleis, Sen. Michelle Fischbach

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Lunchtime Learning

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Tara Tollefson, Plaza Park Bank, shares the details of Plaza Park’s social media strategy. B

What’s the difference between marketing and sales? Melanie Hirsch, GrandStay Residential Suites, shares her insights.

Dawn Zimmerman, The Write Advantage, explains how businesses can make the media work for them.

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UPFRONT

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NETWORK

TOP HATS | New Members

Studio D; Portraits by Design, 202 8th Ave.N, St. Cloud. Pictured: Jill Magelssen, Denise Gagner and Chris Panek.

Space Aliens Grill and Bar, 700 2nd St. S, Waite Park. Pictured: Inese Mehr, Brad Bender and Diane Ohmann.

Treasure Chest Thrift Store, a non-profit thrift store donating all of its proceeds to Birthline, 113 28th Ave. S, Waite Park. Pictured: Diane Ohmann, Michael Bitzan, Mary Margaret Symanietz and Shannon Templin.

Central Lakes Oral and Facial Surgery, PA, 2380 Troop Drive, Suite 202, Sartell. Pictured: Roger Schleper, Dr. Rod VanSurksum, Cat Zadra, Amy Schleicher and Jayne Greeney Schill.

The Best of Coupons, cost effective affordable direct mail marketing, 2163 4th St. N, Sartell. Pictured: Dolora Musech, Brad Stroot, Julie Matvick and Roger Schleper.

Midsota Manufacturing, manufacturer of skid steer attachments and trailers, wholesale and retail, 404 County Road 50, Avon. Pictured: Inese Mehr, Joel Bauer and Luke Cesnik.

Horizon Roofing, commercial roofing, 2010 County Road 137, Waite Park. Pictured: Jason Bernick, Kurt Scepaniak and Kris Nelson.

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

Wordbender Communications, Inc., writing, communications and public relations firm, 238 19th Ave. N, St. Cloud. Pictured: Jayne Greeney Schill, Larry Schumacher and Roger Schleper.

St. Cloud Pride, raises awareness around issues of heterosexism and homophobia in Central Minnesota, PO Box 89, Sartell. Pictured: Jayne Greeney Schill, Brad Kaffar, Todd Philippi and Tauna Quimby.

An Independently Owned Member, McGladrey Alliance

Corporate eduCation & outreaCh offers the training you need for the job you do.

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

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i n i a

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CEO

Corporate Education & Outreach

Not a member yet? Call Wendy Franzwa, Membership Sales Specialist at (320) 656-3834 for more information.

Business Central Magazine •• September/October 2011

Business Banking. TOP HATS | New Members

Stearns Bank Customers: 44 Sign Co., from large-format graphics and vehicle wrap to event banners and trade show displays, 2805 Clearwater Road, St. Cloud. Pictured: Roger Schleper, Jackie Johnson, Kevin Johnson, Tony Olauson, and Owen Peterson.

Steve & Curt Letnes, Owners Letnes Brothers Restaurants Inc

Integrity Auto & Truck, specialized vehicle repair, 742 30th Ave. N, St. Cloud. Pictured: Jason Bernick, Jason Brehmer and Roger Schleper.

“

We have found Stearns Bank to be a great financial partner. They are friendly, professional, responsive to our needs, and work to make both sides satisfied with the deal. You can’t ask for more than that.

“,”

Mister Car Wash, 3104 W Division St., St. Cloud. Pictured: Inese Mehr and Eduardo Arruda.

Call us about a Small Business Loan or Simply Business FREE Checking.

Stonebreakers Design, Inc., web development, marketing strategies, 276 Tradewind Ave., Sartell. Pictured: Jayne Greeney Schill, Troy Gunderson, Nayt Pingry, Andrew Lasher and Roger Schleper

(320) 253-6607 www.stearnsbank.com Member FDIC. Equal Housing Lender.

TOP HATS | New Locations, New Ownership and Expansions

St. Cloud Fairfield Inn and Suites, 4120 2nd St. S, St. Cloud. Pictured: Dan Bates, Laura Willard and Roger Schleper.

Design Tree Engineering, a professional engineering firm, 3339 W Saint Germain St., Suite 250, St. Cloud. Pictured: Dan Folsom, Chris Schaefer and Kris Hellickson.

TOP HATS | New Businesses

We’ll make sure your meeting hits the jackpot. Let us make your next meeting, banquet, or special event truly memorable. With two spacious casino hotels, 24-hour gaming action and award-winning dining, we offer the perfect setting for your guests.

Roggeman Law Office, P.A., 606 25th Ave. S, Suite 110, St. Cloud. Pictured: Jayne Greeney Schill, Chad Roggeman and Dan Bates.

Designed for Purpose Coaching, faith based life purpose coaching for women, 38566 County Road 2, St. Joseph. Pictured: Roger Schleper, Pam Nelson and Tauna Quimby.

Grand Casino Mille Lacs Events & Convention Center

Grand Casino Hinckley Events & Convention Center

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

For more details, call 877-447-2631

TOP HATS | Milestones 25 year Chamber member Image Builders, promotional advertising products, incentives and premiums, 2907 Clearwater Road, St. Cloud. Pictured: Tauna Quimby, Mike Fanslau and Inese Mehr.

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N ET W O RK

PR O F I T

RESOURCES THAT HELP YOUR BUSINESS GROW

ENTREPRENeuRISM

Fair Game

f you exhibit at trade shows, odds are you approach each one with the same vision: a steady stream of people lined up at your booth anxious to purchase your goods. Where else is this merchant spirit more alive than summer fairs? Rice residents Wendy and Scott Martins have exhibited at the Benton County Fair for many years and find it a lucrative and enjoyable week spent selling burgers and brats. However, there are many caveats for a first time exhibitor.

Fairs worth attending are well-attended. It can be a hard business to break into if you are a first-timer. Exhibitors often attend the same fairs for many years when they experience success. The planning committee or organization chooses the best booths based on past experience with the vendor and unique products. If the planners have

Summer fairs offer unique opportunites to promote and sell your products. By Jill Copeland

no experience with you, or there are too many vendors selling your product, you may be taken out of the running. Flexible scheduling is the expectation. Much of the paperwork is done a season before the event happens. It takes time to prepare a license, insurance, pricing and a contract. Before the big week even arrives, there is plenty of booth preparation and travel. During the event, there are special set-up and take-down times. Falling behind in any piece of the planning will raise costs. The products need to be fresh and unique. Joe Scapanski, president of the Benton County Agricultural Society, sponsor of the Benton County Fair, said “everyone wants to be pleased and surprised with the quality.” It is all about eye appeal and first impressions.

Quick Fact It can be a hard business to break into if you are a first-timer. Exhibitors often attend the same fairs for many years when they experience success.

Business Central Magazine •• September/October 2011

“There are a few vendors who sell exotic, ethnic foods, which have been really popular,” according to Scapanski. Fairs have a signed contract with the vendor they call a rental or exhibitor agreement. Make sure you read the contract thoroughly and note any special instructions for parking or set-up. The Benton County Fair requires that a complete list of food products and prices be submitted with the contract. Fair officials can provide you with a list of items that need to be completed before you can exhibit at the event. Food Vendors must comply with local and state health regulations, including a food license and proof of insurance. Vendors generally must submit a Department of Revenue operator certificate with their contract and are responsible for paying their own sales tax on merchandise they sell during the fair. Submit your contract early! Many fairs allow past exhibitors to confirm the same location as the previous year. Pay special attention to any deadlines on the contract. Plan to spend plenty of money on fees. Sometimes fairs even garner a percentage of vendor profits. Exhibitors often face costs associated with their electrical needs, set-up needs, and decorations prior to the fair. Just think, if you sold something to an eighth of last year’s State Fair participants, you would have served 222,000 customers. That’s a lot of burgers and brats. BC Jill Copeland is the communications and workforce development coordinator at the St. Cloud Area Chamber of Commerce.

BY THE NUMBERS

SOCIAL PHOBIAS Entrepreneurs say the

FAST FACT

time commitment to social media is not overwhelming… yet. SmartBrief on Entrepreneurs asked their readers: On a scale of 1 to 5, where 1 is “never” and 5 is “constantly,” how often do you work on social media for your business?

Never

40.32%

Not very often

28.71%

Regularly

17.74%

Most of the time 5.48% Constantly

7.74%

Did you know? Worldwide, there are more entrepreneurs in the 25 to 34 age group than any other age range. Source: Global Entrepreneurship Monitor 2010 Report

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BUSINESS TOOLS

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G R OW

Tech STRATEGIES

Pay for Performance

An increasing number of businesses are leveraging Facebook’s advertising platform to reach the right people and see real-time results. By Dawn Zimmerman You can choose to set a daily budget (for however long you choose) or a certain dollar amount you will spend during a set period of time. Typically, setting a daily budget and running an ad for a compressed period of time will produce a higher ROI. This does require more monitoring and management.

Make a bid. Facebook allows you to pay

acebook is expected to lead the nation in display ad revenue this year, surpassing Yahoo for the first time, according to a recent report from eMarketer. Facebook’s ad revenue is projected to double to $2.19 billion over a year ago. Facebook’s ad platform, launched in 2007, allows businesses to gain powerful targeting tools, pay for performance and access a robust set of analytics to see the impact of a specific ad or group of ads. Businesses can create ads that link to a specific website page, promote an event posted on Facebook, or generate fans. Here’s a look at how it works and how your organization can use it to achieve results:

when they highlight what is offered to fans whether it’s tips, timely information or special promotions.

Choose a target demographic. Start by narrowing your audience with traditional demographics such as geography, age, marital status and gender. Then, take it a step farther by targeting individuals by college, employer, interest or their Facebook connections. The connections feature allows you to target only people who are, or are not, fans of your page, or users who are connected to a specific event, application, or page on Facebook.

Identify a focus of the ad. This needs

Set a budget. Gaining a presence and

to be well-defined and should focus on a value the viewer will receive. When creating ads to generate fans of your page, for an example, businesses see better results

getting an ad to perform on Facebook costs far less than traditional advertising. A onetime or monthly budget of $350 can go a long way in producing results.

About the writer 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.

for either presence or performance. The pay for presence option is the common payment strategy for online advertising and charges by impressions, or the number of times the ad appears on a personal Facebook page. With pay for performance, you pay each time a person clicks on the ad. In most cases, paying for performance is preferred and the most cost effective.

Business Central Magazine •• September/October 2011

Create the ad. Facebook ads are simple – by design. Users enter up to 135 characters and then upload an image. Facebook does the rest. Successful ads are conversational and direct, include one clear value-added message and encourage interaction. Images matter. They often determine if an ad gets read or not. Close-up shots that are intriguing and enhance the message, heighten performance. Facebook allows you to create multiple versions of ads. When you pay for performance, you can run a series of ads and see which image or text has the best results. Don’t set it and forget it. The ability to monitor and measure results is what makes Facebook advertising so valuable for businesses. Monitoring the results, particularly within the first 24 hours, is essential to getting the most results for the money. This allows you the opportunity to change the image, alter the text or create new ads that will drive traffic and achieve your desired results. BC

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POTENTIAL. mber of Commerce C a l l t o day for all your IT needs: • Web Site Design and Development • Content Management Systems (CMS) • Search Engine Optimization (SEO) • E-commerce

866.374.9066 www.jdb.com

Featured Project Falcon National Bank

Highlights: Integrated On-Line Banking Log In Custom Financial Calculators Rotating Banner Highlight Products

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Business Central Magazine •• September/October 2011

BUSINESS TOOLS

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G R OW

Management TOOLKIT

Stay Cool

GOING GREEN

If cold-calling leaves you with cold feet, these tips might help you warm up the process.

MONEY-SAVING TIP

Do you have rooms in your facility that are used sporadically during the day? A restroom or storage area, perhaps? Consider installing occupancy sensors to shave energy bills. Occupancy sensors cost anywhere from $30 to $200, depending on sophistication and installation costs. They can produce energy savings of up to 50 percent, depending on the type of room and frequency of lights getting turned off manually. Several utilities in Minnesota provide rebates for installing occupancy sensors in commercial facilities. Source: Minnesota Energy Smart

Tech NEWs

Transformational Technology

lan Zahringer has spent countless hours coldcalling prospective customers as Village Profile’s Central States Acquisitions Manager. Most recently, he worked with the St. Cloud Area Chamber on publishing the official St. Cloud Area Map. Zahringer got his start selling publications in 1990 with the publishing of builder brochures. Twenty-one years later, he shares what he has learned from his time spent cold-calling: Make that leap. The only way to find out how prospects will receive you is to contact and communicate with them. The best way is in person, but find out what their preference is, it may be email or social media tools. Take inventory of the changes in communication. Note the words ‘take inventory,’ and not ‘take offense.’ With the advent of electronic communication it is somehow acceptable for some businesspeople not to return calls.

“No one returns calls anymore, so don’t expect it,” Zahringer said. “The only way is to campaign through various forms of media.”

The science journalists at the MIT magazine Technology Review have released their annual list of "Ten Technologies That Are Going to Transform Our World." Here they are (with an effort by Business Central editors to explain what they mean).

Use and ask for referrals. Name dropping gets your foot in the door, while asking for referrals tells the customer how important their business is to you. Take the time to ask what they are struggling with this year, and share some of your stories. “Find a common ground with everyone so they begin to see you as a person, not just as a salesperson,” Zahringer advises.

10) Social Indexing

Sell yourself. You are your greatest asset. The old adage is dress for success, but it still rings true. First impressions count. The skills that will benefit you most include persistence, determination, professionalism, courtesy, enthusiasm, empathy, honesty, integrity and respect. Focus on how you express these qualities to your prospect — however you communicate with them. — Jill Copeland

Great idea for games, but there are more practical uses, like monitoring air traffic.

Be careful what you “like” on social media sites. Websites will soon know what you like even if you’ve never visited them before.

9) Smart Transformers Transformers that make connecting a solar panel or electric car to the grid as simple as connecting a digital camera or printer to a computer.

8) Gestural Interface

7) Cancer Genomics Learning how genetic mutations occur should result in new approaches to treating cancer. 6) Solid-state Batteries Goodbye $100,000 lithium-ion batteries for electric cars, hello $50,000 solid-state batteries. That’s good, right?

5) Homomorphic

Encryption It’s related to security and cloud computing. You’ll have to read the story.

4) Cloud Streaming For graphics-intensive applications. Can you say “video games?”

3) Crash-proof Code No more computer crashes? Why isn’t this #1?!

2) Separating

Chromosomes High school science reminder: chromosomes come in pairs. Separating them makes it easier to identify the variations between chromosomes.

1) Synthetic Cells While it sounds like Frankenstein, it’s really about producing biofuels, drugs and other industrial products. Source: Innovation News Daily: www.innovationnewsdaily.com

S e p t e m b e r / O c t o 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

BUSINESS TOOLS

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G R OW

ECONOMIC REVIEW

Cost of Living Looking for housing? Buy now!

he St. Cloud area experienced a below average cost of living during the first quarter of 2011, according to the ACCRA Cost of Living Index. The index of 312 urban areas is compiled and published quarterly by C2ER - The Council for Community and Economic Research. The “All Items” index for St. Cloud was 96.1, 3.9 percent below the national average (100.0) for the quarter. Notably, housing was well below the national average at 79.9

percent, and 5.8 percent below the next lowest regional community, Eau Claire, WI at 85.7 percent. This report also includes the 2010 annual average for the St. Cloud area which has an “All Items” index of 98.3. Again the notable number is housing at 80.5, or 9.5 percent below the national average. Offsetting this number is the cost of utilities in Central Minnesota, coming in at a whopping annual average of 117.4 or 17.4 percent above the national average of 100.

First Quarter 2011

G Se ood rv s/ ice s

T po ran rta stio n

101.6

80.5

117.4

99.9

101.8

105.8

St. Cloud, MN

96.1

99.4

79.9

106.5

105.4

102.5

102.3

Minneapolis, MN

112.1

110.2

121.5

98.7

108.6

101.8

111.1

St. Paul, MN

110.7

110.0

112.3

103.0

108.0

102.2

113.8

Rochester, MN

102.6

89.9

98.6

110.5

108.2

109.7

106.1

Dubuque, IA

97.0

100.4

89.3

102.1

101.6

97.4

99.4

Eau Claire, WI

90.1

97.7

85.7

80.5

100.6

105.0

89.0

Wausau, WI

96.4

98.9

88.7

107.5

99.0

103.5

97.3

H Ca ealt re h

Ut ili tie s

98.3

Al l It em s

Ho us ing

G Ite roc m ery s

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

2010 Annual Average St. Cloud, MN 1st Quarter 2011

ACCRA COST OF LIVING INDEX Among the 312 urban areas participating in the first quarter report, the after-tax cost for a professional/managerial standard of living ranged from more than twice the national average in New York (Manhattan), NY to almost 20 percent below the national average in Harlingen, TX. CITY

New York (Manhattan) NY New York (Brooklyn) NY

218.4

185.6

Honolulu HI

170.6

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

163.6

New York (Queens) NY

156.9

San Jose CA

150

Stamford CT

147.4

Truckee-Nevada County CA

145.2

Orange County CA

143.3

Washington DC

141

It’s a Record! Minnesota exports of manufactured, agricultural and mining products grew 13 percent in the first quarter from the same period a year ago. According to the Minnesota Department of Employment and Economic Development (DEED), the state exported a record $4.8 billion in the quarter. •• Manufactured products were the dominant export category, accounting for $4.4 billion of total sales in the quarter, up 12 percent from the same period a year ago.

Business Central Magazine •• September/October 2011

SBA Goes Mobile

mart phone users interested in starting or growing a small business can now find helpful resources at their fingertips. A new mobile application from the U.S. Small Business Administration makes the search for extensive resources more efficient. The mobile app helps users connect with SBA district office staff and SBA-affiliated counselors and mentors who can provide free, personalized small business assistance. The app helps answer questions such as: How do I start a business? Where can I go in my area to get free help with writing a business plan? And where do I begin finding funding for my business? The SBA mobile app features a built-in startup cost calculator to help estimate the costs associated with getting a business off the ground, plus an SBA partner locator to help users find SBA offices, Small Business Development Centers, Women’s Business Centers, and SCORE. Users also have mobile access to SBA video content and social media alerts to provide them with tips on the go, including live updates from the SBA’s YouTube channel and from SBA’s Twitter feeds. To learn more, visit The app is currently available for the www.BusinessCentral Apple iPhone®, with future versions planned Magazine.com for other smart phone platforms.

Now online

BY THE NUMBERS

By The Numbers Source: Data was collected in November 2010 by Andrew Ditlevson, St. Cloud State Career Service Center.

SMALL BUSINESS

Get Real

Employers have a message to recent graduates expecting to enter the job market: Get real. Every fall, the MN College Job Outlook Survey asks employers, “What do students most need to improve upon?” For six consecutive years the number one answer has been, “Students need to develop more realistic job expectations.” To address and clarify the disparity between graduating students and employers, the Career Services Center at St. Cloud State University conducted a follow-up survey with both groups. Following are a few of the key differences in responses: 100

Is the starting salary for a new college graduate over $40,000 per year?

50 44.3% YES

29.7% YES

100

Will a promotion occur within the first 18 months of employment?

by the Numbers

To Tablet, or not?

The tablet computer is taking the world by storm, and with it the market for developing applications.

20 million

$183 million

tablet app market sales in 2010

180 million

estimated tablet app market sales by 2015

Source: BusinessNewsDaily

the estimated number of tablet computers that will be sold by 2014

32.6% YES

100

the estimated number of tablet computers sold in 2010

$8 billion

63.9% YES

Do you expect to work 45 or more hours per week?

48.2% YES 33.4% YES

% EMPLOYERS RESPONDING YES % StudentS RESPONDING YES

S e p t e m b e r / O c t o 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

a gaagzaiznien e• •• •J US LY e p/tAeUmGbUeSrT / 2 O0c1t1o b e r 32 B uBsuisniensess sC eCnetnrtarla lMM

2011

1234

Merchant

MAN

John Schlecht, owner of Crafts Direct, likes to go his own way – as long as it’s what his customers want. • • • • • • • • • • • • • • • • By Gail Ivers // Photos by Joel Butkowski, BDI • • • • • • • • • • • • • • • •

here’s no question in John Schlecht’s mind that he could have made their store in East Grand Forks a success. “If I had gone up there and lived for a few years and run that store only – yes, it would have worked.” There’s no arrogance in that statement. Merely a recognition of his own skill set. The kind of recognition that led him to work for Ben Franklin’s corporate store talking people into – and out of – starting Ben Franklin franchise stores. The kind of recognition that led him to open his own store in St. Cloud when no one else would do it. The kind of recognition that took a small retail outlet from 15 employees, $1.3 million in sales and 10,000 square feet to a destination store with 125 employees, 40,000 square feet and 2010 sales of $10.5 million. Schlecht calls himself a merchant. He understands finance, but has no love for that part of the business. He likes owning and running the business and does not shy away from hard decisions, but that’s not why he looks forward to coming to work. For Schlecht, it’s all about the customers and the merchandise and putting the two together successfully.

S e p t e m b e r / O c t o 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

“If you don’t have the inventory and sell the inventory, you don’t have sales increases,” Schlecht said. Until recently, he and his wife, Diane, did almost all of the seasonal buying. They’re part of a buying co-op based in Portland, OR that accounts for about 20 percent of their volume and helps increase their product options while containing costs. “I don’t know how you’d make it as an independent if you didn’t have a co-op to work with,” he said. Co-op affiliation wasn’t always a concern for Schlecht. When he opened for business in 1990, he opened as a Ben Franklin franchise store. This was the culmination of a relationship with Ben Franklin that started in 1981 when

Business Profile --------------------------

Crafts Direct

620 Sundial Dr. Waite Park, MN 56387 Phone: (320) 654-0907 Fax: (320) 654-9735 Web: www.craftsdirect.com Business Description:

40,000 square feet of all imaginable craft supplies plus seasonal merchandise, seven decorated concept rooms, and a coffee shop (popularly known as the “Lost Husbands’ Department”) Ownership: John and Diane

Schlecht; by the end of 2011 Scott and Jason will have purchased almost half interest in the business. Number of employees:

125-130 2010 Revenue: $10.5 million

--------------------------

Fun Fact: Crafts Direct has over 100,000 skus; the new website will have 60,000 skus --------------------------

“ no people to push you to change,

The biggest challenge as an independent retailer is that there is no mentoring, to get you to think differently. I see that as my role going forward as the boys take over the business. –John Schlecht

”

---------------------------------------------------------------------------------

Schlecht worked for the Paynesville Ben Franklin store. In 1984 he transferred to Ben Franklin Corporate where he became a regional craft coordinator. Part of his job was to sell new stores. “I kept trying to get a store in St. Cloud,” he said, “but no one was interested.” One day he stopped in to see the owner of the Monticello Ben Franklin, Giles Lenzmeier. Schlecht had pestered Lenzmeier to open a store in St. Cloud, but he wasn’t interested. “‘Well, how about if we open it together and I’ll run it?’ I said to him one day. He said, ‘John, if you want to work that hard, OK.’” Ben Franklin offered many essential services to its franchise holders – accounting, advertising, payroll, and of course, inventory. Schlecht purchased about 85 percent of his merchandise through Ben Franklin. But Ben Franklin wasn’t a healthy operation. They started to struggle financially. They began opening corporate stores. “They lost sight of their independent owners,” Schlecht said. In 1997 Ben Franklin Corporate went bankrupt. Schlecht, along with some of the other franchisees, joined together to purchase the name. At the auction they bid $2.6 million for the rights to own and control the name Ben Franklin. It sold for $3.2 million, Schlecht said. That avenue closed to him, Schlecht renamed his business Crafts Direct, a name he had registered for use on the Internet in 1992.

Fire!

ven as Schlecht was dealing with the demise of Ben Franklin, he was pursuing a new concept

Business Central Magazine •• September/October 2011

in the craft industry. During the falls of 1995, 1996 and 1997, he rented an empty storefront in the Marketplace Shopping Center in Waite Park. Turning the space into a discount warehouse, he offered customers quality seasonal merchandise for 40 percent off the retail price. The warehouse concept was a hit with customers. In September 1998, Schlecht started leasing space on Sundial Drive, with plans to make it a year-round seasonal store. He bought the building in March 1999 along with six acres of land for a future retail store. Everything was going as planned until Schlecht returned from a hunting trip in October 1999. “I literally had just sat down with a cup of coffee to talk to Diane and the phone rings – there’s a fire in the seasonal store. Well, of course, our first question is – is everybody out? Are all the customers ok? Is anyone hurt?” Schlecht said. “It was pretty traumatic,” Schlecht recalls. “But everybody was fine, all the customers got out fine. Yeah, we lost a whole building and all the inventory, but it could have been so much worse.” So says the eternally optimistic entrepreneur. When the fire occurred, it was peak sales time for the seasonal warehouse. He lost $1.5 million in inventory. But he didn’t lose his focus. Within 30 days, he had reopened the seasonal store in the former Marketplace location. By 2000 he had rebuilt at the Sundial Drive location. “I could probably be a poster child for insurance,” Schlecht chuckles. “If you have good insurance, you can make it through. In the end, we came out of the fire OK.”

(Left) Brenda Johnson checks the pots in the Crafts Direct coffee shop. Plans call for a complete renovation of the coffee shop, according to Schlecht. (Above) JoEllen Amundson puts away quilt fabric after helping a customer. (Below) Crafts Direct’s unique store front is designed to look like a series of small stores adjacent to one another.

S e p t e m b e r / O c t o 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

Timeline ----------------------------------March 11, 1970 John Schlecht begins working for the F. W. Woolworth Company 1981 Schlecht leaves Woolworth’s and joins Ben Franklin, working at the Paynesville, MN store 1984 Schlecht takes a job as a regional craft manager working for Ben Franklin Corporate July 9, 1990 Schlecht, along with partner Giles Lenzmeier, opens a 10,000-square-foot Ben Franklin franchise store in Marketplace in Waite Park; the first year he has $1.3 million in sales and 15 employees 1994 Michael’s Crafts calls and offers to buy the store. Instead, Schlecht buys out his partner and expands from 10,000 to 15,000 square feet Fall 1995 Schlecht rents empty space in Marketplace and opens a seasonal merchandise warehouse 1996 Scott Schlecht joins the business 1997 Ben Franklin Corp. files for bankruptcy; Schlecht changes the name of his store from Ben Franklin to Crafts Direct 1998 Schlecht moves the seasonal warehouse from Marketplace to the WACOSA building on Sundial Drive in Waite Park; he purchases six acres of land for future development 1999 Schlecht opens a Crafts Direct store in East Grand Forks October 1999 A fire in the seasonal store results in the total loss of the building and $1.5 million in inventory November 1999 The seasonal warehouse

re-opens in the original Marketplace location 2000 Following repairs and remodeling, the seasonal store once again opens in the WACOSA building 2002 Construction begins on a new retail store in Sundial Park, adjacent to the season warehouse; Schlecht sells the East Grand Forks store to an employee 2003 Jason Schlecht joins the business full time 2009 Crafts Direct introduces a customer loyalty program called “Passport to Creativity;” 10,000 customers become passport holders and account for 30 percent of the store’s sales volume 2010 Crafts Direct has $10.5 million in sales, with 120 employees (150-175 seasonally) 2011 John Schlecht is selected as the 2011 St. Cloud Area Entrepreneurial Success Award recipient; Scott and Jason Schlecht buy into the company

Jayme Christensen creates a fall floral arrangement for display.

Business Central Magazine •• September/October 2011

East Grand Forks s Schlecht was pursuing a business plan that included his name change, expansion into the seasonal warehouse concept, and a permanent move of the retail store to Sundial Drive, he was being wooed by the mayor of East Grand Forks. “It took him almost a year to convince me to open that store,” Schlecht said. “He practically gave it to us…I can’t even remember all the things he offered – no rent for six months, I’ll buy your fixtures, you can have a community development loan – how do you say no to all of that?” But the store never took off the way Schlecht thought it should. “It was a 4-hour drive. We were building this new building … long-term our plan was to have everything in one place at the Sundial Drive location. It just didn’t work to have this big store in Waite Park and make it work and have that one, too. Financially, time, focus, energy – it just wasn’t a good fit.”

In 2002 they sold the store in East Grand Forks to an employee. Despite the challenges, Schlecht proudly points out that in the four years they owned the store they never lost money. Now Schlecht could focus his energy on his Waite Park expansion. Moving a retail store to an industrial park was counter-intuitive to many of Schlecht’s acquaintances. “We were well established as a business before we moved,” he said. “It was my belief that you are your own destination. When we opened the seasonal warehouse on Sundial Drive, it exceeded our monthly projections. That gave me some confidence that moving the retail store here would work. I was also convinced that the increase in business we were getting from a high visibility location wouldn’t make up for the higher costs in rent, land, and real estate taxes.” Schlecht’s instincts were on target. The first year in their new location they

“

Don’t look over your shoulder every time you make a decision.

Just make the decision. If it’s

wrong, you’ll make another decision and fix it.

”

–John Schlecht

----------------------------------

had $5.5 million in sales, a 35 percent increase over the old location. “The way we did the store front has probably impressed more people than anything else we’ve done,” Schlecht said. “It was very expensive, a hard decision, but well worth it now.” The unique store front, designed to look like a series of small stores adjacent to one

John Schlecht receives 2011 regional business award John Schlecht, owner of Crafts Direct in Waite Park,

is the 2011 St. Cloud Area Entrepreneurial Success

on their current site on Sundial

Award Recipient. Presented annually by the St. Cloud

Drive in Waite Park. The store was

Area Chamber of Commerce the award honors a

an immediate success, resulting in

business that starts out small and becomes large under

a 35-40 percent increase in sales

the same leadership.

the first year.

Schlecht started his retail career with the F. W. Woolworth Company, moving to the Ben Franklin craft

In 2002 he started construction

Their newest venture has

also been well received by

store in Paynesville, then to the Ben Franklin Corporate office. But it was

customers. In March 2009 he

always his dream to own his own business.

introduced a rewards program

called Passport to Creativity.

In July 1990, Schlecht and partner Giles Lenzmeier, owner of the

Monticello Ben Franklin, opened a Ben Franklin store in Waite Park. In

Today they have 10,000

1994 the craft store, Michael’s, offered to buy them out. Schlecht said

passport customers

no. Instead, he bought out Lenzmeier and expanded the store from

who account for 30 percent

10,000 to 15,000 square feet.

of total sales.

Schlecht has experienced his share of challenges. In 1997, Ben

Franklin went bankrupt. Schlecht was out of a name for his business and

Schlecht attributes much of the company’s success to the fact that

they are family owned.

out of an inventory source for 85 percent of his merchandise. Schlecht

“We have the option to try new promotions,” he said. “We spend

renamed his business Crafts Direct and joined a buying group to expand

more on payroll than corporate stores. We can do our own displays and

his inventory options.

change them whenever we want. We are always looking for and trying

new things.”

In the fall of 1999, Schlecht received a call that his discount seasonal

warehouse, located on Sundial Drive in Waite Park, was on fire. He had

only owned the warehouse for six months.

Luncheon in May.

John Schlecht was honored at the Chamber’s Business Awards

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another, is the manifestation of Schlecht’s secret to success: He likes to go his own way. He recalls a Woolworth regional manager taking his arm and walking him out to the street. Pointing at the store front he said, “Does it say ‘John Schlecht’ on this building? No, it doesn’t. You can’t just do what you want John.” Schlecht laughs at the memory. “I said, ‘But what they want me to do doesn’t make sense for the customer.’ It didn’t matter. It’s what corporate wanted. I still didn’t necessarily do it.” Today Schlecht’s name is on the business, and you’ll never mistake it for a corporate store. “I didn’t like the corporate mentality when I worked in it and I sure don’t want it now,” he says with feeling. “We’re able to do things differently than the competition because they’re chains and we’re not. As an independent store, we can change faster – if something isn’t working, we can stop it. If we have an idea, we can implement it. If we want to try a particular display, we can try it. We don’t have canned programs we have to follow.”

Personal Profile --------------------------------------------------

“

John Schlecht Owner, Crafts Direct,

Working with CMCU has been an

”

outstanding experience

–Cory Schreifels, Cold Spring Brewing Co.

Cold Spring Brewing Co. premiered the Northern Beer product line this past November. With the success of the new brews, the need to further streamline the workflow became apparent. Central Minnesota Credit Union helped out by financing a new state-of-the-art packaging machine to make the process more efficient.

along with his wife Diane Age: 60 Hometown:

Wimbledon, North Dakota Education: 1969 graduate

of Wimbledon High School. Spent three months in the Navy. “I was love sick, so they sent me home.” Work Experience: Worked at Jack’s Red Owl in Wimbledon,

which was owned by his uncle; WF Woolworth company for 11 years; Ben Franklin for nine years; opened his own Ben Franklin franchise in 1990. Family: Wife Diane; Scott and his wife Lori who have four children;

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Jennifer, a counselor in the Sauk Rapids-Rice School District; Jason and his wife Kristine, who have two children. Scott, Jason and Kristine work at Crafts Direct. Hobbies: Hunting and fishing, spending time with his grandchildren Advice to a new entrepreneur: Plan, plan, plan. You have to

be so committed. Give it a full two years of everything you have, two

888.330.8482 | myCMCU.org facebook.com/myCMCU Federally Insured by NCUA

Equal Opportunity Employer

Business Central Magazine •• September/October 2011

years of your life. And you really need a team of advisors before you go into business. I had that through Ben Franklin. If you don’t have a Ben Franklin, find those people who can advise and support you. ---------------------------------------------------

It’s About the Customer

f there’s one message that Schlecht drills into his employees, it’s that the customer reigns. When Schlecht was getting ready to open the store, he met with friends one evening. He talked about his plans, including the thought that he would close the store some evenings and on Sundays. One of his friends said, “John, why are you going into business? Who are you trying to serve?” Schlecht gave the obvious answer – customers. His friend responded, “Then why would you be closed when the customer is available?” “The light bulb really, truly went on that night,” Schlecht said. “The store wasn’t just mine to open and close when I wanted. I was in business to take care of the customer. It’s all about the customer.” That’s not just Schlecht’s philosophy, it’s his passion. He believes in it

“

The difference between a good day and a bad day is an average of $2 per –John Schlecht customer. I need those $2

”

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so completely that he has made a commitment to keeping lines of craft materials, even after the craft has dropped out of favor. “Customers come to buy the goofiest things sometimes,” he said. “They’re looking for one wooden bead to match a project they started 20 years ago. Or they need a particular Ukrainian egg die or they do chair caning. We might shrink a line back, but when you throw out a line, you throw out all of those customers and all of the friends of those customers who come to shop here.” The difference between a good day and bad one, Schlecht said, is $2 per customer.

“I need those $2. So we’ll keep carrying these items. We’ll be the craft store until I’m gone.” That won’t be anytime soon, according to Schlecht. His sons are buying into the business, but Schlecht and his wife will still own controlling interest – at least for a few more years. “I can see myself coming in regularly into my 80s,” Schlecht said. “But the boys will own and run the business; I’ll just come in to talk to customers.” 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

River City

elinda Sanders has thought a lot about what could make St. Cloud a more attractive place for skilled young workers and business leaders to call home. A transplant to St. Cloud herself, the Quinlivan & Hughes attorney has focused her attention on something that natives of St. Cloud often overlook— the Mississippi River. “Members want to make this a community where our kids will bring the grandkids back to the house they grew up in, or preferably, never leave the community to begin with,” the former chairwoman of the Emerging Leaders Forum (ELF) said. “They told us they saw enhancements to the river and things to do there as an important goal to make that happen.” Sanders and ELF members aren’t the only ones focusing on the river these days. An organic movement of river boosters has been working for several years to shape

a vision of future development along the river that reestablishes the Mississippi as a presence in the everyday life of St. Cloudarea residents. There are several motivations behind their efforts. One is to use the river to boost the St. Cloud-area’s economy by making it a more attractive place for business recruitment and retention, more desirable for tourism, and a more vibrant option for residents to spend their discretionary time and income. ELF members joined a multiyear planning effort to guide future development. The plan rolled out this spring with significant support, a list of potential development opportunities, and additional amenities that could aid those economic development goals, if implemented properly. An ongoing $34 million, 85,000 square-foot expansion of the newly renamed River’s Edge Convention Center in downtown St. Cloud is another sign of increased attention to the Mississippi River,

Business Central Magazine •• September/October 2011

said Julie Lunning, executive director of the St. Cloud Area Chamber’s Convention and Visitors Bureau. “With the expansion of the Convention Center and the expansion of the National Hockey Center at St. Cloud State University, we’ll have two unique spaces along the river to sell any type of event,” she said.

Photos courtesy of St. Cloud State University

The St. Cloud area’s most overlooked natural resource – the Mississippi River – could be a key to boosting the area’s economy. By Lawrence Schumacher

“That means more people coming and more opportunities for development to go along with them.”

River Economics The St. Cloud-area’s historic relationship with the Mississippi River has always had an economic flavor to it, said Glen Tautges, development officer for the Central Minnesota Community Foundation. Sawmills and meat packing plants used to dot the riverside. Today’s economic opportunity lies in making communities more attractive to the “creative class” of entrepreneurs and technology workers, he said. “The smokestack days are gone,” according to Tautges. “Today, people can live anywhere they want for technology jobs.” Recruiting those workers and businesses will have a multiplier effect on the local economy that will aid existing businesses as well as provide opportunities for new ones, he said.

The Community Foundation joined the River Partnership of Community Foundations almost seven years ago to focus on how to reconnect Mississippi River communities to their most unique asset, Tautges said. Locally, several groups were already working on their own to build a vision for how St. Cloud could do just that. Minnesota Waters, the Initiative Foundation, the Community Foundation and ELF joined together with other individuals, private and government organizations to work on the St. Cloud Urban Area Mississippi River plan. Unveiled this spring, the plan talks about where and how to develop along the river in the future, how to increase access to it, how to preserve its natural heritage, and more, said Matt Glaesman, community development director for the City of St. Cloud. “It was a grassroots movement,” he said. “Some of the ideas they came up

with were things we already have in our plans, some were things we’d considered but put aside, and some were completely fresh.” Development of the plan included significant input from business leaders who believe reconnecting St. Cloud, Sartell and Sauk Rapids to the river will have a positive effect on the local economy, Glaesman said

River Cities Glaesman, and members of the plan’s advisory committee, traveled to other Mississippi River towns—notably Dubuque, Iowa—to come up with ideas and learn what worked and why. One member who’d already spent significant time in Dubuque was David Leapaldt, GLT Architects. “Communities that branded themselves as ‘River Cities’ saw people coming there to check them out,” he said. “Dubuque attracted IBM. Employers are looking for

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FEATURE

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PROFIT

progressive communities with a high quality of life and access to amenities.” Increasing access to the river, creating river-oriented development zones and establishing more things for people to do along the river could help existing businesses as well as attract new ones, Leapaldt said. The group’s next step is to meet and identify “low-hanging fruit” that offer the best prospects for improvements in the short-term.

Convention Center Expansion

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Business Central Magazine •• September/October 2011

One of those opportunities will be to capitalize on the expanded Convention Center by adding amenities to it that make it more “river-friendly” such as outdoor terraces, connections to the Beaver Island Trail and more, Lunning said. Unfortunately, many of those amenities were part of an optional companion to the current expansion and dependent on a $15-million state bonding request that was vetoed last year and removed from the bonding bill this year. The current convention center expansion will allow the city to book multiple trade shows, conferences and events at the same time, bringing more people to the St. Cloud area and providing a boost to the local hospitality industry, Lunning said. “Larger shows that currently go to the Twin Cities—like the state party conventions—will be able to come here now because

we’ve got the capacity,” she said. “We’ll be able to hold bigger trade shows and people coming in can stay longer for them.” That will help St. Cloud’s hospitality industry—hotels, restaurants and the like—as well as local businesses that make a living from supplying them, Lunning said. But while the Convention Center expansion is a key component of the process of reconnecting with the river, it won’t transform St. Cloud’s riverfront by itself, Leapaldt said. “We need to start looking at things like higher-end residential opportunities in the downtown area,” he said. “The plan identifies sites along the river for developments of an appropriate nature so that if and when they become available, we can capitalize on them.” Development opportunities discussed in formulating the river plan included building a new, river-oriented expansion to the Kelly Inn, adding a riverboat casino and ferry service across the river, developing Cathedral High School’s athletic field, executing a planned expansion of the Beaver Island Trail to the St. Cloud Hospital neighborhood, and more.

Branding the River A report commissioned by the city of St. Cloud about retaining St. Cloud State University students after graduation found that the

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St. Cloud’s Mississippi River offers more than a scenic view There are many things to do in and around the Mississippi River. Here are a few to consider: Small mouth bass fishing: Some of Central Minnesota’s best fishing is on the Mississippi River. Between the Sartell dam and the St. Cloud dam anglers can enjoy world-class bass fishing. Birding: The Mississippi River is a super-highway for bird migrations. Herons, eagles, gulls, and many more species fly along the river and are easily visible, especially from the Beaver Islands south of St. Cloud. The Beaver Island Trail: this paved trail runs along the Mississippi River in St. Cloud.

Mississippi River is one of the city’s greatest assets. Providing more amenities that engage residents would be one of the best ways to create a positive “brand” of the city in graduates’ minds, Glaesman said. Convincing the skilled college graduates who attend St. Cloud State to stay in the community has always been a top-level challenge. The benefit is that increasing the average education level of area workers opens new doors for business opportunities and generates higher-wage jobs. All these efforts will take time. Twenty years ago, Dubuque’s riverfront was an eyesore, full of abandoned industrial sites, Tautges said. Now, it has been transformed into a community asset that helps attract business and

Outdoor Endeavors and Clear Waters Outfitting Company: Canoe and kayak rentals and full service day trips with shuttle service are just the beginning of the outdoor adventure services these outfitters offer. Sand Prairie Wildlife Management Area: Located off U.S. Highway 10 across from the Minnesota Correctional FacilitySt. Cloud, the area is a little off the Mississippi River but offers extensive hiking and wildlife-watching opportunities.

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The Trusted Leader in Commercial Real Estate Since 1971 skilled workers. By contrast, St. Cloud’s riverfront is in much better shape to start with, he said. But it still might take that long to successfully rebrand the area as a river city. “We have most of the pieces, they’re just not connected as well as they might be,” Tautges said. “I’m enthusiastic about what we can do with this plan in place, but even if no big changes happen, at least it will allow us to not make the wrong decisions, and to capitalize on opportunities when they come along.” BC

217338.62510

Courtesy of Julie Lunning, St. Cloud Area Chamber’s Convention and Visitors Bureau

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

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G R OW T H G U I D E

The taconite mines have already called most of their workers back, so some of the projected growth in this region has already occurred. The center of the housing boom in Minnesota was in the Twin Cities suburbs and along Interstate 94 up to St. Cloud. When the boom turned to bust, construction workforces in Central Minnesota and in the Twin Cities metro region plunged the most. Homebuilding construction jobs will gradually increase in these regions over the next decade but will not reach the boom-year levels.

Central Minnesota

entral Minnesota, which experienced the strongest job growth during the last decade (adding jobs since 1983 including during the jobless recovery following the 2001 recession), suffered the steepest job loss in 2009. From 1991 to 2009, job loss was almost as severe in the Twin Cities and northeast Minnesota. All three of these regions lost a larger share of their employment base compared to the statewide decline. The aftereffects of the Great Recession will differ across regions, lingering longer or being more permanent, depending on the industrial mix of each region. For example, a good portion of job cutbacks during the Great Recession in northeast Minnesota occurred in the taconite mining payrolls.

Central Minnesota, with five counties adjacent to the Twin Cities metro area, has been setting the pace for employment expansion in percentage terms for more than three decades and will continue to be the fastest growing region despite being hit the worst by the economic downturn. The residential development spillover, from the Twin Cities along the I-94 corridor between St. Cloud and Interstate 35 north of the Twin Cities, will eventually resume but not at the torrid pace set before the Great Recession. Retail and service-related employment will follow population growth. Employment in central Minnesota is expected to expand 12.9 percent or about 36,000 jobs between 2009 and 2019. During the 1999-2009 period, the region experienced 6.9 percent growth. BC

By the NUMBERs

4363 the number of people

employed in construction in Stearns and Benton Counties in 2010

$235 million the total annual payroll

for construction workers in Stearns and Benton Counties in 2010

15.2% the amount construction employment is predicted to increase by 2019 in Central Minnesota

$1115 the average weekly wage

of construction workers in Stearns County in 2010

$16 billion the total annual payroll for construction workers in Minnesota in 2010

Lease It Are you looking for new space? The first step is to decide if you want to buy, lease or build.

hoosing to lease, while not the right decision in all circumstances, provides you with the most flexibility. Commercial leases are often negotiated, and there is no one standard for a commercial lease. It’s always smart to seek advice from a lawyer to make sure you get the best deal. According to the U.S. Small Business Administration, every commercial lease should be in writing and include the some of the following details (for a complete list visit SBA.gov):

•• Rent, including any increases (called escalations). •• Whether or not the tenant is responsible for paying utilities, such as phone, electricity and water.

•• Whether or not the tenant is responsible for paying any of the landlord’s maintenance expenses, property taxes or insurance costs, and if so, how they’ll be calculated.

Business Central Magazine •• September/October 2011

•• A description of the space you’re renting, square footage, available parking, other amenities and the condition the facility is in. •• A detailed listing of any

improvements the landlord will make to the space before you move in. •• Assurances that the space is zoned appropriately for your type of business.

Source: Dave Senf, Minnesota Department of Employment and Economic Development (DEED)

Projecting Growth

Central Minnesota Growth Guide

CENTRAL MINN GROWTH GUIDE

St. Cloud Hospital Expansion Project

Central Minnesota continues to thrive. Here is a glimpse of some area businesses that are growing — even in the toughest economic times.

Boser Construction, Inc.

Location 1406 Sixth Avenue North, St. Cloud

Country Manor Rapid Recovery and Aquatic Center

SIZE OF LOCATION 360,000 square feet

Location Sartell, MN

WEBSITE www.centracare.com

GENERAL CONTRACTOR Boser Construction, Inc.

Description St. Cloud Hospital is investing $225 million. CentraCare Health Foundation has set a goal of raising an additional $21.7 million to support pieces of the project that wouldn’t be possible withouth the generosity of the community.

ARCHITECT GLTArchitects

The St. Cloud Hospital expansion project will: • Enhance surgical suites • Increase the number of private patient rooms • Expand and relocate the ICU

• Renovate the Women & Children’s Center and transform the NICU

PROJECT COMPLETION March 2011 COST $8 Million WEBSITE www.boserconstruction.com Description 40,000 sq ft, 2-story 60 unit, state of the art Rehabilitation facilty addition.

COUNTRY MANOR RAPID RECOVERY

CENTRACARE WOUND CLINIC

CDI IMAGING SUITES

HEALTHCARE CONSTRUCTION & REMODELING SPECIALISTS 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.

•• Ability to sublease or assign the lease to someone else, and if so, under what conditions. •• How either tenant or the landlord can terminate the lease and the consequences.

320.393.3185 | www.boserconstruction.com

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Central Minnesota Growth Guide

PAM’s Auto, Inc.

Co-owners Pat Huesers (left) and Mike Meyer sit by the entrance foyer and koi fishpond of PAM’s Auto Location 7505 Ridgewood Road, St. Cloud OWNERS Pat Huesers & Mike Meyer Size OF expansion 36 acres WEBSITE www.pamsauto.com Description PAM’s Auto has purchased an additional 36 acres to expand their business. Part of the land is the former site of Stearns Electric. With the expansion, PAM’s Auto will encompass 56 acres of land.

Strack Companies

River’s Edge Convention Center Expansion — City of St. Cloud Location Downtown St. Cloud GENERAL CONTRACTOR Strack Companies ARCHITECT Hagemeister & Mack Architects PROJECT COMPLETION December 2011 WEBSITE www.strackcompanies.com Description 80,000 square foot expansion to the existing St. Cloud Civic Center to include new entrance, pre-function area and exhibit halls.

Business Central Magazine •• September/October 2011

Central Minnesota Growth Guide

A Tradition of Building Success for More Than 50 Years

Rice Building Systems, Inc. Tobies Restaurant Remodel

Location Tobies Restaurant, Hinckley, MN GENERAL CONTRACTOR Rice Building Systems, Inc. ARCHITECT Rice Building Systems, Inc. PROJECT COMPLETION May 6, 2011 WEBSITE www.ricebuildingsystems.com Description The 3,600 sf extensive remodel project included new flooring, booths, displays cases and restrooms.

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. You can depend on Rice Building Systems to handle everything from concept and design through to the completion of your project. BCBuilding Sept/Oct Ad_Layout 1 7/28/11 3:41 PM Page 1 Relationships Since 1953

BUILDING SYSTEMS, INC.

1019 Industrial Drive South Sauk Rapids, MN 56379 320.252.0404

www.ricebuildingsystems.com

Miller Architects & Builders Stearns Electric Association Under Construction Location Stearns Electric Association, St. Joseph, MN GENERAL CONTRACTOR Miller Architects & Builders ARCHITECT Miller Architects & Builders PROJECT COMPLETION September 2011 WEBSITE www.millerab.com

Single source. Superior service. Remarkable results.

Description 35,000 sf. branch office/warehouse; precast with steel framed clearstory for daylight harvesting. The new facility will improve customer service and store materials.

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Central Minn Growth Guide

Country Manor Rehab Care Addition GLTArchitects

Location Sartell, Minnesota NAME OF ARCHITECT Grooters Leapaldt Tideman Architects NAME OF GENERAL CONTRACTOR Boser Construction WEBSITE COMPLETION DATE www.gltarchitects.com April, 2011 Description New space for 60 private rooms for short-term rehab care. Therapy pool, treatment room, expanded chapel, and dining rooms offering internationally-themed cuisine.

COMING NOVEMBER 2011

Financial & Professional Services Featuring: Banking • Insurance • Mortgage • Brokerage • Black Ink • Attorneys • Consultants • Training • Trust Advisors

We Reach Top Decision Makers. Cultivating Enduring Relationships

Black Ink

Managing derek Tamm, Mutual northwestern Financial network

director

his old, he had was 14 years student, ince Derek Tamm a high school finance. As advisors by eyes set on his father’s financial portfohe would battle his father’s retirementTamm’s y reallocating hypotheticall ng the experts. of out-performi but his day-to-day lio in the hopes has not changed, love for finance look. the took on a new Director of focus recently new Managing St. Cloud, Tamm is the Network in Mutual Financial Resource Northwestern of The Columns with district office He has been which is a d in Minneapolis. career as a Group, headquartere he began his when 2002 since the company St. John’s University. while attending in September college intern Managing Director helping indie Prior to becoming representativ In was a financial financial security. 2007, Tamm clients achieve pracvidual and business continue to build his personal he will developing new his new role, training, and recruiting, also interns. tice while es and college It is still financial representativ not changed. I practice has service that “My personal the level of position goal to maintain my primary said. “This new my clients,” Tamm this organizapromised to to help grow opportunity es succeed representativ allows me the is new financial professionally tion. I love seeing develop Helping others Director.” in their careers. of being a Managing Northwestern Mutual a true reward a year for the District opened It has been quite The St. Cloud ng the branch Financial Network. complementi not had in Monticello, another office rn Mutual has and “Northweste office in Brainerd. corridor between Minneapolis finann in the and existing representatio explained. “New for building St. Cloud,” Tamm new market es have a great cial representativ to s, Tamm likes their practices.” new development values of In light of the Group’s core Columns Resource and personal responpoint out The m, integrity, enduring growth, professionalis to continue to cultivate “and to goal is Tamm says, sibility. “Our with our clients,” of integrity relationships the highest level for the company’s with name insurance, marketing care Network, the develop professionals Mutual’s insurance, long-term Mutual Financial provides life Northwestern our promises.” Northwestern a to carry out benefit services. arm, the company Through the services, llC, sales distribution mutual funds, and employee Mutual Mutual investment nationwide annuities, Northwestern DIANe HAGeMAN ATIONS — siPC; the Northwestern comprised of limited and disability insurance, are and FiNRA Mutual COMMUNIC and affiliates member of Northwestern the Russell subsidiaries HAGeMAN company of Company; and company, broker-dealer,

can wholly-owned wholly-owned Care insurance and affiliates Company, a long Term Northwestern wealth Management Mutual, its subsidiaries savings bank; on Northwestern purpose federal information Group. Further . investment www.nmfn.com be found at:

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Business Central Magazine is content-rich and reflective of business opportunities, challenges and concerns facing companies in small to mid-size communities across Central Minnesota. It is no wonder why we are Central Minnesota’s Best Business-to-Business media choice.

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