November/December 2019 Issue

Page 1

Bob Heim, Heim's Mill

Joan Schatz


A LEGACY OF SERVICE AND TRUST. Brad Bichler started working at his grandmother’s café when he was 13 years old. He didn’t know then that 30 years later, he would carry on his grandmother’s legacy as an owner of Brigitte’s Café.

“Deerwood is more than capable of managing my business banking needs and providing what I need as a small business owner,” he said. “They look at more than just the numbers—they care about my story. They make the process simple, their team is incredibly personable, and they really care about my business.”

With a team of almost 25 employees, Brigitte’s Café has become a staple in the St. Cloud community. The café serves homemade food, often cooked by Bichler himself, and they pride themselves on the relationships they have with their regulars.

How Deerwood Bank is different, in Brad’s words: 1. You’re treated like family. “When I walk into Deerwood Bank, I’m greeted by name and they treat me like family. I never got that at other banks.”

Values like Grandma Brigitte.

When Bichler’s mother and uncles owned Brigitte’s, he managed the financial side of the business, working regularly with the café’s bank—Deerwood Bank. He enjoyed the banking relationship so much that when he purchased the café last year, he saw no need to change banks. “My grandmother was such a charming lady,” said Bichler. “She treated her customers and employees like family and she was so respectful of everyone. Deerwood Bank aligns with those same values. I always feel like family when I go into the bank. They respect me and really understand my business.”

Next-generation banking.

Bichler has worked closely with Jacki Templin, his business banker at Deerwood Bank, to secure a new business loan as he and his brother

have transitioned into ownership of the family business. “The whole process has been quite seamless,” said Bichler. “We’ve experienced big banks before and felt like we were treated like a number. We were nickel-and-dimed with fees that didn’t make sense and we could never reach the right person at the right time.”

2. They don’t nickel-and-dime you. “Deerwood understands my needs and my pains as a small business. They don’t nickel-and-dime us or charge us random business fees.” 3. They make it a seamless process. “Everything I’ve done with Deerwood Bank has been seamless. Jacki and her team really take care of me and made buying the business a seamless transition from the banking side.”

At Deerwood, Bichler knows that he has a personal line to his business banker or to anyone else he needs to contact for his banking needs. “They make everything super simple. Any questions I have are addressed the very same day. The relationship couldn’t be smoother.”

Small Business Minded.

Bichler feels that Deerwood Bank really understands small business.

320.252.4200 2351 Connecticut Ave, Ste. 100, Sartell, MN 56377 131 6th Ave S, Ste 100, Waite Park, MN 56387

deerwoodbank.com


CRAFTSMANSHIP IS OUR MIDDLE NAME

WE ARE PROUD TO BE A WORLD LEADER IN THE MANUFACTURING AND SERVICING OF SHOP AND FIELD-FABRICATED STORAGE AND PROCESSING TANKS, VESSELS, AGITATORS AND INTEGRATED SYSTEMS. DCI, Inc, is a world leader in the manufacturing and servicing of shop and field-fabricated storage and processing tanks, vessels, agitators and integrated systems. DCI’s planning, design, manufacturing, and field fabrication

teams are made up of individual craftsmen with knowledge and skills involving the latest technologies in the industry. Each member of the DCI team fills a specialized role, and has the expertise that only years of experience can provide.

BECOME A PROUD MEMBER OF THE DCI TEAM TODAY!

dciinc.com 320.252.8200

YS ALWA NG I LOOK IG FOR T RS E WELD


NOVEMBER/ DECEMBER 2019

6 13

CONTENTS

GROW | NETWORK | PROFIT

President’s Letter

Top Hats

8 20

Editor’s Note

Network Central

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C E L E B R AT I N G 1 9 Y E A R S I N B U S I N E S S

GROW

32 Cover Story TIMELESS

A mill on the Sauk River has been part of Central Minnesota’s landscape for over 100 years.

PROFIT

38 Feature

CULTIVATING TRUST

Workplace success depends on a foundation of mutual trust.

42 Special Focus SURVIVING START-UP If you’re a relatively new entrepreneur, the best investment you can make might be a mentor.

32

48 Special Section FINANCIAL & PROFESSIONAL SERVICES

10 UPFRONT Valuable information designed to guide and educate

Only Online // www.BusinessCentralMagazine.com • Invoicing Solutions

• Create a blogging strategy • Emails that get noticed

• Facebook ads that convert

24 BUSINESS TOOLS Marketplace intelligence and useful tips on how to continue to grow your business

50 BUSINESS SPOTLIGHT Frank Ringsmuth, The Camera Shop

© Copyright 2019 Business Central, LLC

Business Central is published six times a year

by the St. Cloud Area Chamber of Commerce, 1411 West St. Germain Street, Suite 101, P.O. Box 487, St. Cloud, MN 56302-0487

Phone (320) 251-2940 • Fax (320) 251-0081 Subscription rate: $18 for 1 year.


We are proud to be West Bank Strong You’ve known us for years as community leaders, business owners and colleagues. Now, we’re proud to support West Bank’s strong and responsive approach to business banking in the St. Cloud area. For more than 125 years, West Bank has been building strong relationships in the communities it serves. Their seasoned and professional team offers a wide range of banking and business acumen. Every bank has loans, deposits and interest rates. We believe West Bank’s competitive advantage is the people they bring to the table.

Meet the St. Cloud Community Board:

Dave Berdan J-Berd Companies

Byron Bjorklund Short Stop Custom Catering

Steve Feneis Granite City Real Estate

Jason Ferche Ferche Companies

Marc Sanderson Wilkie Sanderson

Dr. Kevin Smith Regional Diagnostic Radiology

Eric Stack Millerbend Manufacturing

Tim Torborg Torborg Builders

Heidi Weikert S.T. Cotter Turbine Services

Meet the West Bank St. Cloud team:

St. Cloud team from left to right: Aaron Meester, Vice President; Matt Laubach, Market President; Lisa Koster, Second Vice President; Todd Mather, Chief Credit Officer; and Curt Gainsforth, Vice President

622 Roosevelt Road, Suite 150 St. Cloud, MN 56301 320-342-2400


President’s Letter

Figuring It Out

D

Main Phone: 320-251-2940 Automated Reservation Line: 320-656-3826

isruption has become the norm.

Over the past 18 months I’ve let my hair grow into its “natural

platinum blonde” state. The reactions have ranged from highly

complimentary to helpful suggestions that I can always “change it back.”

I’m here to tell you, no, I can’t change back. Letting my hair grow in naturally created a permanent disruption and change. I wouldn’t feel the same about coloring my hair as I did before.

A great deal of disruption is happening in our business environment right now.

Program Hotline: 320-656-3825 information@StCloudAreaChamber.com 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

Similarities to our personal experience with disruptions abound. In fact,

Communications & Workforce Development Coordinator: Kelti Lorence, ext. 130

My friend, Larry Logeman owner of Executive Express has experienced

Special Events Coordinator: Laura Wagner, ext. 131

most business disruptions include personal disruptions.

multiple disruptions in his life. He’s worked successfully in multiple industries. When he purchased Executive Express, I thought this consummate entrepreneur had landed in his un-disruptable state.

Yet, a year ago Larry shared that he would be undergoing cancer treatment.

The cancer had a good cure rate, but required invasive and disruptive

treatment. He spent months on light work duty contemplating what his future

should be. He discovered he wanted more time with his family, and a schedule that didn’t demand the 7-day, 60-hour work week he so often experienced.

Larry recently sold his Minnesota airport service to Groome Transportation.

A smaller Executive Express continues to exist under his ownership with

Membership Sales Specialist: Antoinette Valenzuela, ext. 134 Administrative Assistant: Amber Sunder, ext. 124 Administrative Assistant: Vicki Lenneman, ext. 122 Administrative Assistant: Shelly Imdieke, ext. 100 2018-19 BOARD MEMBERS Marilyn Birkland, LocaliQ Ron Brandenburg, Quinlivan & Hughes, Board Vice Chair John Bryant, Geo-Comm

black car, private charter and coach bus services, and the Iowa airport shuttle

Christy Gilleland, Gilleland Chevrolet Cadillac

to develop that potential. He’ll also have more time to spend with his family.

Jason Hallonquist, AIS Planning, Board Chair

Many other community leaders are managing through disruption right

Patrick Hollermann, InteleCONNECT

Superintendents Willie Jett, Jeff Schwiebert and Aaron Sinclair are being

Willie Jett, St. Cloud School District

service. All these business units have potential to grow, and Larry will have time Larry went through disruption that has forever changed him.

now. SCSU President Robbyn Wacker, SCTCC President Annesa Cheek and challenged to rebuild education in ways that answer disruptive challenges in

enrollment trends and skilled workforce shortages, while meeting the demands of every type of student learner.

St. Cloud Times/LocaliQ, Townsquare Media, and Leighton Broadcasting are

all working to deliver the news in ways that respond to disruptive influences in technology, delivery and generational demands.

Tanja Goering, PAM's Auto Joe Hellie, CentraCare Dennis Host, Coborn’s, Inc. Kevin Johnson, K. Johnson Construction Bernie Omann, St. Cloud State University Mark Osendorf, Xcel Energy Bernie Perryman, Batteries Plus Bulbs Allison Waggoner, DCI, Inc. Chriss Wohlleber, Courtyard by Marriott-St. Cloud, Past Board Chair

And then there is health care….

In most of these examples of disruption, we can’t change back. Like my hair,

the disruption itself has created a shift in those working through it, from which

CONVENTION & VISITORS BUREAU STAFF

pain it causes.

Executive Director: Julie Lunning, ext. 111

they can’t return. So, we forge ahead embracing the change, while enduring the Reinvention is hard. But don’t worry. The Millennials are taking the reins. We ain’t seen nothin’ yet!

Main Phone: 320-251-4170 Director of Sports & Special Events: Dana Randt, ext. 110 Sales Manager: Nikki Fisher, ext. 112 Sales Manager: Rachel Thompson, ext. 128

Teresa Bohnen Publisher

Social Media & Marketing Specialist: Emily Bertram, ext. 129 Sales and Services Coordinator: Erin Statz, ext. 113 Administrative Assistant - Information Specialist: Jennifer Schroeder, ext. 170

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You can help prevent suicide

Suicide is the 8th leading cause of death in Minnesota. CentraCare is challenging the stigma, increasing awareness and educating groups about resources available to prevent suicide. Join us in preventing suicide. Give at centracare.com/foundation or call 320-240-2810.

Jim Schoon & Nick Bischoff Design Electric

Through Dec. 31, your gift will double thanks to a $100,000 matching gift from Design Electric.


Editor’s Note

Fair Fan

Publisher Teresa Bohnen Managing Editor Gail Ivers Associate Editor Dawn Zimmerman

I

like fairs. My first official date with my husband was at the Benton County Fair. Though rides are not my favorite part of the fair, when At the New York World’s Fair in 1964, my parents Tom suggested we go on one, had these portraits painted of my brother and me. I agreed. He picked one that No doubt, after a long day at the fair, we were was an enclosed car on a the little angels portrayed here. Ferris Wheel-type structure that flipped upside down as it turned. He said his favorite part of that ride was watching me tough it out with a white-knuckle grip on the security bar and my eyes shut tight. Back in my Girl Scout days, my troop used to raise money working at an ice cream booth at the Kandiyohi County Fair. That means our fathers struggled to scoop rock-hard ice cream from 10-gallon pails while we handed out cones and made change. In later years we traded a few hours of work at the information booth for free access to the Minnesota State Fair. As with most things, I blame my interest in fairs on my parents. The first time I went to a fair I was four years old. It was the World’s Fair in New York. I have no real memory of this, but I do have a child’s poncho from that fair, so it must have rained. Many years later I remember going to Disney World with my parents where my mom made a comment regarding people who bring toddlers to such places. My dad said, “Yea. It makes a lot more sense to take them to a world’s fair.” Recently I’ve been reading about the 1893 World’s Columbian Exposition, also known as the Chicago World’s Fair. These fairs often drive innovation as builders and businesses try to one-up each other. The Chicago fair introduced the first Ferris Wheel, created to out-shine the Eiffel Tower that had been unveiled during the Paris World’s Fair in 1889. We can’t possibly understand what a feat of engineering the Ferris Wheel was for its time. Experts argued against including it in the fair because it was too dangerous, believing the arms would collapse under the weight of both cars and passengers. That first Ferris Wheel was 264 feet high, had 36 cars that held 40 people each, and took 20 minutes to make a complete revolution. The first commercial movie theater and moving walkway were part of the Chicago World’s Fair. Juicy Fruit Gum, Shredded Wheat, Aunt Jemima Pancake Mix, Cracker Jack, spray paint, the electric dishwasher, and the zipper were all introduced at the fair. Pabst’s award winning beer was renamed Pabst Blue Ribbon Beer following the fair. It turns out St. Cloud has a connection to that 1893 fair. The LeSauk Milling Company, what we know as Heim’s Mill, (see the story on page 32) submitted their Snow Bird Flour to the food competition, receiving a prize for the flour’s purity, color and granulation. The next World’s Fair is Expo 2020 in Dubai. I’ve flown a lot of airlines and Dubai’s Emirates Air is by far the best. If that’s a sample of what they can do, fair-goers are in for a treat. Time to rethink my vacation plans.

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CONTRIBUTING WRITERS Teresa Bohnen, St. Cloud Area Chamber of Commerce Dr. Fred E. Hill, St. Cloud State University Gail Ivers, St. Cloud Area Chamber of Commerce Tracy Knofla, High Impact Training Kelti Lorence, St. Cloud Area Chamber of Commerce Lynn MacDonald, St. Cloud State University Mary MacDonell Belisle, mary macdonell belisle - wordingforyou Jessie Storlien, Stearns History Museum Amber Sunder, St. Cloud Area Chamber of Commerce Erica Thompson Dawn Zimmerman, The Write Advantage ADVERTISING Associate Publisher/Sales Melinda Vonderahe Ad Traffic & Circulation Yola Hartmann, Hazel Tree Media ART Design & Production Yola Hartmann, Hazel Tree Media Cover Story Photography Joel Butkowski, BDI Photography ACCOUNTING Judy Zetterlund WEBSITE Vicki Lenneman

1411 West St. Germain Street, Suite 101, P.O. Box 487, St. Cloud, MN 56302-0487 Phone (320) 251-2940 Fax (320) 251-0081 BusinessCentralMagazine.com For advertising information contact Melinda Vonderahe, (320) 656-3808 Editorial suggestions can be made in writing to: Editor, Business Central, P.O. Box 487, St. Cloud, MN 56302-0487. Submission of materials does not guarantee publication. Unsolicited materials will not be returned unless accompanied by a stamped, self-addressed envelope.


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INSIDE THIS ISSUE:

UPFRONT GROW | NETWORK | PROFIT

Your Voice in Government • Digging the Past •

People to Know • Top Hats • Regional Roundup

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NEWS & PEOPLE THAT MAKE UP THE CHAMBER NETWORK

BOOK REVIEW

Rules of Conversation

Every expressive art starts with a set of tools and conversation is no different. Reviewed by Dr. Fred Hill

The Art of Civilized Conversation by Margaret Shepherd, with Sharon Hogan, Broadway Books, NY, 2005, ISBN 0-7679-2169-0

M

argaret Shepherd is the author of several, approximately 200-page books, which could be useful for corporate or personal life. The three titles I own are: The Art of Civilized Conversation, The Art of the Personal Letter, and The Art of the Handwritten Note. I am reviewing The Art of the Civilized Conversation. The other titles are listed for your personal interest. Shepherd states that “In our fast-paced, electronic society, the most basic social interaction – talking face-to-face – can be a challenge for even the most

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educated and self-assured individuals. And yet making conversation is a highly practical skill…” –––––––– The book consists of nine chapters: 1 What Conversations are Made of 2. Ten Rules of Conversation 3. Rescue Conversations from Blunders 4. Make Conversations Count 5. Change Situations into Conversations 6. Conversations with Older and Younger People 7. Conversations between Men and Women 8. Conversations with All Kinds of People 9. Conversations on the Telephone, over the Internet, and on Paper –––––––– Her Ten Rules of Conversation, in chapter 2 are: RULE 1. Tell the Truth RULE 2. Don’t Ramble RULE 3. Don’t Interrupt RULE 4. Ask Questions and Listen to the Answers RULE 5. Don’t Take Advantage of People RULE 6. Don’t Dwell on Appearances

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NEWS REEL

RULE 7. Don’t Touch

Taboo Topics

RULE 8. Disagree in a

Civilized Fashion

RULE 9. Don’t be a Bore

RULE 10. Don’t Gossip –––––––– I have a handmade plaque in my home office that reminds me to spend 85 percent of my time listening, 10 percent processing, and 5 percent speaking…if only I would! Just to get the Ten Rules is worth the price of the book. A civilized conversation can get the morning off to a great start, enhance our daily work, and invigorate an evening of home or social life. Shepherd teaches us that every expressive art starts with a set of tools. In the art of conversation, the tools are our voice, face, and body. Stand up straight, open our ears, close our mouths…and make a smile.

Dr. Fred E. Hill is an emeritus professor at St. Cloud State University.

STEARNS ELECTRIC DONATES $25,000

The Stearns Electric Association’s Operation Round Up program contributed $24,964 to area organizations. Through the Operation Round Up program, Stearns Electric Association gives its memberconsumers the opportunity to give back to the community by rounding up their electric bill to the nearest dollar.

BRENNY TRANSPORTATION NAMED TOP WOMANOWNED BUSINESS; EARNS SAFETY AWARD

Redefining the Road magazine, the official magazine of the Women in Trucking Association, named Joyce Brenny, Brenny Transportation, Inc., as the recipient of the 2019 “Top Woman-Owned Businesses in Transportation” award. ______ Jeff Muzik, safety director at Brenny Transportation, received the Safety Professional of the Year Award from the Minnesota Trucking Association.

STEARNS BANK NAMED 2019 BEST BANKS TO WORK FOR

Stearns Bank was named one of the Best Banks to Work For in 2019 by American Banker magazine.


POINT OF VIEW // BUSINESS CENTRAL ASKS READERS:

If you could adopt traits from one animal to assist in your professional career, which animal would you choose and why? “I would choose to be an eagle. An eagle would provide me with the perspective I need to see the entire picture as if from above, as well as the ability to focus on any particular part of that picture with pinpoint accuracy.” —Chad Staul, Quinlivan & Hughes, P.A. “Cats are spontaneous, friendly, and exude a calm sense of intention in the midst of chaos. I aspire to approach BadCat the same way, appreciating the change and spontaneity of working with our clients and our amazing team. And we can always say, no matter what happens, ‘I meant to do that.’” —Michelle Henderson, BadCat Digital Marketing

“I would choose a penguin. They have no fear and will approach groups of people without hesitation. This would be very helpful for me while networking!!” —Jenna Peterson,

Playhouse Child Care

“I would adopt the traits of a cool ocean fish called the Tusk Fish I think. It has this tenacity to find oysters across the ocean, bring them back to their home, and beat them on their carefully selected rock over and over until they break, thus getting a meal. I'm not so much interested in the destruction part as I am in the drive and the tenacity.” — Ashley Green, Green Thumb Etc.

• • • • • • •

Drafting & Negotiating Contracts Negligence Dispute Resolution Liens & Bond Claims Employment Law Contract Termination Warranty Issues

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UpFront YOUR VOICE IN GOVERNMENT

NEWS REEL COMMUNITYGIVING APPROVES BOARD MEMBERS

CommunityGiving elected Laura Helmer and Steve Laraway to their 2019-2020 Board of Directors. ________ The Central Minnesota Community Foundation, a CommunityGiving partner, elected Debra Leigh, professor at St. Cloud State University, to serve as the new chairperson of the board of directors. ________ The Women’s Fund of the Central Minnesota Community Foundation raised $340,000 at their annual Dancing with Our Stars event. Dollars raised will positively impact women and girls in our community.

BERGANKDV ADVISOR EARNS CERTIFICATION

St. Cloud Wealth Advisor Becca Oelrich has been authorized by the Certified Financial Planner Board of Standards to use the CERTIFIED FINANCIAL PLANNER™ and CFP® certification marks in accordance with CFP Board certification and renewal requirements. To receive the certification, individuals must meet rigorous experience and ethical requirements, successfully complete financial planning coursework and pass a certification examination.

CENTRACARE HIRES NEW LEADERSHIP

Mike Blaire joined CentraCare Health as senior vice president and chief financial officer in September. Blaire was previously the chief financial officer for University of Missouri Health Care.

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More than Policy The St. Cloud Area Chamber regularly partners with organizations, people and policy groups to bring information to our members. By Teresa Bohnen

D

uring our Chamber’s New Member Orientation, I ask, “Do you pay attention to what’s going on in government? Does it interest you? Are you a ‘Government Affairs Junkie?’” It’s a big day if even 10 percent of the audience responds “Yes, I am!” Polarized political parties and candidates seem to have lowered the appetite for discussions about government policy for mainstream business leaders. However, I can assure you the appetite for government to be involved in your businesses has never been higher. Local, state and federal governments require taxes to fund government projects. Many a politician has claimed this doesn’t hurt the (name your income level or status of choice) because businesses are paying the tab. In fact, businesses usually pass tax increases on to customers because that’s where the money comes from. In the end, individuals pay all government taxes and fees, which is why every individual has a vested interest in government. Businesses may sell less because the cost and price of their products and services have grown higher due to

taxation and regulation, but individual customers are paying the bill. The St. Cloud Area Chamber of Commerce is a non-partisan organization that represents the interests of our business members. We don’t endorse candidates. We work with the people the public puts into office. Now, more than ever, we are invited to partner with organizations, people and policy groups to bring information to our members that educates and helps them determine the best course of action for themselves and their businesses. Just in October we partnered with other St. Cloud area organizations to sponsor: Federal Reserve President Neel Kashkari for both a business roundtable and a Townhall meeting –––––––– A listening session with the Minnesota Office of Higher Education Commissioner Dennis Olson and Education Commissioner Mary Cathryn Ricker –––––––– “Untapped Workforce: Benefits of Being a Fair Chance Employer” organized by Career Solutions

–––––––– “Connecting College & Community,” a showcase of exemplary partnerships that exist between St. Cloud State University and organizations throughout Central Minnesota Government Affairs meetings occur the second Friday of the month from 7:30 – 9 am. Our fall calendar includes sessions on transportation planning, the potential impact from the impending closure of the Becker coal plant, and a round table discussion about how the proposed employee mandates at the state legislature would impact area businesses. Teresa Bohnen is the

president of the St. Cloud

Area Chamber of Commerce

The easiest way to stay up on all the latest presentations, visitors and meetings our Chamber is hosting is to be added to our Government Affairs email distribution list. For more information, contact Amber Sunder at asunder@StCloud AreaChamber.com


TOP HATS

20-year member Shipshape Services, cleaning and building maintenance company; landscape/gardening, beds and pots, 4956 150th Street NW, Clearwater. Pictured: Tanja Goering, Rita McCooley, John McCooley, Inese Mehr.

20-year member Arvig Media, business communications including internet (fiber), data transport, network, security services, hosted PBX and managed IT services, 5114 Marson Drive, Sauk Rapids. Pictured: Kristin Hannon, Shane Ross, Barry Ross, Dave Kvaas, Liz Kellner.

20-year member AIS Planning, wealth management and retirement plan services, 3701 12th Street N ste 103, St. Cloud. Pictured: Tauna Quimby, Jason Hallonquist, Cathy Juilfs, Diane Diego Ohmann.

20-year member Advantage Chiropractic, chiropractic adjustments and nutrition counseling, corporate wellness services and presentations, 32 32nd Ave. S ste 100, St. Cloud. Pictured: Jason Miller, Dr. Mark Roerick, Donna Roerick, Tauna Quimby.

25-year member Batteries Plus Bulbs, retail and wholesale supplier of all batteries, lightbulbs and smart phone and tablet repair, 2710 2nd Street S, St. Cloud. Pictured: Caryn Stadther, Bernie Perryman, Amanda Groethe.

20-year member/ New Location Gabriel Media, featuring radio stations Spirit 92.9 and KYES, 1926 W Division Street, St. Cloud. Pictured: Caryn Stadther, Sheri Moran, Deb Huschle, Tanja Goering.

An Innovative Solution

FOR JOINT PAIN

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Contact us today to take control of your joint pain. St. Cloud Surgical Center complies with applicable Federal civil rights laws and does not discriminate on the basis of race, color, national origin, age, disability, or sex. Interpretalk 1-877-386-9235 & Keystone Interpreting Solutions (TTY: 1-651-454-7275) Spanish: ATENCIÓN: si habla español, tiene a su disposición servicios gratuitos de asistencia lingüística. Pida asistencia de un empleado. Somali: KA DIGTOONOW: Haddii aad ku hadasho somali, gargaarka aad heli karto lacag la’aan. Fadlan weydiiso caawimaad ka xubin shaqaale ah.

Better Care, Better Costs, Better Recovery… Better YOU. 1526 Northway Drive, St. Cloud, MN 56303 |

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800.349.7272 | stcsurgicalcenter.com

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UpFront PEOPLE TO KNOW

NEWS REEL ST. CLOUD HOSPITAL RANKED TOP HOSPITAL

The U.S. News & World Report ranked CentraCare – St. Cloud Hospital as one of 57 hospitals in the nation with strong ratings in the handling of nine surgical procedures and chronic conditions.

AT&T EXPANDS RETAIL PRESENCE IN ST. CLOUD

AT&T opened a second store, located at 211 South 5th Ave., to meet the growing needs of their local customers.

BERGANKDV PROMOTES 28 STAFF MEMBERS

BerganKDV recently promoted 28 staff members across seven locations. St. Cloud staff members include: Jon Ringquist to audit senior; Ben Stalpes (l) to audit manager; and Christina Wordes (l) to senior manager.

FREIGHTLINER RECERTIFIED AS DAIMLER TRUCKS DEALERSHIP

Freightliner’s I-94 location in St. Cloud was recently recertified for the 8th year as a Daimler Trucks North America Elite Support Certified Dealership. This certification represents the dealership’s commitment to customer service and continuous improvement. To certify each year, the company must meet 140 criteria including cleanliness, customer communication, and signage.

––––––––––– Send News Reel items to Gail Ivers, givers@business centralmagazine.com for possible inclusion. News Reel is compiled by Kelti Lorence.

Six Elected to Chamber Board

The following individuals have been elected to fill three-year terms on the Board of Directors of the St. Cloud Area Chamber of Commerce, with the exception of Joe Hellie who will fill a two-year term on the board.

John Bryant Geo-Comm, Inc.

Tanja Goering PAM’s Auto

––––––––––– (320) 240-0040

––––––––––– (320) 363-0000

Willie Jett St. Cloud School District #742

Allison Waggoner DCI, Inc.

––––––––––– (320) 370-8000

––––––––––– (320) 257-4320

Christy Gilleland Gilleland Chevrolet Cadillac, Inc.

––––––––––– (320) 251-4943

Joe Hellie CentraCare ––––––––––– (320) 251-2700

EDITOR'S NOTE

IN MEMORIAM

Bishop John Kinney passes away

I

t is with regret that we share the passing of Bishop John Kinney, retired Bishop of the

Diocese of St. Cloud. Bishop Kinney presided over the diocese during some of its most turbulent times. “åI think this is what God

wants me to do and what the church needs me to do,” he told Editor Gail Ivers. Bishop Kinney passed away in September 2019.

He appeared on the cover of the November December 2010 issue of Business Central.

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TOP HATS

30-year member Schoenberg Construction Inc., 75+ years of custom construction experience, specializing in home remodeling, new homes and light commercial, 3040 36th Ave. SE, St. Cloud. Pictured: Caryn Stadther, Craig Schoenberg, Brenda Eisenschenk.

20-year member Town & Country Excavating, a full-service excavating company, including site prep, site utilities, import and export of materials, erosion control, onsite septic system, design and installation, pipe thawing, 10772 340th Street, Avon. Pictured: April Diederich, Jason Christen, Bryan Christen, Peg Imholte.

20-year member American Business Solutions, business printing, promotional products, distribution services, corporate identity wearables, 2013 Pleasant Ave., St. Cloud. Pictured: Tanja Goering, Dan McAnally, Liz Kellner.

20-year member Papa Murphy’s Take N Bake Pizza, 25 14th Ave. SE, St. Cloud. Pictured: Sheri Moran, Nic Meyer, Jake Chisholm, Joel Meyer, Amanda Kampa, Jason Bernick.

30-year member HMA Architects, commercial, industrial, office, religious, multifamily residential, municipal and governmental architecture, 700 W St. Germain Street, ste. 200, St. Cloud. Pictured: Liz Kellner, Murray Mack, Amanda Groethe.

35-year member The Good Shepherd Community, a senior retirement community with nursing home, patio homes, senior apartments, home health care, assisted living and memory care cottages, 1115 4th Ave. N, Sauk Rapids. Pictured: Rory Cruser, Heather Wenzel, Michael Stordahl, Jodi Speicher, Caryn Stadther.

ORTHOPEDIC

flexibility

Flexibility is a big part of being able to move with comfort. That’s why we now have two full-service clinic locations for you to receive bone, joint, and muscle care from our team of orthopedic experts. For treatment and therapy from head to toe, choose the clinic that’s most convenient for you, and start living better.

2 LOCATIONS 40-year member Mexican Village, festive Mexican joint with a menu of comfort classics and a wide range of margarita flavors, 509 W St. Germain St, St. Cloud. Pictured: Caryn Stadther, Greg Warnert, Tauna Quimby.

1901 Connecticut Ave S. Sartell, MN 56377 20-year member Office Depot, office supplies, furniture, and technology services, 3959 2nd Street S, Ste 103, St. Cloud. Pictured: Jason Miller, Tim Dukowitz, Paul Dueland, Caryn Stadther.

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320.259.4100 StCloudOrthopedics.com

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UpFront DIGGING THE PAST TOP HATS: New Members

Trailblazer

From police officer to politician, Sybil Hollern gave her all to the community. By Jessie Storlien Orangetheory Fitness/St. Cloud Fitness, a one-hour full body workout for men and women of all ages, 110 2nd Street S, ste 117, Waite Park. Pictured: Diane Diego Ohmann, Jim King, Kelly Vouk, Patrick Hollermann.

Old Capital Tavern, fine dining, catering and a great selection of craft beer, scotch, bourbon, and whiskey, 2 North Benton Drive, Sauk Rapids. Pictured: Jason Miller, Hannah Reemts, Tanja Goering.

The Flag Store, offering U.S., international, state, military, boutique, and custom flags, plus a wide selection of patriotic and military gift items, 113 Division Street, Sauk Rapids. Pictured: Tanja Goering, Rose Clement, Matt Knutson.

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Left to right: Sybil Hollern, St Cloud City Council Member, 1976; Police officers retire from St Cloud Police Department, May 1975

S

ybil Hollern spent most of her life in St. Cloud. She was raised on the south side of the city in the early 20th Century. She attended St. Catherine University in St. Paul, went on to earn a master’s degree from Columbia University in New York, and worked at DuPont in Hanford, Washington, before ultimately answering a job posting for a police officer back home in St. Cloud. Hollern returned to her hometown to stay when she received a position in 1947 in the St. Cloud Police Department’s Juvenile and Investigations Division. In a 1980 St. Cloud Times article she declared, “St. Cloud is my town. I was born here and lived here all my life.” Hollern’s years of public service leave no doubt

about her commitment to the community. As a police officer she never carried a gun, wore a uniform, or drove a police vehicle. Her initial pay rate was $195 per month. She worked in plain clothes, apprehending kids for underage drinking and shoplifting. In a 1983 oral history interview with Stearns History Museum, she recalled that her theory was “…if you catch problems early enough, they will stop there.” This appeared to hold true for many of the offenders she caught in their youth and then met again as adults. After her retirement from the police force in 1975, Hollern went into politics. This was a natural career path for someone who told the St. Cloud Times in 1988, “I sincerely believe

it is ‘we the people,’ you know.” Her dedication to the public was evident, and in 1976 she was elected to the St. Cloud City Council. In 1980, Hollern announced her plan to run for re-election to the council. During the press conference, she told the St. Cloud Times, “Just to serve the community is my goal. That may sound a little corny but that, I guess, has been my campaign theme, if any.” Hollern’s civic service ultimately spanned three terms as a St. Cloud City Council member. Hollern’s positions weren’t without distinction. For 28 years she was the sole woman police officer in St. Cloud. She was also the only woman on the St. Cloud City Council. “I think you need a woman’s

Photos ourtesy of the Stearns History Museum

Crosspoint Church of Minnesota, making disciples that worship, walk, and work for Christ, 2543 Ocarina Drive, Sauk Rapids. Pictured: Sarah Noble, Jeremy Ritema, Jason Miller.


“Just to serve the community is my goal. That may sound a little corny but that, I guess, has been my campaign theme, if any.” — Sybil Hollern

St. Cloud trailblazer Sybil Hollern

voice. A woman’s perspective is certainly different than men’s,” she said, while serving on the council. Although, she managed to make some headway for women, both on the police force and the city council, she was blunt about how she saw St. Cloud, telling the newspaper in 1988, “Let’s face it, this is still a male community.”

During her tenure with the St. Cloud Police, she was not given opportunities for advancement, nor was she eligible to take the sergeant’s exam. On the city council, she noted that no women were on the Planning Commission or Housing and Redevelopment Authority board, and there were few women in city administration. Hollern’s hard work and determination were

recognized by the citizens of the city she so loved. Fellow city council member, Larry Meyer, acknowledged that, “She is one of the most popular public officials in the city. Here’s a lady who had run in two very tough elections with no advertising or campaigning to speak of and has been able to persevere.” Jessie Storlien is an archivist at the Stearns History Museum

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UpFront REGIONAL ROUNDUP

Moving and Shaking From new apartments to new roads, from renovated buildings to expanded operations, there’s plenty of development happening in Central Minnesota.

Left to right: Sartell Economic Development; Sauk Rapids El Loro

ST. CLOUD…

C

ompleting the new Tech High School tops the list of long-awaited projects in St. Cloud. Though still adding the finishing touches, the school opened to students as planned in September. If you didn’t notice Tech High School going up on 33rd Street S, you probably did see Costco under construction on Roosevelt Road and 33rd Avenue N, which opened for business in June. Other projects in 2019: • Anna Marie’s Alliance expanded • Viking Coca Cola remodeled • Automotive Parts Headquarters expanded their warehouse • DSW and HomeGoods arrived at Crossroads Shopping Center • Target installed a rooftop solar array

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Building permits issued in 2019 totaled $57 million and included: • Minnesota State Reformatory – Renovations and addition of intake and loading dock • St. Cloud Hospital – Three cardiac operating room build outs, and remodel of fifth floor dialysis unit • Cathedral High School’s $14.1 million expansion • Eich Motor – A new Mazda dealership building on the eastern portion of their existing site, with plans to repurpose the current Mazda building into a detailing shop • Popeye’s Restaurant – Adjacent to CVS at 25th Ave. S and Division St. • Searle’s on Fifth and Bricks and Bourbon – Downtown

SAUK RAPIDS…

H

ousing was a major focus in Sauk Rapids throughout 2018 and 2019. Three new complexes are adding much

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needed rental space to the region. One, currently under construction, will open in 2020, and one, located right downtown by the river near the bridge, opened and filled within 30 days. Along with housing, road construction has been taking up development time in Sauk Rapids. The construction on Summit and 4th wrapped up in late October. Those improvements, in conjunction with the construction on Highway 15, will allow direct transportation all the way to Target for the first time. “We’re focused on creating developments that improve efficiency and convenience,” Todd Schultz, community development coordinator, Sauk Rapids, said. Also in Sauk Rapids: • El Loro Mexican Restaurant opened • Dutch Maid Bakery opened • Road construction on South Benton Drive and renovations

in Lions and Southside parks are scheduled • Pinnacle Climate Technologies moved from their former space in Sauk Rapids into the old Nahan Printing site • J-Berd moved into the old Pinnacle building, bringing 550 employees to Sauk Rapids

WAITE PARK…

E

mpty buildings in Waite Park may soon be filled. City staff are working with local real estate agents and owners of the former Gander Mountain and Davanni’s buildings to determine new options for filling those sites. The city has also focused on upgrading and adding new city facilities with the opening of the Public Works facility, new park buildings for Community and River’s Edge parks, a new outdoor fitness court for River’s Edge Park, and of course, progress on the Waite Park Amphitheatre, now called The Ledge, projected to open spring 2020. Other projects include: • Hilton Garden Inn and Marriott Extended Stay hotel on Division Street opened, while the attached Park Event Center is almost done. Watch for the adjacent Taco Bell to open soon. • Windsor Greene Villas, a 60-unit senior apartment complex on Wellington Circle was completed


• Stearns County Service Center on County Road 138 expanded onsite, as did St. Cloud Toyota into the former Dunham’s space • Daylily Spa is moving to 1st Street S; currently under construction • Interior remodeling and exterior updates for Marketplace Center are almost complete • A new mixed-use building, Crossroads Lofts & Shops, is under construction on 3rd Street across from Crossroads Mall

SARTELL…

T

oppan Merrill selected Sartell for a major

expansion. The company invested $6 million in their existing building, adding 70,000 square feet to the facility, and bringing all their jobs under one roof. Currently underway: Construction of the new Sartell Public Safety building on Pinecone Road, and across the street a new branch of the Central Minnesota Credit Union.

ST. JOSEPH…

D

owntown St. Joseph has a new look. The 24 North Lofts, a mixed use residential and commercial development, already has a number of tenants, including Collegeville

Companies and Krewe Restaurant. Pending financing, Krewe plans to open another business, “Flour to Flower Bakery,” in the renovated building behind 24 North Lofts. Meanwhile, Bad Habit Brewing Company completely renovated the former city hall building, opening in that new location last spring. Currently under construction or being renovated: • The Dollar General Store • Trobec’s Bus Service • The Strack office and warehouse building • St. Joseph Church • College of Saint Benedict

St. Joseph housing developments

In the last 18 months, St. Joseph welcomed ten new businesses: • O’Reilly Auto Parts • Kwik Trip • Crooked Hinges • Unique Software & Computers • Grilled Cravings • Neighbors Route 75 • Dacotah Paper/Spectrum Supply • Weathered Revivals • Jan’s Barbershop • Two Bits Men’s Grooming Salon – Compiled by Kelti Lorence

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NetworkCentral GROW | NETWORK | PROFIT

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E V E N T S A R O U N D T H E S T. C LO U D A R E A

Happy 150th Anniversary!! –––––––––––––––––––––––––– BACK TO THE FUTURE

It was Back to the Future when the Chamber kicked off its 150th anniversary celebration at Chamber Connection in January 2019.

Diane Hageman, Hageman Communications, chair of the 150th Anniversary Committee

Christy Gilleland, Gilleland Chevrolet (L) and Bernie Perryman, Batteries Plus Bulbs

–––––––––––––––––––––––––– RAISING MONEY FOR STUDENTS

Guest Bartenders Chamber President Teresa Bohnen (L), Roger Schleper, Premier Real Estate Services (green shirt), and Bernie Perryman, Batteries Plus Bulbs 20

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Jeremy Forsell, Premier Real Estate Services (L) and John Herges, Falcon National Bank

–––––––––––––––––––––––––– SUMMERTIME!

The 150th Anniversary Committee hosted Tending for a Cause at Beaver Island Brewing Company, raising over $1,100 for the St. Cloud Area Chamber Foundation.

Top Hat Ambassadors Clint Lentner, Microbiologics and Inese Mehr, Rengel Printing greeted visitors on behalf of the Chamber at SummerTime by George.


–––––––––––––––––––––––––– STAR CELEBRATION

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by Todd Myra Photography

A toast to Chamber members and volunteers – past and present – kicks off the 2019 Star Celebration.

Committee chair, Diane Hageman (at the podium, on right) thanks the 150th Anniversary Committee for their two years of event planning and execution as the Chamber wrapped up the final anniversary event of the year.

Nick Demuth and Corrine Faber. Faber participated in the 150th Anniversary video series about past board chairs, sharing memories about her first husband, Marv Faber, who passed away several years ago. Marv helped establish the Chamber's strategic planning process.

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NetworkCentral

Happy 150th Anniversary!! –––––––––––––––––––––––––– CELEBRATING TOGETHER

Both St. Cloud State University and the Chamber of Commerce celebrate 150th anniversaries in 2019. The two legacy organizations hosted a community celebration in July.

Nicki Stemper and son Harrison Mackey enjoy the free ice cream.

Dexter Hanson, BadCat Digital, enjoys Toppers Pizza

–––––––––––––––––––––––––– CELEBRATING HISTORY

Long-time Chamber members Susan Dean, Newcomers Service; LuAnn Popp, Coldwell Banker Burnet; and retired Chamber employee Ginny Kroll enjoy Business After Hours at the Stearns History Museum, sponsored by the 150th Anniversary Committee. 22

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The 150th Anniversary Committee: Gail Ivers, Chamber of Commerce (L); Bernie Perryman, Batteries Plus Bulbs; Diane Mendel, Playhouse Child Care; Heather Wenzel, The Good Shepherd Community; Committee Chair Diane Hageman, Hageman Communications; Tanja Goering, PAM’s Auto; Kara Tomazin, CentraCare; Rachael Sogge, Eyecon Graphics. Missing: Hub Levandowski, retired; Tammy Molitor, Molitor’s Quarry; Kayla Blunt, Toppers Pizza

The Chamber’s 150th Anniversary Legacy Photo at Business After Hours in September. Over 100 people turned out for the photo taken near the Heritage Tree at the Stearns History Museum. Photo by Joel Butkowski, Butkowski Digital Imaging


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Herman Roerick, Central Landscape Supply, donated and planted the Heritage Tree on behalf of the Chamber of Commerce.

Building with Care and Compassion

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InSIDE THIS ISSUE:

BUSINESS TOOLS GROW | NETWORK | PROFIT

u

Management Toolkit • Tech Strategies Economy Central by Falcon Bank

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RESOURCES THAT HELP YOUR BUSINESS GROW

MANAGEMENT TOOLKIT

The Virtual Office

If you’re a home-based business looking for a little something extra, it may be time to try a virtual office. By Erica Thompson usage for meetings, phone answering, and a staff that are present to greet clients. Privacy If you work from home, keeping your address private can be a challenge. There's no real way to avoid a customer showing up at your house unannounced. This may not matter to you, but if you have small children at home, it could be less acceptable. On the other hand, not everyone wants to meet with you in your home. Working out

T

he way people work has changed drastically in the past decade. More and more people are working from home or in flexible and shared office spaces. Working from home has many advantages, including saving money and avoiding a daily commute. But there can be disadvantages, as well. How do you keep your home address private? Where do you meet your clients? How do you improve Google rankings with a home address? How do you create the professional image for your company to get the results you’re looking for?

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These are valid questions that home-based business should be asking. Virtual Office Services A virtual office is a service that provides a professional, physical address for those home-based businesses -- or any business -- wanting to create a footprint or presence in a specific city. Virtual offices usually include access to a wide variety of products and services, including a professional business address, mail handling, acceptance of overnight packages, day office

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profile business location will move you to the top more quickly than your home address. Google does allow you to use your home address, but you also are advertising where you live to the general public! New Market Opportunities Many businesses like to grow into other markets. You can use a virtual office and test the market before committing to a conventional space. Having a high-profile local business address will most likely gain more customers. For example,

If you work from home, keeping your address private can be a challenge. There's no real way to avoid a customer showing up at your house unannounced.

of your home doesn’t mean you are any less professional, but if you’re searching for a specific service in your area, which are you more likely to choose? The one that lists a business in a residential area or the one that has a business address? And if a Google ranking is important to you, a high-

if you are based in St. Cloud, but would like to expand to the Minneapolis area, establishing an address via a virtual office can create that Minneapolis presence overnight and position you to learn how your company will succeed in the targeted market. Erica Thompson is the former area manager of Regus.


DOING GOOD

Spring Cleaning

Stearns Electric launched “My Co-op Cares” with a visit to Mother of Mercy in Albany.

S

tearns Electric Association launched its new ‘My Co-op Cares’ community involvement program last spring. Employee volunteers helped Mother of Mercy Nursing Home in Albany prepare for spring by clearing two outdoor patio areas and painting a decorative fence. “The ultimate goal of the My Co-op Cares program is to bundle all of the cooperative’s current and future community initiatives

under one umbrella,” according to Whitney Ditlevson, communications and marketing supervisor at Stearns Electric. This includes Operation Round Up and Energy Education programs, as well as their Coal Creek bus tour and annual Twins Youth Baseball Clinics. One pillar to the My Co-op Cares program is a new initiative allowing employees to volunteer during work hours within Stearns Electric’s service territory. Three times

a year, Stearns Electric sends teams of employees to share their time and talents with local organizations and charitable causes. “Stearns Electric wanted to provide more opportunities for our employees to get involved in our local communities. By offering time for volunteering during the workday, employees have the chance to give back

Stearns Electric employees clear an outdoor patio and paint fencing at Mother of Mercy in Albany.

outside of their busy personal schedules,” Ditlevson said. “Additionally, employees gain knowledge about the volunteer needs in our area that they might not otherwise know about.”

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BusinessTools TECH STRATEGIES

Inbound Marketing

Solid content development will help generate website traffic, leads, and marketing ROI.

By Dawn Zimmerman

O

ne of the most common challenges that I hear from businesses is generating traffic and leads to their websites. Hubspot’s State of Inbound Report found that 63 percent of responding businesses feel the same way, followed by 40 percent clamoring for a proven Return on Investment (ROI). Both are possible with today’s marketing tools and rely on solid content development from beginning to end. Once, creating a blog, posting good content on social media or sending targeted emails were enough to generate traffic and leads. But as the prevalence of all of them has grown, organizations have had to become more

audience can create more value – when published and compounded overtime —than generating half a dozen posts to keep your website “fresh” or timely. ________

can use their content marketing to elevate brand awareness and establish their thought leadership (fairly quickly), but it must begin with developing the content. ________

2 Value is the priority.

5 The goal is action.

Selling should not be the reason you write and publish, although it certainly will be an outcome. The primary focus is providing valuable content and experiences to an intended audience. How can you help them better understand a trend, solve a problem or become better? ________ sophisticated in their approaches. It requires leaders to think more strategically about an integrated digital marketing strategy, including leveraging inbound marketing — a methodology for drawing in visitors and potential customers. Inbound marketing is how start-ups have quickly established their brands and become major players in a matter of months, how mature businesses are staying relevant, and how large businesses are accelerating their market share. What do you need to know to get started?

1 It’s often not about doing more.

Quality trumps quantity. One blog that resonates with an

3 It’s a journey.

Buyers will typically view 3-5 pieces of content before formally initiating the sales process by contacting a rep. Consumers want to do their research on their own and come in more armed to make a decision. When creating content, step back and map out content that takes them on the journey from awareness to consideration to decision. ________ 4 The power is in the integration.

Inbound marketing thrives because it integrates content marketing, social media marketing, search engine optimization, and branding. They all work together to achieve results. Organizations

contributor Dawn Zimmerman is CEO of The Write Advantage, a St. Cloud-based strategic communications company. She can be reached at dawn@writeadv.com

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Each piece of content, whether it’s a blog or a targeted email, needs to include an opportunity to take the next step – or a call to action link or button. This can range from a simple (but effective) sign up, submit a question, get started to download a guide, complete an assessment, or join a webinar. These all provide an opportunity to capture information for a lead. ________ 6 The power is in the tracking.

In the inbound world, everything’s trackable – from the link in an email to time spent on a website by a specific user to conversion rates. The technology has robust reporting to fuel additional digital and on-the-ground efforts, including the option to receive alerts when multiple people from the same organization visit the site. The answer to more traffic, more leads, and a greater marketing ROI may start with a blog and an integrated digital marketing strategy. The results can vary. It’s simply not enough to “do all the things.” Strategic execution is everything. All the tools and all of the elements within each of them matter.


TECH NEWS

Taste Sensation

Startup Treasure8 is using dehydration technology to combat food waste at several stages of the supply chain, and its energy-efficient system preserves fruits and vegetables with their colors, flavors and nutrients intact. Source: ThePacker.com

Automating HR

T

he rules of hiring and managing staff have become fluid as more independent contractors, and home-based and distant workers are added to the payroll. Add in the ever-growing number of regulations and paperwork designed to protect employees and employers and the entire operation can become overwhelming. Using the right digital solutions can help any company stay efficient and complete their HR tasks successfully. Staff Squared, Slack, and Zoho People are just three examples of software that can help you manage – and automate – many of those HR activities.

Competitive Delivery

Not to be out-done by Amazon or Stop & Shop, Walmart is now piloting an autonomous vehicle delivery program. Their first attempt is a single vehicle moving customer orders on a 2-mile route between two stores in Walmart’s hometown of Bentonville, Ark. Source: Progressive Grocer

Source: Business2Business.com

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BusinessTools

Economy Central presented by

ECONOMY CENTRAL

The Quality vs. Quantity Trade-off Incentives work to increase production, but you may not like the end result.

E

conomic theory suggests that workers focus their effort on tasks that are measurable and rewarded at the expense of other tasks. One clear example of this comes when workers increase the quantity they produce while sacrificing quality. A recent study tested this theory by offering different incentive structures to factory workers. The researchers were able to quantify how workers responded to two types of incentives—pay and encouragement—and were able to measure the effect on both quantity and quality. Results showed that incentives work to increase production, but their effectiveness depends on several important factors.

Research Design Hong, Hossain, List, and Tanaka observed production in five electronics factories in China to see how employees responded to different incentive structures. The practice in all five factories was to record each employee’s quantity and to “lightly” inspect quality. (Note: The study focused on supporting tasks like packaging.) Employees were not aware of the experiment and they continued to work their regular shifts. Of the five factories, three paid their workers with a fixed hourly wage and two used piece-rate pay i.e., paid a fixed amount per unit of output. The researchers then monitored each worker’s

quantity produced and quality without the employee’s knowledge. The study was conducted in three phases: 1 Baseline – Regular workers and work conditions before incentives were introduced. 2 Control – Workers received an encouraging, personal letter stating, “Thanks for your unceasing hard work.” 3 Bonus – Workers received a personal letter indicating they were chosen to participate in a one-day bonus plan paying an additional bonus for every unit produced beyond the listed target. This output target was chosen in consultation with management and was meant to be challenging, but achievable with high effort. Findings Productivity increased in both the control and bonus phases. The encouraging letter increased productivity by 9.4 percent and the bonus pay increased productivity by 25.6 percent, both relative to the baseline. Though productivity increased during the bonus phase, the quality of production decreased. [In this study, the increase in the defect rate was high, but since the baseline defect rate was low this increase was not of any real economic consequence

contributor Lynn MacDonald, Ph.D., is an associate professor of economics at St. Cloud State University. For the sources used in this article, visit BusinessCentralMagazine.com

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By Lynn MacDonald

for these firms. The net productivity effect was still positive.] The bonus pay system only effectively increased production when workers’ base salary was flat rate. Under piece-rate pay, the bonus pay did not lead to a significant increase in productivity. The encouraging letter increased productivity without any loss in quality. Since piece-rate pay is designed to incentivize quantity, adding a bonus did not do much to increase quantity beyond current production levels. The flat-rate pay structure did yield more pronounced quantity increases, but these quantity increases were accompanied by decreases in quality. This hinged on what workers were rewarded for and what management was measuring. The workers understood quality was lightly inspected and output was not matched to the worker. When workers were unaware of the enhanced quality inspections, they increased quantity at the expense of quality. Though it is difficult to generalize these findings across work environments, this study points to the importance of pay structure when there are multiple important product dimensions such as both quantity and quality. Even if it isn’t easy to pay workers for multiple dimensions, it may be worthwhile finding a way to observe the unincentivized dimension.


$80M

TOTAL: $66,467,193

$40M

$50M

$80M

$900000

TOTAL: $128,941,289*

TOTAL: $288,822,542

TOTAL: $288,822,542

St. Augusta

13 September Mar $2,107,200

2017 2

7 $1,587,313

$10,100

August St. Joseph 56 70 48 2019 Feb $0 $19,525,262 $18,129,160 $7,822,526

June

2018

Apr

$500k

December

$0

November

October

September

Jan

August

July

June

May

Feb

April

1.0%

March

$300M

February

$250M

January

$200M

Source: www.positivelyminnesota.com

2018�19 % CHANGE 1.5%

December

November

October

September

$150M

2017

Non FarmMarJobs

Source: www.positivelyminnesota.com August

$100M

July

June

$50M

May

April

March

February

January

$0M

$500k

July JanAugusta data is only available quarterly. *Total as of 9/25/19; St.

TOTAL: $221,316,488

5%

Food and Be

Waite Park 73 83 100 ST. CLOUD October Apr $6,403,398 $7,260,629 $11,395,849

TOTAL: 1789

$300M

2018

2018

2017

ST. CLOUD

Sauk Rapids 32 34 33 November May $14,128,688 $16,509,793 $16,209,889

May

2018�2019

Food and Be

Sartell 44 50 26 December $89,959,156 $13,856,200 $12,269,700 June

Sources: Building departments for the following cities: St. Cloud, Sauk Rapids, Sartell, Waite Park, St. Augusta, and St. Joseph.

Unemployment Rates

500

St. Cloud 341 383 247 $89,192,774 $231,596,447 $81,233,225 July

TOTAL: 1752

$250M

0

Commercial 2017 2018 2019* #/$ #/$ #/$ August 2019

2000

$200M

38 $1,790,690

November

TOTAL: 1655

TOTAL: $221,316,488

TOTAL: $128,941,289*

$150M

2017

98 $6,043,519

January December *Total as of 9/25/19; St. Augusta data is only available quarterly.

1500

TOTAL: $133,773*

$1500000

TOTAL: $1,272,176*

TOTAL: $1,333,423

$1200000

$100M

140 February $4,433,502

BUILDING PERMITS BY COMMUNITY September

6 COMMUNITIES � ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

$50M

St. Joseph

October

Commercial Building Permits

$0M

St. Augusta 88 72 32 March $6,116,630 $6,469,120 $3,107,795

1000

$600000

6 COMMUNITIES � ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

2017 2019

$70M

Commercial Building Permits

2019

2018

$60M

2018

Waite Park 70 46 16 April $4,244,281 $1,509,887 $430,308

Home Sales Closed in St.Cloud

$30M

500

Sauk Rapids 199 174 114 May $7,908,010 $8,409,293 $6,702,431

6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

$20M

0

January

Sartell 299 380 236 June $15,947,945 $20,426,812 $13,592,916

2017

$10M

622 597 453 July 2019 $32,230,127 $25,555,950 $17,967,257

500

$300000

$0M

February

St. Cloud

2016

2017

March

Residential 2017 2018 2019* 2017 August #/$ #/$ #/$

0

Food and Beverage Tax Collection

ST. CLOUD

$0

TOTAL:$70,880,396

6 COMMUNITIES � ST. C ST. AUGUSTA, ST. JOSE

September BUILDING PERMITS BY COMMUNITY

2015

2018

2017

2016

2018

December

$70M

November

$60M

Home Sales C

2018 October

$50M

September

$40M

August

$30M

880,396

$20M

July

$10M

June

$0M

October April

May

2019

TOTAL: $43,591,397*

April

2017

March

TOTAL:$70,880,396

November May

February

6 COMMUNITIES � ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec January

December

November

October

September

August

July

June

May

Apr

Mar

Feb

Jan

2018

2019

July December June

TOTAL: $66,467,193

Residential Building Permits

6 COMMUNITIES � ST. ST. AUGUSTA, ST. JOS

Economy Central presented by August COLOR KEY:

2019 Compiled by Amber Sunder, data current as of 9/25/19

Home Sales C

September

TOTAL: $43,591,397*

ECONOMIC INDICATORS & TRENDS

908,072

October

$100M

$250M

6 COMMUNITIES � ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

832,866

316,488

669,534

111,110

Residential Building Permits

0.5%

4%

0.0% -0.5%

3%

-1.0% -1.5% 2%

J

A

S

O

N

D

J

F

M

A

M

J

J

St. Cloud Minneapolis/St. Paul Minnesota United States

-2.0%

J

J

A

S

O

N

D

J

F

M

A

M

J

J

A

St. Cloud, MN MetroSA Minnesota United States

N O V E M B E R / D E C E M B E R 2 0 1 9 //

www.businesscentralmagazine.com

29


396

072

866

COLOR KEY: December

ECONOMIC INDICATORS & TRENDS

Jan November Feb Mar Apr May June July Aug Sept Oct Nov Dec

December

Home Sales Closed in St.Cloud Area

*Total as of 9/25/19

$2M

December

Benton Co. 27 94 13

$0 $500k $1M $1.5M Benton County Sheriff’s Civil Process; Stearn’s County Sheriff’s Office

November

The number of jobs regainedFebruary in manufacturing since January bottoming out in 2010; nearly a 10 percent increase.

550%

Home Sales Closed in St.Cloud

March

2000

$1500000

Residential 2017 2018 2019 2017 Stearns Co. 84 31 73

28,663

April

6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH

TOTAL: $1,523,946

The number of retail salespeople in Minnesota, making it the largest occupation in the state. TOTAL: 1789

120

October

2017

100

September

August

July

June

TOTAL: 111

87,430

October

The estimateSeptember of manufacturing August jobs in Minnesota for 2018, which July is the highest number June reported since the Great Recession May in 2008.

TOTAL: 1752

SHERIFF’S FORECLOSURE AUCTIONS

May

321,413

TOTAL: 125

TOTAL: $1,566,952

80

2016

November

TOTAL: 1655

60

$1.5M

Job market shift

1500

40

TOTAL: $133,773*

20

TOTAL: $1,272,176*

2018 0

TOTAL: $1,333,423

$1200000

2017

$1M

December

TOTAL: 86*

TOTAL: $ $795,895 *

2019

April

$900000

2018

$500k

BY THE NUMBERS

Food and Beverage Tax Collection ST. CLOUD

January

*Total as of 9/25/19

1000

$600000

2019

February

Sources: Tax Collections – City of St. Cloud

Sheriff’s Foreclosure Auctions STEARNS AND BENTON COUNTIES

$0

TOTAL: $1,523,946

500

$300000

Jan $200M $250M $300M Housing/Real Estate sources: St. Cloud Area Association of Realtors, http://stcloudrealtors.com/pages/statistics. *Total as of 9/25/19

March

2000

2015

Feb 1500

0

1000

Food and Beverage Tax Collection

500

ST. CLOUD

$0 0

April March

2017

Mar

TOTAL: $1,566,952

May

TOTAL: 1789

Apr

February

2018

2017

2016

TOTAL: $221,316,488

June

2018

May

2017

July

TOTAL: 1815

June

TOTAL: $ $795,895 *

August

2019

August

TOTAL: $288,822,542

2018

January

TOTAL: 1267* September

July

October

ST. CLOUD September

October

TOTAL: $128,941,289*

2019

December

November

October

September

August

July

June

May

Apr

Mar

Feb

Jan

, SAUK RAPIDS, SARTELL, WAITE PARK,

$150M

Food and Beverage Tax Collection

November 6 COMMUNITIES � ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK,

ding Permits ST. AUGUSTA, ST. JOSEPH

M

$100M

488

534

110

$250M

BusinessTools

The increase in retail salesperson vacancies across the state over the past decade, making it the number one occupation in demand.

$2M

$12.38

The median wage for retail salespersons in 2019. Source: Minnesota Department of Employment and Economic Development (DEED)

Lodging Tax Dollars

numbers of job openings the past few years, and the

labor market has never looked better for job seekers. Many workers carefully assess factors like schedule,

location, benefits, and work environment or management, among others. Yet the most important factor for typical

job seekers (both employed and unemployed) is wages. Source: MN DEED

*Total as of 9/25/19

Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 9

Economy Central presented by

December

Central Minnesota employers have been posting record

Sources: Tax Collections – City of St. Cloud

30

November

$2M

October

$1.5M

September

$1M

Where’s the Money

August

$500k

July

$0

June

2017

May

TOTAL: $1,623,035

April

2018

March

TOTAL: $1,748,626

February

TOTAL: $1,131,011*

January

December

November

October

2019

September

August

July

June

May

April

March

February

January

ST. CLOUD


KEEPING GOOD COMPANY

There is nothing more important to us than staying connected to the communities we serve. By knowing our customer, we can provide the banking experience they want and deserve. As an extension of our leadership team, the Falcon National Bank Advisory Board helps us stay connected and deliver upon our mission.

Falcon National Bank | St. Cloud Advisory Board

Bernie Perryman

Dave Jacobs

Batteries Plus Bulbs

Laurie Kissner

Dr. Kim Schaap, MD

Jacobs Financial

All State Traffic Control

Mark Osendorf

St. Cloud Orthopedics

Steve Baker

Steven V. Baker Ltd; Certified Public Accountant

Xcel Energy

k n a h T you!

Tammy Biery Career Solutions

John Herges, CEO

Rebecca Kempenich VP Marketing

Falcon National Bank BOARD CHAIR

Falcon National Bank BOARD VICE-CHAIR

FalconNational.com St. Cloud

|

Foley

|

Richmond

|

Ham Lake

|

Isanti


T

COVER STORY

Bob Heim, Heim's Mill

32

Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 9


Tımeless A MILL ON THE SAUK RIVER HAS BEEN PART OF CENTRAL MINNESOTA’S LANDSCAPE FOR OVER 100 YEARS.

H

By Gail Ivers

Photos by Joel Butkowski, Butkowski Digital Imaging

eim’s Mill has a secret. But then, if you were In 1860 the St. Cloud Democrat reported “The institution 132 years old, you’d probably have a few at the mouth of the Sauk River is turning out pretty secrets, too. good flour and plenty of it. Our old friend Frank Remely There has been a mill operating along Stearns County is in charge of the machinery and he knows how to Road 1 since the 1850s. It has always been located at the manage a mill.…” intersection of the Sauk and Mississippi Rivers, once known In 1869 German immigrant Francis (Franz) Joseph as the Sauk City settlement. It worked as a sawmill and Arnold and a business partner purchased the mill, listing gristmill called Hayes and Fletcher. It was a flour mill, the business as Arnold & Stanton, a custom and merchant grinding flour that was loaded on ox carts making their flour mill in Sauk City. Arnold took over sole ownership by way along the Red River trail. The mill saw the gradual disappearance of the Sauk City settlement. It survived the cyclone of 1886 that Heim Milling Company, Inc. devasted Sauk Rapids and moved 32311 County Road 1, the seat of industry to St. Cloud. St. Cloud, MN 56303 It has seen the transition from 320-251-7033 water power to electricity, from bob.heim@heimmilling.com grinding flour to grinding grain, from –––––––––– hand loading and sewing bags to the CEO: Robert Heim use of robotics. It sits as a monument Ownership: to how much things change…and David, Robert and how much they stay the same. Jerome Heim The first known reference to the Business description: mill appears in December 1859 in Feed manufacturing and the Sauk Rapids Frontiersman where distribution the newspaper refers to the Sauk City Total number of Flouring Mill at the mouth of the When a family member decides to work employees: Sauk River. full time at the mill, they often sign the building.

Business Profile

Fun fact:

8-10 when fully staffed

Signatures found in the plant include some that are 100 years old! N O V E M B E R / D E C E M B E R 2 0 1 9 //

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33


COVER STORY

Personal Profile

Selling the Mill

I

n September 1900, the Arnold flouring mill in LeSauk was sold at auction. The mill’s large debts, mortgage, and family disagreements forced the mill into receivership where it was sold at auction for $2,975 to J.C. Heim. “The new purchaser assumes a mortgage on the property of $5,600 which with the costs and disbursements of the receivership will bring the total amount to be added to the purchase price to about $6,000,” the St. Cloud Times reported on Sept. 9, 1900. “Judge Searle will probably approve the receiver’s sale, though the amount bid is considered as low.”

34

Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 9

to cause an explosion of a lantern, which Kraus held Robert (Bob) Heim, 56 in one hand over the bin. –––––––––– There was a flash, as if from CEO,“…but it's a small ignited power, and almost family business. Lots of immediately the flames different hats and titles.” filled the apartment and Hometown: spread with such rapidity Sartell, MN (Born and that Kraus barely saved raised!) his life.” He crawled on Education: hands and knees, the paper St. Francis Xavier School reported, to the house of in Sartell and Sartell High one of the mill’s employees School (Class of 1981) and gave the alarm. By this Professional educational time the fire was too far courses for animal advanced to stop, and the nutrition, restricted use mill burned to the ground. pesticide application, The loss was estimated mycotoxicology, at over $50,000, but Arnold boiler operation and made immediate plans to maintenance, and rebuild. Despite efforts to 38 years of on-the-job training and experience. convince him to relocate to the dam in lower town, what Work history: is now the area of St. Cloud Began working part-time State University, he chose at the mill during summers and after school in June to remain at the current 1971. “I wasn’t much site. “The foundation on help back then.” Began the outside looks solid and working in the plant in can probably be used for 1973. Began driving for the new mill,” a newspaper the company and doing reported at the time. “The deliveries in 1979. Started dam and water power are his full-time in 1981, including own, and he has no idea of bill collection. Became abandoning the location.” corporate Secretary in By 1887, the new mill was 1999 with responsibilities operational and became the for all aspects of financial management and human foundation of what we now resources. Eventually call Heim’s Milling Co. took over responsibility Not surprisingly, the for pricing and marketing. records from this time are Named CFO in 2013. sketchy. At some point Became CEO in 2018. the mill was renamed the LeSauk Milling Company and began turning out 1876. The mill was prosperous, but too small a product called Snow Bird Flour. In 1894 to fill demand. Arnold tore it down, building the mill received an award at the World’s a new four-story structure on the same site. Columbian Exposition (World Fair) in This second mill fell, as so many of its Chicago for the flour’s “purity, fair color and kind did, to a devasting fire on Dec. 2, 1886. good strength and granulation” making it Gustav Kraus, the night miller, went to perfect for baking, according to a story in the check on a clogged spout. According to a St. Cloud Times. story in the St. Cloud Times, “…as he loosened The fire and rebuilding of the mill took its the flour, it came down with such a rush as toll on Arnold. Records indicate that around


this time he sold the company to N. P. Clarke “We provide exclusion zones around our and retired. dealers,” he said. “We have about 30 of them In 1900 brothers George W. and John in Minnesota…St. Cloud, Anoka, Clear Lake, Heim, purchased the mill along with an Brainerd… we go as far north as Two Harbors associate, Gerhard Abeln. By April 1900, Abeln and Greenbush…we’re about 100 miles short of was out of the business, and not long after the the border.” The company actually serves a fivebrothers “…found it impossible to continue state area. business because of their failure to get along Possibly the best kept secret at Heim’s Mill, harmoniously,” according to a June 13, 1900 is the nutritional support the staff provides to St. Cloud Times story. The their customers. Both Bob records disagree on exactly and Dave are self-taught how it happened, but nutritionists. “If you’ve eventually George took grown up in the industry, Family: Wife Deborah, over the mill, establishing like we did, you figure it married 26 years; sons, the family legacy. out,” Bob said. “Dad used Zachary, 24 and Nathan 20; Snowbird Flour was the to do lots of the nutritional daughter Emma, 15. name of the retail brand work. When someone called Hobbies: Youth Ministry of flour the company in, we’d ask, ‘What age is the at St. Francis Xavier milled in the early 1900s, farmer?’ Dad talked to the Church in Sartell, reading, according to George’s 65-year olds. I talked to the cooking, watching movies great grandson Bob 30-somethings,” Bob said with family, fishing with Heim. Bob, along with his with a laugh. “It generally family, "Card Club" with the brother Jerome and their worked, we’d get the job.” neighbors father, Dave, currently At one point, Bob looked –––––––––– own and operate the mill. into pursuing a degree “We still own that and have in animal nutrition at the –––––––––– the original design. I keep University of Minnesota. thinking maybe we should But after researching the Advice to a would-be bring it back in some way.” program and talking to the entrepreneur: During the Depression “Be honest. Be fair. professors, they agreed that And treat your customers good quality grain to mill he had already earned an like family – or better! into flour became hard to informal degree. Even so, They will appreciate it and it find. For a while the mill he says “Dad still has more makes them more loyal produced both food-grade nutrition experience than I and work more fun.” and animal-grade proddo. I’ll talk with him about Best advice ucts but in the 1960s the some of the things that come you've received and company phased out their up. It keeps him engaged who gave it to you: food-grade line. At about in the business and I really Make a quality product, the same time the mill value his knowledge.” price it fairly and back it up stopped using the Sauk RivStaying abreast of 100 percent. My dad, er for power and switched the nutritional needs of Dave Heim. to electricity. the animals is no small The 1960s were a time feat. “Sometimes today’s of change at the mill. Not greatest thing is obsolete only had they made the move to electric power, in two years,” Bob said. Almost every dairy has but Dave Heim and his brother Leonard, a different formula based on what the animals George’s grandsons, had taken over leadership are being fed, the tradition of the dairy, and the of the company. Their business plan included knowledge of the customer. In some cases the adding dealers for their products. Dave created mill is still working off of handwritten formulas that early network by approaching companies, created years ago. such as St. Cloud’s Mimbach Fleet Supply, to “I’ll get a call from a customer with a sell Heim’s Mill products. The system remains problem. We’ll go over the nutrition and I’ll in place today, according to Bob. make suggestions to deal with the problems

Personal Profile

Best Advice

Timeline ––––––––

December 1859 The first newspaper reference to the Sauk City Flouring Mill at the mouth of the Sauk River can be found in the Sauk Rapids Frontiersman. 1860 A reference to the mill appears in the St. Cloud Democrat.

1869 German immigrant, Francis (Franz) Joseph Arnold and a business partner purchase the mill, listing it as “Arnold & Stanton, a custom and merchant flour mill in Sauk City.” 1876 Arnold takes over sole ownership of the mill. He tears down the existing structure and builds a larger, fourstory building. 1878 A new wagon bridge spans the Sauk River at the site of the dam and mill. 1882 Additional improvements are added to the mill.

Dec. 2, 1886 The mill is totally destroyed in a fire.

1887 Arnold builds a new mill on the same site.

N O V E M B E R / D E C E M B E R 2 0 1 9 //

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35


COVER STORY

Political Junky

B

ob Heim enjoys politics.

Not just watching it on TV

or listening to political pundits, but jumping in with both feet.

Bob is the manager and co-owner

of Heim’s Milling Co. But that’s not his first love.

“When I was in high school and

you took those aptitude tests,

nothing came up that indicated I should go into ag,” he said.

“Things like attorney or something along those lines. But there was encouragement to go into the

family business.” In fact, by his junior and senior years in high

school he was effectively told to try the business for a few years and “see what you think.”

So milling became his vocation,

but politics became his passion. “I got quite involved in party

politics,” he said. “That was fun.”

He was the Congressional District vice chair which included “having Congressmen tour the mill,”

he said. He attended the 1988

Republican National Convention

in New Orleans when Dan Quayle was selected as George H.W. Bush’s running mate.

He was also chair of the

LeSauk Township board. “I did

that during the orderly annexation

agreement with Sartell. I didn’t like

the consultants, so I started a side business consulting with cities

and townships on growth issues,” he said.

Though he’s been out of the

political action for about 12 years, he still thinks it’s fun. “I’m still in

politics a little bit,” he said, “but mostly from the industry side.”

36

Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 9

based on current science,” Bob said. “Some Not that long ago, all products sold by guys say, ‘Not interested. That’s not how the mill were packed in 100-pound burlap grandpa did it.’ Well, there’s a reason for bags. “Whatever it was, it didn’t matter,” Bob that. The next guy is pushing to try the said. Now he has dealers who are selling newest formula. Well, that may not be the online and requesting five- and 10-pound best choice for him, bags of feed. “That’s based on the science.” really labor intense,” Bob recalled taking he said. “We can do a phone call from a 50-pound bags by young farmer who was machine. It’s hard to having health issues make anything smaller with newly born calves. be cost-effective.” “There are only specific It’s not just things that could cause the nutrition and those problems,” Bob customization that has told the farmer. “He become complex. “We told me ‘I can’t make have more and more those changes because new regulations every Dad won’t like it.’” day,” Bob said. “There’s Currently Bob is a lot of concern over looking at making the use of antibiotics changes to poultry in feed. A little over The robotic feed, “based on two years ago there equipment, fondly current science,” he were 34 antibiotics known as Roman, fills, emphasized. E-coli is and you needed two sews, and stacks a problem in poultry prescriptions. Today 720 bags per hour. production and early there are 31 antibiotics results show the level and they require 16 can be lowered by prescriptions from the using some different veterinarian.” feed ingredients. “It will increase the The Food Safety Modernization Act price by two-cents a bag,” Bob said. That’s requires mills to figure out the probability of not always an easy sell. “Higher quality any possible problem, and create processes feed costs more money, but a lot of times for avoiding the problem, no matter the you can use less, and the animal does probability, according to Bob. “There’s so better. It’s a teaching process.” much paperwork. It’s just insane. There are This level of customization has added mills that have closed because of this rule.” a complexity to the business that didn’t Millers who have a good understanding exist 20 years ago, according to Bob. of the regulations are able to capture new Over 90 percent of the mill’s products customers. “If you’re our dealer, we’ll help are proprietary, mixed and sold in Heim’s you figure out the regulations,” Bob said. Milling Co. bags, and delivered to dealers “Dealers often won’t call, but they’ll get an and commercial farming operations. Of inspection and the inspector will tell them those, 50 percent are customized grain to call us. When we can help a customer, formulas that are site-specific. or potential customer, that’s good for us. “We have ten times as many commercial If you’re competent in your proficiencies, items now than we used to have,” Bob you can make a big difference for your said. “Instead of four or five products for customers.” chicken, ducks and pheasants, we have 30. All the complexity had another impact Instead of two dog foods, we have 24. We’ve on the business. Dave started to lose interest, diversified so much. We don’t even sell to Bob said. “We’ve been experiencing a farms with laying hens, but we still sell 5,000 general shift from my Dad to us for about pounds of chicken feed a day.” the last decade. As technology became

Fun Fact


Timeline ––––––––

Fun Fact In 2000 dairy cow feed made up 70 percent of Heim’s Mill’s business. Today it is less than 50 percent. more critical and regulations became more complicated, he just didn’t want to deal with it. But he still comes in every day, which is great.” And Bob’s son, Nathan, the herald of the fifth generation, has clearly stated his intention of taking over the business one day. Currently he’s a junior at St. Cloud State University studying business management. Both Bob and his wife have insisted that Nathan complete college. “We don’t want him to make a career decision at 20 years old, and we’ve told him that.” All the same, he works at the mill, hauling feed and driving semi trailers. “That kind of makes our business unique,” Bob said. “It’s definitely a family business. How many other companies can you call and stop in where you could meet up with the grandfather, the son, and the grandson?” Now, about that secret…the Heims have a tradition that dates back at least to Great Grandpa George Heim. “Whenever anybody in our family decides they are going to stay and work here, we have them sign the mill,” Bob said. Not all in the same place, but in any random spot they choose. “Several years ago, when the sun hit the wall in just the right place, we found my great-grandfather’s signature.” How many other signatures grace the walls? That remains a secret known only to the mill.

1894 The mill’s flour receives an award at the World’s Columbian Exposition (World Fair) in Chicago.

1900 Brothers George W. and John Heim purchase the mill. Following a disagreement, George becomes the sole owner.

1926 George Heim restructures the plant, increasing production to 200 barrels of flour daily. 1933 John Heim buys the business from his father George.

World War II The mill operates 16 hours a day, selling every bag of flour it can produce. 1945 The mill still uses a waterwheel for power and lanterns for light.

1958-59 The Heims install the first electric motor in the plant. 1960s The company phases out their food-grade flour. 1960 An ice jam breaks the Heim’s Mill dam; the dam is rebuilt. 1963 Brothers Dave and Leonard Heim buy the business from their father John.

1965 A second ice jam breaks the center section of the dam. This time the dam is not rebuilt, and the company converts fully to electricity.

1972 The old cast iron waterwheel that had provided power for the mill for a century is removed to make way for a new warehouse. 1979 The mill receives a facelift when the original weathered boards are covered with a new metal front. The mill produces more than 60 types of animal feed. 1984 The Heims add a side annex to the mill

1988 The Heims build a pole shed and load out terminal 1998 Dave and his sons buy out Len and his son. 200 The Heims add a truck shed

2009-2014 The Heims build a center warehouse, adding on twice in five years. Today the mill can produce about 100 tons of feed per day, or roughly 4,000 bags.

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

N O V E M B E R / D E C E M B E R 2 0 1 9 //

www.businesscentralmagazine.com

37


Feature

CULTIVATING TRUST Workplace success depends on a foundation of mutual trust. By Tracy Knofla

T

here are few things more critical to workplace success than the bond of trust shared between employer and employee. From the moment someone is hired, a contract is formed. New employees agree to share their skills and talents with the company, while the company agrees to maintain an environment to help them succeed. This working relationship will be successful as long as there is confidence that the

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contract will be fulfilled. This is the foundation of mutual trust. Trust, according to Dictionary.com, is defined as: “reliance on the integrity, strength, ability, surety, etc., of a person or thing; confidence.� Employees who believe they work for an organization with integrity will work hard to maintain that reputation. They will allow their pride for the company to show and will


bring a measure of confidence to every action they take. Therefore, it is essential for a company to cultivate trust-building behaviors. However, when employees feel that the company, or other employees, does not act with integrity, they lose trust. This loss of trust can result in negative workplace behaviors that impact productivity and morale and increase employee turnover. TRUST-BUILDING BEHAVIORS A company that values their employees wants to engage in a relationship with them that includes a high level of trust. Here are ten actions you can take to help build that trust within your organization. The Mission Matters All organizational leaders must act in

a manner that is consistent with the company’s mission. A well-run organization encourages all employees to focus on the company’s mission and aligns individuals’ goals with the mission. Organizational leaders should see themselves as rolemodels of exemplary behavior consistent with the company’s values and mission.

opportunity for input or even the chance to know that there was a conversation being considered. Not everyone will agree with every decision, but knowing a change may be coming and having an opportunity to share an opinion on it, builds more trust than just announcing that the change has occurred.

Transparency is Imperative In today’s society employees expect their company to be transparent in its operations and decision making. No longer can a company expect to make all of its decisions behind closed doors without input from others, nor should they be able to hide basic truths from their employees. When employees are surprised by a change in process or practice they will be disappointed that they weren’t given

Fairness Matters Make “Being Fair” a core value of your business. Employees understand that not everyone can be treated equally, but they want everyone to be treated fairly. Having consistent policies and practices will help with this, but putting a voice to your desire to be fair and helping employees see that the decisions made are based on this value will go a long way toward building and keeping their trust.

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Feature Supervisors who fail to incorporate proper management techniques should be reassigned as they may create more distrust than trust within the company.

Clear Performance Expectations All employees must have clearly defined job descriptions as well as performance and behavioral expectations. This allows employees to know their roles in the company and provides confidence that they are working on the proper tasks and projects. This will help alleviate role confusion and duplication of efforts across the organization. The behavioral expectations are just as important as the performance ones. Employees need to know that how they act in the workplace is as important as the work they accomplish.

Train Supervisors to Lead their Teams Often it is not upper management leaders who create a loss of trust with employees, but the direct supervisors. Leading teams of people is hard work. It should be treated as such. Opportunities for training, guidance, and mentoring should be offered to all supervisors to help them support their staff. Supervisors who fail to incorporate proper management techniques should be reassigned as they may create more distrust than trust within the company.

Performance Appraisals Performance appraisals should be held at frequent and regular intervals and employees must understand the role of the appraisal in the compensation they receive. It is crucial that employee assessments are completed regularly -- not just annually -- so that employees know their progress toward their goals and their value to the company. Everyone should understand how they are compensated for their work and the method of evaluation when merit awards are involved. Address Performance Issues Quickly and Fairly Take swift action when performance standards are not being met. Employees trust management to insure that the working environment is fair and equitable to all. While you cannot share the details of an issue you are addressing with a specific

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employee, dealing with problems as they arise will help others see that the needs of all are important, and that all members are held to the same standards. Trust Your Employees Micromanaging sends a very clear message that you do not trust your employees. It is demeaning to long-term employees to have to run the smallest decisions by someone else. Well-trained employees who are confident in their work will make good decisions and should be allowed to do so. When an employee feels empowered to make independent decisions on behalf of the company they feel trusted, engaged, and happier at work.

couldn’t have. Ask your employees to help you solve complex problems and listen to their input. As often as possible, implement employee-initiated suggestions and make sure to give credit to the employees who shared their ideas. This builds trust throughout your organization and sends the message that your employees’ ideas are valued. Minimize Distractions Successful organizations set goals that are reasonable and attainable. They then plan the work around these goals. However, in every workplace, new ideas emerge that become a distraction to attaining

Ask and Implement Your employees are really the experts in your business. They often have insight into the work that upper level management

the original goals. Employees often have to change direction and occasionally abandon work that was completed, because of these distractions. When you minimize organizational distractions and stay focused on your core business you build trust with your employees because they know that what they’re asked to do aligns with the goals of the organization and will not be set aside on a whim. When you seek to build trust with your employees, what you really seek is to build better employees. And this, we know, builds better companies.

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SURVIVING START-UP If you’re a relatively new entrepreneur, the best investment you can make might be a mentor. By Mary MacDonell Belisle

O

nly 50 percent of startups survive their first five years of business, according to the Bureau of Labor Statistics and the U.S. Small Business Administration. Here are few ideas for how you can financially position your company to be a positive startup statistic... and success story.

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“Business owners should forecast cash flow for the first 12 months on a monthly basis on the front end so they’re not surprised when cash flow is tight.”

1 Use experts.

“The number one reason we see startup businesses fail is because the owners have mastered a craft or a trade, and enjoy doing it, but fail to hire experts to perform functions like sales and marketing, finance and administration, or operations early enough to allow the business to grow or survive,” according to Paul Radeke, business development, BerganKDV.

—DENNIS MILLER

business mentor for 20 years and business banker at Falcon National Bank. “Business owners should forecast cash flow for the first 12 months on a monthly basis on the front end so they’re not surprised when cash flow is tight,” he added. Financial experts also recommend startups allocate reserve funds to cover from three to six months’ worth of operating expenses. How does a startup smooth out cashflow surges and shortages? Complete a

2 Smooth out cash flow.

“The first months in business generate a lot of expenses -- rent, payroll, advertising, inventory purchases -- before the sales start happening. Failing to plan for these up-front expenses is common,” Dennis Miller said. Miller has been a SCORE (Service Corps of Retired Executives)

daily cash-flow analysis and report. Business owners can also take advantage of lines-of-credit, according to Miller. A line of credit is money a financial institution has agreed to lend businesses up to a predetermined amount. Funds are accessed and interest paid on an “asneeded” basis. “We were using our line of credit to buy computers,” Kelly Cane said. “We learned later that a better way would

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SPECIAL FOCUS

have been to get an equipment loan and to leave our line open for what it is intended––to help with cash flow, which in our case is used to pay our employees.” Cane is co-owner of Gaslight Creative, a St. Cloud marketing/advertising agency, celebrating 10 years in business.

3 Manage cash flow and profitability.

“Many businesses run out of cash even though they are profitable,” according to Russ Sand, market leader, BerganKDV. “The key to solving this challenge is accurate cash flow projections and having an adequate source of liquidity before the crisis arrives.”

4 Speed up the sales cycle.

SCORE’s Miller also pointed out that the sales cycle is too long for many startups. Startups must improve turnaround time for the sale, the

generation of accounts receivable (AR), collection of AR, and its conversion to cash. Accounting software, mobile deposits, mobile lines of credit, online payment processing, and inventorytracking technology can help speed up the sales cycle to impact cash flow. So will paying attention to the sales cycle.

5 Know your numbers.

“Keeping a scorecard for the business is important, and the scorecard that’s the most difficult to interpret are your financial statements,” Sand said. “Knowing how to interpret the financial statements to manage your aging accounts receivable, or shrinking margins, can be interpreted by a CPA, but it’s not often understood well by the startup business owner.” “Some of the best advice I received was to not be afraid of [the] numbers,” Cane

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said. “Learning as much as you can about your revenue and expenses is important for every business owner, even if you decide to outsource your bookkeeping and/or accounting.”

“We were using our line of credit to buy computers, we learned later that a better way would have been to get an equipment loan and to leave our line open for what it is intended––to help with cash flow.” —KELLY CANE

6 Work the plan, and plan the work.

A business plan is a document specifying in detail how startup entrepreneurs anticipate they will achieve their objectives. The plan includes: • an executive summary • details about the company’s products and services • a market analysis • a marketing strategy • financial planning/projections • a budget This document is a roadmap for a company on-the-move. If a startup doesn’t have one, maybe the startup is not going anywhere.

“It took me a few years in business to fully understand how to prepare an effective budget, with the help of our accountant, of course,” Cane said. “I’ve observed that starting a business contains a trifecta of elements typically distasteful to folks: numbers, writing, and presenting,” LaRae Ross, associate director, SBDC said. “Most folks would prefer to work in their business, rather than on their business. Pride and fear play a huge role in keeping people from seeking help before it’s too late. Logic needs to trump pride – there needs to

be an ability to be honest with one’s self when things are heading south.” Mary MacDonell Belisle is a freelance copy and content writer with mary macdonell belisle – wording for you. She helps clients choose and use their words wisely and more effectively. Her website: wordingforyou.com. For a list of sources used

in this story, visit Business CentralMagazine.com

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IN THE KNOW

Advice Givers

If you’re thinking about starting a business, or if you’ve already started one but are running into some bumps, now is the time to ask for advice. There are many resources available to business owners, both free and at a cost. Here are a few to consider. 1 Find a business mentor volunteer. If you don’t know one, the Service Corps of Retired Executives (SCORE) offers free mentoring and advice from retired business people. 2 Enlist a consultant at the Central Minnesota Small Business Development Center. The SBDC is a no-cost, full-service organization that assists entrepreneurs in the dream, startup, growth, transition, and succession phases of business. 3 Tap the talents of a business banker, and learn from other clients’ experiences. 4 Ask questions of an accountant or CPA who has insights about productivity, profitability and financial forecasting. meta13.com • 320-230-1223 46

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“ Gender Bias?

Startup behaviors differ between women and men

L

aRae Ross, associate director of the Central Region’s Small Business Development Center, has seen a 50/50 split in the number of male and female clients over the past five to six years. She’s observed the following differences, in general, which could be obstacles to startup success: 1 Women underestimate themselves and their abilities; men overestimate their capabilities. For example, a woman will come into the center with four binders filled with research, whereas the man will bring a napkin, said Ross, exaggerating her point with humor. 2 Women are more frequently turned down by traditional funding (banks) than men. 3 Women’s startups are more service-centric than men’s, whose goals are more focused on wealth and job creation.

According to Ross, the Kauffman Foundation has found that, among national trends, African American and immigrant women are closing the gap on male vs. female-owned businesses.

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Business Spotlight

Creating Memories The industry may have changed, but The Camera Shop still helps clients capture life’s precious moments. By Gail Ivers

Business Central: Your industry has seen a lot of change. How do you navigate that? Frank Ringsmuth: We’ve created a bunch of niches. We develop a significant amount of film from around the country – color, black and white, slide film, old film… Every day we get rolls of film in the mail for processing. In 1974 the industry reformulated the chemicals for processing film, essentially making them less toxic. If you have film that was created

prior to 1974 you can’t get it processed unless you come to someone like us who has figured out how to do it with today’s chemicals. All our machines can print in auto mode, but we’ve never done that. We use skilled people to look at every single picture that comes into the lab and correct or confirm that it’s the right color and exposure. We have commercial accounts with professional photography companies all over the country who send us their images for processing.

AT A GLANCE The Camera Shop

25 7th Ave. S, Ste 200 St. Cloud, MN 56301 (320) 251-2622 –––––––––– 223 3rd Street NE Waite Park, MN 56387 (320) 251-4687

50

PERSONAL PROFILE Frank Ringsmuth, 66

Education: Bachelor’s degree in photographic engineering technology from St. Cloud State University Family: Wife, Laura; six children, ages 18 to 35 Hobbies: Unicycling; volleyball and tennis, Deacon in his church Fun Fact: Ringsmuth has been unicycling since he was 15 years old. Today he teaches people how to ride. “I created the Ringsmuth Riders Unicycle Team in 1996. We ride in summer parades.”

BC: What do you like best? Ringsmuth: I enjoy the challenges. I am engaged in every single day. I don’t enjoy when a machine breaks down, but I like getting over there and figuring out what’s wrong and getting it fixed. I think I answer the phone more than most owners. I enjoy customer interaction and when they talk with me, they can hear my expertise and trust our company.

Fun Fact ––––––

At one time there were 16,000 1-hour photo labs in the U.S. Today there are about 1,000, of which The Camera Shop is one.

Chamber member since 1971 Business Description: Full-service photo lab and digital printer; professional portrait studio; movie and videotape transfers; lab services for professional photographers Owner: Frank Ringsmuth // Opened: 1947 Number of Employees: About 24, half are full-time, half are part-time TheCameraShop.com

Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 9

Timeline

–––––– 1947 Russell Roe opens The Camera Shop at 15 7th Ave. S, downtown St. Cloud

1967 Harry and Susan (Roe) Stanius take over the family business as Russell retires 1968 Color film processing and printing equipment are installed; “six-hour service” begins 1973 Frank Ringsmuth starts working part-time at The Camera Shop

1975 The Camera Shop moves across the street; Ringsmuth is promoted to photo lab manager 1983 The Camera Shop invests more than $100,000 to install one-hour photo processing equipment

1987 Stanius and Ringsmuth partner, opening the Cross-Way North Plaza location, across the street from Crossroads Center 1995 The Camera Shop moves to their current location in downtown St. Cloud 2000 The company installs St. Cloud’s first digital photofinishing printer

2008 The “third generation” photofinishing printer is installed

2012 Ringsmuth purchases Stanius' remaining shares in the business; he relocates the business from its ground-level store front to the second floor of the same building and installs a new digital press printer for creating two-sided print products 2015 Ringsmuth establishes Picture Day Pro brand, providing school and youth sports photography; The Camera Shop opens offices in Golden Valley and Brainerd


Highly dedicated to clients. Now, highly regarded by the industry. Congratulations to Michael K. Karl and Matthew R. Nikodym for being named 2019 Forbes Best-In-State Wealth Advisors At UBS, we believe managing a client’s assets goes beyond just the value of their portfolio. It’s about establishing trust, instilling confidence and building personal relationships. Those are just a few of the reasons Michael K. Karl and Matthew R. Nikodym have both been named to the 2019 Forbes/SHOOK list of Best-In-State Wealth Advisors in Minnesota. We’re proud to have people who have the passion and dedication to excellence like Mike and Matt on our team. We think you’ll feel the same about them, too. For more information, contact: Michael K. Karl, CFP®, CIMA® Senior Vice President–Wealth Management Branch Manager Advisory & Brokerage Services Senior Portfolio Manager Retirement Plan Consultant michael.k.karl@ubs.com Matthew R. Nikodym, AAMS®, CRPS® Senior Vice President– Wealth Management Advisory & Brokerage Services Senior Portfolio Manager Retirement Plan Consultant matthew.r.nikodym@ubs.com

UBS Financial Services Inc. 4150 2nd Street South, Suite 500 St. Cloud, MN 56301 320-252-6909 800-444-3809

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Forbes Best-In-State Wealth Advisors list is comprised of approximately 2,200 financial advisors. It was developed by SHOOK Research and is based on in-person and telephone due diligence meetings to measure factors such as: quality of practice, industry experience, compliance record, assets under management (which vary from state to state) and revenue. Neither UBS Financial Services Inc. nor its employees pay a fee in exchange for these ratings. Past performance is not an indication of future results. Investment performance is not a criterion because client objectives and risk tolerances vary, and advisors rarely have audited performance reports. Rankings are based on the opinions of SHOOK Research, LLC and not indicative of future performance or representative of any one client’s experience. As a firm providing wealth management services to clients, UBS Financial Services nc. offers both investment advisory services and brokerage services. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, visit our website at ubs.com/workingwithus. Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, Certified finanCial PlannerTM and federally registered CFP (with flame design) in the US, which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CIMA® is a registered certification mark of the Investments & Wealth InstituteTM in the United States of America and worldwide. For designation disclosures, visit ubs.com/us/en/designationdisclosures. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. © UBS 2019. All rights reserved. ACC_05212019-3 Exp.: 05/31/2020


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