January/February 2011 by St. Cloud Area Chamber of Commerce

2011_JF_BC.indd 1

12/16/10 10:14 PM

Get the tools to help your

small business

realize its

biggest potential.

SAVE 20% OR MORE* on Charter Business® Internet & Phone

and get Charter Business

TV FOR FREE**

POWER YOUR BUSINESS TO THE NEXT LEVEL WITH FLEXIBLE, RELIABLE, COST-EFFICIENT SOLUTIONS. CHARTER BUSINESS INTERNET Accomplish more with speeds up to 8 Mbps, PowerBoost†, desktop security software††, custom web hosting and email addresses.‡ CHARTER BUSINESS PHONE Stay more connected with unlimited long distance‡‡ and 12 essential calling features—using your same number and equipment. CHARTER BUSINESS TV Be more informed with crystal-clear channels that include news, sports, entertainment and more.

888.537.2319

Sign up for Charter Business Internet & Phone. charter-business.com/Big $ 99/mo. And Charter TVgrowing for FREE Callget or click to getBusiness your business today.

109

©2010 Charter Communications. *Over 20% savings off standard monthly rates with Charter Business Internet and Phone. **Free TV offer includes Private View Basic TV and is only available with subscription to Charter Business Internet (minimum 8MB) and one phone line with unlimited long distance and calling features. Offer available to new customers only with a 12-month term and is subject to change. Internet speeds and number of channels may vary. Offer expires 1/31/2011 and cannot be combined with other promotions. Not available in all markets. Installation charges, taxes, surcharges and other fees apply. †Availability of PowerBoost on any single download session is subject to network availability. PowerBoost is a registered trademark of Comcast Corporation. ††Includes 3 licenses; protecting all computers on the network may require additional licenses. ‡Included Web Hosting features Starter web hosting package with 500MB storage, 1 domain name and 2 email accounts. Additional charges for extra email accounts may apply. Annual domain name registration charge may apply. ‡‡Local phone service required to receive Unlimited Long Distance (ULD) and applies only to calls within the US, Puerto Rico and Canada. Usage monitored for improper use and abuse, and Charter may move customer to another long-distance plan or may restrict or cancel customer’s service. Services not available in all areas. All services provided are subject to the terms of the subscriber’s agreement/applicable tariff. Restrictions apply. Call for details.

2011_JF_BC.indd 2

12/16/10 10:14 PM

2011_JF_BC.indd 3

12/16/10 10:14 PM

Bu U

B S

S APP

IN EVERY ISSUE 8

6 President’s Letter

Editor’s Note

Network Central

Top Hats

CONTENTS

R END

PROFIT

•

NETWORK

•

GROW

S APP

JANUARY/FEBRUARY 2011

G ROW

Business Tools

24 TechStrategies

Approaching Social Media

26 Entrepreneurism

Adversity, Respect, Compromise and Political Leadership

27 Tech News 28 Economic Review Rational Irrationality

32 Profit

32 Cover Story

Part of the Family Once known as National Bushing, St. Cloud’s Automotive Parts Headquarters is thriving under its third generation of Bartlett leadership. N E T WOR K

Upfront

12 Your Voice In Government

10 News Reel

14 The China Experience

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

around Central Minnesota.

Book Review Open Leadership: How Social Technology Can Transform The Way You Lead, By Charlene Li & Jossey-Bass

2011_JF_BC.indd 4

29 Cost of Living 30 Going Green Sustainability

31 Doing Good

16 Business Calendar

Can’t-miss opportunities to influence, promote, and learn.

18 The Trouble with Business: Business Credit

P ROFIT

This Issue

Business Gives

38 Feature

Special Sections

Area cities work to make themselves attractive to businesses looking to expand and relocate.

44 Health care Introducing – 49 Smart Business

Wooing and Winning

42 Special Focus Golden Years

How comfortable you are in your golden years may depend on the economy, family dynamics, and trends in senior health care.

54 Business Spotlight Bob Miller, Kendeco Tool Crib

Trade Creates Jobs

Ding-dong … China calling — Part 2

ONLY ONLINE •• Free consumer personality test

•• 10 Legitimate home-based businesses

•• Downloadable designer fonts

•• Better Business Bureau tips for Craigslist

www.BusinessCentralMagazine.com

12/16/10 10:14 PM

Business_Weekly_St.Cloud_8.5x11_11-10.pdf

2011_JF_BC.indd 5

12/1/10

4:15 PM

12/16/10 10:14 PM

PRESIDENT’S LETTER

NETWORK

Here we go again.... epending on your interest in government, you’re probably either excitedly anticipating or cautiously apprehensive about the 2011 Legislative Session. Or maybe you just don’t care. You should care. The legislature certainly cares about you – specifically about how much you can contribute to the current Minnesota budget crisis. Our Chamber hosts several legislative preview sessions every December. This year members of our large employers’ Executive Dialogue Group hosted their own session with new legislative leaders. Their concerns mirrored their employment interests, but all had the same core concern – balancing the Minnesota state budget. Here’s what they told our legislative leaders: Public Funded Higher Education – Bonding for ISELF (Integrated Science and Engineering Laboratory Facility) is a top priority for St. Cloud State University. This year is not an official bonding year, but there may be a small bill at the end of session. ISELF will be front and center for funding this year and next. Operations funding tops the list of concerns for higher education. This year $14 million of cuts will be implemented at SCSU; up to 70 administrative staff and 70 faculty members will be laid off. At the St. Cloud Technical and Community College, the medium to heavy truck program is in dire need of a facelift, requiring bonding funds. The school’s funding concerns are similar to those at SCSU. City of St. Cloud – Local Government Aid (LGA) tops the city’s list of concerns. While St. Cloud Mayor Dave Kleis acknowledges all cities do not need LGA, it is a significant issue for regional centers. St. Cloud has already substantially tightened its budget. The city has cut an average of $1.2 million out of annual spending for each of the last three years. If more cuts are necessary, the legislature should

Program Hotline | 320-251-2940, ext. 125 www.StCloudAreaChamber.com

The 2011 legislative session begins Jan. 6

Main Phone | 320-251-2940 Automated Reservation Line | 320-251-2940, ext. 126

email: information@StCloudAreaChamber.com

consider a mandatory salary freeze, which would override existing union agreements. St. Cloud will also seek bonding funds for Phase II of the St. Cloud Civic Center Expansion. CentraCare Health System – Legislation on nurse staffing ratios have health care leaders concerned. An increase in the ratio has not been proven to increase quality; however, it will definitely drive up costs. Licensure requirements will also increase costs without contributing to increased quality. The GMAC “fix” from last year has not been a fix at all outside the Twin Cities metro market. The impact of budget cuts could be severe for health and long term-care facilities. Private Business – Taxes. Health Care. Energy Costs. Mandates. One of our business owners said the legislature needs to avoid doing things that put Minnesota businesses at a disadvantage. Another reported that if he conducted business exactly the same way across the river in Wisconsin, he would generate three percent more to his bottom line just from the Corporate Income Tax Rate differential. Let there be no doubt about it – businesses are already leaving for more profitable climes. Hart Skis announced in August that its Wayzata headquarters and distribution center is moving to Ogden, Utah. Viper Motorcycle is relocating its headquarters, production and 100 jobs to Auburn, Alabama. Lockheed Martin announced the closing of its Eagan plant - a loss of 1,000 jobs, with 650 of them moving to New York. Now, are you excitedly anticipating or cautiously apprehensive?

ST. CLOUD AREA CHAMBER OF COMMERCE STAFF President | Teresa Bohnen, ext. 104 Vice President | Gail Ivers, ext. 109 Director of Administration | Judy Zetterlund, ext. 106 Special Events Coordinator | Virginia Kroll, ext. 105 Communications & Workforce Development Coordinator | Jill Copeland, ext. 130 Membership Sales Specialist | Wendy Franzwa, ext. 134 Administrative Assistant | Vicki Lenneman, ext. 122 Administrative Assistant | Cindy Swarthout , ext. 100 Administrative Assistant | Sharon Henry, ext. 124 CONVENTION & VISITORS BUREAU STAFF Executive Director | Julie Lunning, ext. 111 Sales Manager | Lori Cates, ext. 113 Director of Sales & Marketing | Judy Okerstrom, ext. 112 Director of Sports & Special Events | Kelly Sayre, ext. 128 Director of Visitor Services | Jean Robbins , ext. 129 Receptionist | Nikki Fisher, ext. 100 2010-11 BOARD MEMBERS Jim Beck | Minnesota School of Business Craig Broman | St. Cloud Hospital/ CentraCare Health System Brenda Eisenschenk | InteleCONNECT, Inc. Linda Feuling | Westside Liquor Todd Fritz | InteleCONNECT, Inc. Jayne Greeney Schill | St. Cloud Area School District #742 Steve Hahn | HahnMark, LLC John Herges | Falcon National Bank Joy Hornung | LarsonAllen LLP Dolora Musech | Batteries Plus Kris Nelson | Custom Accents, Inc. Bernadette Perryman | C & L Distributing, Board Chair Rick Poganski | Principal Financial Group Dr. Earl Potter, III | St. Cloud State University Dr. Mark Roerick | Advantage Chiropractic Melinda Sanders | Quinlivan & Hughes, P.A., Past Board Chair Jodi Speicher | The Good Shepherd Community

Teresa Bohnen President

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

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 6

12/16/10 10:15 PM

Tomorrowâ&#x20AC;&#x2122;s Workforce: Demand & Supply

BUSINESS & ECONOMIC LEADERSHIP SUMMIT

2011_JF_BC.indd 7

12/16/10 10:15 PM

EDITOR’S NOTE

NETWORK

Parents, if you want your children to go into construction – contracting, heavy equipment, engineering – forget Legos. Take them to a construction site. background activity. And what

Career Choices

activity it was! Like the Energizer

truck.” It masqueraded as a concrete

bunny, the forklifts buzzed in and

mixer, but it was clearly a Jules

out of the picture, lifting palettes of

Verne creation. Stretched full, the

beverages, moving materials from

brilliant blue arm could reach to

high shelves to low ones, reversing

the top of the parking ramp where

in an instant and turning on a dime.

concrete sluiced out of it. When

What’s not to like?

finished, the articulated arm – in

When construction began on the

slow motion – folded back on itself

Center Square parking ramp and

three times, ultimately settling

ING Direct in downtown St. Cloud,

unseen on top of the truck.

I had a front row view from the Chamber office. Parents, if you want

It was soooooooooooooo cool. As we worked on this issue of

your children to go into construction

Business Central I shared my next

n my next life I intend to be a

– contracting, heavy equipment,

life plans with Automotive Parts

heavy equipment operator.

engineering – forget Legos. Take

Headquarters President Corey

I started thinking about this in

them to a construction site.

Bartlett. (See the story on page 32.)

about 2004 when Division Street

Each day I watched with interest

was under construction. Each day

as something new happened where

I drove along one side of the road

the parking lot once stood.

while the other side was built higher

First, they demolished the old

and higher. Front-end loaders, dump

Chamber building. Just think, if you

trucks and compactors traveled the

were having a bad day, you wouldn’t

high road, impressive in their size

be limited to slamming doors. You

and power. There were days when

could knock down an entire wall.

the backhoe was digging within feet

Then, there was the “alien arm

Corey suggested I try the forklift. Frankly, I want to run the crane. Power and grace in one piece of equipment…and I’ve always wanted to be tall. Until next issue,

Then, they brought in the crane.

of my car, but the precision was such

Against a beautiful summer sky,

that I never felt in harm’s way.

the red crane was master of its

How do they do that?

world. Towering over the site, it

Sometime after that we taped a

lifted girders like they were twigs,

video for the Chamber. At Bernick’s

gracefully swinging them up three

Beverages & Vending we asked

floors where workers guided them

them to bring out the forklifts for

gently into place.

Gail Ivers

Vice President

Editor

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 8

12/16/10 10:15 PM

Publisher Teresa Bohnen Managing Editor Gail Ivers Associate Editor Dawn Zimmerman CONTRIBUTING WRITERS Gary Berg GL Berg Entertainment

Jill Copeland St. Cloud Area Chamber of Commerce Lisa Gambrino sbaSTRATEGIES Philip J. Grossman St. Cloud State University Fred Hill St. Cloud State University Gail Ivers St. Cloud Area Chamber of Commerce Kent D. Kedl Technomic Asia Doug Loon U.S. Chamber of Commerce Mary MacDonell Belisle mary macdonell belisle – writerforhire Dawn Zimmerman The Write Advantage ADVERTISING Associate Publisher/Sales Wendy Hendricks, Hendricks Marketing

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

Cover Photo Joel Butkowski, BDI Photography ACCOUNTING Accountant Judy Zetterlund

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

2011_JF_BC.indd 9

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

12/16/10 10:15 PM

People to Know

Your Voice in Government

It’s Made Where?

The China Experience

Business Calendar

UPFRONT

B S

S APP

18 The Trouble with Business R END

••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

pen Leadership is about how leaders must let go to succeed. It’s for leaders … who are seeing the ordered world they understand crumbling in the face of customers, employees, and partners empowered by new tools that were unimaginable 15 years ago,” explains author Charlene Li. Li says that although businesses today and in the future know that “greater transparency and authenticity can bring signicant benefits to their organizations,” they continue to experience fear of the risks associated with

Open leadership may become mandatory in business organizations as social technologies continue to emerge Reviewed by Fred E. Hill

S APP

N E WS R E E L

Letting Go

by Charlene Li & Jossey-Bass San Francisco, 2010 ISBN 978-0-470-59726-2

News & people that make up the chamber network

BOOK REVIEW

Open Leadership: How Social Technology Can Transform The Way You Lead

PROFIT

N E T W OR K

GROW

opening up. This book shares how organizations and their leaders can approach being open as social technology use continues to grow. Social technologies include Facebook, Twitter, YouTube, Yammer, Jive, new mobile services, and many more. These technologies can assist in improving efficiency, communication, and decision making for leaders and their organizations. Thus, open leadership may become mandatory in business organizations in the future as these technologies emerge and opportunities for open leadership are developed. Customers, as they become more adept in using social technologies, may push for more openness. Li provides guidance on considering prospects for giving up some control, crafting an open strategy, and encouraging leadership and relationships in an open leadership model. This model requires an abundance of information sharing. One example of information sharing is called crowdsourcing, an electronic

opportunity where people with specific ideas and people who are looking for creative ideas can deposit their needs. Crowdsourcing has important information structure and flexibility. Information is the lubricant of any organization. It must flow freely in all directions. Understanding the concept of open strategies is necessary to conduct an openness audit, which is required to successfully develop action plans for appropriate change. Once the audit is completed, and strategies crafted, leaders must be determined, trained, and ready to design and nurture open leadership. Li identifies three important traits in finding open leaders: (1) Passion for the future, (2) Focus on relationships, and (3) Hacker mentality: determined to improve an existing system. She provides many examples of open organizations and leaders. BC Dr. Fred E. Hill is a professor of Learning Resources and Technology Services at

Rice Building announces promotion Steve W. Nelson has been Nelson promoted to Vice President-Operations for Rice Building Systems, Inc. Nelson has been with the company for ten years as a project manager.

InteleCONNECT adds sales manager Robin Grote joins InteleCONNECT, Grote Inc. as sales manager for both St. Cloud and the Twin Cities. Grote holds a B.S. in international business and sales and marketing.

HIR Companies changes name HIR Companies, LLC has changed its name to Safe Shield LLC. Product changes and market expansion have led the company to provide more customized compliance solutions to business clients, helping drive the name change.

Mathew Hall receives industry award Mathew Hall Lumber received an Industry Excellence Award from ProSales Magazine for best website. Mathew Hall was chosen because it created an interactive website that gives customers a sense of the deep roots that Mathew Hall has in the community, while offering state-of-the-art technology and services.

St. Cloud State University.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 10

12/16/10 10:15 PM

Marco May/June Ad:Connect Ad Jan.qxd

3/26/10

2:54 PM

Page

PEOPLE to KNOW Matt Kilian Initiative Foundation

(320) 632-9255 •• mkilian@ifound.org Chair, Marketing Committee, St. Cloud Area Chamber of Commerce

The Marketing Committee is responsible for the overall marketing efforts of the Chamber of Commerce, including communication materials, advertising, publications, the website, promotional programs, and organizational research.

Shannon Templin Minnesota School of Business

(320) 257-2000 •• STemplin@MSBcollege.edu Chair, Membership Division, St. Cloud Area Chamber of Commerce

The Membership Division is responsible for all marketing and membership activities, including workforce development, networking programs and all of the Chamber’s special events.

Brenda Spain Brenda Spain, Ind. Senior Sales Director

(320) 980-1153 •• spainbrenda@gmail.com Chair, VIP Committee, St. Cloud Area Chamber of Commerce

The VIP (Value Information Promotion) Retention Committee calls on Chamber members to share information about coming events, inquire about membership satisfaction, and encourage businesses to take full advantage of their membership. Dave Borgert

St. Cloud Hospital/ CentraCare Health System

(320) 229-4978 •• borgertd@centracare.com Chair, Government Affairs Committee, St. Cloud Area Chamber of Commerce

The Government Affairs Committee researches legislative issues, makes recommendations to the Board of Directors regarding legislative policy positions, organizes trips to the Capitol and legislative updates during the session, and maintains contact with area legislators and other elected officials throughout the year.

Marco helps organizations manage their information by applying network expertise to voice, data, video, and print applications.

Rick Poganski Principal Financial Group

(320) 253-2730 poganski.rick@principal.com Chair, Central Minnesota Farm Show Committee, St. Cloud Area Chamber of Commerce

This committee is responsible for planning and organizing the Central Minnesota Farm Show, the largest agri-business expo of its type in the Upper Midwest. The annual three-day show starts the last Tuesday in February at the St. Cloud Civic Center.

320.259.3000 • marconet.com J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 11

12/16/10 10:15 PM

UPFRONT

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

NETWORK

N E WS R E E L Johnson Group honored; hires designer Johnson Group Alexenko Marketing, Inc. won a national telecommunications marketing competition for its work for client Diversicom. The award was given by the Organization for the Promotion and Advancement of Small Telecommunications Companies. Brad Alexenko has joined Johnson Group as senior designer. He has 15 years of agency experience for clients such as DeZURIK and Creative Memories.

Chiropractor to represent national foundation Dr. Jill Braaten, Imagine Chiropractic, has been named an official local representative for the Foundation of Wellness Education (FWE) for the community of St. Cloud. FWE is a non-profit organization dedicated to educating the public about health and wellness issues. Braaten

YOUR VOICe IN GOVERNMENT

Trade Creates Jobs If Congress and the administration want to put Americans back to work, they should move forward on expanding global trade opportunities. By Doug Loon

ecently the U.S. Chamber of Commerce unveiled a study, Opening Markets, Creating Jobs. It settles once and for all the debate over whether America’s trade agreements have been good for the country and our workers. The study examines the U.S. free trade agreements (FTAs) implemented over the past 25 years and covering 14 countries. It concludes that the FTAs created 5.4 million American jobs. The overall trade relationship with those 14 countries supports a grand total of 17.7 million American jobs. “I defy anyone in town to name another budget-neutral government initiative that has generated anything like this number of jobs,” said Tom Donohue, president and CEO of the U.S. Chamber.

MediBill Professionals staff named officers MediBill Professionals owner Ranadene Tapio, CMRS, has been named vice president of the Minnesota Chapter of the American Medical Billing Association. Kim Terhaar, RHIT, also of MediBill Professionals, has been named education officer.

Marco opens new office Marco expanded into a new 15,000-square-foot facility in St. Louis Park. Other locations, including the St. Cloud headquarters, will be expanded and updated in the future. The St. Louis Park office is located at 7003 Lake Street West.

Despite trade’s record of success, protectionist barriers put in place by government are slowing down the global business community’s ability to create jobs, lift people out of poverty, raise living standards, and foster greater understanding and stability among nations. Perhaps the biggest impediment to job growth and trade is the lack of action on free trade agreements. FTAs benefit U.S. businesses, workers and consumers in significant ways. Since the U.S. marketplace is already one of the most open in the world, these agreements help open foreign markets to U.S. exports. When it comes to trade, the United States is falling behind. According to the World Trade Organization, there are 262 free trade agreements

About the writer

Doug Loon is the vice president of regional affairs for the U.S. Chamber of Commerce.

in force around the globe today, but the United States has FTAs with just 17 countries. America is party to only one of more than 100 negotiations of bilateral and regional trade agreements. According to the U.S. Chamber study, the United States stands to lose more than 380,000 jobs if it fails to implement its pending trade agreements with Colombia, Panama, and South Korea. As the U.S. waits, the EU and Canada are moving ahead with their own agreements with those countries. With 95 percent of the potential customers of American goods and services living outside the United States, we can create jobs by expanding exports. Congress and the administration should move forward on these three FTAs. BC

Online now To read the U.S. Chamber of Commerce study, Opening Markets, Creating Jobs, visit www.BusinessCentral Magazine.com

IN THE NEWS

Behavioral health director honored Jim Forsting, St. Cloud Hospital’s Behavioral Health Services co-director, was honored with a lifetime achievement award by the Minnesota Association of Resources for Recovery and Chemical Health. Forsting has worked on the Recovery Plus Program for 32 years, created the area’s first outpatient treatment program, created an outreach program for seniors, started a funding campaign for a specialized women’s residential program, secured funding for chemical health consultants, and worked to construct Clara’s House with donated dollars.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 12

12/16/10 10:15 PM

IT’s Made WHERE?

Made in Sartell, Minn.

DeZURIK provides valves and related equipment for municipal and industrial applications worldwide. DeZURIK valves and related products are used in many industries, including:

DeZURIK

•• Water treatment and distribution •• Wastewater treatment •• Petroleum refining

250 Riverside Ave N Sartell, MN 56377-1743 (320) 259-2000 Fax: (320) 259-2227 www.dezurik.com

•• Chemical and petrochemical processing •• Pulp and paper

•• Power •• Mining •• Steel •• Air conditioning

•• Food •• Equipment manufacturing

Coming next issue

Business in

SARTELL

A look at business growth in the community of Sartell. Featuring :: Sartell Business Directory with Growing Business, Small Business & New Business

or get featured in a

Smart Business Profile

YOUR AD HERE

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

Deadline: January 24, 2011 www.BusinessCentralMagazine.com

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 13

12/16/10 10:15 PM

UPFRONT

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

NETWORK

THE CHINA EXPERIENCE

N E WS R E E L

Redding

Jacobs

St. Hilaire

Habitat adds staff; board members

Ding-dong … China callıng Part 2

Side-stepping traditional retail outlets in favor of a direct sales model may be a business opportunity in China.

Central Minnesota Habitat for Wilkens Humanity added one new staff member and three new board members. Michelle Redding is the new Development Director and David Jacobs, Tom St. Hilaire and Wilbur Wilkens join the Board of Directors.

Direct sales companies are required to open their own “brick and mortar” retail stores through which the actual distribution of product takes place.

Quinlivan & Hughes add associate Quinlivan & Hughes, P.A. announces the association of Ben Winger, who joined the firm as a law clerk in 2010 and thereafter was admitted to the Minnesota Bar. Prior to that, Winger was employed at UnitedHealth Group. Winger

Kilian named vice president Matt Kilian, a 12-year staff Kilian member of the Initiative Foundation, has been named to the new position of vice president for external relations. He will lead the foundation’s merged donor services and communications team and assist with strategic planning.

Pierson joins HBH Consultants HBH Consultants, LLC, an organizational and fund development consulting firm, added Katrina Pierson as senior associate. Pierson previously served as director of development for Great River Educational Arts Theatre (GREAT). Pierson

By Kent D. Kedl

think that the combination of entrepreneurial sellers and adventuresome consumers are fertile ground in China for direct selling business models for two main reasons. The first I discussed in September: direct-selling can leverage relationship-based sales which have a long history and solid cultural foundation in China. In this issue I’ll explore my second reason: direct-selling goes around the modern bigbox retail sales channels in China. China is in the midst of a sea-change in its retail channels. If you look at China as a whole,

a slight majority of consumer products are sold through traditional channels dominated by mom-and-pop stores and small specialty stores. However, the growth is in the modern channels and particularly in the so-called “hypermarkets,” chains such as Wal-Mart, Carrefour, Rt-Mart, etc. Initially, consumer products companies were excited about this change … selling to many thousands of traditional outlets is much more difficult than selling to fewer (and larger) modern chains. But what everyone is realizing is that these modern chains, while good looking on the outside, are often very difficult to work with simply because they are so big and wield so much power. The cost of doing business with them — what consumer products companies call “trading terms” — are often quite high in China compared

to the rest of the world so while consumer products companies are often happy with the volume that moves through modern channels, they are not as happy with the margins (and multinational consumer products companies are ALL about the margins!). These companies are often finding that the hypermarkets are not all that good at merchandising and marketing themselves so consumer products companies often feel that they end up paying a lot in terms of marketing fees and not getting all that much for it. However, the direct-sales model does an end-run around these channels and goes directly to the consumer. The only marketing fees are the commissions to the sellers so, theoretically, both the margins and the volumes can be quite high. Consumer products companies don’t have to deal

About the writer Kent D. Kedl is general manager of Technomic Asia. A native of Minnesota, Kedl has worked in Asia for over 20 years. He can be reached at kkedl@technomicasia.com.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 14

12/16/10 10:15 PM

A Tradition of Building Success for More Than 50 Years

with the retail stores nor do they have to work with distributors to those stores (a topic for another day). In our work with consumer products companies, some of them — and some big names, too — have secretly asked about directselling and whether or not they could do it. To date, none of them have, but that doesn’t mean that they aren’t thinking about it. Now this direct-selling model is not all beer and skittles. In the New York Times, David Barboza identifies some of the challenges that companies such as Mary Kay Cosmetics are facing. For instance, direct sales companies are required to open their own “brick and mortar” retail stores through which the actual distribution of product takes place. Suffice it to say, like other business opportunities, there is no magic bullet in China retail. We are in the midst of a mini-revolution and all players — retailers, product companies, distributors and consumers — are changing faster than we can keep up with them. However, given the sheer size and potential on the China consumer market, everyone is dumping massive amounts of investment and exhibiting as much patience as they can. Keep your eye on the directsales model in China. We could see it expand beyond the companies we typically associate it with and move into areas we never thought possible. BC

We invite you to experience the Rice difference. Our unique in-house capabilities, knowledge of municipal processes, time-tested subcontractors and expansive client list prove Rice Building Systems to be the leader in design/build construction. You can depend on Rice Building Systems to handle everything from concept and design through to the completion of your project.

Building Relationships Since 1953

BUILDING SYSTEMS, INC.

1019 Industrial Drive South Sauk Rapids, MN 56379 320.252.0404

www.ricebuildingsystems.com

HARNESSING TECHNOLOGY. UNLEASHING

YOUR POTENTIAL.

Call today for all your IT nee d s : • Web Site Design and Development • Content Management Systems (CMS) • Search Engine Optimization (SEO) • E-commerce

• Custom Applications Development • Dashboards and Reporting • Project Management • Network Design and Support

866.374.9066 www.jdb.com

Featured Project Corporate Travel Solutions, Inc.

Highlights: Custom Coded Expanding Menu on Home Page www.ctsinc.com J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 15

12/16/10 10:15 PM

UPFRONT

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

NETWORK

N E WS R E E L Agent qualifies for cruise Independent insurance agent Krump Deborah A. Krump will take a cruise this October on Royal Caribbean after selling more than $200,000 of annualized premium during AFLAC’s 39-week annual convention qualification contest. This is the second year Krump has qualified. Last year Krump was the only representative in the Minn. North Region to qualify.

PleasureLand named Top 50 PleasureLand RV Center was recently named to RV Business Magazine’s Top 50 RV Dealers in North America. Criteria were customer service and satisfaction, employee training and education, and sound planning initiatives. The dealer has been in the Top 50 since the award began three years ago.

BUSINESS CALENDAR

Can’t-miss opportunities to influence, promote, and learn January-February 2011

Lunchtime Learning

A combination of lunch, networking, and education. Noon – 1 p.m. January 5: “Marketing at Tradeshows

and Public Events” Chamber office, 110 S 6th Ave. St. Cloud Registration required: $15 for Chamber members, $22 for the general public

Business After Hours

Waite Park Chamber

Hotel, 213 6th Ave. S, St. Cloud February 8: Stearns Bank, 4191 2nd St. S, St. Cloud

Waite Park City Hall, 19 13th Ave. N, Waite Park

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. January 12: GrandStay Residential Suites

St. Cloud Hospital is re-designated a Bariatric Surgery Center of Excellence by the American Society for Metabolic & Bariatric Surgery (ASMBS). The designation recognizes the safety, efficiency and positive results of the center that treats obesity via surgery.

Compiled by Jill Copeland If you have business news and want to be considered for publication —send your request to Gail Ivers - givers@ StCloudAreaChamber.com

Sauk Rapids Chamber

For businesses interested in doing business in Sauk Rapids. Lunch is provided by the host when you register at least two days in advance. 11:45 a.m.-1 p.m. January 27 hosted by

Hospital Center re-designated; promote staff

The hospital promoted Kristi Patterson, R.N., B.S.N., to director Patterson of inpatient rehabilitation services.

For businesses interested in doing business in Waite Park. Lunch is provided by the host when you register at least two days in advance. 11:45 a.m.-1 p.m. January 19 hosted by Schlenner Wenner & Co. at

Big Brothers-Big Sisters at C&L Distributing, 1020 Industrial Dr. S, Sauk Rapids.

Supervisor Development Certificate Program

Central Minnesota Farm Show

The largest show of its kind in the Upper Midwest featuring exhibitors from all areas of the agriculture industry. February 22-24 •• 9 a.m. – 4 p.m.

St. Cloud Civic Center; coffee and a donut are provided from 9:30-11 a.m. Free and open to the public.

Seven courses in seven distinct areas. A review of last year’s pre- and postassessments revealed an average improvement in knowledge of 42 percent. Classes begin January 25. Register your new supervisors today! $325 for Chamber members; $525 for the general public.

Online now Visit BusinessCentralMagazine.com for a detailed calendar or to register for any of these events.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 16

12/16/10 10:15 PM

Your Leading Financial Business Partner POINT OF View

Business Central asked readers: “What are you looking forward to in 2011?”

Marc Anderson, DC 360 Chiropractic

Diane McClure St. Cloud State University College of Business

Pat Schug St. Cloud Technical & Community College

Dan Stuttgen Mongo’s Grill, LLC

Amanda Wesley Big Brothers Big Sisters of Central MN

“Finding new ways to continue to provide the best care to our patients.” “Increasing the number of business students studying abroad.” “The economy turning around so there are more success stories with students.” “We have a new store opening around February in Thunder Bay, Ontario.” “I graduate from College of St. Benedict in the spring and will start a new chapter in life.”

We offer a variety of business products including: • Business Checking • Small Business Administration (SBA) Loans • Real Estate Loans • Equipment Loans and More! Talk to one of our business experts today!

Federally Insured by NCUA

Is Your Website

OUT OF DATE?

If so, JDB can help! Call today for all your IT needs:

• Custom Applications Development • Dashboards and Reporting • Project Management • Network Design and Support • Web Site Design and Development • Content Management Systems (CMS) • Search Engine Optimization (SEO) • E-commerce 866.374.9066 www.jdb.com Harnessing Technology Unleashing Your Ptential J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 17

12/16/10 10:15 PM

UPFRONT

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

NETWORK

THE TROUBLE WITH BUSINESS

Business Credit

One of the biggest mistakes business owners make is forgetting the distinction between business credit and personal credit. By Lisa Gambrino

hen you consider borrowing money to grow your business, it’s essential that you approach a bank with the best possible chance of being approved. The best way to do that is to assure that your company has good business credit. There is an important distinction between “business credit” and “personal credit.” This is a distinction that some business owners don’t fully appreciate. Your chances of obtaining business

financing can increase by more than 250 percent if you have business credit. Part of growing a business is looking at the business as something separate from you. You may own the business but you are not the business. It is extremely important to practice this mindset by separating business and personal finances. If you use personal credit to obtain funds for your business, the business debt appears on your

personal credit report, increasing your debt-to-income ratio and lowering your personal credit score. This situation could prevent you from getting a mortgage on a new home or that new car you would like to purchase. Personal credit is attached to your social security number (SSN) and any debts incurred by your business will follow you, even if you are no longer in business. Therefore, establishing a line of credit under your business tax ID number instead of your SSN can be an important step. Building business credit can protect you from business liabilities, as some business creditors don’t require an owner’s personal guarantee. An owner with good business credit can increase his or her chances of getting an attractive interest rate if ratings with the five main business credit bureaus are good. A business credit profile can be established for common C-Corporations, S-Corporations or an LLC, which are all businesses based on tax ID numbers. Note that sole proprietorships are typically based on the owner’s SSN and are not

DI D yo u KN OW ?

Don’t buy business credit from companies offering to sell trade references. Not only can this be an expensive rip-off, but should a credit bureau find out you’ve taken this approach, you risk having your business labeled “High Risk.” It is extremely difficult to remove “High Risk” status from your business credit profile.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 18

12/16/10 10:15 PM

We’ll make sure your meeting hits the jackpot.

recommended for building business credit. Like good personal credit, building good business credit takes time and requires many steps. Since there are no laws protecting business owners from business credit bureaus, it is imperative to set up business credit properly. Don’t buy business credit from companies offering to sell trade references. Not only can this be an expensive ripoff, but should a credit bureau find out you’ve taken this approach, you risk having your business labeled “High Risk.” It is extremely difficult to remove “High Risk” status from your business credit profile. Set a goal to obtain a Paydex score. Paydex is a numerical score granted by Dun and Bradstreet to businesses as a credit score for the promptness of their payments to creditors. This score is similar to the way

the FICO score is used for individuals. The Paydex score ranges from 0 to 100 (best). A Paydex score of 75 or higher is considered healthy for a company. The score indicates if a company is paying its suppliers and vendors, before they are due, or past due. For additional information, go to www.dnb.com. Your business will need at least five trade references in order to obtain a Paydex score. Therefore, make sure you’re working with companies that will report your good payment history to the business credit bureaus. It is important to remember that you are not your business. Build your business into an asset, a separate entity, which you can pass on to family, sell outright, or own without actually running it. It’s about building a business that isn’t dependent on you. BC

About the writer Lisa Gambrino is a business consultant with the SBDC and is the owner of sbaSTRATEGIES a Certified SBA Lender Service Provider.

Let us make your next meeting, banquet, or special event truly memorable. With two spacious casino hotels, 24-hour gaming action and award-winning dining, we offer the perfect setting for your guests. Grand Casino Mille Lacs Events & Convention Center

Grand Casino Hinckley Events & Convention Center

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

For more details, call 877-447-2631

grandcasinomn.com

BCSept/OctAd_Layout 1 9/29/10 2:06 PM Page 1

Single source. Superior service. Remarkable results.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 19

12/16/10 10:15 PM

B S

S APP

R END

UPFRONT

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

E O

E R

D S

R END

S APP

Forums this fall gave everyone a chance to learn how the candidates stood on business issues.

S APP

R END

B IN

GROW

S APP

R END

NETWORK CENTRAL

R END

S APP

Sen. Klobuchar was the host for a summit on exporting sponsored by the St. Cloud Area Chamber

B S

PROFIT

S APP

Expanding Markets Rep. Larry Hosch

Gubernatorial candidate Mark Dayton

US Senator Amy Klobuchar was in St. Cloud last fall for a summit on exporting goods. The program examined how federal agencies can best help small and medium-sized businesses enter foreign markets and expand their international sales. D I D YO U K N O W ?

U.S. exports currently support more than six million jobs in manufacturing and one million jobs in agriculture.

Rep. Steve Gottwalt

R END

B S

R S APP

R END

G R OW

Lunchtime Learning: “Hands-On Networking”

US Sen. Amy Klobuchar with the 2010 Minnesota Entrepreneur of the Year, Byron Bjorklund, Custom Catering by Short Stop

Candidates Anne Nolan and King Banaian

“

S AP

R END

Lunchtime Learning sponsors Adam Nelson and Sue Dropp, Unique Photography

Speaker Christa Halonen, National Karate

S APP

Q U OT E D

Exporting is literally a world of opportunity. Over 95 percent of the world’s customers are located outside the United States. Increasing our exports will mean more business, more jobs and more growth for the American economy.

”

—US Senator Amy Klobuchar

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 20

12/16/10 10:15 PM

R END

B S

S APP

R END

NETWORK E

S APP

R END

The Sauk Rapids Chamber hosted by Ron’s Cabinets

B S

S APP

Retired School Superintendent Greg Vandal

Greg Theis, Greg E. Theis Remodeling

R END

Host John Packert, Ron’s Cabinets

Kelly Sayre, St. Cloud Area Chamber Convention & Visitors Bureau

B S

S APP

R END

S APP

NETWORK M

R END

The Sauk Rapids Chamber hosted by Smoke Free Communities

S APP

Bernie Perryman, C&L Distributing and chair of the Chamber’s Board of Directors

Alicia Bauman, Smoke Free Communities

Ross Olson, Sauk Rapids City Administrator

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 21

12/16/10 10:15 PM

Paramount Theatre and Visual Arts Center

UPFRONT

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

NETWORK

TOP HATS | New Locations,

New Ownership and Expansions

BIG HEAD TODD & THE MONSTERS

THE BODEANS

BODEANS

Mar 18 & 19, 2011 7:30

Sam’s Club, membership warehouse, 207 County Road 120, St. Cloud. Pictured: Diane Ohmann, Ken Billings, Michael Rinkenberger, Jill Larson, Teresa Bohnen, president of the St. Cloud Area Chamber of Commerce and Chris Panek.

Wal-Mart, 21 County Road 120, St. Cloud. Pictured: Shannon Templin, Jill Magelssen, Brandon Sharp, Teresa Bohnen, president of the St. Cloud Area Chamber of Commerce and Dan Bates.

BIG HEAD TODD Apr 15 & 16, 2011 7:30

Tickets: $25 - $35 for either event

For tickets call 320-259-5463 or order online at paramountarts.org

Sunray Digital, printers, 121 7th Ave. S, St. Cloud. Pictured: Owen Peterson, Tom Wolke, owner, Jill Bertraminger and Kris Nelson.

Marsden Building Maintenance, janitorial cleaning, 3900 Roosevelt Road, Suite 102, St. Cloud. Pictured: Jayne Greeney Schill, Gary Nystrom and Owen Peterson.

STRIDE Academy, middle school, 3241 Oak Ham Lane, St. Cloud. Pictured: Diane Ohmann, Rodger Vix, Lowell Haagenson, Dale Beutel, Julie Gromberg and Jill Magelssen.

Minnesota Central Region Small Business Development Center & SCSU Micro Loan Program, 355 5th Ave. S, St. Cloud. Pictured: Diane Ohmann, LaRae Ross, Barry Kirchoff and Shannon Templin.

We are here when you need us! ~Including Overnight Recovery Unit ~

TOP HATS | Milestones

Celebrating 39 Years of Excellence in Caring for You! Accredited by Accreditation Association for Ambulatory Health Care, Inc.

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

25 Years of Community Giving – Central Minnesota Community Foundation, 101 7th Ave. S, St. Cloud. Pictured: Dolora Musech, Steve Joul, Brian Myres, Jill Magelssen and Shannon Templin.

60 years in business - AM 1240 WJON/ Townsquare Media, 640 Lincoln Ave. SE, St. Cloud. Pictured: Shannon Templin, Bob Hughes and Jill Magelssen.

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

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 22

12/16/10 10:15 PM

TOP HATS | New Members

Insurance Brokers of Minnesota, multi-line insurance agency, 1500 Oak Grove Road, Suite 109, St. Cloud. Pictured: Mark Helminick, Dan Bates and Brianna Helminick.

Spot on Advertising, website development, search engine optimization, and internet marketing company, 1716 Summit Place, Sauk Rapids. Pictured: Jill Magelssen, Cody Anderson and Luke Cesnik.

Transport Graphics, vehicle wraps, graphics and environmental graphics, 12401 Ironwood Circle, Suite 400, Rogers. Pictured: Jill Magelssen, Chad Houg and Luke Cesnik.

Allied Chiropractic, 102 Doctors Park, St. Cloud. Pictured: Jill Magelssen, Mary Oehrlein, Dr. Dustin Emblom, Mary Dvorak and Diane Ohmann.

TOP HATS | New Businesses

T J Enterprises, consumer goods, cosmetic, nutrition, wellness, energy, biodegradable cleaning and laundry products, retail and wholesale pricing, 5677 Walnut Drive, St. Cloud. Pictured: Luke Cesnik, Tami Duy and Dan Bates.

WORKING WITH PEOPLE, NOT JUST NUMB3RS.

Conflict Resolution Center, mediation and training, 1588 Peach Court NE, Sauk Rapids. Pictured: Jayne Greeney Schill, Sarah Bernhardt and Shannon Templin.

Pfizer, pharmaceutical research and sales, 1480 West Pond Road, Eagan. Pictured: Jayne Greeney Schill, Debbie Olson, Randy Porter and Diane Ohmann. Prestige Delivers, offering a variety of restaurant delivery choices in the St. Cloud and surrounding areas, all meals, business or residential delivery, 2009 Cypress Road, St. Cloud. Pictured: Jill Magelssen and Julie Alsaker.

BRIAN MACKINAC & STEVE SCHUELLER, C.P.A.’S with Jim and Linda Hilmerson of Hilmerson RV

“The Schlenner Wenner accounting firm is like family to us. We can call anytime we need to and they are right here if we have any questions from business to setting up of corporations, or tax questions and so on. The rock of our business success is Schlenner Wenner.”

Briar Patch Mercantile, distinct collection of primitive and country wares, 310 4th Ave. NE, Waite Park. Pictured: Diane Ohmann and Lisa Pfannenstein.

Catholic Foundation – Diocese of St. Cloud, helping families and businesses with philanthropic goals, 305 7th Ave. N, Suite 104, St. Cloud. Pictured: Diane Ohmann, Alice Coudron, George Sjogren and Jayne Greeney Schill.

– Jim Hilmerson, Hilmerson R.V.

www.swcocpas.com Little Falls 320.632.6311 Albany 320.845.2940

Maple Lake 320.963.5414 Monticello 763.295.5070

St. Cloud 320.251.0286

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 23

12/16/10 10:15 PM

Tech Strategies

Entrepreneurism

Tech News

Economic Review

Going Green

Doing Good

BUSINESS TOOLS

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• G RO W

NETWORK

PROFIT

RESOURCES THAT HELP YOUR BUSINESS GROW

TECH STRATEGIES

A Whole New Animal

Social media has different characteristics than traditional media and needs a new approach if you want to make it work successfully for your business. By Dawn Zimmerman business world’s adoption of social media as a viable marketing tool. With traditional advertisements, businesses have a monologue or one-way conversation with their desired audiences. Social media tools, such as Facebook, allow businesses to engage their audiences in directed, real-time conversations. Business leaders can gain feedback on products or services, enhance their customer service, and respond to organizational or industry news as it happens.

Editor’s Note: With this issue we introduce a regular column on social media by Dawn Zimmerman. If you have specific questions you would like answered or topics that you would like her to address, email me at givers@StCloudAreaChamber.com and I’ll pass them along.

approaching social media like they do traditional media. The reality is that social media is a new animal. It has different characteristics — and capacity — and cannot be approached in the same ways as traditional media. Here are five ways social media is different from traditional media:

Engage in dialogue. The ability to engage current and potential customers in an authentic and ongoing dialogue is what has accelerated the

ver the past year, I’ve heard business leaders share that social media is not working for them. The reason is often the same: They are

About the writer Dawn Zimmerman is owner of The Write Advantage in St. Cloud and a regular contributor to Business Central.

Keep it conversational. Consumers expect promotional speak and product pushing in traditional advertising, but they draw a line in social media. Certainly, coupons and deals still have their place in social media and a variety of businesses have found success pushing their traditional promotion through social media. Taking social media to the next level and meeting users’ desire to feel “connected,” an essential element of social media, challenges businesses to talk about their brands differently. Social media success depends on a business’ ability to effectively communicate their personality, purpose and passion. Be authentic. Whether it’s a billboard, printed ad or radio promotion, businesses spend time carefully

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 24

12/16/10 10:15 PM

Design • Sales • Installation • Service

DID YOU KNOW?

Social media success depends on a business’ ability to effectively communicate their personality, purpose and passion. crafting and evaluating every element of the advertisement. Traditional media gives businesses a limited opportunity to make an impression so it has to be a polished, clever, catchy advertisement. Social media users value authenticity and transparency. They want to see the genuine spirit of the business. Videos that receive the most views are not the ones that are scripted and overly produced. Raw videos and unplugged communications are what drive followership. Many communicate with many. Traditional media allows one organization to broadcast a direct message to many. Social media tears away those conventional boundaries to allow one business to share a message with that traditional group and have a ripple effect to many others connected to that traditional group on social networks. Access to a growing number of visible networks. While networks exist in traditional media, they often are hidden. When a catchy billboard shows up on Division Street, it may get people who have seen it, talking about it. But the ripple effect is not quantifiable. Social media networks have a viral and measurable impact because they are not only visible, but also openly and actively leveraged. This means users can take the lead to promote products and share an organization’s value with their networks. The intrinsic characteristics of social media give even the smallest business the capability to reach out, engage customers and see the bottom line benefits. BC

COMMERCIAL & INDUSTRIAL

• Refrigeration

• Food Services

• Air Conditioning

• Store Fixtures

• Heating

• Building Automation

Since 1957 24 HOUR EMERGENCY SERVICE 604 LINCOLN AVENUE NE • ST. CLOUD • (320) 251-6861

www.scr-mn.com

central minnesota FARM SHOW Over 150 exhibitors & 250 booths

TuesdayThursday

Feb. 22-24 2010 9 a.m. – 4 p.m. St. Cloud Civic Center 10 4th Avenue South, St. Cloud Photo by Brad Veenstra, Multimages

Everything from feed and seed to ventilation systems, from computer software to farm equipment.

Free and open to the public Factory representatives available to answer questions.

For booth information call 320-656-3805 Sponsored by the St. Cloud Area Chamber of Commerce

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 25

12/16/10 10:15 PM

BUSINESS TOOLS

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

GROW

Entrepreneurism

Adversity, Respect, Compromise & Political Leadership

have decided to take advantage of this last Business Central column to comment on my current view of the state of politics. Virtually everyone I talked to, regardless of their political leanings, was frustrated by the money spent on ads during the latest election. They did little to explain candidates’ opinions, ideas and accomplishments – they just blasted their opponents and tried to make those opponents look like they were evil, villainous souls. I personally don’t believe negative campaigning works better than positive campaigning. I just don’t.

About the writer Gary Berg is owner of GL Berg Entertainment in St. Cloud. During 2010 Gary wrote a bi-monthly column for Business Central sharing his perspective as an entrepreneur and business person living and working in Central Minnesota. This is his last column as a regular contributor to the magazine.

too many politicians are becoming mouth pieces for their party leadership instead of being individual leaders representing all of our best interests. Are fixes to our current system easy? Of course not. Can improvements be made across the board? Yes, I believe they can, but it will call on our political leaders to step up and get past the sound bites and joyful backstabbing and work together and show some true leadership and courage. And it will take people like you and me to speak up and step forward. BC

Tech NEWS

Have smartphone, will travel … and invoice … and organize … and From translating foreign words and phrases to live traffic map monitoring, there’s a whole new set of apps that make your smartphone your most important business tool. Bento organizes the details of your life, no matter how large or small. Inventory Tracker stays on top of what products you have for sale, what’s already sold and what needs to ship. Omni Invoice creates quotes and invoices anytime, anywhere. Babelingo translates words and phrases into easy-to-read texts in 11 international languages.

Source: Entrepreneur.com

By Gary Berg

Why is it that we don’t trust certain parts of our government like we used to? One reason is that many political party leaders and politicians show no respect for any ideas not fully endorsed by their “party.” Another reason for our growing distrust is too many politicians show no willingness to negotiate. Republicans do not have all the answers. Neither do Democrats. Whining about what’s wrong is easy. Figuring out how to fix things is where we all need to chip in. Here are a few things I suggest our state and national leaders do: Set term limits for ALL state and national offices. Being elected to these offices should be a calling to serve – not a long-term career move. Balance the budget. Figure it out or get out of office and let someone who can take your spot. It may hurt your popularity – and that’s another reason why we need to have term limits. Remember that what we truly need you to take care of is: •• Our safety and security •• Educating our children •• Our deteriorating infrastructure and transportation systems Those who know me know I am not a negative person at all. I am not a member of any political party. And in fact I voted for Democrats, Republicans and Independents in the November election. I am not bitter and I am not cynical. But I am concerned that way

Photo courtesy of Poken.com; Copyright Poken, S.A.

Why is it that we don’t trust certain parts of our government like we used to?

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 26

12/16/10 10:15 PM

Tech NEWS

First impressions count – even on websites A diagnostic tool called

Bionic Bodies

Photo courtesy of Poken.com; Copyright Poken, S.A.

Clue will help you determine how well your website is working for you. The free application lets you create an interactive memory test that helps determine whether or not people understand what you’re trying to get across on your website. Visitors get exactly five seconds to form a first impression. Source: Enterpreneur.com/Daily Dose Blog; www.clueapp.com

It may have been science fiction in the 1970s, but today bio-engineered body parts don’t seem so far-fetched. Ok, maybe they won’t be bionic, but technology aimed at helping the human body regrow a torn knee ligament could be just a mere five or six years away from reaching the market.

Would you care to Poken? Part social media aggregator, part business card, part funky tech-gadget, the Poken is the latest thing at U.S. conferences and events. This specially-designed thumb drive allows users to fuse offline and online social networking, capturing data immediately when contact is made with another Poken. The information on your Poken device then syncs with your online Poken profile when you plug it into the USB port of your Internet-connected computer. Source: NPR.org/All Tech Considered blog

CORPORATE EDUCATION & OUTREACH

Source: BusinessWeek.com

Quality | Dedication | Integrity

the training you need for the job you do. Soft Skills • Hard Skills • Technical Skills Workshops • Seminars • Conference Planning Topics developed to specifically fit your needs

Contact Gail or Tammy today!

Celebrating 25 years Conway, Deuth & Schmiesing, PLLP was recognized by Twin Cities Business B.I.G. Book as one of the top 25 CPA firms in Minnesota.

Michael A. Johnson, CPA, CVA, ABV

Gail Ruhland

gail@scsutraining.com 320.308.5759

Tammy Anhalt-Warner tammy@scsutraining.com 320.308.4252

www.scsutraining.com

CEO

Corporate Education & Outreach

www.cdscpa.com

2011_JF_BC.indd 27

12/16/10 10:16 PM

BUSINESS TOOLS

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

GROW

ECONOMIC REVIEW

Rational Irrationality

Understanding behavioral economics can help small business owners market their products more effectively. By Philip J. Grossman

any companies offer their employees the opportunity to invest a portion of their wages in a tax deferred retirement account such as a 401(k) account. In other companies, employees are automatically enrolled in such programs, but have the option to opt out if they choose. The benefits to the employee include deferring taxes on this portion of their income to the future when, as a retiree, they may face a lower marginal tax rate. Also, many companies match, often dollar for dollar, any employee contributions. The employees get an immediate 100 percent return on their savings. A study by Madrian and Shea (2000) of a company that switched its 401(k) enrollment procedures from opting in to opting out, found that workers were 50 percent more likely to participate when required to opt out. Prior to the change in enrollment procedures, many employees

were missing out on tens, or hundreds, of thousands of dollars over their work life. A mainstay of economics is the assumption of rationality. A person is rational if she makes the best decision, based on the available information, which will attain her given goal. Economic man was considered to be a “calculating, unemotional maximizer … (Mullainathan and Thaler, 2000).” If choosing to not opt into the 401(k) accounts was a rational decision, then failing to opt out was irrational (and vice versa). Behavioral economics attempts to increase the realism of economic analysis by introducing psychological factors that influence peoples’ decision-making. Criticism of the rational man model focuses on three unrealistic assumptions: unbounded rationality (the ability to process unlimited information and solve problems optimally), unbounded willpower, and unbounded selfishness. In their place, behavioral economics assumes: •• bounded rationality: the adoption of “rules of thumb” •• limited self-control: buying that flat screen TV today on credit, rather than saving for it •• bounded selfishness: giving to charities or helping a stranger Departures from rationality are observed in many types of decision-making and behavioral biases. Some examples include: Anchoring: Relying too heavily on one piece of information when making decisions

Money illusion: The tendency to focus on the nominal value of money rather than its true purchasing power. For example feeling richer because of a three percent increase in your dollar income even though the inflation rate is five percent. Framing effect: reaching different conclusions from the same set of information based on how it is presented, such as the 401(k) example discussed above. Bandwagon (herding) effect: Believing something or doing something because other people believe or are doing the same (i.e. buying Beanie Babies because others do). Hyperbolic discounting: The preference for more immediate rewards relative to future rewards with the preference increasing the closer to the present both rewards are. For the small business owner, behavioral economics has applications in many areas, most obviously in how one markets the product or service being sold. For example, the anchoring bias suggests the importance of a clear and consistent message that can dominate the other information customers may be exposed to. The framing effect bias is all about how to market a product. Even slight changes in the wording can affect how the customer perceives the product. Or if people are prone to hyperbolic discounting, emphasizing your product’s immediate benefits for the customer, rather than the potentially greater, but future benefits, can make a difference. What the customer is getting today becomes far more important than what they can expect tomorrow. BC

Philip J. Grossman is a Professor of Economics at St. Cloud State University.

OPEN FOR BUSINESS

Trade office opens in St. Cloud The Minnesota Trade Office (MTO) opened a satellite office in St. Cloud in November. A partnership with St. Cloud State University, the office is located in the university’s new Welcome Center on Fifth Ave. S., in St. Cloud.

Online now For the sources used in this article, visit www. BusinessCentralMagazine.com

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 28

12/16/10 10:16 PM

Cost of Living

By THE NUMBERS

The St. Cloud area’s cost of living remains below average in third quarter.

With Age,

Wisdom?

Third Quarter 2010

Ho us ing

Ut ili tie s

H Ca ealt re h

M G isc Se ood . rv s/ ice s

St. Cloud 2009 Annual Average 98.8

101.3

82.4

118.6

98.3

101.7

106.2

St. Cloud -1st Qtr 2010

98.9

100.7

81.9

120.9

101.8

102.6

105.3

St. Cloud - 2nd Qtr 2010 97.5

101.5

80.2

112.1

99.8

101.0

105.7

St. Cloud - 3rd Qtr 2010 98.7

103.2

80.4

120.2

97.8

101.6

106.6

Minneapolis, MN

111.9

113.9

117.9

108.6

102.9

104.9

110.0

St. Paul, MN

111.9

107.6

118.1

107.8

100.8

108.1

114.0

Rochester, MN

99.6

91.2

91.4

109.0

103.8

108.4

104.6

Dubuque, IA

97.0

98.0

87.9

107.8

103.3

96.3

99.2

Eau Claire, WI

92.9

96.8

90.4

88.8

101.6

105.9

89.9

Wausau, WI

97.3

102.7

90.6

98.0

99.8

100.6

99.7

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

Among the 314 urban areas participating in the third quarter report, the after-tax cost for a professional/managerial standard of living ranged from more than twice the national average in New York (Manhattan) NY to almost 20 percent below the national average in Harlingen, TX. CITY

ACCRA COST OF LIVING INDEX

New York (Manhattan), NY New York (Brooklyn), NY Honolulu, HI

181.3 167.8

San Francisco, CA

162.0

New York (Queens), NY

152.4

Truckee-Nevada County, CA Orange County, CA

Nassau County, NY

Likely to hire new employees:

36% Gen Yers 25% Gen Xers 20% Boomers Willing to take financial risks:

67% Gen Yers 52% Gen Xers 47% Boomers “Stressed out” about the economy:

158.5

San Jose, CA

Oakland, CA

207.9

The latest American Express OPEN Small Business Monitor survey suggests Gen Y entrepreneurs are more aggressive and less fearful about the economy in almost every way. So the question becomes: Are Baby Boomer entrepreneurs more cautious because they have more to lose, or have they simply lost that entrepreneurial edge?

57% Gen Yers 72% Gen Xers 71% Boomers

147.4 145.7

144.0 144.0

Source: Inc.

Al l It em s

G Ite roc m ery s

T po ran rta stio n

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

2011 Cost-of-living adjustments The Internal Revenue Service released the 2011 cost-of-living adjustments

for compensation and benefit limits related to retirement plans. A chart summarizing 2011 retirement plan limits and other benefit plan limits can be found at www.BusinessCentralMagazine.com. These limits are adjusted as often as every year to account for increases in the cost of living, or as established by statute. By statute, several of these numbers may not be reduced. All 2011 limits not noted remain the same as 2010 amounts. The 2010 limits are also listed for reference. J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 29

12/16/10 10:16 PM

BUSINESS TOOLS

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

GROW

GOING GREEN

Sustainability

Tech NEWS

VA Medical Center takes advantage of size to become environmentally friendly. DID YOU KNOW?

A geothermal system was installed to supply heating and cooling for a 56,389 square foot building. The result is an estimated energy savings of 464,730 kwh per year.

green purchasing policy was put in place requiring the purchase of environmentally preferable products and services including: 1) recycled content, bio-based, energy and water efficient products 2) acquisition of alternative fuel vehicles/ alternative fuels and fuel efficient vehicles 3) purchase and installation of renewable energy The policy also includes management controls to reduce the purchase and use of toxic products. An example of a purchase that meets green purchasing requirements is the electric utility vehicle purchased by the warehouse to make deliveries around campus. The e-ride, made locally in Princeton, Minn., costs about 1.5 cents a mile to operate and can run 55 miles on one battery

charge. The e-ride produces zero emissions, which is a healthy plus for people and the environment. Though emissions are released by power plants that produced electricity to charge the vehicle, the amount is 1/20th the amount of pollution that a comparable gas powered vehicle would produce. The center began working on conserving paper in 2006. In the last fiscal year ending September 30, 2010, staff reduced paper consumption by 14.4 percent compared to the previous year. Environmentally, conserving paper saves wood, water and energy, and cuts pollution and solid waste caused by paper production, use and disposal. Financially, paper conservation leads to more efficient use of staff time and storage space, and saves on ink and paper purchases, as well as copier maintenance. A wind turbine is being installed to produce up to 16 percent of the facility’s annual electricity usage. The annual savings are estimated at $98,000. The turbine was funded with a $2 million contract from the Veteran’s Affairs National Energy Business Center and meets the requirements of the Buy American Act. – Jill Copeland

DID YOU KNOW? A wind turbine is estimated to save the VA Medical Center $98,000 per year.

Facebook First Of the top social networking sites, Facebook remains the popular destination site.

hen it comes to social networking, Facebook appears to be more universally popular across most age groups in North Dakota and Central Minnesota. At least that’s what one survey* found recently. Respondents aged 25 to 54 were more likely to have visited Facebook and LinkedIn than those in other age categories. By contrast, Twitter and MySpace were more popular with those aged 25 to 34. Activities among age groups varied considerably. Social media consumption activities for those aged 25 to 34 were likely to subscribe to an RSS feed, read a blog or ratings/reviews. Consumers aged 45 to 54 were more likely to view video, photos or a podcast. Businesses should take note of the age groups and social networking activities when trying to reach out to consumers and the business community. Social networking as an emerging communications tool will continue to evolve, but clearly is capturing the attention of Internet users in North Dakota and Central Minnesota. * In a survey conducted in August 2010 by the St. Cloud Area Chamber with Prime Contact Research, local Chamber members responded along with over 1,300 business community members across North Dakota and surrounding areas. Respondents were asked about their social networking activities for the previous 30 days.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 30

12/16/10 10:16 PM

DOING GOOD

Business Gives B usiness owners know that healthy communities mean healthy businesses. St. Cloud Area Business Gives is designed to motivate, educate, and recognize local businesses that give staff time, money

and resources to charitable organizations. St. Cloud Area Business Gives is a program of the Minnesota Chamber of Commerce in partnership with local chambers. The program is based on

the Minnesota Keystone standard. Businesses are recognized that give cash and/or in-kind contributions to charitable organizations amounting to two percent or more of their pretax earnings.

• A deep understanding of the health care industry • Thought leaders who provide original industry research and analysis • Creating lasting relationships with our clients

Impacting your present and shaping the future of your health care.

In 2010, 17 St. Cloud area businesses gave and were recognized by the program: •• Bernick’s – Beverages & Vending •• Bremer, St. Cloud, N.A. •• Brenny Transportation, Inc. •• Bursch Travel Agency, Inc. •• Coborn’s, Inc. •• Conway, Deuth & Schmiesing

•• Gold’n Plump Poultry, Inc. •• Heartland Glass Co., Inc. •• Laraway Financial Advisors, Inc. •• Leonard, Street and Deinard Professional Association •• Marco, Inc.

•• Netgain Technology •• Quick Fix Massage Shop •• St. Cloud Truck Sales, Inc. •• The Write Advantage, Inc. •• TH!NKCreative Advertising •• Wells Fargo Bank

Audit | Accounting | Tax Consulting | Advisory

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 31

12/16/10 10:16 PM

Part F the family Once known as National Bushing, St. Cloud’s Automotive Parts Headquarters is thriving under its third generation of Bartlett leadership.

By Gail Ivers // Photos by Joel Butkowski

f the Bartlett family had been violinists, Corey Bartlett believes he would have gone into the violin business. Instead of violins, the Bartletts pursued automotive parts. Once known as National Bushing and Parts Co., St. Cloud’s Automotive Parts Headquarters (APH) is thriving under its third generation of Bartlett leadership. And its leadership is thriving as well. Always top of the mind for a career, current company president Corey Bartlett says he was never pushed one way or another. “I spent time with Dad at work,” Corey said. “I’d help with the annual inventory and ride along with new clients, but I was involved in things in high school. I wasn’t necessarily a 32

child laborer.” When the time came to make a decision about joining the family business, no one was surprised at the outcome. “It is compelling to do what my dad does and what my grandpa did,” Corey says. “I’m confounded and overjoyed by the same things they are and were.”

Starting Out Jack Bartlett, Corey’s grandfather, started as a janitor at the National Bushing and Parts Store in St. Cloud in 1938 while he was still in high school. He quickly moved to the machine shop, then into sales and assistant manager. In 1959 National Bushing decided to sell the store and Jack, with four partners, bought it.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 32

12/16/10 10:16 PM

Fun fact

John (L) and Corey Bartlett

National Bushing & Parts Company was started as a manufacturer of bushings and auto parts in 1920. The company quickly transitioned to retail sales of aftermarket auto parts, but has never completely left its machining roots behind. Today the company has 14 stores that still maintain machine shops, primarily for heavy equipment and farm machinery.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 33

12/16/10 10:16 PM

RIGHT: Steve Maciej prepares product for same day delivery to one of APH’s 100+ stores.

business profile

Automotive Parts Headquarters, Inc. 2959 Clearwater Road PO Box 1338, St. Cloud, MN 56302-1338 Phone: (320) 252-5411 Fax: (320) 252-4256 Website: www.autopartshq.com CEO: John Bartlett, Jr. President: Corey Bartlett Ownership: John, Nancy and Corey Bartlett; an ESOP established in 2003 owns one-third of the company Business description: Automotive parts retailer and wholesaler serving Minnesota, Wisconsin, Michigan, and North Dakota. St. Cloud-based employees: 183 Total number of employees: 700+ Number of corporate stores: 72 Number of independent store customers: 37 2010 projected sales: $82.5 million Number of delivery vehicles (company-wide): 276 Number of SKU’s (stocked in warehouse): 80,000 Warehouse inventory turn: 4.67 times per year

The ownership team, under Jack’s leadership, quickly expanded its holdings, buying additional stores and establishing a warehouse distribution center in the 1965. “I helped at the store a little when I was in high school” said APH CEO John Bartlett, Corey’s father. “I worked at the parts store counter, swept floors – whatever part-time things high school kids do.” John graduated from Bemidji State University in 1971 with a degree in business and economics. He chose to enter the family business, starting in purchasing then serving as general warehouse manager. In 1976 his father died unexpectedly. “I went home on Friday and didn’t have responsibility for the whole company. On Monday morning, I did,” he said. “I was only semigroomed for the job. I suppose we both assumed we had another 10 years to work together.” From 1976 to the early 1980s, APH stopped growing to catch up, according to John. “My focus was on making sure we were stable. The company was never in any danger; I just had a lot to learn and it took time to acquire those competencies. I suppose the transition I didn’t have with my father has had an impact on the transition we have had with Corey.” For Corey that has meant learning many aspects of the company in a short time. Starting with APH in 2000, he was quickly immersed in day-to-day operations. Their goal was to do their best to prevent Corey from experiencing some of the same struggles John had dealt with 25 years earlier. “Industry and business is less forgiving today than it was in 1976,” John said. “It maybe wouldn’t be disastrous if Corey had had to take over unexpectedly, but it would have been significantly more complicated than it was back then.” The transition has gone smoothly, according to John, who passed on the president’s role to Corey in 2008. “Corey enjoys the work and has capabilities that I didn’t have when I was his age. The transition has been good for him and I’m willing to let go. Ready, willing and able.” John’s focus these days is more on company strategy, while Corey drives operations. Building a strong management team and developing critical relationships with customers are on the top of Corey’s to-do list. “The most important

thing is to have the strongest team we can,” Corey said. “Whether in the office, the stores, the warehouse….That’s probably our biggest challenge – constantly making sure we’re building, recruiting and strengthening the team.” If that’s Corey’s number one concern, number two is continued growth. APH has both independent and corporate stores that distribute their parts. The stores sell to professional auto repair shops and the serious do-it-yourselfers. Typically, considerable communication and advice go between the auto parts store staff and their customers. Over the years that results in a lot of trust. Because of this, growth comes primarily by acquiring existing auto parts stores with established customer relationships. “Acquisitions are appealing because we want to start off with strong relationships and build on them,” Corey said. “If a small parts store wants to sell to us because the owner wants to retire to Florida, there’s no appeal to us. We want the same team in place – we want those relationships to stay in place, otherwise it’s too easy for customers to drift away.”

What Recession? “Our business is recession resistant,” John said. “Not recession proof, recession resistant. Over the years – the 1970s oil embargo, interests rates

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 34

12/16/10 10:16 PM

“Over the years—the 1970s oil embargo, interests rates at 15+ percent, gas prices going sky high—pick a recession, our business has been steady.” – JOHN BARTLETT at 15+ percent, gas prices going sky high – pick a recession, our business has been steady.” “When things are good our business is pretty boring and ok,” Corey said. “When things are bad our business is pretty boring and ok.” “We haven’t had a year when we haven’t grown sales,” John added. “That’s a positive other businesses don’t have.” The company’s growth is certainly something to be proud of. From one store in 1959, APH now has 72 corporate and 37 independent stores, adding 38 stores in just the last four years. They’ve expanded from a 50,000-square-foot warehouse in 1962 to 175,000 square feet today. And that steady sales growth John referenced is expected to take the company to $82.5 million in revenue by 2010. But there is more to the company’s success than simply being recession resistant. Looking back, John acknowledges APH has managed to outlive most of its privately-owned competitors. One reason may be that most of them were focused on retail sales where the competition is cut-throat. APH is about 30 percent retail and 70 percent wholesale.

John dismisses this difference. “No. I don’t think our focus on wholesale has had much to do with our ability to stay in business when others have not succeeded,” he said. Instead, he puts the success and failure of business directly on the shoulders of the people in charge. “I think it makes a real difference if the owners are engaged. When you’re part of the day-to-day operations of the company, you know the people, you know the product, and the employees know that you’re fully engaged. And I think as a result you make better decisions all around. You bring in better people. We’ve always had such good employees.” Corey also believes the company’s size makes a difference. Large enough to enjoy economy of scale, it remains manageable for the family and the leadership team. Both independent store owners and employees have the opportunity to influence operations. “Independents have a lot of input and say here,” Corey said, “more than they might with a larger dealer.” “Absolutely,” John concurred. “We absolutely want to hear what the people in the stores have

Fun fact

APH services 19,000-20,000 customers out of their stores.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 35

12/16/10 10:16 PM

RIGHT: Long-time employee Linda Merkling has helped APH grow from a local parts distributor into a regional player.

to say. We have to provide products they can sell. We also want to hear from the employees. We have people who have been here 20 and 30 years. They’re in the best position to tell us how to do their jobs better.”

TIMELINE 1920 Aime Pouliot and J.R. Riley start “National Bushing & Parts Co.” in downtown Minneapolis at 12th & Harmon Place 1936 The St. Cloud store opens

1972 APH opens a 50,000 sq. ft. warehouse on 29th Ave. in St. Cloud

2006 APH moves into a 160,000 sq. ft. facility at 2959 Clearwater Road, St. Cloud

1975 APH adds a 12,000 sq. ft. warehouse in south St. Cloud

2008 Corey Bartlett becomes president; John Bartlett becomes CEO; APH has $72 million in sales

1976 Jack Bartlett passes away; John Bartlett takes over as president 1982 APH acquires McCleary Auto Parts 1959 Jack Bartlett and partners form a corporation to buy the St. Cloud National Bushing location from the original founders

1986 Auto Value program begins 1991 APH acquires Wilson Brothers with four stores in northwest Minnesota 1993 APH acquires M&L Auto Supply, with 7 stores in southern Minnesota 1998 APH acquires OK Automotive Warehouse with 13 stores in Duluth; APH reaches $35 million in sales

Photos courtesy of Automotive Parts Headquarters

1960’s St. Cloud National Bushing adds stores in Mora, Milaca, Glenwood and Brainerd 1965 Jack Bartlett and his partners establish a formalized distribution center called Automotive Parts Headquarters (APH) 1970’s APH adds stores in Willmar, Sauk Centre, Foley and Albany; Jack and his partners continue to acquire and open new locations

2009 APH expands its warehouse by adding a 15,000 sq. ft. mezzanine

2000 Corey Bartlett, the third generation of the Bartlett family, joins the company full-time; APH has 66 company stores and almost $49 million in sales

2010 APH opens its first wholesale-only store in Grand Forks, North Dakota; the company projects $82 million in sales

2003 APH begins an Employee Stock Ownership Plan (ESOP)

1971 John Bartlett joins the company full time as the second generation of leadership

Employee Engagement Respect for the employees, the desire to reward them for work well done, and the opportunity to help them feel invested in the company led John to create an Employee Stock Ownership Plan (ESOP) in 2003. Over the years, as his father’s original partners retired from the company, John had purchased their shares. In 2003, the final partner was preparing to retire. Rather than purchase those shares, John decided to use them to start the ESOP. “We thought it would be an investment that would help the employees feel more like they were part of the company, part of the decision-making process. And it gave them additional retirement opportunities,” he said. (The company already had a 401k program.) Both men credit their employees for much of the company’s success. And when it comes to what they like best about being in business, working with employees is high on the list. “I know it sounds trite,” Corey said. “Everyone says the employees are the most important. But the fact is that working with an engaged, passionate, and vibrant management team that plays to win is pretty cool.”

The Future The future is here for APH. In December, the company opened a new facility with a somewhat different business model. Most of the stores are about 70 percent wholesale and 30 percent do-it-yourself customers. The Grand Forks store is located in a warehouse district with no retail presence and will be 100 percent wholesale. The change is driven in part because of the competitive nature of retail and in part to allow the company to expand into larger markets. “In a new city where we’ve never been, we can’t compete effectively in retail,” Corey said. “But where we can compete is in the professional auto body arena.” That’s because for that audience it’s all about service and service is in large part about inventory. “We spend lots of energy making sure our inventory is as scientifically managed as possible. The decision to stock 100 or 105 of some particular item is simple

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 36

12/16/10 10:16 PM

business profile

John Bartlett

CEO, Automotive Parts Headquarters Age: 63 Hometown: St. Cloud Education: Business and economics degree from Bemidji State in 1971 Family: Married Nancy in 1975; two children, Corey who is president of APH and Lee, who has special needs and works at WACOSA Hobbies: Travel, photography

“Everyone says the employees are the most important. But the fact is that working with an engaged, passionate, and vibrant management team that plays to win is pretty cool.”

Advice to a would-be entrepreneur: Be as concerned about the people you’ve chosen to work with you as you are about your customers. If employees aren’t happy, customers aren’t happy. Best advice came from his father: “Treat others the way you’d like to be treated.”

– COREY BARTLETT math. You look at sales trends, the type of product and make the call. The decision to stock zero or one of something is the hard decision. Our reputation is built on having that one thing that never sells.” Of course, that one thing does sell eventually. And being able to deliver it that same day or overnight to a customer is what separates APH from the competition. “We need to have that one item here for our customers,” Corey said. “Otherwise we’re no different than a convenience store. If we have the best inventory and actively manage it, we can win.” All bets are now on the Grand Forks model. “If this works, we’ll expand it into the larger markets,” Corey said. He anticipates adding another wholesale-only store in 2011, with an eye toward expanding into mid-to-large size markets, and a possible move into the Twin Cities at some point in the future. What the Bartletts claim is not in their immediate future is a change in company

ownership. “We’ve had multiple opportunities to sell over the years,” John said, “but we wanted to keep the business in the family and we enjoyed what we were doing.” Again, John points to the employees and customers – what company literature calls “a part of the family.” A sale to a bigger company would result in the elimination of the company headquarters in St. Cloud and lost jobs. John and Corey have loyalty to those who have been loyal to them. “We have lots of people who’ve worked hard, have been here a long time, and have a lot invested in this company,” John said. “But equally, for Corey and me, we haven’t sold because of our own desire to compete, to grow, and to see what we can do with this business. We like the challenge.” BC Gail Ivers is vice president of the St. Cloud Area Chamber of Commerce and managing editor of Business Central Magazine.

Corey Bartlett

President, Automotive Parts Headquarters Age: 33

Hometown: Sartell

Education: History and geography degree from Gustavus Adolophus College in St. Peter, Minn. Family: Parents John and Nancy Bartlett, brother Lee Hobbies: ”I have ill-defined hobbies. I like fishing on the dock – not serious fishing, just an excuse to sit on the dock. I enjoy travel – mostly non-exotic, workrelated travel. I listen to books on tape: Non-fiction when I exercise, fiction when I’m driving.” Best advice came from his mother: “When someone does something nice for you, send them a thank you note.”

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 37

12/16/10 10:16 PM

FEATURE

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

S E L L I N G S T. C LO U D

Wooing and Winning Area cities work to make themselves attractive to businesses looking to expand or relocate in Central Minnesota. By Mary MacDonell Belisle

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 38

12/16/10 10:16 PM

“Attractive, connected, cultured and educated MSA seeks suitor for serious commitment. Investment = rewards. Inquiries welcome.”

ix communities comprise the St. Cloud MSA, located an hour from the Twin Cities. These cities – St. Cloud, Sauk Rapids, Sartell, Waite Park, St. Joseph, and St. Augusta – radiate from a focal point on the Mississippi River where Stearns, Benton, and Sherburne counties converge. They access Minnesota highways 15 and 23, U.S. Highway 10 and I-94 and boast a regional airport. About 193,000 people live, labor, and learn here. There are seven colleges and universities. Many work to ensure the area’s viability. Like matchmakers, they ask, “How do we broker new business relationships?” Companies want to match a locale to their needs for livability, business environment, infrastructure, property, taxes, incentives, energy, connectivity, labor, transportation, parks, and arts. Often, first contact is city hall.

“I am constantly selling the city to prospective businesses that may locate here,” said St. Cloud Mayor Dave Kleis, who spearheaded the creation of the St. Cloud Economic Development Authority in September. Cities work to make themselves attractive. All have a web presence. Face-to-face, St. Augusta Mayor Bob Kroll pitches the new fire department and city sewer and water services. Sauk Rapids Mayor Mark Campbell and Kleis point to bridge projects and downtown construction. St. Joseph highlights its “Let’s Go Downtown” revitalization effort. Sartell holds Medical and General Development Summits at City Hall. Former Mayor Tim O’Driscoll points to the expanding “Medical Mecca” along Highway 15. Waite Park Mayor Rick Miller lauds an “excellent commercial district.”

Cooperation These six cities and three counties are rivals. Yet, they cooperate within a public/private marketing entity called the St. Cloud Area Economic Development Partnership, known as The Partnership. The Partnership sets ethical rules for non-competitive participation. “This prevents interested parties from playing one city against the other,” Campbell said. “They can’t go to one city, asking, ‘What are you willing to give us?’ and go on to the next, trying to get more.” Members include banks, builders, cities, counties, contractors, educators, foundations, healthcare providers, realtors, utilities, etc. Partnership President Tom Moore believes 80 percent of new jobs come from resident businesses, and 20 percent come by “chasing smokestacks.” The Partnership addresses both.

Recognition St. Cloud won silver in November 2010 as a most-livable city in its category, from the 2010 Liveable Communities Awards, England. It also won in 2007 and 2009. NewGeography.com named St. Cloud 54th of 100 “Best Cities for Job Growth” in 2010. Forbes listed St. Cloud 66th of 200 “Best Small Cities for Business and Careers” in 2010. Money Magazine named the city fifth among “100 Best Places to Live and Launch a Business” in 2008. Minnesota Real Estate Journal dubbed Downtown a “Silicone Prairie” in 2007.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 39

12/16/10 10:16 PM

FEATURE

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

S E L L I N G S T. C LO U D

QUOTES ON THE ISSUE

“The economic downturn and scrutiny of financial institutions in their lending has put a halt to commercial lending and led us to create a Sauk Rapids economic development group.” –Sauk Rapids Mayor Mark Campbell

“St. Augusta is one of the lowest taxed cities in the state. Financially, we’re pretty good, although there’s not much budget for marketing.” –St. Augusta Mayor Bob Kroll

“We thought we had the Wal-Mart and Sam’s Club relocation. Sartell got it. You just don’t know what big corporations will decide.” –Waite Park Mayor Rick Miller

“We don’t have a huge marketing budget, so our business volunteers are good ambassadors. That’s how we get our name out to prospects.” –Anita Rasmussen, planning and community development director, City of Sartell

“In a sense, we’re a dating service, trying to bring St. Cloud to the dance,” said Development Director Henry Fischer. The Partnership hosts accessible regional data on its website, and publishes the Quarterly Business Report with St. Cloud State University. It works closely with the Minnesota Department of Economic Development, often a first point of contact for out-state prospects. It’s a member of the Minnesota Community Association of Realtors (MNCAR); St. Cloud is the only city member from outside of the Twin Cities and was invited to join. Fischer sits on the Marketing Executive Committee of Positively Minnesota. Partnership staff and member volunteers conduct business retention and

expansion visits – 100 in 2010. These often occur in cooperation with the St. Cloud Area Chamber of Commerce. “If you really focus on your businesses, to keep them in the area, the word gets out,” said St. Cloud Area Chamber President Teresa Bohnen, whose organization participates in Grow Minnesota! This Minnesota Chamber of Commerce program endeavors to make the state’s business environment more competitive. In St. Cloud, Chamber volunteers and staff make more than 50 retention visits per year to businesses. Fischer and Moore also target industry clusters – printing, business services, audit/collection, health/ bioscience, high-tech manufacturing, and wholesale trade. They work with

“Electric rates in Central Minnesota are very competitive with other parts of the state.” –Dave Gruenes, Stearns Electric Assoc.

third-party consultants and routinely assist site-selection representatives. Frequently, energy is a factor in site selection. Partnership member Karen Young, Xcel Energy’s community and local government relations manager, works with businesses to reduce energy and up-front equipment costs. Partnership member Dave Gruenes, industrial development coordinator at Stearns Electric Association, assists new businesses with site location, financing, or connecting them with other resources. Stearns Electric partnered with St. Cloud Opportunities and the City of St. Cloud to develop the I-94 Business Park. East Central Energy in Braham is currently working with the latter two to develop the Airport Business Park. The six cities in the region offer 21 industrial parks.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 40

12/16/10 10:16 PM

Regional Health care CentraCare Health System, based in St. Cloud, is “#1 for Best Places to Work,” says Minneapolis/St. Paul Business Journal, while Thompson Reuter ranks the St. Cloud Hospital 12th among the nation’s top 100 teaching hospitals. Understandably, the region promotes its healthcare industry. Hospital recruiter Karla Donlin pitches the hospital and local communities to physician applicants. She conducts city tours with prospects to drill down the specifics of their needs and has found the area accommodating to spouses needing jobs or continuing education. “I haven’t seen many (prospects) who were underimpressed with us,” says Donlin. For more on healthcare, see the special section beginning on page 42.

Telecommunications Telecommunications connectivity – copper, fiberoptic, coaxial cable, wireless – is advertised via web, direct mail, and word-of-mouth. St. Cloud’s technology infrastructure ranks with Rochester and the Twin Cities, said Downtown Council President Pegg Gustafson. Currently,

15 high-tech businesses, including GeoComm, Netgain Technology, ING Direct, and Cloudnet operate downtown because of access to high-broadband width through Qwest, the incumbent local exchange carrier, and competitive carriers, such as Charter, Integra Telecom, and Xcel Energy. An Initiative Foundation grant to

the St. Cloud HRA and Downtown’s High-Tech Initiative has helped to attract high-tech business to the downtown. “The variety of options and price points downtown is an advantage to St. Cloud,” said Brenda Eisenschenk of InteleCONNECT, a telecommunications broker to business, who often advises commercial real estate agents. Minnesota Real Estate Journal dubbed Downtown “Silicone Prairie” in 2007. Many individuals and organizations across the St. Cloud MSA work together to impress potential new businesses with the region’s attributes. Hopes are that the courting will broker stronger business relationships and the match game will result in economic prosperity. BC Mary MacDonell Belisle owns mary macdonell belisle – writerforhire in St. Cloud.

The Trusted Leader in Commercial Real Estate Since 1971

A Full Service Company including Business Brokerage Serving Central MN & the Twin Cities

217338.62510

Customized Banking Solutions. Employee Owned. We get the job done! Stearns Bank was established in 1912, under current ownership of Norm Skalicky since 1964. We are a local, employee-owned bank with more than $1.3 billion in assets. We are proud to support the commuities we serve through contributions made by the Norman C. Skalicky Foundation.

630 First Street South • Waite Park, MN 56387 • (320) 251-1177 • www.cbcorion.com

New & Exciting things are happening. Visit us at www. Business Central Magazine. com

4191 2nd St S St. Cloud, MN (320) 253-6607

www.stearnsbank.com

Member FDIC.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 41

12/16/10 10:16 PM

SPECIAL FOCUS

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

PROFIT

GROWING OLD

The average person on earth is much older. Fertility rates declined in developing countries during the preceding 30 years and in developed countries throughout the 20th century. Increased access to birth control and the increasing number of women in the workforce have led to low birth rates.

How comfortable you are in your golden years may depend on the economy, family dynamics, and trends in senior health care.

indings from a national survey indicate that over half of all employees anticipate working past retirement. Even so there is a projected labor shortage due to retirements and a shift of mature workers from blue collar to white collar and service jobs. As America’s workforce ages, the impact on business, communities, and our national infrastructure could be staggering. Following are just a few of the trends that may lead us into our golden years. Seniors may stay in the workforce longer due to the economic conditions. The number of people in the labor force who are 55 or older will increase by 49 percent from 2002 to 2012. On the plus side, they will contribute more to the growth of local and state economies and rely less on public support services. Having employment keeps the mind and

body more active and healthy. Research indicates that seniors who participate in productive activities — such as work — have better physical and mental health and lower mortality rates. Living longer will require greater financial resources. By working longer, many older workers also have prolonged access to medical insurance. Chronic conditions are readily treatable. In the United States, arthritis affects about 59 percent of persons over 65 and is the leading cause of disability. However, treatment methods and education about healthier lifestyles have given older adults an opportunity to function normally. Disability among older U.S. adults, as measured by limitations in instrumental activities of daily living, has declined since the early 1980s. Such disabilities are common factors leading to

The median age of the world’s population is increasing because of a decline in fertility and a 20-year increase in the average life span during the second half of the 20th Century. In the United States, the proportion of the population over age 65 is projected to increase from 12.4 percent in 2000 to 19.6 percent in 2030. In 1995, California, Florida, Illinois, Michigan, New Jersey, New York, Ohio, Pennsylvania, and Texas each had more than one million persons over 65. By 2025, the proportion of Florida’s population over 65 is projected to be 26 percent and over 15 percent in 48 states.

Sources: National Governors Association and Centers for Disease Control

Golden Years

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 42

12/16/10 10:16 PM

DID YOU KNOW?

HEALTH SERVICES

Society is more diverse than ever.

From 2000 to 2030, the proportion of persons over 65 who are members of racial minority groups is expected to increase from 11.3 percent to 16.5 percent; the proportion of Hispanics is expected to almost double from 5.6 percent to 10.9 percent. the need for long-term care. Health care will potentially cost more. Associated medical and general care costs will increase for seniors, employers, and those children or spouses that support seniors needing care. The health care cost per capita for persons over 65 in the United States and other developed countries is three to five times greater than the cost for younger persons.

Rapid growth in the number of older persons, coupled with continued advances in medical technology, is expected to create upward pressure on health and long-term care spending. In 1997, the United States had the highest health care spending per person over 65 ($12,100). Of course, there are many other factors that contribute to the cost of health care. BC Compiled by Jill Copeland

Interested in learning more about health care? The following providers can help you understand what lies down the road for your personal health care needs.

HEALTH SErVICeS

Revised Business Central ad 2_Revised Business Central ad 2 11/17/10 10:45 AM Page 1

Whether you just need to simplify your life to make more time for the activities you enjoy or you need some assistance with everyday tasks, St. Benedict’s Senior Community is designed for you. Choose from one- and two-bedroom apartments in retirement living or assisted living.

We’re moving to Benedict Village

Call (320) 203-2747 for a complimentary lunch and tour. www.centracare.com

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 43

12/16/10 10:16 PM

HEALTH SErVICeS

St. Benedict’s Senior Community

Midsota Plastic Surgeons

Williams/ Integracare Clinic

Christine Bakke

Bernard Williams, D.C.

Gorecki Care Center Administrator (320) 252-0010 •• bakkec@centracare.com www.centracare.com

Chiropractor/Administrator (320)251-2600 •• www.icareclinics.com

ongratulations to Christine Bakke, St. Benedict’s Senior Community Gorecki Care Center administrator, who received the Modern Healthcare magazine 2010 Up & Comers Award. One of 12 national recipients featured in the Sept. 13 article, Christine’s accomplishments include American Health Care Association/ National Center for Assisted Living Step I National Quality Award and Care Providers of Minnesota’s Quality Improvement Team Award. She is dedicated to improving the quality of care for older adults in Minnesota.

(320) 253-7257 •• info@midsota.com www.midsota.com

idsota Plastic Surgeons has set a standard of excellence in the cosmetic and reconstructive industry by delivering patients the results they desire. Our commitment to high quality and personalized patient care has made us the largest private plastic surgery clinic in the Upper Midwest. From our surgical center in Minnesota to our mission trips to Guatemala, our experienced surgeons are transforming not only our patients’ appearance, but also the quality of their lives. Let us help you imagine the possibilities.

illiams/Integracare Clinic has offered the Central Minnesota community a full service of medical, chiropractic, and physical therapy clinic with many unique features and services not available under one roof anywhere else in Minnesota. As the founder, Dr. Williams credits the clinics exceptional health care providers and staff for their dedication to excellence that has led to superior health care for the clinics patients. The clinic is dedicated to create a community that is vital, robust and healthy. Customer service is the number one goal. The clinic phones are always answered by a member of the staff and not by a machine. Call for an appointment today and you’ll be amazed by the difference.

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 44

12/16/10 10:16 PM

HEALTH SErVICeS

The Apothecary

Center for Diagnostic Imaging (CDI)

Steve Anderson

Todd Cunningham, M.D.

Registered Pharmacist / Owner 320-251-0979 •• SteveA@TheApothecaryMN.com www.TheApothecaryMN.com

Medical Director (320) 251-0609 www.CentralMnCDI.com

harmacist Stephen Anderson has owned The Apothecary (previously Women & Children’s Apothecary) since 1994. The Apothecary fills a unique niche as a specialty pharmacy that provides prescription compounding with an expertise in bio-identical hormone replacement and topical pain therapies. During the past 20 years, Anderson has attended numerous courses in naturopathic and integrative health care as well as anti-aging approaches. He counsels patients interested in exploring more natural therapies for their health care.

r. Cunningham is the Medical Director at CDI. He completed fellowships in body imaging at the University of Minnesota Hospitals and Clinics in Minneapolis, and has expertise in breast imaging, including breast MRI, breast biopsies and mammography. He is also a pain injection specialist with significant expertise in injection procedures to help patients manage joint and back pain.

SkinFitNessMD

Maretta Johannes

CCE Certified Clinical Esthetician 320-230-NESS (6377) maretta@beautifulresults.com www.beautifulresults.com

t SkinFitNessMD, healthy skin is never out of style. We are not your typical spa. The MD in our name means that all of the treatments and products we offer are Medically Directed. At SFNMD, we transform unhealthy, lazy skin by using the most clinically proven and safe technologies and treatments. Under the skillful direction of our Board Certified Plastic Surgeon, Dr. John Allan Ness MD, and our Certified Clinical Esthetician, Maretta Johannes, we will develop a cosmetic treatment plan to exercise and transform unhealthy, lazy skin to beautiful, healthy and radiant skin. Please call for a personalized complimentary consult.

Powerful Insight at the Right Price ASK FOR CDI. Did you know choosing CDI for your medical imaging exam could mean paying 30–50% less than at a hospital? MRI

■

X-ray

■

Mammography

■

Therapeutic Injections

CentralMnCDI.com tel 320.251.0609

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 45

12/16/10 10:16 PM

HEALTH SErVICeS

St. Cloud Orthopedics

Check out the all new

Digital Magazine available online now!

Business Central Magazine is now available in digital format. Allow your advertisement to become an interactive marketing tool — maximize your exposure by adding links that drive consumers directly to your site with only a click.

Contact Wendy Hendricks today at 320.656.3808 or whendricks@ BusinessCentralMagazine.com

St. Cloud Hospital

Dr. Mitchell Kuhl D.O. General Orthopoedics, Orthopedic Trauma Surgery 320.259.4100 •• admin@stcloudorthopedics.com www.stcloudorthopedics.com

r. Mitchell Kuhl D.O. brings a new Orthopedic specialty to the St. Cloud area – Orthopedic Trauma Surgery with a focus in fracture care. Dr. Kuhl treats all fractures of the arm, leg and pelvis, a sub-specialty in orthopedics for which patients previously traveled to the Twin Cities. Dr Kuhl joined St. Cloud Orthopedics in September 2007. Above and beyond the usual training for an orthopedic surgeon, Dr. Kuhl completed a Fellowship in Orthopedic Trauma at Methodist Hospital in Indianapolis, Indiana. Dr. Kuhl, originally a Wisconsin native, currently resides in Sartell with his wife and two young daughters.

Denise Buruse, D.O., CentraCare Wound Center Medical Director (320) 656-7100 •• www.centracare.com

he CentraCare Wound Center, an outpatient service specializing in the treatment of chronic non-healing wounds, opened in November and is located at 2035 15th St. N., St. Cloud. It is only the fifth wound center in Minnesota to offer hyperbaric oxygen therapy, which saturates the blood plasma with oxygen to speed healing. Under the direction of Medical Director Denise Buruse, D.O., and five other local physicians, patients will receive treatment plans individually customized to maximize healing for wounds.

Life got you down?

Sometimes life leaves you a little shredded.

1901 Connecticut Ave. S, Sartell StCloudOrthopedics.com

320.259.4100 46

Bent over to pick up a pen, and now you’re up close and personal with the dust-bunnies under your desk. Take the rest of the day off, and make a call to St. Cloud Orthopedics. For any musculoskeletal injury, we’ve got a specialist that can help you get up off the ground, and get back to work again. General Orthopedics • Sports Medicine • Joint Replacement • Trauma Knee & Shoulder • Hand Center • Spine Center • Foot & Ankle

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 46

12/16/10 10:16 PM

St. Benedict’s Senior Community

No Varicose Veins. No Surgery. No Down Time. The non-surgical laser procedure for varicose veins.

Tamara Congdon, MD Internal Medician Physician (320) 252-0010 •• www.centracare.com sbcinformationregistry@centracare.com

Ask about our cosmetic treatments and skin care line.

t. Benedict’s Senior Community’s Short Stay Care program offers many unique features and services that are unmatched in the Central Minnesota area, including an onsite Internal Medicine physician, Tamara Congdon, M.D. Dr. Congdon works with a multi-disciplinary care team who are dedicated to meeting the needs of each patient including nurses, occupational, physical and speech therapists, licensed social workers, therapeutic recreation, nutrition, and pastoral care. Dr. Congdon’s presence is truly an asset for patients.

Call The Vein Center today for your Complimentary Consultation. 320-257-VEIN (8346)

www.beautifulresults.com

1990 connecticut avenue south sartell, mn 56377

Revised Business Central ad 1_Revised Business Central ad 1 11/29/10 9:44 AM Page 1

Helping you get back on your feet again St. Benedict's Senior Community’s Short Stay Care program offers many unique features and services that are unmatched in the Central Minnesota area, including an onsite Internal Medicine physician. Caregivers work with other professionals who have expertise in short stay care. Since many of the Short Stay patients need intense levels of therapy, our program offers therapy two times a day, seven days a week, based on your physician’s orders. As part of CentraCare Health System, St. Benedict’s Senior Community works with St. Cloud Hospital to provide a smooth transition for patients between facilities. Our goal is to return patients to their highest level of functioning. If you would like details about Short Stay Care at St. Benedict’s Senior Community, please call Information and Registration at (320) 654-2355 or visit www.centracare.com.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 47

12/16/10 10:16 PM

Everyone makes the patient feel like they are number one – pretty neat feeling.

althcare personally e h r u o y g Takin

HEALTH SErVICeS

St. Cloud Medical Group

Joan M. Krueger, M.D. Pediatrics (320) 229-5460 www.stcloudmedical.com

r. Krueger received her undergraduate degree from College of St. Benedict and her Medical Degree from St. Louis University School of Medicine. She completed her residency in pediatrics at the University of Iowa in 2005. Prior to joining St. Cloud Medical Group, Dr. Krueger practiced at Winona Health Physicians Clinic in Winona, Minnesota. You may make an appointment with Dr. Krueger by calling (320) 229-5460 at the South Campus at 1301 33rd Street South.

“Meet me at the Chamber. Together we’re the voice of business!” — Wendy Franzwa, Membership Sales Specialist

You can be part of a network of over 1000 businesses working together to… • Generate

sales leads your business • Increase your business knowledge • Develop your workforce • Improve business for companies in central Minnesota • Build

It’s easy to become part of the local and regional business community... Call Wendy today to find out what YOUR Chamber is doing for you!

Call Wendy at 320-656-3834 or email at wfranzwa@StCloudAreaChamber.com

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 48

12/16/10 10:16 PM

Photography by Studio D Photography; Written by mary macdonell belisle.

Very proficient with care and service. Dr. Engelking is an excellent doctor and I recommend her toMulti-Specialty all of my family and Friends. She is Primary Care and Services kind and understands my concerns and listens to my thoughts. The staff is very efficient and friendly. Front desk does a great job explaining questions regarding insurance. Everyone is friendly and helpful. Nurses & doctors answer all questions. We really like it here. Good job of making me feel comfortable and at ease. Everyone is very friendly and makes you feel comfortable when performing exams and tests. Knowledgeable doctors Kind & friendly. A general concern for patients. The nursing staff in the lab are great with needles. Well everything I go through here I think you are doing very well. Very efficient, friendly and time conscious. The staff are very kind and helpful. I was new to this clinic in spring of 2005. From the first day I saw Dr. Zook, he was the best. I’ve never had the care anywhere else as I’ve gotten here and I have multiple health problems. You are always friendly when I come in. They remember you, you don’t just feel like you are just another patient. Easy access to appointments I’m a new patient and have only seen Dr. Duckworth once, but my visit with her was very comfortable. She is easy to talk to & will listen to your concerns. This is very important to women! Everything is so wonderful. The staff/facility is always so clean & friendly. Great customer service J Taking care of this patient very well. Answering the phone. Giving me plenty of time for my appointment. Great staff- very friendly. Up to date facilities. Consideration for patient. I was greeted- awesome. Listening to patient’s concerns and follow up is excellent. Maintaining a culture of care, concern & respect for patient as people. Taking time to find appointments to work with your schedule. Finding someone that can help you (like foot doctor or other health problems). Love the doctor and nurse. Very caring and supportive.Genuinely care for patients. Very comfortable environment. All things were done well. Your nurses and other staff are second to none. I very much appreciate knowing my doctor and nurse & that I ‘m able to call & get help over the phone at times.Friendliness, professional , know their jobs I have confidence in staff members. They know me- I’m not just a number on a patient file. I appreciate the care I receive from them and know I can call Our missionand at they’ll St Cloud Medical Group is to is done when I have questions have the answer. Everything provide excellent personal care. From the front well here! From the decorations in the office to the personality of all desk staff to the technicians, and know all theus when we the workersI love it here! It lab is great that the staff call & aredoctors always and willing to answer questions. The nurses nurses, we work hard to make you& doctors know and love their patients. Very personable Quickand to call me comfortable. That means taking timestaff. to listen, back with concerns/results, etc. I am treated as an equal, intelligent give you the attention you deserve. We take your human being. Friendly. Listening to patient concerns and helping. You health care personally. We’re glad you noticed. took care of all problems and didn’t make me come back another day. You listen and care. They go the extra mile and we appreciate that. Great doctors who are caring and knowledgeable that explain what is happening and how to make it better… Getting reminder card when leaving for next appointment. Getting in same day. I love the personal calls from my doctor. It makes me feel like a person and not a number. This is a very good clinic- always tries to meet the patient’s needs. Have seen Dr. Lemke for 27 years- very highly respected! He is a good example for other doctors. I have even called him at his home when I was in Hawaii and he was willing to help meet the need immediately. Shocked the people in Hawaii. However, that is just an example of the quality and caring doctor he is. Everything! We so appreciate all the great service we always receive here. Everyone is so professional. Friendly and helpful, all the time. This clinic & its’ staff is a very real South& this community. Thank Northwest blessing to my family you all for a great job, 1301Best 33rdclinic Street South I have 251ever County Road 120I really well done! & physician had in my life! appreciate (320) the way I was greeted, instead (320) of being looked at like I was 251-8181 202-8949 incapable of being here because I’m only 17. I thought all staff was friendly. That’s really nice to seen when you don’t feel good. Thank you very much for the great visit. You continually maintain a small town/ home town feel. www.stcloudmedical.com You know all our family by first name and are genuinely interested in and concerned for our health. Staff is helpful & works well with me to get an appointment when needed. My visits are

SMART BUSINESS:

“They hit the mark with the look we wanted to get. We certainly got our value.” Becky, Account Executive

– Bill Worzala, Administrator, St. Cloud Orthopedic Associates

Furnishing Office Personality

I Photography by Studio D Photography; Written by mary macdonell belisle.

ts laid-back graphic logo and inventive name imply a promise of ease and delight. Suite Spaces delivers. From inspiration to execution, the enterprise is more than desks and chairs. Suite Spaces furnishes office personality without stress. “We’re the whole look, feel, and experience of an office or building,” says owner Karen Kirt. “Our entire process is seamless.”

Personality Plus Suite Spaces, located in Baxter and St. Cloud, sculpts small-to-large executive, educational, healthcare, financial, and personal spaces, reflecting the character of the business (form) and enhancing the activity conducted within its space (function). This philosophy affects all décor selection, from largest furniture piece to smallest room accent.

Professionalism Each woman plays to her strong suit. Kirt, with 20+ years of industry expertise, is passionate about streamlining operational processes. Color and Art Professional Dawn Meierding applies her natural abilities to

SPECIAL ADVertisement

2011_JF_BC.indd 49

enhance the environment’s character. Sales Executive Becky Pietrowski focuses on client satisfaction. For example, Pietrowski anticipated administrator Bill Worzala’s needs for the new St. Cloud Orthopedic Associates facility. She presented three design approaches, complete with computer aided drawings by associate Marcie Heldt, brand-name furniture choices, ample fabric swatches, and three color palates she’d developed after consulting the architect. “Our goal was to provide better flow and functionality to patients, update the overall look, and provide a comfortable atmosphere,” says Pietrowski. “They hit the mark with the look we wanted to get,” says Worzala. “We certainly got our value.”

Perfected Process Suite Spaces follows a discipline that guarantees aesthetic and budgetary successes. It begins with probing questions that uncover all client expectations. This data is recorded on the Order Process Sheet, which becomes a running commentary and checklist of all project activity. Finally, each consultant meets the distinctive yellow and white delivery

truck and personally oversees the flawless installation and follow-up. “Don’t worry about a thing,” says Kirt. So, companies, take note. Suite Spaces furnishes office personality through the design and delivery of functional, artistically pleasing office decor. Stress-free.

S t . C l o u d O ffic e 720 West St. Germain St., Ste. 134 St. Cloud, MN 56301 320.443.6000 or 866.974.6406 www.suitespaces.com B a x t e r D e sign S how r oom 15229 Edgewood Dr., Ste. 105 Baxter, MN 56425 218.824.7878 or 866.974.6406 B u sin e ss D e sc r iption : Suite Spaces is a woman-owned business that focuses on the function and personality of large and small offices. We’re passionate about developing successful solutions for our clients and pride ourselves on details and responsiveness.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

12/16/10 10:17 PM

SMART BUSINESS: St. CLoud HOSPITAL

Future River View

Future St. Cloud Hospital Campus

Laying the groundwork for the next half-century of medical advancements

Our hospital — built for our community — impacting our future health care efficiency, minimize recovery time, reduce costs and improve outcomes. A new air filtration system will exchange the air 50 times per hour (200 times around the operating table), minimizing the risk of infections.

Transform Women & Children’s Care The expanded Women & Children’s Center will be more than double the size of the current facility, allowing adequate room for families to comfortably participate in one of the most exciting times of life. Rebuilding the Neonatal Intensive Care Unit will create single-patient rooms, giving parents the opportunity to stay with their critically ill infants.

Enhance surgical suites

Expand and relocate the Intensive Care Unit

New surgical suites — each designed to accommodate advanced and integrated technologies — will enhance surgical

The 25-year-old Intensive Care Unit (ICU) will be replaced and moved closer to surgery so critically ill patients will no

longer have to be transported down busy corridors. Its large private rooms with ICU-specific safety features will reduce costs and improve comfort, medical outcomes and recovery times.

Increase the number of private patient rooms Private rooms improve patient outcomes, create a more comfortable setting and allow for greater family support. Receive the latest information about the Caring for Generations Campaign and St. Cloud Hospital expansion project by subscribing to the Caring for Generations e-newsletter at www.centracare.com/ foundation. For more information about how you can be part of this exciting project, please call (320) 240-2810, e-mail foundation@centracare.com or visit www.centracare.com/foundation.

Bob Kempenich will tell you he died on Dec. 5, 2005. And even though his heart stopped beating, we weren’t ready to let him go. Scan the Tag with your smartphone to watch a video of Bob’s inspiring story. 50

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 50

SPECIAL ADVertisement

12/16/10 10:17 PM

Photography by Gaslight Creative; Written by Kelly Zaske.

t. Cloud Hospital has helped and healed families for generations and is now investing $225 million to support a 360,000-square-foot addition to its southeast side — a project that will help heal and save lives for generations to come. The hospital expansion is the largest construction project in Minnesota. As part of the overall investment, CentraCare Health Foundation has set a goal of raising $21.7 million to support pieces of the project that wouldn’t be possible without the generosity of the community and CentraCare Health System employees and medical staff. The campaign publicly launched in October 2010 and $10.6 million has been raised to date. The expansion project will:

SMART BUSINESS: The Apothecary – a Compounding Pharmacy

Cus•tom•ized

To build, fit, or alter to individual specifications.

Photography by Gaslight Creative; Written by Kelly Zaske.

t seems like almost anything can be customized these days. We customize our screensavers, our clothing, our music playlists – we can even customize how our cell phone rings for each individual caller. But what if we could customize our medications? What would that be like? It would, in fact, be like it used to be. In pre-World War II America, pharmacists followed physician’s specifications and meticulously formulated prescriptions for their patients. As the science of medicine advanced, many of the standard prescriptions began to be formulated and manufactured en masse by pharmaceutical companies. However, physicians began to notice that not all patients responded to the standardized manufactured medicines, and/or that their patients were sensitive to the fillers, dyes and preservatives that were used in commercial medicines. There was still a need to formulate or “compound” prescriptions to the individual needs of these patients.

It [The Apothecary] is the only community pharmacy in Central Minnesota that has a state-of-the-art compounding lab. The Apothecary pharmacy has offered customized prescription compounding for twenty years. It is the only community pharmacy in Central Minnesota that has a state-of-the-art compounding lab, which includes a class 10,000 clean room for preparing sterile medications. Pharmacists Steve Anderson and Steve Mareck, along with their staff, are committed to the art and skill of prescription compounding because they have seen its positive effects in their patients. “A good example is topical pain creams. They eliminate unpleasant side effects and potentially dangerous drug interactions, and in some cases, are more effective than oral medications,” says Anderson. Under the guidance of physicians, The Apothecary offers customized

T h e A poth e ca r y 165 19th Avenue South, Suite 102 Sartell, MN 56377 (320)251-0107 info@TheApothecaryMN.com SPECIAL ADVertisement

2011_JF_BC.indd 51

compounding for virtually any condition. Some of the more common prescribed preparations are: topical pain creams, bio-identical hormone replacement, veterinary preparations, wart solutions and sterile injectables. “In addition to prescription compounds, we also offer a large selection of naturopathic over-the-counter therapies. We are a licensed pharmacy catering to patients who are looking for a natural approach to treating disease states,” says Mareck. To learn more about prescription compounding, visit The Apothecary’s new location (as of February 1) across from St. Cloud Orthopedic clinic in Sartell, or go to TheApothecaryMN.com.

B u sin e ss D e sc r iption : The Apothecary is a licensed pharmacy that provides customized compounded prescriptions along with natural overthe-counter products.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

12/16/10 10:17 PM

SMART BUSINESS: Williams/Integracare Clinic

WILLIAMS/INTEGRACARE CLINIC One body. One solution. One place.

“Our high level care with a personal touch will help you develop new habits for life, home, and family.” —Dr. Bernard “Brownie” Williams, D.C.

offer total health solutions for individuals and families. “I’ve known Brownie Williams for 20 years,” Bob Feuling, owner of Westside Liquor, St. Cloud. “He and his staff put heart and soul into healing you and making you feel better. The staff is friendly the minute you walk through the door.” Cordial – Williams’ staff makes it a priority to develop warm relationships. Patients are impressed when they’re cheerfully greeted by name on their second visit! Convenient – Patients appreciate seeing doctors of various specialties cooperating with one another at the same location. There are no “turf wars.” In fact, providers meet daily to discuss

100 South 2nd St. •• PO Box 296 Sartell, MN 56377 •• 320.251.2600 info@icareclinics.com 52

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 52

their patient roster and share critical information. Conscientious – “Stay on time” is the clinic’s mantra. The staff of 35 understands patients’ time is valuable. Yet, appointments are not rushed. Doctors take a significant amount of time to converse with patients about their concerns in order to make the proper diagnosis for treatment. So, when is comes to preventative, diagnostic, and integrated treatment for chiropractic, medical, and physical therapy needs, Williams/Integracare Clinic in Sartell is the solution – competent, cordial, convenient, and conscientious. “They treat you with respect,” says Feuling.

B u sin e ss D e sc r iption : Williams/Integracare Clinic combines the best elements of medicine, chiropractic, exercise, massage, manual techniques, physical therapy and nutrition to deliver ONE SOLUTION from an integrated team of professionals for an individual’s healthcare needs.

Photography by Studio D Photography; Written by mary macdonell belisle.

“M

aybe it will go away.” These are five deadly words, says Dr. Bernard “Brownie” Williams, founder of Williams/Integracare Clinic, Sartell. He encourages individuals to become more health conscious by developing a relationship with the clinic’s professionals. “Remember, what you do to your body today has a significant effect on where you’ll be tomorrow,” Williams cautions. “Our high level care with a personal touch will help you develop new habits for life, home, and family.” Competent – Since the clinic began taking appointments 30 years ago, its integration of medical providers, chiropractors, and physical therapists has made Williams Integracare Clinic a standard for integrated care facilities throughout the five-state area. Today, four medical providers, four chiropractors, and four physical therapists, along with nursing and ancillary staff, serve Central Minnesota well. The clinic continues to

•••••••• •••••••• •••••••• •••••••• •••••••• •••••••• •••••••• •••••••• •••••••• •••••••• •••••••• ••••••••

SPECIAL ADVertisement

12/16/10 10:17 PM

ADVERTISER INDEX

ADVERTISER Bernick’s - Beverages & Vending............................... 53 Bremer...............................................................................9 Catholic Charities.......................................................... 23 Center for Diagnostic Imaging..................................... 45 Charter Communications................................................2 Central Minnesota Federal Credit Union.................... 17 Coldwell Banker Commercial - Orion........................ 41 College of Saint Scholastica............................................5 Conway, Deuth & Schmiesing...................................... 27 Falcon National Bank.......................................................3 Grand Casino Mille Lacs............................................... 19 JDB Associates.............................................................. 15 JDB Associates.............................................................. 17 Jennings Insurance....................................................... 41 LarsonAllen LLP............................................................ 31 Marco, Inc....................................................................... 11 Midsota Plastic & Reconstructive Surgeons, PA....... 44 Miller Architects & Builders, Inc................................. 19 Paramount Arts Resource Trust................................. 22 M

R END

S APP

St. Cloud State University - Winter Institute..................7 Regional Diagnostic Radiology & The Vein Center.... 47 Rice Building Systems, Inc........................................... 15 Schlenner Wenner & Co., CPA’s................................. 23 St. Benedict’s Senior Community................................ 43 St. Benedict’s Senior Community................................ 47 St. Cloud State University - Winter Institute..................7 St. Cloud Medical Group............................................... 48 St. Cloud Orthopedic Associates, Ltd.......................... 46 SCR - St. Cloud Refrigeration...................................... 25 St. Cloud State University............................................. 27 St. Cloud Surgical Center............................................. 22 Stearns Bank.................................................................. 41 Strack Construction Co. Inc......................................... 31 Tri-County Abstract & Title Guaranty, Inc.................. 31 US Bank.......................................................................... 55 Wells Fargo Bank.......................................................... 56 Westside Liquor............................................................. 53

SMART BUSINESS The Apothecary.............................................................. 52 St. Cloud Hospital/CentraCare Health System.......... 50 Suite Spaces................................................................... 49 Williams/Integracare Clinic.......................................... 51 Health Services The Apothecary.............................................................. 45 Center for Diagnostic Imaging..................................... 45 St. Cloud Hospital/CentraCare Health System.......... 46 Midsota Plastic & Reconstructive Surgeons, PA....... 44 Regional Diagnostic Radiology & The Vein Center.... 45 St. Benedict’s Senior Community................................ 44 St. Benedict’s Senior Community................................ 47 St. Cloud Medical Group............................................... 48 St. Cloud Orthopedic Associates, Ltd.......................... 46 Williams/Integracare Clinic.......................................... 44

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• M

R END

S APP

MARKETPLACE

Photography by Studio D Photography; Written by mary macdonell belisle.

J A N U A R Y / F E B R U A R Y 2 0 1 1 • • w w w. B u s i n e s s C e n t r a l M a g a z i n e . c o m

2011_JF_BC.indd 53

12/16/10 10:17 PM

BUSINESS SPOTLIGHT

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

PROFIT

Optimism Reigns

For Kendeco’s Bob Miller, there are no set-backs… just new opportunities waiting to be shaped. By Gail Ivers Timeline 1969 Ken Priebe starts Kendeco.

1997 Childers sells Kendeco to Airgas.

1980s Dan Childers buys Kendeco from Ken Priebe.

2003 Childers and Miller purchase Kendeco from Airgas.

1993 Bob Miller starts at Kendeco as controller.

2004 Bob Miller is named company president.

1995 Kendeco becomes ISO certified.

2008 Kendeco has a record sales year; expands its building to accommodate growth.

IN THE Future What does the future hold for Kendeco? Miller: We’re trying to stay active in ensuring that manufacturing in the area continues to grow. I’m president of the Minn. Precision Manufacturing Assoc. and our focus is on education. If you graduate from the machining program at the St. Cloud Technical & Community College, you can get a job. These are good jobs and we need to fund schools and encourage kids to go into manufacturing.

Bob Miller, President, Kendeco Tool Crib

Business Central: How did you make the transition from banking to business owner? Bob Miller: When St. Cloud National Bank was sold, I had the opportunity to evaluate where I wanted to go with my career. I like St. Cloud as a community. I came to the realization I would have to move – and move a lot, if I was going to stay in banking. That’s how it is if you want to advance in banking. I knew Dan [Childers] through the bank and when it was sold, he offered

me an opportunity to try a new career. It seemed like the thing to do. BC: And how has that worked out? Miller: Good! It was a good move. I really enjoy the variety we have here. The variety of customers we deal with every day, the variety of challenges, even the variety of products we have available. No matter how long you’ve been here you learn something new every day. BC: You went through some ownership changes a

few years back. Miller: Airgas bought us, then decided they weren’t going to focus on industrial cutting tools so they gave Dan and me the opportunity to buy the business back. The great thing is that during that time, all of our core people stayed with the company. That’s what really makes Kendeco successful. The average longevity for employees is about 16 years. We have a great group of longterm employees who know the business. BC

2009 The recession hits Kendeco. The company reduces the work week to 32 hours in order to keep all staff. 2010 Sales rebound; Kendeco returns to full work week; company is on track to match 2008 sales.

AT A GLANCE Kendeco Tool Crib PO Box 1394 1202 Sunridge Drive St. Cloud, MN 56302 (320) 253-1020 Fax: (320) 253-6956 www.kendeco.com Owners: Dan Childers and Bob Miller Business description: An integrated, multichannel distributor of industrial products, including cutting tools, abrasives, safety supplies, and related products. Service area: Minnesota, North Dakota, South Dakota, Wisconsin, and northern Iowa Sales support locations: Fargo, ND; Watertown, SD; and Rochester, MN No. of employees: 45 No. of products: 24,000 Certification: ISO 9001:2008 Certified Chamber member since 1974

Business Central Magazine •• JANUARY/FEBRUARY 2011

2011_JF_BC.indd 54

12/16/10 10:17 PM

2011_JF_BC.indd 55

12/16/10 10:17 PM

132114_00745 7.5x10 4c

Helping you create future opportunities for your business

Whether you’re trying to establish or build your business, our local bankers can provide expert guidance to find the financial solutions to help you reach your financial goals. Contact me today. Todd Mather, Business Banking Manager 400 1st St. S. • St Cloud, MN • 320-259-3141

132114_00745 7.5x10 4c 1

2011_JF_BC.indd 56

11/26/10 1:02 PM

12/16/10 10:17 PM