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NOVEMBER/ DECEMBER 2018
6 13
CONTENTS
GROW | NETWORK | PROFIT
GROW
32 Cover Story
President’s Letter
Top Hats
8 19
Editor’s Note
Network Central
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u
C E L E B R AT I N G 1 8 Y E A R S I N B U S I N E S S
32
PLAY STATION
Laura and Steve Knutson have
followed a rocky path to turn their vision into a destination for fun. PROFIT
38 Feature NET CUSTOMERS
The business that beefs up its web
and social media presence is winning
the customer race in the digital arena.
42 Special Focus
RETIREMENT PLANNING
Creating a retirement plan for your employees is an important step in retaining talented people.
Special Section 48 FINANCIAL PLANNING
10 UPFRONT Valuable information designed to guide and educate
Only Online // BusinessCentralMagazine.com • Time-management for new leaders • IRS offers tips on tax reform • Implementing change • Honing soft skills
22 BUSINESS TOOLS
Marketplace intelligence and useful tips on how to continue to grow your business
50 BUSINESS SPOTLIGHT Todd Kelm and Tim Reuter; Kelm and Reuter, P.A.
© Copyright 2018 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.
Join us to help victims of child abuse CentraCare Health Foundation’s 2018 Community Campaign supports the Child Advocacy Center which cares for children who have been physically, sexually or emotionally abused. This facility brings law enforcement, child protection, county attorneys, advocates, mental health and medical professionals together to listen as a child tells their traumatic story one time to a trusted professional.
Your gift to CentraCare Health Foundation will be DOUBLED thanks to the generosity of Boser Construction, Inc. Boser will match up to $100,000 of gifts received before Dec. 31. All matching gift proceeds will benefit the Central Minnesota Child Advocacy Center. Give online at centracare.com/foundation. For other giving options, call 320-240-2810.
“Please join our effort to support victims of child abuse.” Ryan Cross President & CEO, Boser Construction, Inc.
President’s Letter
Happy Anniversary
T
he St. Cloud Area Chamber of
Judy keeps our office humming so the rest of us
A group of creative volunteers has
effectively. Judy develops, implements and controls
Commerce is 150 years old in January!
been diligently planning memorable events
and celebrations for 2019. All will be revealed in the coming months, starting with our
When you look behind the office doors of 5-Star chambers, you typically find dedicated, tenured staff.
kick-off on January 18 when we host Chamber Connection. Next summer, we’re partnering
with St. Cloud State University on a community event. That institution is also celebrating
150-year-anniversary. There’s lots more, but those are all the hints I’m giving out today!
A milestone anniversary is one to celebrate.
Especially when the organization is one of the
best of its kind. You have heard me crow about
who are out in the community can do our jobs more office operations and budgets. She acts as our
human resource officer and makes sure everyone is paid accurately and on time. She creates, interprets and distributes all our financial reports, audit
functions and tax payments. She’s in charge of our technology. She hires the vendors who keep our
space clean and works with our landlord to ensure it is maintained for members. She’s also in charge
of making sure membership dues are administered accurately. Oh, and she performs related work as required, too.
These two coworkers have been my rocks
our 5-Star Accreditation status often. It means
during my 20 years as Chamber president. They
chambers in the United States. When you look
new (and sometimes crazy) ideas. They put up with
we measure up as one of the most outstanding behind the office doors of 5-Star chambers, you typically find dedicated, tenured staff.
Open the doors of the St. Cloud Area Chamber
and you encounter two senior staff members who certainly qualify as dedicated and tenured.
Our Vice President Gail Ivers celebrated
her 30th anniversary on October 17. I call
Gail the “Vice President of Everything.” She is
keep me grounded and are sounding boards for
my rants regarding political figures (bi-partisan, of
course). They keep me from spending money if “it’s not in the budget.” We have shared many of life’s
milestones, from delightful personal moments to
the deepest sadness at the loss of loved ones. We
are a three-legged stool, and I have been fortunate to have them for balance these last 20 years.
While you’re celebrating our Chamber’s 150th
responsible for directing membership sales
anniversary, remember these two superior women
marketing, and communications programs.
the past 30 of those years.
and services, and implementing networking, She oversees our workforce development
and employee training programs. She serves
who have been meeting people at the Chamber for They are simply THE BEST!
as executive director of the Sauk Rapids and Waite Park Chambers. She is the editor of
Business Central Magazine. She assumes the
responsibilities of the president in my absence. And she performs related work as required –
including working with our 150th Anniversary Committee.
Our Director of Administration Judy Zetterlund
celebrated her 24th anniversary on October 19.
6
Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
Teresa Bohnen Publisher
Main Phone: 320-251-2940 Automated Reservation Line: 320-656-3826 Program Hotline: 320-656-3825 Email: 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 Communications & Workforce Development Coordinator: Kelti Lorence, ext. 130 Special Events Coordinator: Sheri Wegner, ext. 131 Membership Sales Specialist: Antoinette Valenzuela, ext. 134 Administrative Assistant: Kellie Libert, ext. 124 Administrative Assistant: Vicki Lenneman, ext. 122 Administrative Assistant: Shelly Imdieke, ext. 100 CONVENTION & VISITORS BUREAU STAFF Main Phone: 320-251-4170
Location is no longer a hurdle.
Executive Director: Julie Lunning, ext. 111 Director of Sports & Special Events: Dana Randt, ext. 110 Sales Manager: Nikki Fisher, ext. 112 Sales Manager: Rachel Thompson, ext. 128 Social Media & Marketing Specialist: Emily Bertram, ext. 129 Sales and Services Coordinator: Erin Statz, ext. 113 Administrative Assistant - Information Specialist: Jennifer Schroeder, ext. 170 2018-19 BOARD MEMBERS Marilyn Birkland, Times Media
New South St. Cloud Location The best possible bone, joint, and muscle
David Borgert, CentraCare Health
care is closer to you than ever before,
Ron Brandenburg, Quinlivan & Hughes
right here at our 2nd state-of-the-art
Christy Gilleland, Gilleland Chevrolet Cadillac Jim Gruenke, Traut Companies Jason Hallonquist, AIS Planning, Board Vice Chair Patrick Hollermann, Park Industries Dennis Host, Coborn’s, Inc.
orthopedic specialty clinic in South St. Cloud. It’s time to start living better— make an appointment today.
Willie Jett, St. Cloud School District Kevin Johnson, K. Johnson Construction Bernie Omann, St. Cloud State University
Opening in November
Mark Osendorf, Xcel Energy Bernie Perryman, Batteries Plus Bulbs Roger Schleper, Premier Real Estate Services, Past Board Chair Allison Waggoner, DCI, Inc. Chriss Wohlleber, Courtyard by Marriott-St.Cloud, Board Chair
3315 Roosevelt Rd. #200B
320.259.4100 StCloudOrthopedics.com N O V E M B E R / D E C E M B E R 2 0 1 8 //
www.businesscentralmagazine.com
7
Editor’s Note
Family Fun
On the way home, we stopped at one of the last A&W drive-ins and ate papa, mama, and baby burgers with root beer floats. Summer doesn’t get any better than that!
E
stablishing a legacy for their children.
Society. Volunteers and staff dress up in period
a family-friendly destination. These are
an 1860s working farm. We ate fresh bread baked
Building a retirement business. Creating
some of the goals that Laura and Steve Knutson, Bakers HobbyTown/Thunder Road RC Raceway, had when they started their business. (See the story on page 32) Too bad their raceway didn’t exist when my nieces were little.
Back then I proposed that the little girls spend
a weekend with me each summer. We covered a good share of Central Minnesota in our search
in a wood-burning oven, fed potato beetles to the chickens, petted kittens, and played in the barn.
The staff were kind to the children, knowledgeable and fun. I highly recommend it. On the way home, we stopped at one of the last A&W drive-ins and
ate papa, mama, and baby burgers with root beer floats. Summer doesn’t get any better than that!
One year we baked and decorated cookies. At
for kid-friendly activities. We went to the Stearns
the time my kitchen had a concrete floor. As we
Avon, and Rapids River Days in Sauk Rapids. We
the glass bottle of food coloring. It spurted out of
County Fair in Sauk Centre, Spunktacular Days in visited Molitor’s Quarry when they had a fishing pond and petting zoo. We played mini-golf. We
went to the circus. (Nothing cuter than a little kid wearing big sunglasses and riding an elephant.) We even attended a local church bazaar.
One year, and no other that I can remember,
we had a huge hatch of leopard frogs. They
would sit in the tall grass by our pond. When we
ran down to the edge they would leap – en masse – into the pond. If we stood completely still they would climb back out and we could stamp our
feet on the ground and splash, plop, ploop, they
would leap back into the pond. This was not just five or six frogs. This was hundreds of frogs and great entertainment. My nieces still talk about the year we chased the frogs.
My personal favorite was our visit to the
Oliver Kelley Farm in Elk River. It is a living history museum sponsored by the Minnesota Historical
8
costumes and during the summer they operate
Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
prepared the frosting, one of the girls picked up her slippery hands and shot into the air. In slow motion I lunged for it, grabbed it, and bobbled it. Tom, diving to catch it before it shattered
on the floor, watched it slide off his fingertips. I had visions of sending green-speckled little girls home to their mother and being forever ostracized from the family.
The bottle slammed onto the concrete ... and didn’t … even … crack. Until next issue,
.
Publisher Teresa Bohnen Managing Editor Gail Ivers Associate Editor Dawn Zimmerman CONTRIBUTING WRITERS Teresa Bohnen, St. Cloud Area Chamber of Commerce April Diederich, Proviant Group Melinda Gau, Quinlivan & Hughes, P.A. Dr. Fred E. Hill, St. Cloud State University Steve Hine and Cameron Macht, Minn. Department of Employment and Economic Development Gail Ivers, St. Cloud Area Chamber of Commerce Kellie Libert, St. Cloud Area Chamber of Commerce Doug Loon, The Minnesota Chamber Kelti Lorence, St. Cloud Area Chamber of Commerce Mary MacDonell Belisle, mary macdonell belisle - wordingforyou Jeanine Nistler, freelance writer Christine R. Panek, CPA Dawn Zimmerman, The Write Advantage
ADVERTISING Associate Publisher/Sales Wendy Hendricks, Hendricks Marketing Ad Traffic & Circulation Yola Hartmann, Hazel Tree Media
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
ART Design & Production Yola Hartmann, Hazel Tree Media Cover Photo Joel Butkowski, BDI Photography ACCOUNTING Judy Zetterlund
For advertising information contact Wendy Hendricks, (320)656-3808
WEBSITE Vicki Lenneman
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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UPFRONT GROW | NETWORK | PROFIT
INSIDE THIS ISSUE: People to Know •
Your Voice in Government •
Top Hat Photos • The Trouble with Business
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u
NEWS & PEOPLE THAT MAKE UP THE CHAMBER NETWORK
BOOK REVIEW
Becoming Real
NEWS REEL
It doesn’t take magic to become your real self, just mindful practice. Reviewed by Dr. Fred Hill
Emotional Agility; Get Unstuck, Embrace Change, and Thrive in Work and Life; Susan David, PhD; Avery, New York; 2016; ISBN 97815924094095
At a time when it’s more difficult than ever to silence the unending noise that surrounds us. Along comes Emotional Agility, a practical, science-backed guide to looking inward and living intentionally. By urging us to work with - not against - our own emotions, Susan David gives us the tools we need to be more adaptable and resilient, so that we may not only succeed but truly thrive. -- Arianna Huffington
D
r. Susan David’s approach to living intentionally allows us to navigate life’s twists and
10
turns with self-acceptance, clear-sightedness, and an open mind. She shows how anyone can thrive in an uncertain world by becoming more emotionally agile. The book is structured in 11 chapters. They are: 1. Rigidity to Agility 2. Hooked 3. Trying to Unhook 4. Showing Up 5. Stepping Out 6. Walking Your Way 7. Moving On: The Tiny Tweaks Principle 8. Moving On: The Teeter-Totter Principle 9. Emotional Agility at Work 10. Raising Emotionally Agile Children 11. Conclusion: Becoming Real. Emotional agility is about loosening up, calming down, and living with more intention. It’s not about controlling our thoughts or forcing us into thinking more positively. It’s about choosing how we will live a more meaningful life. The Tiny Tweaks Principle states that small, deliberate tweaks infused
Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
with our values, can make a huge difference in our lives. The Teeter-Totter Principle states that we need to find the perfect balance between challenge and competence so that we are neither complacent nor overwhelmed, but instead are excited, enthusiastic, and invigorated by challenges. In Chapter 11: Becoming Real, Dr. David summarizes from the book The Velveteen Rabbit, a tale of a stuffed animal’s quest to become real. The Rabbit asks the Skin-Horse one day, “What is real?” The Skin-Horse replies, “Real isn’t how you are made, it’s a thing that happens to you. When a child loves you for a long time, not just to play with, but really loves you, then you become Real.” In the story, magic is applied and real becomes Real. In practicing emotional agility, we don’t need magic to become our Real selves. Dr. Fred E. Hill is an emeritus professor at St. Cloud State University
METRO BUS DRIVERS TAKE TOP HONORS AT STATE COMPETITION
Metro Bus Dial-a-Ride operators Todd DeZurik and Chris Osmek took first and sixth in the small bus division at the Minnesota Bus Roadeo. DeZurik also placed third at the 2018 National Community Transit Roadeo.
ST. CLOUD HOSPITAL EARNS TOP RANKING
The St. Cloud Hospital was ranked by U.S. News and World Report as one of only 29 hospitals in the nation with strong ratings in the handling of two chronic conditions and seven surgical procedures. In addition, the hospital is the only hospital in the Midwest to earn top scores in open heart surgery, including heart bypass and aortic valve replacement, according to Consumer Reports.
MCI CARPET ONE EXPANDS
MCI Carpet One purchased the Floor to Ceiling store in Mankato, Minn.
FOLEY NAMED PRINCIPAL AT CATHEDRAL
Paula Foley is the new principal at Cathedral High School. Foley most recently served as the superintendent of schools for Warroad, Minn., and in a variety of roles with the Minnesota Deptartment of Education. Prior to that she worked for more than two decades in administrative positions in St. Cloud School District 742. Foley succeeds Lynn Grewing who filled the position for 17 years.
PEOPLE TO KNOW
Four 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.
Ron Brandenburg
Quinlivan & Hughes, P.A.
(320) 258-7841
Patrick Hollermann
Bernie Omann
Chriss Wohlleber
(320) 251-5077
(320) 308-1600
(320) 646-1661
Park Industries
St. Cloud State University
IF YOU GO
Chamber Connection Birthday Party December 7 at the Kelly Inn, 100 4th Ave S, St. Cloud. // Open to all, $1 at the door.
Courtyard by Marriott - St. Cloud
BUSINESS AFTER HOURS
A complimentary open house for Chamber members and guests. Bring lots of business cards and prepare to grow your network! –––––––––––– 4:30 - 6:30 P.M. –––––––––––– NOVEMBER 8: Hosted by Holiday Inn Express, 4322 Clearwater Road, St. Cloud –––––––––––– DECEMBER 4: Hosted by St. Cloud Technical & Community College, 1540 Northway Dr., St. Cloud
N O V E M B E R / D E C E M B E R 2 0 1 8 //
www.businesscentralmagazine.com
11
UpFront YOUR VOICE IN GOVERNMENT
NEWS REEL
PUTNAM JOINS IIW
Codi Putnam joined architectural firm IIW as the director of finance.
KRUCHTEN EARNS CIRCLE OF SUCCESS AWARD
Patrick J. Kruchten, Proviant Group, received the Ameriprise Financial Services Circle of Success status, joining less than 7 percent of Ameriprise advisors who have earned this distinction.
SCHLENNER ELECTED TO COMMUNITY FOUNDATION BOARD
Jim Schlenner, a senior partner with the accounting and consulting firm Schlenner, Wenner and Co., has been elected to the board of directors for the Central Minnesota Community Foundation. Schlenner has over 35 years of experience working with small and mid-sized businesses providing tax, accounting and consulting advice.
DOCKENDORF JOINS REJUV
Kayla Dockendorf, PT, DPT, joins Rejuv Medical as a physical therapist. Dockendorf has particular interest in working with high school and college athletes and active adults.
MATHEW HALL LUMBER COMPANY NAMES NEW PRESIDENT
Al Stern is the new president of Mathew Hall Lumber Company. Stern fills the vacancy left by Loran Hall who passed away suddenly at his home on July 4, 2018. Stern has worked at Mathew Hall for nearly 30 years. He will leave his previous position as sales manager.
PAM’S AUTO RECEIVES BUSINESS MANAGEMENT CERTIFICATION
PAM’s Auto received the ISO 9000 Business Management Certification.
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Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
MN Job Match
There is no single answer to addressing Minnesota’s workforce shortage, but this innovative job bank should help. By Doug Loon
B
usinesses of all types and sizes across Minnesota are challenged to find workers with the right skills. The problem will only worsen as the state’s worker shortage is expected to hit 239,000 by 2022. Hiring the right people – with the right talent – is paramount to growing Minnesota businesses and the overall state economy. There is no single answer to addressing workforce shortages as demonstrated by the numerous public- and private-sector initiatives. The problem must be tackled from the perspective of both employers and potential employees. The Minnesota Chamber, in partnership
with many local chambers and other organizations, is pleased to expand our efforts. MN Job Match is one more tool in our arsenal to equip the private sector with resources, beyond public policy, to tackle the talent shortage. Traditional recruiting methods often require sorting through volumes of resumes, which can be costly and time consuming. It often means settling for less than ideal candidates. MN Job Match is different. It is a distinctive job-to-candidate matching platform that helps employers find the right fit among qualified candidates. Many recruiting services rely on traditional job descriptions and how often a keyword appears
in a resume. In contrast, MN Job Match offers a revolutionary job-tocandidate matching system. It’s a data-driven, online platform that works to align needs and experience on a deeper level. Even better, MN Job Match is easy to use, both for employers and candidates. Employers register online for an account and answer a few simple questions on their available positions. At the same time, candidates answer correlated questions about their skills and talents which may set themselves apart from other applicants. Employers receive a list of the candidates that best match their needs, then click to connect.
MN Job Match has distinct benefits for employers, including: Automatic postings from other local, regional and national job sites
A list of top system matches and stackranked direct applicants
Lower pricing than the industry standard $39 per job posting and $19 per internship
GRUENES RECEIVES NATIONAL SERVICE AWARD
Dave Gruenes, recently retired CEO of Stearns Electric Association, was honored for his nineteen years of service to the cooperative and its members. Earlier this year, National Rural Electric Cooperative Association’s CEO, Jim Matheson presented Gruenes with the Regional Award for Outstanding Service. The award is presented to individuals who have a proven record of promoting cooperative values and working tirelessly to serve members, citing economic development and member empowerment as a few of the many reasons he received this honor.
TOP HATS: NEW MEMBERS
Doctors Park Mental Health Center, providing individuals, families, children, and couples with a safe therapeutic setting to question and process though life struggles, 103 Doctors Park, St. Cloud. Pictured: Patrick Hollermann, Kayla Ward, Luke Szczech, Inese Mehr.
Sta Fit, a fitness center with personal trainers and corporate wellness programs, featuring a pool, hot tub, sauna, indoor track and more, 805 County Road 120, Sartell. Pictured: Patrick Hollermann, Mike Balfanz, Trevor Goodwin, Tammy Buttweiler.
Tri-CAP, the Community Action Agency for Benton, Sherburne, and Stearns counties, helping expand opportunities for the economic and social well-being of our residents, 1210 23rd Ave. S, Waite Park. Pictured: Diane Diego Ohmann, Angela Lieser, Patrick Shepard, Lori Schultz, Tammy Buttweiler.
Tranquil Heart Enterprise, a wellness studio for individuals of all ages and genders; offering a multi genre healing approach with reflexology, medi-cupping, and aromatherapy, 2700 1st Street N, ste 101, St. Cloud. Pictured: Diane Diego Ohmann, Jason Lage, Peg Imholte.
Business Music Ltd, specializing in commercial electronics, sound and music systems, messaging on hold, drive through, sound masking, 813 Lewis Place, St. Cloud. Pictured: Caryn Stadther, Pat Graveen, Brian Jarl.
Sunset Manufacturing, Inc., specializing in precision fabrication of stainless steel, aluminum and other sheet metal, including laser cutting, forming, welding, finishing and assembly, 417 1st Ave. NE, St. Joseph. Pictured: Tammy Buttweiler, Ronn Paulson, Peggy Lahr, Adam Sanderson, Tom Skahen, Sean Skahen, Peg Imholte.
Does your bank listen? We do. In fact, our banking decisions are based on the relationships we have with our valued customers—not an impersonal risk assessment tool that reduces your needs to numbers. When you have an idea in mind, come talk it over with the banking experts here at Farmers & Merchants State Bank. Personal Banking Business & Agriculture Online Services Sauk Rapids 320.252.5121 NMLS #528169
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13
UpFront TOP HATS: NEW MEMBERS
NEWS REEL
BERNICK’S ACQUIRES DULUTH DISTRIBUTOR
Bernick’s recently purchased Duluth-based Rohlfing Distributing, including distribution rights, vehicles, and a warehouse.
GROCHOW JOINS CENTRAL MINNESOTA COMMUNITY FOUNDATION
Homeowners Financial Group, helping people purchase a home, 67 10th Ave. S, Waite Park. Pictured: Jocelyn Toyne, Jake Mueller, Abbey Laudenbach, Tammy Buttweiler.
Mimbach Fleet Supply, Inc., an employee owned hardware, power equipment and farm store serving greater Minnesota since 1952, 3355 Quail Road NE, Sauk Rapids. Pictured: Patrick Hollermann, Mark Rauch, Matt Knutson.
St. Cloud Pizza Depot, pizzeria providing delivery, take out, dine in and catering, 2848 2nd Street S, suite 105, St. Cloud. Pictured: Diane Diego Ohmann, Brady du’Monceaux, Jane du’Monceaux, Inese Mehr.
Encore Capital Group, multi-national financial services and debt recovery solutions company, 16 McLeland Road, suite 101, St. Cloud. Pictured: Patrick Hollermann, Ryan Hilgers, Shalen Anderson, Kirsten Voller, Nicholas Hemmesch, Inese Mehr.
Wells Concrete, building and installation of structural and architectural precast concrete products, 210 Inspiration Lane, Albany. Pictured: Liz Kellner, Cassie Kazeck, Sheri Moran.
7Sigma Systems, telecommunications services including: network engineering, planning and design, and support, 6687 Mulberry Circle E, Chanhassen. Pictured: Tammy Buttweiler, Stephanie Court, Tanja Goering.
Dennis Smith Training, professional speaker and trainer, 14 7th Ave. N, St. Cloud. Pictured: Beth Putz, Denny Smith, Erik Hanson.
Dan Kramer, Inc., traditional financial coaching with emphasis on passive income producing investments to achieve freedom, 400 1st St. S, suite 610. Pictured: Luke Cesnik, Dan Kramer, Roger Schleper.
St. Cloud Food Runner, restaurant delivery service, providing freshly cooked meals to homes and offices. Pictured: Dr. Mark Roerick, Darian Jones, Inese Mehr.
Kathy Grochow joined Central Minnesota Community Foundation as the new director of community programs.
BJERKE WINS NATIONAL PHILANTHROPY AWARD
Nicole Bjerke, CentraCare Health-Long Prairie, has been included in the inaugural Association for Healthcare Philanthropy 40 Under 40 list. Bjerke, a senior development officer for CentraCare Health’s Foundation, successfully secured over $3.2 million to support the building of a new medical campus, significantly surpassing the initial fundraising goal of $2 million. She also successfully carried a funding request to the Minnesota Legislature in 2018 securing $700,000 through the state bonding bill toward the Regional Community Well-Being Center.
Maybe you need a better approach. Perhaps our strategic thinking and proven experience can improve your marketing. A no-obligation meeting is a good way to find out.
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MORE TO SEE ONLINE!
BusinessCentral Magazine.com
A NEW AT THE TOP
Brant Hicks
President/CEO, Great River Federal Credit Union
s one of the leading education construction contractors in Minnesota, we pride ourselves on making sure the schools of today meet tomorrow’s needs. We balance budget constraints with the need to be scalable, adaptable and transformational for the students and the educators who teach them.
Building Tomorrow Today
Age: 45
Previous employer: RelyOn Credit Union, Dallas, TX
What will you miss most about your previous position? The great team that I worked with. When did you start in your current position? April 16, 2018
320.363.7781 | WGOHMAN.COM
HUTCHINSON HIGH SCHOOL
What are you looking forward to the most? I truly feel that Great River FCU is positioned to be a market leader in providing a top of the line member experience. We’re rolling out tools that will allow our members to bank with us however they feel most comfortable, whether in person, over the phone, online, or text.
WWW.DESIGNELECT.COM
Where did you grow up? Rigby, Idaho – Birthplace of the television
What are your hobbies? With five kids, my hobbies have revolved around whatever they are interested in. I enjoy golf and spending time on the water.
FUN FACT: I lived in Northern
Germany as a missionary for my church from the ages of 19-21. I grew to love the German people and their culture and that is where I met the person that would eventually become my wife. We grew up about four hours from one another, but had to travel half way around the world to meet.
AWARD WINNING ALCUIN LIBRARY AT ST. JOHN’S UNIVERSITY
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UpFront THE TROUBLE WITH BUSINESS
NEWS REEL
MICROBIOLOGICS APPOINTS DIRECTOR
Microbiologics, Inc. appointed Mark Ellingson as director of business development.
Delegate!
When you can’t do it all, it’s time to let your team show what they can do. Here are some tips to help you delegate effectively. By Mary MacDonell Belisle
DICKINSON JOINS REGIONAL DIAGNOSTIC RADIOLOGY
Physician James Dickinson joined Regional Diagnostic Radiology in July 2018.
TRAUT RECOGNIZED BY BIG BROTHERS BIG SISTERS
Mark Traut, Traut Companies, Inc., was recognized by Big Brothers Big Sisters of Central Minnesota for his many years of support and sponsorship.
BERGANKDV NAMES ST. CLOUD MARKET LEADERS
BerganKDV named Russ Sand as market leader and Matt Lovitz as sales leader for the St. Cloud market.
ATS RECOGNIZED WITH INDUSTRY SERVICE AWARDS
Anderson Trucking Service, Inc. (ATS) was awarded two 2018 Quest for Quality Awards by leading industry publication Logistics Management.
BRENNY SPECIALIZED, INC. WINS FLEET SAFETY AWARD
Brenny Specialized, Inc. was added to the 2018 Fleet Safety Award winners by the Minnesota Trucking Association.
CENTRACARE HEALTH ECLINIC EXPANDS
CentraCare Health has expanded its eClinic to include 24/7 phone and video appointments.
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B
usiness owners who want to grow successful companies, usually understand that working 12- to 14-hour days, plus weekends, cannot be sustained. And while saving money on staff might be attractive in the short-run, over the long-haul, growth inevitably calls for more bodies, as well as more strategic planning from the boss. The answer to “I can’t do it all!” is delegation. Delegation is the act of finding someone to take over smaller, or more specialized tasks allowing you to concentrate on the big stuff. So, how do you proceed? 1.Recognize your value. “Business owners and leaders often think about delegation in the context of time management: ‘I can’t do all of these tasks, so I have to delegate some of them to others,’” Brian Hart said. Hart owns Stokeswood Enterprises, LLC, a business solutions company, located in Clearwater, Minn. “As an alternative, use a lens of value optimization. For example, if you delegate tasks that can be done by others, internally or externally, at an hourly rate less than your effective
hourly earning rate, you will optimize the value of your time.” 2.Identify needs. This means physically listing everything you do in, and for, the company––billable and non-billable hours. By documenting how you’re spending your time, you’re better able to see where you’re spending it, where you’re wasting it, where your efforts might be better spent, and which tasks could be delegated or eliminated. 3.Target unappealing tasks. Maybe you prefer estimating to selling, or the production floor to a calculator. Chances are that tasks you’re good at keep you more energized and the most fulfilled. “If you delegate tasks that you’re not good at -- and they consequently take you considerably longer to complete than someone skilled at those tasks -- you optimize the value of your own skillset by focusing on those activities at which you excel,” said Hart. 4.Prioritize. Determine which duties must stay on your plate versus those you can delegate. Ask,
www.scr-mn.com
how urgent is the completion of the task? Then, do I need to do this task myself, or can someone else do it? “When you determine that a project can be delegated, don’t break it up into pieces,” Hart said. “Assign the project to one person so they can have a bird’s eye view of the entire task and work consistently.” 5. Hire the best.
Take time to thoroughly vet candidates, using a multi-faceted process that ensures you acquire the needed skillsets and compatible mindsets about your business. 6. Communicate.
“Make a clear agreement with the employee,” Hart said, “outlining what results you expect, by when, and if there are budget considerations clearly define them. Then the employee decides how to achieve the specified outcome.”
Formerly St. Cloud Refrigeration
Central | Metro
St. Cloud • Twin Cities Wilmar • Alexandria 1-800-827-1642
REFRIGERATION
Nothern
Brainerd • Baxter 1-800-273-9071
HVAC
Duluth | Superior
SERVICE
1-800-827-1642
BUILDING AUTOMATION FOOD SERVICE
Southern
Rochester 1-877-399-4546 Mankato 1-800-447-3259
7. Affirm your delegate.
Thank your team member and indicate how essential the employee is to the company’s success. Reward the person for a job well done. 8. Build trust.
When you model respect, truthfulness, good communication, and the commitment to support the people you delegate to, you build a culture of trust in your company. “Delegation can be a key component in a team member’s professional development,” Hart said. “Given that the person has the skills and knowledge necessary for the task, project, or position, delegation builds trust and engagement in the business.”
Mary MacDonell Belisle is a freelance copy and content writer with mary macdonell belisle - wordingforyou. She specializes in business articles and profiles, web content, and book editing.
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UpFront TOP HATS: NEW MEMBERS
NEWS REEL
STEARNS BANK EXPANDS
Stearns Bank started construction on an 11,000-square-foot addition to its equipment finance division in Albany, Minn.
ANDERSON JOINS PARAMOUNT CENTER FOR THE ARTS
Solveig Anderson joined the Paramount Center for the Arts as the new director of education and outreach.
Ancona Title, a full-service title and escrow company serving Minn., Wisc., and Iowa. 1010 W St. Germain St., suite 250, St. Cloud. Pictured: Mark Elwell, Sarah Dombrovski, Luke Cesnik
AGENCY 511, the intersection of marketing and storytelling, where creative innovation changes the destiny of brands, 715 N Park Place, St. Cloud. Pictured: Tammy Buttweiler, Timothy Schmitt, Tanja Goering.
Sartell Chamber of Commerce, a business connection to the Sartell community. Pictured: Diane Diego Ohmann, Nikki Sweeter, Rory Cruser.
Trois-Rivieres Training, an athletic training facility specializing in strengthening and conditioning for all sports, 23705 67th Ave., St. Cloud. Pictured: Patrick Hollermann, Dianah Klatt, Ken Hilgert, Matt Dingmann, Peg Imholte.
Filsan Consultant LLC, provides on-the-job training for employers and their immigrant employees to facilitate successful working behaviors. 400 1st Street S, suite 600, St. Cloud. Pictured: Tammy Buttweiler, Hudda Ibrahim, Abdi Mahad, Roger Schleper.
MN Weight Control Centers dba Medifast Weight Control Center, clinically proven program with meal plans, one-on-one support from a team of local, certified professionals, 216 Division St., Waite Park. Pictured: Bernie Perryman, Ethan Kvidt, Brian Jarl.
Minnesota Assistance Council for Veterans (MACV), a nonprofit organization assisting veterans and their families who are homeless, in danger of becoming homeless, or experiencing other life crises, 4105 12th Street N, St. Cloud. Pictured: Sheri Moran, Mike Lacsamana, Shane Rubel, Justin Goff, Diane Diego Ohmann.
Best Version Media-Sartell Living Magazine, producing monthly magazines delivered to specifically targeted subdivisions that connect residents and gives business owners a unique advertising experience, 1039 Sunset Ridge Road, St. Cloud. Pictured: Brian Jarl, John Nelson, Debbie Zimmerman, Bernie Perryman.
AMEC - American Mortgage & Equity Consultants, mortgage brokerage company providing financing for existing or new construction with land, 21 1st Ave. N, St. Joseph. Pictured: Peg Imholte, Julie Velline, Reve Robischon, Patrick Hollermann.
BANKVISTA NAMED LENDER OF THE YEAR
BankVista was recognized as a leader for small business lending by the U.S. Small Business Administration. The award honors lenders with the highest participation in SBA-guaranteed loan programs between July 1, 2017 to June 30, 2018.
KRUMP QUALIFIES FOR SAN FRANCISCO CONVENTION
Independent insurance agent Deborah Krump, Aflac, will attend Aflac’s 2018 National Convention. She earned her spot by selling over $25,000 in annualized premium of supplemental insurance between November 2017 and August 2018.
HABITAT FOR HUMANITY BREAKS GROUND ON “VETERANS BUILD”
Habitat for Humanity started building the first “Veterans Build” in Minnesota. This will provide safe and affordable housing for a veteran family when complete, in partnership with MidCountry Bank, Jacobs Financial, Network Manufacturing, and EMS. Send News Reel items to Gail Ivers, givers@stcloudareachamber.com for possible inclusion. News Reel is compilied by Kelti Lorence.
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IF YOU GO
Legislative Connections:
Session Preview Breakfast, December 14 from 7 - 9 a.m. Join us a Automotive Parts Headquarters, 2959 Clearwater Rd., St. Cloud. While there is no fee for Chamber members to attend, registration is required by December 10. // Free for Chamber members; $20 registration fee for non-members.
NetworkCentral GROW | NETWORK | PROFIT
u
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
Network!
The Chamber Open offered fun and networking for everyone.
Photos by YuppyPhoto
Jeremy Salzbrun, H & S Heating (L); Randy Kath, Steffes Group; Jeff Udy, Infinite Eye Care; Kelly McCall, St. Cloud Area Family Y
Karen Baas, BankVista
Ashley Green, Green Thumb etc.
Trevor Goodwin, Sta Fit Bob Crew, Central McGowan
Aaron Lewis, Schuler Shoes
Mike Feldhege, Cold Spring Brewing Company
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Customer Orders travel through the warehouse on an automated conveyor system before being loaded in outbound trailers.
Bluestem Brands History Wall Located at the St Cloud Fulfillment Center.
“Fingerhut is a very successful catalog business that evolved into a highly-dominant ecommerce operation, comprising 50% of Bluestem Brand’s overall business.” – SCOTT JENSEN, GENERAL MANAGER
A recently completed company history wall greets guests as they enter the fulfillment center.
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Merchandise fills the massive 1.2 Million Square Foot warehouse.
SPONSORED PROFILE
CLOSE-UP: BLUESTEM BRANDS
Dynamic eCommerce retailer Bluestem Brands builds on Fingerhut foundation
I
500+ team members to fill seasonal positions in our n 1947, William and Manny Fingerhut founded a business fulfillment, credit, and customer care operations” said in Minneapolis. It eventually became a major St. Cloud Jensen. “Most of Bluestem’s full-time team members began employer and the third largest catalog retailer in the working for the company as a seasonal team member at U.S. Today, the Fingerhut brand is part of parent company one time or another.” This diverse group of employees Bluestem Brands, Inc., an eCommerce enterprise that consists of team members who have been with the promotes and distributes products under 13 multichannel company for over 50+ years. retail brands and generates roughly “Our longest tenured team $2 billion in annual revenue. member is John Stang who has “The Bluestem family, which worked with the company since includes Fingerhut, has been part of 1962,” said Jensen. our community for over 50 years,” Fingerhut Bluestem Brands has made said Scott Jensen, Bluestem Brands’ Private-label brands: a successful transition from General Manager, who lives in Alcove home and office furniture purely print catalog operation to St. Cloud. “Bluestem Brands is one Tremont luxury furniture a growing ecommerce entity, no of the top eCommerce companies in small feat. Jensen describes those the nation.” Kimball Kids décor successful marketing/ operational The St. Cloud area supports LifeMax fitness equipment processes that have remained from Bluestem’s operation. Credit earlier Fingerhut days as “three Operations and a Customer Care McLeland Design home décor pillars of success.” These include: Call Center are located here, and Outdoor Spirit reliable gear 1) free gift with purchase; 2) buy through the Home Agent Program, now, pay later; and (3) catalog an additional 100+ agents operate Chef’s Mark kitchen essentials usage. In fact, Fingerhut continues out of their homes across greater MasterCraft tools to mail over 50+ million catalogs Minnesota. Orders are filled from per year to its valued customers. Bluestem’s 1.2 million square “Fingerhut was a very successful foot Distribution Center, situated catalog business that evolved into a on 10+ acres of the Westwood highly-dominant ecommerce operation, comprising 50% of Business Park. The St. Cloud Distribution Center fulfills Bluestem Brands’ overall business,” said Jensen. “We want over 3.5 million packages per year, utilizing 10+ miles of an to thank ALL the dedicated past and current employees automated conveyor system; its 105 dock doors support the that have helped contribute to our long-standing success. receipt and yearly shipments of over 10,000+ trailers. Our goal is to make sure Bluestem remains a pillar in the Bluestem is a top-20 employer in St. Cloud, employing community for generations to come.” • over 475+ full-time employees. “Each year, we hire over
t he logo The Bluestem logo is designed to convey the company’s image of energy, growth and movement. The name comes from the native prairie grass that grows in the plains of the Midwest, which is fast growing and aggressive in nature.
bluestem brands, inc.
Bluestem Brands, Inc. // 6250 Ridgewood Rd., St. Cloud, MN 56303 // 320.654.3800 // bluestembrands.com Company Headquarters: 7075 Flying Cloud Drive, Eden Prairie, MN 55344-3532 Bluestem Brands, Inc. is the parent company to 13 dynamic eCommerce retail brands, including Fingerhut. 03
SPONSORED PROFILE
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InSIDE THIS ISSUE:
BUSINESS TOOLS GROW | NETWORK | PROFIT
u
Management Toolkit • Entrepreneurism
Tech Strategies • Economy Central by Falcon Bank uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu
RESOURCES THAT HELP YOUR BUSINESS GROW
MANAGEMENT TOOLKIT
Leveraging Human Capital
Even without a human resources department, you can still employ effective HR strategies.
By Melinda Gau
D
oes your organization stress good human resources practices? Do you value the net impact that human resources’ strategies have on your bottom line? Most small businesses lack the financial band-width to employ a dedicated human resources professional, however human resource practices play an important role in the success of any size organization. Poor or non-existent practices can devastate an organization. Businesses that want to grow will leverage their human capital with effective practices to drive revenue and performance, and minimize disruption and risk. Historically, the human resources function has been
geared towards administrative tasks, such as payroll and benefits. These are, of course, very important, but are also outsourced more and more. Make sure the staff you have working on human resource functions are being used effectively, and seek outside resources where available to handle the more routine functions such as payroll. Strategic human resource practices are where your organization should focus the most energy. Effective and lawful recruitment and hiring of employees through a stringent vetting process can make all the difference in a good hire versus a bad hire. Recruitment efforts should be tailored to your particular business needs. For example,
businesses dependent on more blue-collar workers have started reaching out to junior high school students and their teachers, encouraging them to consider a career in the trades. Organizations dependent on highly sought-after specialists ask their current staff to reach out to their alma maters to network with soon-to-be grads. Another strategic practice is a well-thought-out newemployee orientation, including assimilation into your workplace culture, and clear communication of duties and expectations. Most employees want to know what is expected of them, that they feel like they belong, and that their contributions to the team make a difference. Proper onboarding, clearly established goals so that employees know what success looks like, frequent feedback, and targeted training all lead to better retention. Another tactic is to have your employees (and former employees) promote your brand, and not detract from it. Incentivize your
employees to speak highly of your organization by treating them fairly, holding them accountable, and helping them feel part of your successes. It is also more cost-effective than you might think to use consultants in adopting and promoting human resources practices. Consultants can complete the projects you cannot get to, and frankly, they can do it better than you can. You will also want to consult with legal counsel on pay practices, employee handbooks, leaves of absence, harassment complaints, and disability claims. Having the right employees making your widgets and serving your clients is key to any organization’s bottom line. The wages paid by employers is typically the largest item on the expense side of the budget. Make sure your investment in employees pays off by adopting human resource strategies, even if you do not have a human resources department.
contributor Melinda Gau, an attorney at Quinlivan & Hughes, advises organizations on a variety of workplace and employment law matters. The information presented here is for educational purposes only. It is not offered as, and does not constitute, legal advice or legal opinions. Readers should seek legal counsel for specific questions. 22
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CLOSE-UP: BRADBURY STAMM CONSTRUCTION
New Mexico construction firm builds family business in Minnesota Bradbury Stamm Construction, Inc. – Winkelman Office, St. Cloud, MN
“C
all us if you’re interested in expanding . . .”
Bradbury Stamm Construction CEO Cynthia Schultz’s invitation to her father-in-law Duane Schultz, President, Winkelman Building Corporation, was long-standing, until the two seriously discussed the positives of a merger, subsequently undertaken in May, 2017. The 49-year-old St. Cloud, Minn., company became Bradbury Stamm Construction’s Winkelman Office in early 2018 to further the vision of a single, cohesive company. “We’re stronger when we work together and use our resources as one,” said Schultz. The $300 million plus company’s goal is to remain local and sustain a family culture,
while maintaining resources to successfully compete against any national firm. A key differentiator is the strength of the company’s estimating and preconstruction services. “Decisions made in the project’s preconstruction phase greatly impact costs, schedules, construction types, and materials,” said Jay Vogel, top local lead of the Winkelman team and 20-year veteran. “We’ve a seasoned team here to work the process and ensure sound client decisions. If we strive for good, open teamwork, preconstruction through construction, we see successful projects.” Winkelman’s revenue has grown by 20% this year and increased by four teammates, now totaling 24. Internship is
an important recruiting tool, yielding top talent for both locations. Bradbury Stamm Construction, a Top Work Place five out of the last six years, anticipates increasing staff and self-perform ability. [Ability for a lead general contractor to complete certain construction activities with its own skilled-labor force, e.g., framing, concrete, carpentry.] The intent is to continue a commitment to the local area with support, new equipment ($400,000+ invested thus far), field focus, follow-through, and industry best practices. Schultz, who grew up in the business and holds a B.A. in Economics and M.A. in Construction Management, spearheads getting-acquainted activities, support for strategic initiatives, and operational improvements such as new accounting and computer systems. “We enjoy working in the Midwest,” said Schultz. “Times are exciting for Bradbury Stamm Construction.” •
SIGNIFICANT PROJECTS • Sartell-St. Stephen High School • Carnegie Library, Bemidji • 24 North Lofts, St. Joseph • Stoney Point Meadows, Cedar Rapids
• Morris High School • Whitefish at the Lakes, Crosslake • Fulton Brewery Addition • Various solar projects
Bradbury Stamm Construction, Inc. // bradburystamm.com/offices/minnesota // Connect: 320.253.2411 Winkelman Office: 340 Highway 10 South, St. Cloud, MN 56304 // Offices: New Mexico, Colorado, Texas, Iowa 2017 ENR Southwest Contractor of the Year (Engineering News-Record, industry publication) 2018 AIA New Mexico Contractor of the Year (American Institute of Architects) SPONSORED PROFILE
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BusinessTools ENTREPRENEURISM
Plan Ahead
Don’t wait until the last minute to take advantage of these tax tips for the self-employed. By Chris Panek TIP 4: Look into contributing
to a retirement plan. Just because you don’t have an employer doesn’t mean you can’t contribute to a retirement plan. There are many plans to choose from including SEP-IRAs, SIMPLE IRAs and 401(k) plans. Look into these early as some plans require you to set them up prior to year end. Remember, even a small contribution will help you in retirement and why not take advantage of a potential tax savings now. (For more on this, see the special focus on page 42) TIP 5: Track your mileage.
W
ith the rise in the number of people becoming self-employed, it’s important to understand how to file your taxes and take advantage of write-offs. Don’t wait until the last minute to start looking into these tips. Start early and be prepared at the end of the year.
legal and tax professionals to help you with this decision.
TIP 1: Choose your business
TIP 3: Report your income.
structure carefully. Whether a sole proprietor, partnership, S Corporation, C Corporation, Limited Liability Company or other entity, the type of legal entity of a company affects how the entity is taxed. Seek out
TIP 2: Keep your business
and personal expenses separate. Be sure to set up separate checking and credit card accounts for your business. This will help keep your bookkeeping simple.
If you are paid $600 or more from a business, you should receive a 1099 which you will use to report those earnings, but if you earn less, you are still responsible for reporting your income.
If you are using the standard mileage rate, you can claim 54.5 cents per mile for 2018 and these miles can really add up. But be sure to keep a mileage log explaining your business miles. TIP 6: Be prepared to pay
taxes. When you are working as an employee, you automatically have federal and state taxes withheld from your paycheck. As a self-employed individual, you will need to pay these taxes on your own and may need to make estimated tax payments. In addition, self-employment taxes are the equivalent to Social Security and Medicare
tax, which you will need to pay both the employer and employee portion since you are self-employed. Even if you are unable to pay your taxes on time, be sure to file your returns by the due date. TIP 7: Do you have a home
office? If you are using an office regularly and exclusively for business purposes, you may be able to claim a tax deduction on the portion of your home dedicated to running your business. Expenses such as real estate taxes, mortgage interest, utilities, rent, insurance and other repairs may also be deducted. TIP 8: Keep track of your
health insurance payments. Depending on your situation, you may be able to get a tax break on the premiums paid. Also, look into a Health Savings Account. Those contributions are tax deductible or pretax, your savings grow on a tax-free basis, and users can make taxfree withdrawals for qualified medical costs. TIP 9: Hire a family member.
Take a business deduction for reasonable compensation paid for tasks essential to your business.
contributor Chris Panek is a Certified QuickBooks ProAdvisor and Certified Public Accountant at Christine R Panek, CPA. She has over 20 years of experience helping small businesses with accounting and bookkeeping, financial statement preparation, QuickBooks consulting and payroll services in the St. Cloud area.
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DOING GOOD
A SPOONFUL OF SUGAR
Dementia patients often have trouble swallowing and taking medication. The wife of a resident at the St. Cloud VA Health Care System (and a Culver’s Restaurant patron) combined her husband’s medication with some frozen vanilla custard and found it was much easier for him to take the medication. While visiting the Culver’s Restaurant in Waite Park, the customer shared her story with store representatives who responded by offering the dementia unit at the VA unlimited pints of vanilla fresh frozen custard. "We’re forever indebted to our veterans,” said Paul Smith, owner operator of the Waite Park Culver’s. “We’re thankful we can help our local VA hospital in this way.” It turns out Mary Poppins was on to something: a little fresh frozen custard helps the medicine go down, in the most delightful way!
TIP 10: Save your receipts.
Whether you use an app to capture your receipts or keep a file for them, you want to make sure they are organized and you have proof of your expenses in case you are audited. Filing taxes when you’re selfemployed can be complicated. Keeping good records will help streamline the time it takes to file your return. If you need help, contact a tax professional to answer your questions and help ensure you’re taking advantage of any deductions that apply to you and your business.
The Choice is Yours... Choose the Best!
WORKING WITH BUYERS, SELLERS, REALTORS, LENDERS AND BUILDERS THROUGHOUT CENTRAL AND GREATER MINNESOTA
• Professional Residential & Commercial Closing Services • Construction Disbursing Experts • Abstracting • Title Insurance • Tax Deferred 1031 Exchanges
Working with buyers, sellers, realtors, lenders and builders throughout Central and Greater Minnesota
WORKING WORKING WITH BUYERS, WITH SELLERS, BUYERS,REALTORS, SELLERS, REALTORS, LENDERS AND LENDERS AND BUILDERS THROUGHOUT BUILDERS THROUGHOUT CENTRAL AND CENTRAL GREATER AND MINNESOTA GREATER MINNESOTA
• Professional Residential • Professional & Commercial Residential Closing & Commercial Services Closing • Construction Services Disbursing • Construction Experts Disbursing Experts • Abstracting ••Title Abstracting Insurance• Title • Tax Insurance Deferred •1031 Tax Exchanges Deferred 1031 Exchanges
Sue Lentner, Sue Lentner,
Sue Lentner
St. Cloud Area Escrow St. Cloud Manager Area Escrow Manager
St. Cloud Area Escrow Manager
Brenda Roettger Brenda Roettger
Brenda Roettger
Brenda Roettger
Sue Lentner,
St. Cloud Area Escrow Manager
Mary Schneider
Mary Weis
Melanie Walz
Mary Mary Weis Melanie 122 12th Ave. N. I Sr. Cloud, MN 56303 I (320) 253-2096 Red River Ave. S. I Cold Spring, MN 56320 I (320) 685-4280 Schneider 2081-800-892-2399 Walz I www.tricountyabstract.com
Mary Schneider Mary Schneider Melanie Walz Mary Weis Mary Weis Melanie Walz
122 12th Ave. 122N. 12th I Sr.Ave. Cloud, N. I MN Sr. Cloud, 56303MN I (320) 56303 253-2096 I (320) 253-2096 208 Red River 208Ave. Red S. River Ave.Spring, S. I Cold I Cold MNSpring, 56320MN I (320) 56320 685-4280 I (320) 685-4280
Professional Residential & Commercial Closing Services Title Insurance / Construction Disbursing Experts Abstracting / Tax Deferred 1031 Exchanges
1-800-892-2399 1-800-892-2399 I www.tricountyabstract.com I www.tricountyabstract.com
122 12th Ave. N / St. Cloud, MN 56303 / 320-253-2096
208 Red River Ave. S. / Cold Spring, MN 56320 / 320-685-4280
1-800-892-2399 / tricountyabstract.com
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BusinessTools TECH STRATEGIES
Meaningful Stories
What’s behind your social posts? Effective social brands are good storytellers. By Dawn Zimmerman but authentic and real. Take snapshots of the everyday moments that capture your people living out your organization’s purpose, passions or personality (more on those three in a bit). Help them to get to know your leaders and other key team members and build personal connections with them. Tone
This is where your brand’s voice comes in. How you write a post should look different than other organization’s like you. The words you choose and how you use them communicate your personality.
T
he brands getting the best results on social media have one common characteristic. They are good storytellers. They understand how each post makes an impression and weaves into a larger narrative about what they are known for. Step back. What are your posts saying about your organization? Meaningful storytelling remains a hallmark to generating sales and achieving bottom line results. Telling the Story Effective stories include a clear theme, a plot, interesting characters, and a tone. Each of these components are
designed to engage and build a connection. So, what does that mean for your social posts? Clear Theme
Be succinct and limit your posts to one specific message. If it takes more than a sentence or two to communicate the core, narrow the focus. Plot
Social media is short, but you still can engage followers in your plot. This is most often achieved by sharing an element of surprise or struggle. Interesting Characters
Your followers want to see your people – not polished,
Elevating the Brand The most effective social media posts that elevate a brand go one step farther to also incorporate three other key components: Purpose
What do you do? Consider how your post, in some way, can help your followers understand what you do. You may have a list of services, but your core is solving problems. Take users behind the scenes to uncover your core purpose and how it makes a difference.
Passion
Why do you do it? This focuses on what drives your organization and often
contributor Dawn Zimmerman is CEO of The Write Advantage, a St. Cloud-based strategic communications company that specializes in social media. She can be reached at dawn@writeadv.com
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Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
resonates with social media users far more than anything else. It shows your motivations for the work you do. It often can be something completely separate from the products you sell or services that you provide, such as work-life balance or giving back. Personality
How do you do it? Your organization’s personality should be felt in your posts. Start by identifying a few characteristics that you want to be known for (and hopefully already are inside your organization). Then, use them to filter your posts. Videos often are the best way to show your brand’s personality. Staying Contemporary How your organization uses social media also sends a message to your followers. Are you staying contemporary? Facebook just rolled out a series of new features and functionality, with more promised soon. Staying on top of the changes and trying new things (even while they are still unfolding) can help you engage followers and help you build credibility with them. You have a story to tell. No one can tell it exactly like you and there is no other tool more pervasive and powerful in the hands of brands today than social media. Don’t make the mistake of seeing social media as just another distribution channel. It’s a conversation channel that can carry your story to new places.
Source: Small Biz Trends
TECH NEWS
WEARABLE TECH: BEYOND THE SMARTWATCH
Current wearable tech items on the market include socks, T-shirts and sports bras with sensors embedded in them to help you monitor your body conditions during exercise in much more detail than a simple fitness tracker can do. For instance, wearable tech socks can monitor your walking or running gait to help you avoid foot, ankle and leg injuries. But think twice before you buy one of these. If it’s too complicated to use, it will be just another expensive item headed to the thrift store. TECH NEWS
Trash Collector
Recycle Track Systems (RTS) offers environmentally focused waste removal.
N
ew York-based RTS is working with local sanitation companies to transport garbage by installing rideshare tech in their trucks. Client companies get multiple notifications on where their waste is going via RTS's proprietary software. The startup aims to take food waste straight to the farm where it is converted to soil. Waste with high potential to be laced with plastic gets sent to a facility to be cleaned. Source: CNBC.com
Design. Build. Solutions.
PUNTA G FORT MYE ORDA/ RS, FLORID A , HOENIX MESA/P NA ARIZO
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320.251.4109 | 800.772.1758 | millerab.com
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27
BusinessTools
Economy Central presented by
ECONOMY CENTRAL
Getting Right to Work
By Steve Hine and Cameron Macht
I
mmigrants have become critical to Minnesota’s economy, providing a rapid stream of new workers in the face of an aging native-born workforce. Foreign-born workers now account for 10 percent of the total available labor force in Minnesota, up from 8 percent just one decade earlier. While labor force participation rates were declining for native-born workers, they were
increasing for foreign-born workers. Participation rates were around 71 percent for both groups in 2006, but dropped to 69 percent for native-born workers by 2016 and rose to 73 percent for foreign-born workers. One challenge to assimilating into a new culture is language, but many new Minnesotans have made headway. About 81 percent of foreign-born residents in Minnesota speak a language other than English, but many of them can also speak English. About 45 percent reported they speak English less than “very well,” compared with 49 percent of foreign-born residents nationwide. Perhaps surprisingly, a notable portion of Minnesota’s foreign-born population is well educated, with about one-third of foreign-born adults age 25 and over holding a bachelor’s degree or higher, which is
In a tight labor market, immigrants are a vital source of talent for Minnesota employers.
right in line with native-born Minnesotans. It is equally important, however, to note that nearly half of foreign-born Minnesotans have a high school diploma or less, including 27 percent that are not high school graduates. That compared with just 31 and 5 percent of natives, respectively. Perhaps in part due to the language and educational barriers described, foreign-born workers were much more likely to work in certain occupational and industry groups than native-born workers. Native-born workers were 9 percent more likely to work in sales and office occupations than foreignborn workers, and 6 percentage points more concentrated in management, business, science and arts occupations. In contrast, foreign-born workers were found more
often in service occupations, which include health care support, protective service, food preparation and serving, building and grounds cleaning, and personal care occupations. They were also much more concentrated in production, transportation and material moving occupations. Wherever they work, these new Minnesotans are a vital part of the state’s economy, providing rapid growth to an otherwise aging and slowing labor force. In the years ahead, it is likely that labor force constraints will require that every employer consider our young and growing immigrant population as a source of the workforce they will need. Steve Hine and Cameron Macht, are with the Minnesota Department of Employment and Economic Development (DEED).
Read more at BusinessCentralMagazine.com
BY THE NUMBERS
Cost of Living // The St. Cloud area experienced a below average cost of living during the second quarter of 2018,
according to the Cost of Living Index of 259 urban areas. The composite index is based on six components – housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services. The "all items" index for St. Cloud was 98.8, 1.2 percent below the national average (100.0) for the quarter. Cost Of Living Index Compilation for Second Quarter Data for 2018 for Minnesota and Other Upper Midwest Cities CITY
St. Cloud
2nd Qtr.
All Items
98.8
Grocery Housing Utilities Transpor- Health Misc. Goods Items tation Care & Services
115.3
77.3
102.1
91.9
124.6
107.3
Accra Index
97.4 114.6 75.3 95.2 95.2 125.1 106.2
Most Expensive Urban Communities
104.5
103.5
102.2
96.5
107.1
107.0
107.9
San Francisco CA
Cedar Rapids, IA 93.6
93.8
84.0
109.1
95.3
93.5
96.5
St. Cloud 1st Qtr.
Minneapolis, MN 104.9 105.6 102.2 98.0 106.2 106.2 108.4
St. Paul, MN
Mankato, MN 93.5 99.3 72.5 100.0 96.3 110.5 103.5 Eau Claire, WI
Pierre, SD
92.9
88.5
76.2
103.7
103.6
109.1
100.1
98.5 99.9 114.6 92.0 86.2 97.3 90.1
New York (Manhattan) NY
238.3
Honolulu HI
185.5
New York (Brooklyn) NY Washington, D.C.
190.0 177.4 156.6
Least Expensive Urban Communities Harlingen TX
75.7
Kalamazoo MI
79.5
McAllen TX
Memphis TN
Richmond IN
78.0 79.9 80.2
The Cost of Living Index, which is compiled and published quarterly by C2ER - The Council for Community and Economic Research, measures regional differences in the cost of consumer goods and services, excluding taxes and non-consumer expenditures, for professional and managerial households in the top income quintile. It is based on more than 90,000 prices covering almost 60 different items for which prices are collected three times a year by the St. Cloud Area Chamber of Commerce. Small differences should not be interpreted as showing any measurable difference, according to C2ER.
28
Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
TOTAL: $221,316,488
Waite Park
106 October Apr $3,9550,295
2017
73 $6,403,398
ST. CLOUD 52 $2,427,295
TOTAL: 1752
TOTAL: 1789
2016 St. Augusta 66 13 6 September Mar $0 $2,107,200 $1,577,063
August St. Joseph 71 56 46 2018 Feb $0 $32,698,175 $19,525,262 $13,227,165
June
2017
Apr
A
M
December
October
M
$0
November
September
Jan
August
July
June
May
April
1.0%
Feb
March
1.5%
February
$250M
4%
Source: www.positivelyminnesota.com
2017�18 % CHANGE January
$200M
2016
Non FarmMarJobs 2.0%
December
November
October
September
August
$150M
$500k
July Total as of 10/15/18. Jan *Totals are cummulative and up to date at time of print.
Source: www.positivelyminnesota.com
$100M
Food and Be
Sartell 33 32 21 November May $13,013,812 $14,128,688 $11,125,788
TOTAL: 1655
TOTAL: $221,316,488
555 44 28 December $15,684,403 $89,959,156 $6,080,500 June
TOTAL: $239,669,534
July
June
$50M
May
April
March
$0M
February
January
5%
ST. CLOUD
Sauk Rapids
2017
2016
Food and Be
2016 2017 2018* #/$ #/$ #/$ August 2018
May
2017�2018
500
St. Cloud 464 341 250 $138,751,046 $89,192,774 $156,379,731 July
2000
$250M
Commercial
1500
TOTAL: $133,773*
$1500000
TOTAL: $1,272,176*
TOTAL: $1,333,423
$1200000
TOTAL: $239,669,534
$200M
November
Sources: Building departments for the following cities: St. Cloud, Sauk Rapids, Sartell, Waite Park, St. Augusta, and St. Joseph.
Unemployment Rates
December
TOTAL: $190,700,542*
TOTAL: $190,700,542* $150M
January December Total as of 10/15/18. *Totals are cummulative and up to date at time of0print.
1000
$900000
$100M
2016
BUILDING PERMITS BY COMMUNITY September
6 COMMUNITIES � ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH
$50M
102 88 55 March $9,180,780 $6,116,630 $5,119,595
October
Commercial Building Permits
$0M
St. Augusta
Home Sales Closed in St.Cloud
$100M
6 COMMUNITIES � ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH
2016 2018
$80M
Commercial Building Permits
$600000 2017
2017
Waite Park 78 70 35 April $2,197,513 $4,244,281 $990,555
St. Joseph 186 140 73 February $4,796,651 $4,433,502 $5,199,434
$60M
2018
500
Sartell 252 199 127 May $13,311,389 $7,908,010 $6,129,388
6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH
$40M
0
January
Sauk Rapids 345 299 231 June $22,647,287 $15,947,945 $13,273,072
2017
$20M
February
St. Cloud 986 622 416 July 2018 $32,774,443 $32,230,127 $17,828,402
500
$300000
$0M
2016 2017 2018* 2016 August #/$ #/$ #/$
2016
2016
March
Residential
0
Food and Beverage Tax Collection
ST. CLOUD
$0
TOTAL:$84,908,072
6 COMMUNITIES � ST. C ST. AUGUSTA, ST. JOSE
September BUILDING PERMITS BY COMMUNITY
2015
2018
2017
2016
2017
November
TOTAL:$70,880,396
Home Sales C
2017 October
$100M
September
$80M
August
$60M
880,396
$40M
July
$20M
June
$0M
October April
May
2018
TOTAL:$46,593,058*
April
2016
March
TOTAL:$84,908,072
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
2017
2018
July December June
TOTAL:$70,880,396
Residential Building Permits
6 COMMUNITIES � ST. ST. AUGUSTA, ST. JOS
Economy Central presented by August COLOR KEY:
2018 Compiled by Kellie Libert, data current as of 10/15/18
Home Sales C
September
TOTAL:$46,593,058*
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
J
J
$500k
0.5% 0.0% -0.5%
3%
-1.0% -1.5% -2.0%
2%
A
S
O
N
D
J
F
M
A
M
J
J
A
-2.5%
A
S
O
N
D
J
F
St. Cloud Minneapolis/St. Paul Minnesota United States
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 8 //
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29
80,396
December
November
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
December
October
TOTAL: $190,700,542*
June
July TOTAL: 1789
2017
TOTAL: $221,316,488
June
500 November
$900000
TOTAL: 235
TOTAL: $1,333,423
Benton Co. 39 27 57
$0 $500k $1M $1.5M Benton County Sheriff’s Civil Process; Stearn’s County Sheriff’s Office Total as of 10/15/18. *Totals are cummulative and up to date at time of print.
Lodging Tax Dollars
$500k
$1M
Sources: Tax Collections – City of St. Cloud
$1.5M
$2M
Read this work of (what we hope is) fiction at BusinessCentralMagazine.com
Total as of 10/15/18/18. *Totals are cummulative and up to date at time of print.
Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
December
$0
November
What will food look like in the year 2038? According to one writer we will drink synthetic wine, scramble eggs that do not come from chickens, grill meat that was not taken from animals, and roast fish that never saw the sea. Oh, yeah, and in the process, we’ll have destroyed the pleasure of eating.
2016
30
October
September
FLAVOR? WHAT’S THAT?
August
July
June
May
TOTAL: $1,508,301
April
2017
TECH NEWS
March
TOTAL: $1,623,035
February
TOTAL: $998,999*
January
December
November
October
September
August
July
June
May
April
March
February
2018
January
ST. CLOUD
$2M
2000
$1500000
Residential 2016 2017 2018 2016 Stearns Co. 158 84 23
TOTAL: 1789
200
TOTAL: 1752
SHERIFF’S FORECLOSURE AUCTIONS
150
TOTAL: 1655
100
E
August
lectrolux employees now can gain certifications, July college credits, and a state certified journey June to the anticipated plant closing in 2019. card prior The Industrial Manufacturing Technician (IMT) May Apprenticeship trains front-line manufacturing April production workers in skills manufacturers look for in diverse settings such as food processing, foundries, March plastics and bio-medical production. The training is February a collaborative partnership that includes St. Cloud January Technical & Community College, Career Solutions, The Minnesota Regional Training Partnership Center of Excellence, the Minnesota AFL-CIO, International Association of Machinists Local Lodge 623, and Electrolux Home Products. 1500
50
TOTAL: 221
TOTAL: $1,523,946
TOTAL: $133,773*
TOTAL: $1,272,176*
TOTAL: $1,333,423
$1200000
2017 0
$2M
October As Electrolux prepares to close its doors, help appears in the form of employee September apprenticeships.
1000
$600000
2018
$1.5M
Help for Workers
TOTAL: $896,126*
2016
Home Sales Closed in St.Cloud
$300000 2017
$1M
WORKFORCE December
TOTAL: 80*
Food and Beverage Tax Collection ST. CLOUD
$500k
Total as o 10/15/18. *Totals are cummulative and up to date at time of print.
Sheriff’s Foreclosure Auctions
2018
January
Sources: Tax Collections – City of St. Cloud
Total as of 10/15/18. *Totals are cummulative and up to date at time of print.
STEARNS AND BENTON COUNTIES
$0
6 COMMUNITIES - ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, ST. AUGUSTA, ST. JOSEPH
2000
Feb
2017
1500
February
TOTAL: $1,333,423
0
1000
Housing/Real Estate sources: $250M St. Cloud Area Association Jan of Realtors, $150M $200M http://stcloudrealtors.com/pages/statistics.
$100M
March
2016
Mar
Food and Beverage Tax Collection
500
April
Apr
ST. CLOUD
$0
0
2017
2016
TOTAL: $239,669,534
2018
2017
2016
2016
TOTAL: $1,523,946
May
2015
MayTOTAL: 1752
TOTAL: $896,126*
July
2018
August
December
2018
November
September
October
August
September
August
July
June
May
TOTAL: 1297*
April
ST.September CLOUD
October
March
February
January
Food and Beverage Tax Collection
December
November
October
September
August
July
June
Apr
Mar
Feb
Jan
May
6 COMMUNITIES � ST. CLOUD, SAUK RAPIDS, SARTELL, WAITE PARK, November ST. AUGUSTA, ST. JOSEPH
Economy Central presented by
Source: Fast Company
Home Sales Closed in St.Cloud
ilding Permits
08,072
COLOR KEY:
ECONOMIC INDICATORS & TRENDS
UD, SAUK RAPIDS, SARTELL, WAITE PARK,
32,866
$100M
6,488
9,534
1,110
$250M
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Fun fact:
Most people in the area wouldn’t know that our indoor race facility is one of the largest and nicest in North America. We hope to eventually have a national race in it.
32
Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
P l ay STATION Laura and Steve Knutson have followed a rocky path to turn their vision into a destination for fun. ... STORY BY GAIL IVERS & PHOTOS BY JOEL BUTKOWSKI
S
business information technology (IT) services, teve Knutson has been an entrepreneur since he was in high school. That’s when copiers/printers, and audio/video systems. “We were buying small businesses, and he and a buddy started an autobody other IT companies and I found the process repair shop in the friend’s garage. fascinating. It got me wondering about what I Laura Knutson has been a teacher since would do when I retired. What I might do to graduating college in 1989. leave a legacy for my kids.” Steve is the chief information/technology That was in the officer at Marco, Inc. spring of 2011. Over Laura is turning lunch with family friend the couple’s retail Greg Gordon, Steve operation, Baker’s Profile shared that he was HobbyTown/Thunder Baker’s HobbyTown thinking about buying a Road RC Raceway, into and Thunder Road business. “Greg said, ‘I’m a visitor destination. RC Raceway thinking about doing “I guess I got us into 500 Sundial Dr. Waite Park, MN something different. Buy this,” Steve said. “I’ve (320) 252-0460 Websites: hobbytown.com; mine,’” Steve recalled. always been interested thunderroadrcraceway.com Gordon owned Baker’s in business.” Steve is CEOs: Steve and Laura Knutson Hobby Emporium and part of the executive Ownership: 50/50 Goldeneye Framing and team that runs Marco, Business Description: Retail Gallery. a St. Cloud technology hobby store; indoor/outdoor For Steve, it was a services company radio controlled racetracks lottery win. “Rockets that specializes in
Business
Total number of employees: 5 Full time, 3 part time Previous Year’s sales: $900,000 Current year projected sales: $1 million
N O V E M B E R / D E C E M B E R 2 0 1 8 //
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33
TiMELINE: and model airplanes…that was my thing growing up!” Steve said. “I like hobbies. I don’t know anything about retail. But I do know about selling products and adding value through services – that’s the Marco model.” He and Laura talked it over and in November 2011 they bought the two businesses from Gordon. “Our son Ryan loved going to Baker’s,” Steve said. “That was his treat. If we wanted to reward him for something, we’d go to Baker’s on Saturday and hang out.” Ryan was 15 and had been talking about wanting to work at Baker’s. “We told Greg to encourage Ryan to apply for a job,” Laura said. “And to tell him he had to meet with the owner for the interview. It was Steve!” “I was sitting in this tiny office and Ryan comes in,” Steve said. “He looked kind of confused and said, ‘Where’s the owner?’ I said, ‘It’s me! I’m the owner. We bought the store!’ There was no high five or anything, he just kept looking kind of confused, like he couldn’t quite figure out what was going on. It was great.” “And of course he got the job,” Laura said. “And he’s worked here ever since. He loves this place.”
Getting Started
I
n 2011 Laura and Steve were actively parenting their four children. Laura was teaching art and Steve was working fulltime at Marco. “Greg assured us there was a manager who would be in charge of the stores,” Laura said. “And there was…for awhile,” Steve added. Laura did not work in the business and Steve was only there at a high level, watching the finances and thinking about the company’s future. It turned out, Steve didn’t like the framing business. He was a hobby guy. It also turned out that Gordon, who had sold the two companies in 2011, didn’t like hobbies. But he really liked framing and he missed it. In January
34
Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
November 2011
Laura and Steve Knutson purchase Baker’s Hobby Emporium and Goldeneye Framing from Greg Gordon.
January 2013
Gordon approaches the Knutsons about buying back the framing business. They enthusiastically agree.
Summer 2013
The Knutsons enter into a franchise agreement with HobbyTown USA, renaming Baker’s Hobby Emporium to Baker’s HobbyTown.
Fall 2013
The Knutsons purchase the Oakdale HobbyTown franchise.
December 2013
The managers of the Oakdale store resign. The Knutsons are unable to find a new manager; their St. Cloud manager begins working at both stores.
Spring 2016
The Knutsons close the Oakdale store, moving the inventory to St. Cloud.
May 2016
The Knutsons purchase the Star Dome property in Waite Park. They remodel the metal building to serve as a retail hobby store and begin plans to install a new dome for a large race track and space for radio controlled car and airplane use.
September 2016
Baker’s HobbyTown relocates to the Sundial Drive property.
April 13, 2017
Thunder Dome Raceway opens for business – five months behind schedule.
2013 he approached the Knutsons and asked if he could buy the framing business back. “We said yes!” the Knutsons said in unison. The deal was done within a month, Goldeneye Framing moved out of the shared location and Baker’s Hobby Emporium expanded into the vacated space. “It was way more space than we needed,” Steve said. “We built out a room upstairs where Laura taught art classes and clubs could come and play and leave their games set up.” Laura began her ongoing quest to organize the space. “What do you do when you have plenty of space? You store stuff,” she said. “There were years of old display racks and retail junk that needed to be cleaned up and thrown out. Years of it.” The two still remained mostly uninvolved in the store’s operations. “We started to think that this was a big investment of our personal money that we were leaving in the hands of someone with little financial investment in the company,” Steve said. “Amazon was becoming more competitive by this time so I decided we needed an online store. Do you know how much stuff a hobby store has? Every little piece of this or that needs to be cataloged...It was crazy. I gave up.” With mounting online pressure, Steve began to wonder what a small, local hobby store would look like long term. He vacationed to a hobby convention in the summer of 2013 where he met representatives from HobbyTown USA. This was a franchise company that had a national presence. They were experiencing some of their own online and big box pressures and were exploring new franchise options, including offering franchisees the option of co-branding. “We were the second store to co-brand. You see that we’re Baker’s HobbyTown, not just HobbyTown. That was a new concept in 2013,” Steve said. “We get all the benefits of a franchise
– we use their Point of Sale (POS) system, their software, their online store, their marketing help – and still have lots of flexibility to run the store the way we want to. It’s been a great decision.” The ink on the franchise papers was hardly dry when the owners of the Oakdale HobbyTown franchise asked the Knutsons to purchase the Oakdale store. They did. “That was brutal,” Steve said.
Downsizing
“T
here are people who own multiple HobbyTowns,” Laura said. “We shouldn’t have been one of them. There are so many widgets, so many details in these stores. That’s not Steve’s thing. He’s a visionary. I was coming in more and more, getting to know the employees in St. Cloud. That was OK, but I didn’t want to go to Oakdale.” When the Knutsons purchased the Oakdale store the owners assured them it was a turn-key operation. There were managers in place who did the day-today operations, Steve and Laura could be hands-off owners. “There were managers in place,” Laura said, “who quit right after Christmas. They had good life reasons, but it left us without a manager. We wanted to hire a new manager, but that was hard to do. Jason, our St. Cloud manager, was trying to do both, but that wasn’t working. It was not fun.” Within three years, the Knutsons closed the Oakdale store and moved the inventory to the St. Cloud store. “Oakdale did OK,” Laura said, “but we didn’t like having it. It was just too hard.” A silver lining on the closure was the opportunity to upgrade their fixtures in St. Cloud. “The Oakdale store had all the HobbyTown shelving and hangers, and display racks,” Laura said. “Nice stuff. We were still using the
June 11, 2017; 8 a.m.
Straight-line winds hit the Thunder Dome, ripping the specialty fabric off its supports and dumping it on nearby Charter Communications, crushing their satellite dishes and taking down their transmissions. Fortunately no one is hurt.
Summer/Fall 2017
The Knutsons rebuild, designing a smaller facility constructed of metal. They rename the business Thunder Road RC Raceway.
November 18, 2017
Thunder Road RC Raceway opens for business.
February 2018
A new indoor rock-crawler track opens. Profile
Business
Baker’s HobbyTown Summer 2018 and Thunder Road The outdoor dirt track opensRC for Raceway business; Baker’s
500 Sundial Dr.begins Waitecarrying Park, MN HobbyTown (320) 252-0460 Radio Shack products. Websites: hobbytown.com; thunderroadrcraceway.com September 2018 CEOs: Steve and RC Laura Knutson Thunder Road Raceway Ownership: 50/50 holds its first 3-day race. Business Description: Retail hobby store; indoor/outdoor radio controlled racetracks Total number of employees: 5 Full time, 3 part time Previous Year’s sales: $900,000 Current year projected sales: $1 million
fixtures that had been cobbled together over the years before we bought Baker’s, so we switched them out and essentially upgraded our St. Cloud store.” Meanwhile, the two were watching sales at all HobbyTown franchises decline. Amazon was cutting into sales and profit. “Our profit margin on high priced items used to be 40 percent,” Laura said. “Now we’re closer to 15 percent. With overhead it almost doesn’t cover the cost of the sale.” Steve drew on his Marco experience for ideas. “One of the things I noticed with these companies that Marco was buying,” Steve said, “is that they often owned their buildings. The company would pay rent to the owners, providing a steady income stream to themselves, rather than to someone else. I also started asking myself, what can we do that Amazon can’t?” The answer? Provide a space where people could enjoy their hobbies. A space where clubs could meet. A space where tracks could be built for the growing interest in radio controlled cars and airplanes. A familyfriendly space.
Up-sizing
I
n May 2016 that space became available. The property on Sundial Drive in Waite Park that had been home to the Star Dome was for sale. “All we had to do was put up a new dome,” Steve said. “Which was supposed to be easy and inexpensive,” Laura added. “It was neither.” They immediately remodeled the front of the Star Dome, changing the space from what had been a pro shop, into a retail environment. By fall Baker’s HobbyTown was doing business out of the new location. The new dome was supposed to be in place
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35
at the same time, but construction lagged. “This was supposed to be an indoor facility designed for winter and we couldn’t open until April. We missed the entire season,” Steve said. That turned out to be the least of their problems. On June 11, 2016, disaster struck. At 8 a.m. a crowd had gathered outside what was now known as the Thunder Dome. It was Saturday, time for a regularly scheduled swap meet. The weather was lousy. Everyone waited in their cars, as Ryan Knutson, in charge of the day’s events, decided to open the Thunder Dome so the swap meet could take place inside the building, rather than on the grounds. As he turned the key in the lock and entered the front door… the dome exploded. Straight line winds hit the dome, ripping the specialty fabric off its supports and hurtling it toward the near-by Charter building where it caught and crushed the cable company’s satellite dishes, taking down their transmissions. “No one was hurt,” Laura said. “That’s the most important thing – the only thing, really. When I think of how that could have ended up…” She shakes her head. “If the wind had struck five minutes later, Ryan would have been in the building turning on the lights. If it had struck at 9 a.m. instead of 8 a.m. the dome would have been full of people.” It wasn’t just the dome that was gone. The building was wide open
Personal Profile Laura Knutson, 50
Co-Owner / General Manager, Baker’s HobbyTown and Thunder Road RC Raceway
Hometown: Naperville, Ill. Now Clearwater, Minn.
Education: Bachelor of
Science in Elementary Education from the University of Illinois, 1989; Master of Arts in Training and Learning Technologies from the University of New Mexico, 1993
Work History: Grade school
teacher, software trainer, Mom, art teacher grades K-12, kindergarten music teacher
Family: Husband, Steve, and four children
Hobbies: Painting, playing piano, flower gardening, studying the Bible, walking with Steve, solving puzzles
Advice to a would-be entrepreneur: Be a servant leader with your employees.
to the wind and rain that followed, ruining much of the interior. The specialty carpets designed for RC car racing were ruined. All the electronics were destroyed. The pit tables, set up for racers to work on their cars, were damaged. While insurance covered much of the damage, it was still up to the Knutsons to pick up the pieces. “You can look at the negative or at the positive,” Laura said. “No one was killed. No one was even hurt. Was it hard? Yes. But most things that are good are hard.” She spent the summer repainting the pit tables and cutting up what was left of the dome into tarpsize pieces and selling or giving them away. “That’s all I did all summer…cut and paint, every day.” Agreeing that it was too risky to put up another dome, the two approached a local builder and directed him to create a building that would never come down. “It’s half the size of the dome,” Steve said. “Because of that we could put a dirt track outside and expand the parking lot. And believe me, this building is not coming down.” The new building opened for business in November 2017. “We actually got to open for winter!” he said. In February 2018 a rock-crawler track, built by son Ryan, opened, followed a few months later by the outdoor track. “I think we’re pretty much done with construction now,” Laura said.
Best advice you’ve received A favorite bit of advice was given to me by Steve after our dome exploded and I was overwhelmed trying to figure out how to clean up the mess. He said:
the way to eat an elephant is one bite at a time. So day after day, for three months, I went to the disaster zone and, with the help of some friends, got it cleaned up.
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Big Ideas
C
onstruction maybe, but not ideas. In June HobbyTown USA and Radio Shack signed an agreement allowing HobbyTown franchisees to carry Radio Shack products. “HobbyTown didn’t know if people would be interested, but when they made it available to us, almost everyone signed up. HobbyTown was floored,” Steve said. “All those little electronic things you want, or need, but can only find online, you can find here now.” They’re also expanding into toys. It turns out that manufacturers are beginning to understand the need for brick and mortar stores that sell their products. “We’re their frontline sales people,” Steve said. “They’re looking for ways to distribute their products besides being online.” As a result, they’re making some products available exclusively through retail stores, and some just for the smaller hobby shops. “They might sell a particular truck online, but if you want that same truck with a battery included, you have to go to the store to get it,” Steve said. “Or they might offer the same brand at a big box store, but not the same model that we have available.” Visionary Steve is already moving on to the next big thing. “We have the largest indoor RC carpet track in the country,” he said. “We could have national or even international races here.” Their first big race, a regional competition, was in September and limited to 200 entries. “You have to get known in the industry to get people to come,” he said. “We want to grow into a destination.” Laura is no slouch when it comes to vision. “We’re in the process of arranging for food vendors to come in and sell food during the day,” she said. “People come here and spend all day and there’s no place close by to eat. Now there will be.” She has also made arrangements for the St. Cloud
Best advice you’ve received
Know yourself. This will help you relate to others. —JEFF GAU, STEVE'S BOSS FOR THE LAST 19 YEARS
Personal Profile Steve Knutson, 57
Co-Owner, Baker’s HobbyTown and Thunder Road RC Raceway
Hometown: Born and
raised in Albuquerque, New Mexico; currently live in Clearwater, Minn.
Education: Bachelor’s degree in Computer Science from the University of New Mexico Work History:
Four years in the Air Force; Defense contractor (BDM) in Albuquerque as a systems analyst for nine years.; Department of Defense in Oklahoma City for four years. Moved to St. Cloud in 1999 took a job at a small company called Marco. In 2017, became Marco’s CIO and chief technology officer (CTO), a role in which he is still employed.
Family: Wife, Laura; children: Ryan, 22; Stephani, 21; Holly, 19; and Jeremy, 18
Hobbies: Fishing, hiking, restoring classic cars (primarily Mustangs), high power rocketry, spending time with family, anything technology related, and owning a hobby shop.
Advice to a would-be entrepreneur:
VA to bring clients to the raceway before regular hours to accommodate the needs of the veterans. And she’s started promoting the raceway as a party venue. Guests can arrange for their own food to be brought in, the staff will set up tables in a designated corner, and the only cost will be the regular entrance fee and any equipment rentals. She has few regrets about her career change. “I do miss teaching art, and I did both for a few years – teach and work here. But I didn’t like being pulled in two directions,” she said. “We’re investing a lot of our personal money,” Steve said. “Having Laura here overseeing the business makes sense. We needed an owner on the premises.” “I like being in charge,” she added. “I can just do something, I don’t have to ask anyone or worry they’ll get mad. I see so many balls that were dropped and need to be cleared up. My only frustration is that I can’t fix it all today.” She also derives great satisfaction as an employer. “We’re a place for people to work. We have four full-time and some part-time people. That and seeing parents come here with their children learning how things work, having fun together…that brings me great joy.” As they look back on their seven years of business turmoil, the Knutsons fall squarely into the optimistic camp. “We actually did it,” Steve said. “Lots of people say ‘I want to…’ but I had a vision and we actually did it. I’m not excited about the problems we had, but, at the end of the day, everyone pulled together and made it happen. Sometimes I’ll come out here on a Sunday and just hang out and watch the people. We’ve provided a place where people can come together and have fun. How cool is that!” Gail Ivers is vice president of the St. Cloud
Area Chamber of Commerce and managing editor of Business Central Magazine.
Always have a plan “B”
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Feature IN THE KNOW
10 TIPS from local experts 1 Set a business goal, such as an increase in product sales – or in the case of not-for-profit organizations, an increase in memberships or dollars donated. 2 Set a customer engagement goal, such as number of Facebook likes, number of Twitter followers or number of questions/ comments posted to your website.
NET CUSTOMERS
The business that beefs up its web and social media presence is winning the customer race in the digital arena. By Jeanine Nistler
R
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emember when a few 30-second radio spots, a quarter-page newspaper ad and perhaps a billboard were all the advertising a business needed to do? If you are still struggling to accept that those days are gone forever, don’t despair. Instead, read on for evidence that change is possible and profitable. And if you have embraced the digital age, pat yourself on the back. Then read on to make sure you’re keeping pace with some St. Cloud marketing pros who are leading the digital pack locally and in their industries. Patty Funk is director of marketing for Marco. She has been with the company for three decades and has seen tremendous change, particularly in the past five to six years. “Eighty percent of our marketing now is digital,”said Funk, who describes Marco’s marketing as very contemporary.
company’s 53 locations in nine states who post on Facebook, Twitter, Instagram and LinkedIn
A few of Marco’s tools: A A “social squad” of about 15 employees from across the
A Videos that humanize a business that could appear to be more high tech than high touch.
Business Central Magazine // N O V E M B E R / D E C E M B E R 2 0 1 8
A A popular blog by CEO Jeff Gau in which he shares tidbits from events he has attended, snippets about Marco’s culture, and insights about industry best practices. “He’s pretty transparent and dedicates the time to make it valuable. It’s all in his own words,” said Funk, who added that some 130 Gau blogs are on the company website. A Technical blogs written by members of Marco’s Managed IT Services. When an article is downloaded, Marco captures the reader’s contact information, which goes to the business development group and a call goes out within 15 minutes to set up an appointment with a sales representative
3 “You need to have a social media presence,” said Dawn Zimmerman, The Write Advantage. “Some organizations still resist that,” failing to recognize that social media “levels the playing field for small and large organizations.” 4 Identify your audience(s). 5 “Act like your audience; think like a troll” is advice the Y’s Kelly McCall recalls hearing at a Chamber of Commerce event. Based on that, she recommends asking yourself both “What would my audience like to know?” and “What negative comment might someone make?” 6 “Engage with your customers,” says D.J. Bitzan’s Britt Vander Eyk. “Ask them questions on social media. People like to share their opinions. Give stuff away. People love that.”
Marco waded into digital marketing in 2011 with a Facebook page. In 2012, the company engaged The Write Advantage owner Dawn Zimmerman, who helps businesses strategize, create, execute, measure and refresh their digital marketing efforts. “The organizations that have been able to execute a digital strategy see faster results and typically better results,” said Zimmerman, who continues to consult with Marco. “Every good strategy starts with a good business goal.”
Identify your audience Digital tools can help you reach more people, but more importantly, they can help you reach the right people, the people who will buy your products or services. “You really have to figure out first who your audience is,” said Britt Vander Eyk, marketing director for D.J. Bitzan Jewelers.
Data mining can help businesses identify potential customers, learn more about current customers, and figure out which tools are best for each audience. Facebook, Instagram and Twitter may be the ideal digital platforms to reach a segment of your audience, while traditional direct mail may be best for another. D.J. Bitzan spends half of its marketing dollars on its website (which features photos of and detailed information about thousands of pieces of jewelry), digital ads, Pinterest, Facebook, and Instagram. The other half goes toward radio, billboards, magazines, newspapers and other print. “We feel it’s important to still be in both areas,” Vander Eyk said. “Each customer is a unique individual. Some will look online and come in with a photo of what they want. Some come in not knowing what they’re looking for and will try on numerous pieces.”
IN THE KNOW
7 Use digital media to support the community, such as promoting the United Way campaign. “It’s not always about us and not always about jewelry,” Vander Eyk said. 8 Start small. “Focus on one of the platforms and do it well,” advises Marco’s Patty Funk. Then slowly add to your digital toolbox. 9 Encourage your employees to get involved. J Continually assess the impact of your efforts and tweak as needed.
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Feature The ability to research online empowers consumers, Vander Eyk said. “Today’s consumers are far more sophisticated and have access to a lot more information. The customer experience doesn’t start when they walk in the door.” In fact, customers may not walk in the door at all if they aren’t able to first check out and communicate with a company or organization online. “People want to be engaged. They want to be entertained. They want to give
feedback,” Zimmerman said. “People don’t want to be talked to; they want to be talked with.” Kelly McCall, the St. Cloud Area Family YMCA’s marketing and special events director, concurs. “Digital has made a very big impact in our member and potential member engagement,” she said. Eighty percent of the Y’s marketing is digital, including digital boards in the facility, e-blasts and social media posts to help generate registrations for youth sports leagues, fitness classes and
Bernick’s Family Fitness Series events. These tools also played an important role in fundraising for construction of the new facility that opened in May 2017.
Meaningful content All content is not created equal. It needs to be meaningful to your audience, the local marketing pros say. Zimmerman strongly advises focusing on quality, not quantity. Instead of setting a goal of five social media posts in a week, she said, “you need to put out five good posts a
IN THE KNOW
TERMS DEFINED
Digital marketing is a broad field that businessdictionary.com defines quite simply as the promotion of products or brands via one or more forms of electronic media. It can range from search engine optimization (which ensures that those who are googling for your type of products or services will find your website), to social media (Facebook, Twitter, Instagram and more), to e-mail and text messaging, to digital billboards and digital TV and radio.
strategic. creative. effective. To help you and your business goals finally see eye to eye, let WhiteBox Marketing put our expertise to work just for you.
Carrie Karki
Founder | Director of Marketing info@whitebox.marketing 320-270-0722
www.WhiteBox.Marketing
Strategic Marketing • PR • Branding Creative Campaigns • Web • Digital Media • Consulting Services
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week.” Far too often, Zimmerman said, people think “more, more, more. That’s a mistake. People don’t stop often enough to ask whether what we’re doing is working.” She advocates real-time monitoring of digital marketing efforts. “You can know within hours whether it’s working and can adjust.” Vander Eyk agrees, but admits that “being responsive can be challenging.” The YMCA’s McCall, meanwhile, says, “Our biggest challenge is how much we have to offer and not overwhelming our members with this communication. We have to be strategic about what we’re promoting and when we’re promoting it, what audience we’re reaching, and what avenue we are using to do so.” Jeanine Nistler is a former St. Cloud communications professional now living and working in the Twin Cities.
BY THE NUMBERS
MARCO SHARES STATS Inbound Marketing:
Contacts*:
146 VS 388
408 VS 437 & 41 VS 23
Generated qualified sales leads and wins 2017 vs 2018 through July 31 Blog Views:
11,812 VS 15,481
Contacts for the month of July 2017 vs. July 2018 Website Visits:
33,062 VS 51,300
Visits for the month of July 2017 vs. July 2018
Blog views for the month of July 2017 vs. July 2018
* Contacts – Anyone who has provided their contact details in order to download information, sign up for an event or request to talk with a specialist
age
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RETIREMENT PLANNING
Creating a retirement plan for your employees is an important step in retaining talented people // By April Diederich
A
s a small business owner, one of the greatest benefits you can provide to your employees is a way for them to save for their financial futures. Offering a retirement plan is an important part of the total compensation package that helps you compete for, and retain, talented people. Keep in mind that employer contributions to a retirement plan are a deductible business expense. As an employer you have flexibility in choosing a plan, or combination of plans,
that work for your business. Broad categories include: Defined benefit plans A defined benefit plan, such as a traditional pension plan, is something you could consider for your employees. The plan enables you to make annual contributions, which can be adjusted each year. Some plans feature the option to automatically increase annually, allowing you to reward employee loyalty. The plan pays out a specified benefit to retired employees.
Defined contribution plans A defined contribution plan allows the employee, the employer, or both to contribute to an individual account for the employee. A 401(k), the most common defined contribution plan, allows the employee and employer to make consistent, tax-deferred contributions. Participants choose investments that have the potential to grow tax-deferred. These plans allow annual contributions of up to $18,500 in 2018, the ability to borrow from Continued on page 44
Getting Started in Business
The 2018 edition of A Guide to Starting a Business in Minnesota is available from the Small Business Assistance Office at the Minnesota Department of Employment and Economic Development (DEED). It covers a wide variety of topics, from basic process questions to regulatory, financial, managerial and business-structure questions. It also includes information on an array of programs and initiatives that support small business growth. You can find the guide on the DEED website by searching “2018 Guide to Starting a Business� or at BusinessCentralMagazine.com
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April Diederich specializes in fee-based financial planning and asset management strategies and has been in practice for 12 years. To contact her, visit www.ameripriseadvisors.com/april.m.diederich.; Ameriprise Financial and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situations. Ameriprise Financial Services, Inc. Member FINRA and SIPC.
SPECIAL FOCUS
CLOSE-UP: SENTRY BANK
SENTRY BANK’S COMMERCIAL LENDERS MEAN MORE THAN BUSINESS Independent community bank is focused on doing the right thing to help build a strong community
Michael Grogan, Senior VP/ Commercial Lender, has been with Sentry for almost five years, but 29 in the industry. He has an MBA in Business Administration. Mike attends various St. Cloud Chamber of Commerce meetings and is well known for his personal introductions at the meetings that include, “Who needs a slogan; bank with Grogan.”
(L-R) Doug Danielson, Kevin Fitzpatrick, Michael Grogan, Ryan Holthaus.
I
n its 114-year history, Sentry Bank has invested in hiring the right staff––trained professionals who thrive in a culture of community service. “Serving community is what we’re here for, as both business people and community members, particularly the business bankers,” says Darren Heying, CEO/President of Sentry Bank. “Our lenders understand the local economy and are perceptive to the needs of the area businesses. They are upfront with customers,
and have a professional work ethic that includes promoting the businesses they serve and striving for community success.” Doug Danielson, Senior VP/ Senior Commercial Lender, celebrated 26 years with Sentry Bank this year. He has a total of 39 years in the industry, learning the business from the ground up. Doug has a BS in finance and a degree in banking. He volunteers regularly within the St. Joseph community.
320-363-7721 • mysentrybank.com
Kevin Fitzpatrick, Commercial Loan Officer, has over 16 years of banking experience, including 3 years of lending experience. He has a BS in Business Management and an MBA in Business Administration. Kevin is on the Board of Directors for Big Brothers Big Sisters of Central Minnesota, is a Junior Achievement classroom volunteer, and an active member in the Sartell Chamber of Commerce.
Ryan Holthaus, Commercial Loan Officer, has 15 years of business experience, including three years with Sentry Bank. His BA is in Business Administration. Ryan volunteers as a youth summer baseball coach, is a board member of the Cold Spring Area Youth Sports Association, and is involved with the Sertoma Club in St. Cloud. “Our commercial lenders are not the only employees of Sentry Bank that are active in supporting the local businesses and organizations,” said Heying. “You’ll see our staff volunteering regularly––it’s who we are, and I never want that to change. We really are all about the communities we serve. If the community is strong, so are we.”•
Commercial Lending Team: Darren Heying, CEO/President // Doug Danielson, SVP/Sr. Commercial Lender // Kevin Fitzpatrick, Commercial Loan Officer // Michael Grogan, SVP/Commercial Lender Ryan Holthaus, Commercial Loan Officer
Four Convenient Locations: St. Joseph // St. Cloud West // St. Cloud Downtown // St. Stephen
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SPECIAL FOCUS
While you may be hoping that the proceeds from the future sale of your business will provide for your retirement, you could be putting your future at risk if you’re not saving in another vehicle.
the plan to cover emergency needs, and “catch-up” contributions of an additional $6,000 a year for those age 50 and older. Employers have flexibility to establish vesting schedules or options such as a Roth 401(k), funded by after-tax contributions, but with the potential to provide for tax-free withdrawals in retirement. Just as with pretax contributions, a Roth 401(k) comes with required minimum distributions.
IRAs There are two types of individual retirement accounts (IRAs) that allow you
to make tax-deferred contributions. One option, a Simplified Employee Pension (SEP) IRA, is one of the easiest and least costly plans to create. One hundred percent of the contributions are made by the employer and are immediately vested for the employee. In 2018, the maximum contribution can be 25 percent of an employee’s salary up to a total contribution of $55,000. It’s not possible to set up a Roth version or to offer loan provisions. A SIMPLE IRA is a second option you can use if your business has fewer than 100 employees. Like a SEP, it’s easy
to establish and administer, and the plan requires employers to match the employee’s contributions. In 2018, the maximum contribution to a SIMPLE IRA for an individual is $12,500, with an additional $3,000 allowed for those age 50 and older.
Don’t forget about your own retirement As a small business owner, it’s important to understand your options when it comes to saving for your retirement and helping your employees save for their financial futures. Continued on page 46
AIS Planning is dedicated to providing the very best in Wealth Management and Retirement Plan services, focused on helping clients think bigger, plan better so they can enjoy more! AT AIS PLANNING WE BELIEVE...
Everyone deserves trustworthy financial advice, fashioned in their best interest.
People are worth more than what is represented on their financial statements.
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Financial planning is about serving people, not selling products.
Owners, Jason Hallonquist and Cathy Juilfs
We look forward to meeting you! 320.252.6552
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INDUSTRY LEADER: SARAH NOBLE, NORTHWESTERN MUTUAL
Sarah Noble:
Opportunity Knocked; She Answered Northwestern Mutual representative seeks to “Elevate” women lives single––as sole earners, divorcees, widows. Women have a better-than-average chance of inheriting assets, or a business. So, like men, women need to adequately plan for themselves and their families. This niche makes a viable client market for Sarah’s business.
discuss and draft a complete financial plan. One-to-one free consultations develop her core clientele. She also holds public events called “Elevate Fusion,” with the goal of learning and enriching women’s lives, and having fun! Sarah creates private “Elevate” groups
Creating financial security for women
“A
t the heart of my business is my passion for helping people, especially women,” says Sarah, who believes women must be strong and self-sufficient in matters that affect them and their families––retirement, long-term care, income and asset protection. She can help.
Women are taking increasingly active roles in financial decision making, and by 2020 will control 20 trillion dollars. This trend is partially due to women working and earning more than ever before, and also because most women spend a portion of their
Unfortunately, the fear of looking ignorant keeps some women from learning about finances or seeking a financial representative. “Women make up 50% of the population but only 1530% of financial advisors,” says Sarah, who has set out to be a thought leader in her field, a pathfinder for women inside her company, and an advocate for her clients. Sarah makes the topic of financial planning approachable for women by taking time to build trust and to understand each client’s unique personality, goals, and dreams as they
comprised of 10 women who share and consult about their women-owned businesses. She connects with women in engaging ways through social media, offering virtual educational webinars, tips, and free resources on her business Facebook page (sarahnoblenm). “We, as women, want someone to respect our desire to choose for ourselves, not to be sold to,” says Sarah. “Individual women and female business owners should find working with me honest, conversational, non-judgmental, and even, fun.” •
Sarah Noble, Financial Representative, Northwestern Mutual, St. Cloud, MN 56301 tel: 320-223-6647 // sarah.noble@nm.com // sarahnoblenm.com Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Northwestern Mutual Investment Services. LLC (NMIS) (securities), a subsidiary of NM, broker-dealer, registered investment adviser and member of FINRA (www.finra.org) Sarah Noble is an Insurance Agent(s) of NM. Sarah Noble is a Registered Representative(s) of NMIS.
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“
SPECIAL FOCUS
Stearns made the process very easy. I don’t come from the banking world and they made sure to talk me through every step along the way.
While you may be hoping that the proceeds from the future sale of your business will provide for your retirement, you could be putting your future at risk if you’re not saving in another vehicle. A lot could happen between now and your planned retirement that could affect the value of your business or your ability to sell it. Establishing a retirement plan may provide a more secure source of future retirement income. In most cases, you can establish a personal account as part of the plan you offer your employees.
”
STEARNS BANK CUSTOMER
Trevor Goodwin
Owner, Sta-Fit St. Cloud and Sartell, MN
Fast and friendly service. We Get the Job Done! ® Visit StearnsBank.com today Member FDIC
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BEST SMALL CITIES St. Cloud makes 2018 “Best” list.
V
erizon Business announced their 2018 “Best Small Cities to Start a Small Business” and St. Cloud made the cut! The ranking was based on six metrics: 1
Education level of the
2
In-city commute times
3
Income per capita
4
Broadband access
5
Availability of small business loans
6
Overall tax friendliness.
local workforce
Rankings: Only three Minnesota small cities made it into the top 50. Coming in at No. 27: St. Cloud was bested by No. 25: Maple Grove but ahead of No. 29: Eagan. Source: Verizon.com
You can find the entire report at BusinessCentralMagazine.com 46
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With the right financial advisor, life can be brilliant.
Contribution limits may apply, depending on the type of plan and if your spouse also works for your business. Consider meeting with a financial advisor and accountant who specializes in small business retirement plans. The right financial professionals can help you make the best choice for you, your employees and your business.
April Diederich, CFP®, CRPC®, APMA®,
Proviant Group
is a Financial Advisor with Proviant Group, a private wealth advisor y
A private wealth advisory practice of
practice of Ameriprise Financial
Ameriprise Financial Services, Inc.
Services, Inc .
1765 Roosevelt Road St. Cloud, MN 56301
TAX REFORM The Compass is a trademark of Ameriprise Financial, Inc. Ameriprise Financial Services, Inc., Member FINRA and SIPC. © 2018 Ameriprise Financial, Inc., All rights reserved.
Discover the benefits of an SBA guaranteed loan
Easy-to-Use, Easy-to-Read IRS offers up-to-date tax reform information.
W
ith an updated tax reform section, IRS.gov should be the first stop for taxpayers looking for information about how tax reform legislation – the Tax Cuts and Jobs Act – affects their taxes. The Businesses Page is for businesses of any size and covers: 1 Income – including gains and losses 2 Deductions and depreciation 3 Credits 4 International 5 Taxes Source: MN-DEED
St. Cloud 3130 Second Street South
| (320) 253-6300
Doers Welcome . TM
minnwestbank.com
SBA Preferred Lender
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FINANCIAL & PROFESSIONAL SERVICES DIRECTORY
AIS Planning is dedicated to providing the very best in Wealth Management and Retirement Plan services, focused on helping clients think bigger, plan better so they can enjoy more!
American Heritage Bank
Central Minnesota Credit Union offers a full array of financial products and services including business accounts and loans. CMCU is a preferred SBA lender.
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Business & Commercial Lending Personal Banking & Ag Loans Online Services Sauk Rapids Pierz 320.252.5121 320.468.6422
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Minnwest Bank
Creating Financial Security for Women
Devin Larson Commercial Banker tel: 320-259-3337 devinl@minnwestbankgroup.com minnwestbank.com Streamline the SBA loan process by working with an SBA Preferred Lender. Minnwest Bank can approve loans on behalf of SBA, giving you a local facilitator who understands your business and your community. SBA loans help meet your financial needs by offering: • Lower Down payments • Flexible repayment options • Improved cash flow • Longer terms Discover the other benefits of an SBA guaranteed loan by contacting Minnwest Bank today. Member FDIC.
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Sentry Bank
Doug Danielson Kevin Fitzpatrick Michael Grogan Ryan Holthaus Commercial Lending Team tel: 320-363-7721 mysentrybank.com Community Minded. SBA Preferred Lender. Local Decisions. Locally Owned. Locally Operated Since 1904.
Stearns Bank
We are a $2 billion, top-ranked national bank focused on delivering lending, financing and banking services for today’s small businesses. With a personalized approach to customer service and a commitment to innovation and customized finance solutions, We get the job done!
Call us today! Banking Services: 320-253-6607 Lending: 320-654-9979 Equipment Finance: 320-845-2149
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Business Spotlight
Local and Like It
Sauk Rapids natives Todd Kelm and Tim Reuter are proud of their roots and count friendly greetings on the street as a sign of success. By Gail Ivers
PERSONAL PROFILES
Todd Kelm, 55
Hometown: Sauk Rapids
Education: Sauk Rapids High School, St. Cloud State University, William Mitchell College of Law
Family: Wife Rachelle; sons Noah and Hadyn; daughters Mackensey and Grayce; three grandchildren Hobbies: Family and fishing Fun Fact: “I love being a grandpa.”
TIMELINE Dec. 1, 1989
Todd Kelm opens a law office in the basement of what is now the Wells Fargo building in Sauk Rapids
1992
Kelm becomes the criminal attorney for the City of Sauk Rapids, a position he holds to this day
Jan. 1, 1996
Kelm moves his office to its current location in Sauk Rapids; Karen Ludwig joins the practice as a legal assistant
Feb. 1996
Tim Reuter joins the practice as an associate attorney
Jan. 2000
Joseph S. Mayers joined the firm as an associate attorney
2002
Kelm & Reuter, P.A. doubles its space and adds staff
Business Central: How did you end up working together? Todd Kelm: Tim’s father did the work on my car. He came to the office and said his son was in law school and maybe I could hire him. And it’s worked out really well. Tim Reuter: Dad wanted me to move home. I thought ‘Why not give it a try.’ He knew how important it was to know people when you’re trying to get started. Kelm: It definitely helped that I was local. I had family that gave me work. A family friend gave me a big job and I wondered if he really wanted me to do it. He said “You’ll learn how. I have confidence in you.” Other people see that
Sept. 2006
Casey C. Kolb joined the firm as an associate attorney
Oct. 2009
The attorneys start aggressively advertising on radio to improve their name recognition
July 2018
Ashley M. Bukowski, a recent law school graduate, joins the firm
Nov. 2018
Kelm & Reuter, P.A. addd a 5th attorney
50
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and have confidence, too. It makes a huge difference. BC: Why did you start advertising? Kelm: We had been getting referrals from local bankers, but the younger bankers only knew Twin Cities’ attorneys. The ads improved our name recognition enormously. It was a huge growth point for us. You have to work to stay visible. BC: What do you like best about being attorneys? Kelm: It’s fun to watch a business you helped form, grow into a large company … Reuter: … and see the succession plan – children, grandchildren – watching
Timothy Reuter, 48 Hometown: Sauk Rapids
Education: Cathedral High School, University of Minnesota-Duluth, Drake University Law School
Family: Wife Kathy, sons Brad and Brandon and daughter Brianna
Hobbies: Children’s activities, golf, serving as president for District 5 Hockey
Fun Fact: My children are the fourth generation in our family to go to Cathedral.
them hand off the business. Kelm: Helping people create things. Litigation and practicing law is interesting, but helping businesses and seeing them thrive is great. It’s nice being local – we see these people, we pass them on the street and say hi. They keep us grounded. Reuter: Many people who call don’t need an attorney, at least not right then. They just need some direction. We always answer questions when people call. Kelm: We remind ourselves we want to be that old fashioned phrase: “counselors at law.” Reuter: Creatively solving problems before they happen. That’s definitely the most fun. Anticipate and avoid.
AT A GLANCE
Kelm & Reuter, P.A.
1287 2nd Street N Ste 101 Sauk Rapids, MN 56379-2531 (320) 251-1423 Fax: (320) 251-2862 Email: kelmreuter@kelmreuter.com kelmreuter.com Opened: December 1, 1989
Chamber member since February 1990
Business Description: A full service law firm practicing in the areas of business, family, and criminal law, real estate, and estate planning. Managing Partners: Todd Kelm and Timothy Reuter
Number of Employees: Eight – five attorneys, two legal assistants, and a receptionist
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Terry Kraemer, DSI Owner
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