March/April 2016

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Contents

THE MAGAZINE FOR GROWING BUSINESSES IN SOUTHERN MINNESOTA

STAFF & CONTRIBUTORS Publisher: Concept & Design Incorporated

COVER STORY

Editor: Grace Webb Art Director/Staff Photographer: Kris Kathmann

10

Mark Carlson

Advertising Manager: Beth Benzkofer Kozitza

As general manager of the first Walmart distribution center in Minnesota, Mark Carlson is working to bring the $75 million center to full capacity and better serve company stores across five states.

Contributing Photographers: Art Sidner Contributing Writers: David Boaz, Sara Gilbert Frederick, Deb Schubbe, Andrew Thom Production: Becky Wagner

PROFILES

Wilcon Construction

Circulation: Becky Wagner

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10

St. James-based Wilcon Construction strives to stay on the cutting edge of affordable and energy efficient housing units.

Micro-Trak Systems

CORRESPONDENCE Send press releases and other correspondence: c/o Editor, Connect Business Magazine P.O. Box 452, Nicollet, MN 56074

REDA: The Regional Economic Development Alliance 46

E-mail: editor@connectbiz.com (please place press releases in email body) Web: www.connectbiz.com

Instead of competing for incoming business, communities across southern Minnesota are collaborating as part of the Regional Economic Development Alliance.

5 32

IN EVERY ISSUE

4

6

Business Trends

20

National Opinion

35

Bulletin Board

36

Hot Startz!

52

Ask A Professional

55

CONNECT Business Magazine

Phone: 507.232.3462 Fax: 507.232.3373

24

ADVERTISING Call: (507) 232-3462

COLUMNS

Press Releases

Cover Photo: Kris Kathmann

8,800 for March/April 2016 Published bimonthly

SPECIAL SECTION

Grace Notes

Mailing: Midwest Mailing, Mankato

CIRCULATION

38

Daniel Theobald, president of Eagle Lake-based Micro-Trak Systems, is helping revolutionize the way farmers work their land across southern Minnesota.

Editor’s Letter

Printing: Corporate Graphics, N. Mankato

MARCH/APRIL 2016

38

ABOUT CONNECT Locally owned Connect Business Magazine has ‘connected’ southern Minnesota businesses since 1994 through features, interviews, news and advertising.

Connect Business Magazine is a publication of Concept & Design Incorporated, a graphic design firm offering print design, web design, illustration and photography. conceptanddesign.com

Copyright 2016. Printed in U.S.A.

EDITOR’S LETTER

Always Keep Improving When it comes to business, remaining the same is usually not the best business model. Shrewd business owners and entrepreneurs realize that for a business to thrive, it needs to keep growing and improving. That expansion can happen in many ways, whether it’s adding a location, a product line or a new employee. Our March issue of Connect Business Magazine is all about businesses that have found ways to grow and improve.

First there’s our cover story on Mark Carlson, the general manager of the new Walmart Distribution Center in Mankato. The $75 million project was the industry giant’s first distribution center to open in Minnesota and immediately offered more than 400 jobs to area workers. Since opening in spring 2015, Mark Carlson has been working to bring the center to full capacity as it supplies Walmart’s perishable goods to stores across five states.

Our second feature stars Bill and Kirsten Freitag, owners of Wilcon Construction out of St. James. The multi-million dollar construction company has worked on housing developments across the state. While they started with apartments, they recognized the need for single-level homes, and ran with it. Now those homes are their most popular offerings.

Finally, there’s Daniel Theobald, president of Micro-Trak Systems in Eagle Lake. Theobald has seen his share of changes during his 27 years at Micro-Trak and the company is still coming up with new ways to reshape the agriculture industry.

We hope you enjoy this issue’s selections.

An veritas, an nihil,

Grace Webb

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PRESS RELEASES

To submit a press release for publication:

Email: editor@connectbiz.com Fax: 507-232-3373

Blue Earth

LE SUEUR

Central Minnesota Municipal Power Agency recently changed its consulting division’s name from Utilities Plus to Central Municipal Power Agency/Services.

The National Narcotic Officers’ Associations’ Coalition (NNOAC) recently endorsed the use of DrugCheck® test devices, which are manufactured by Express Diagnostics Int’l (EDI).

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Fairmont From the Convention and Visitors Bureau: the Comfort Inn of Fairmont recently changed to a Quality Inn. Hawkins Chevrolet recently hired Jesse Walters as a new member of its sales team.

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The annual Pioneer Swap Meet will take place from 7 a.m.-6 p.m. April 22-24 at the Pioneer Power Show Grounds.

The Giant Celebration Button Design Contest will run until April 15 and is open to all ages. Submit a 2.5 inch by 2.5 inch design to the Chamber by emailing julieb@lesueurchamber.org or dropping it off at the Chamber office. The winner will receive $75 in Le Sueur Dollars.

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MARCH/APRIL 2016

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Davis Family Holdings Mark Davis, chairman of Davis Family Holdings, was recently selected as one of the 2016 recipients of the prestigious Horatio Alger Award.

Mankato From Greater Mankato Growth: New members include Lamm, Nelson & Cich, Southwest Minnesota Housing Partnership and Calling All Paws Pet Grooming.

Diana Gabriel, a certified professional coach in Mankato, recently completed a rigorous year-long training program to become a Strengths Strategy Certified Coach.

General Growth Properties was recently selected as the “Most Honored REIT” by Institutional Investor, an international business-to-business publisher.

Consolidated Communications and its employees recently pledged a record $116,000 to United Way chapters in communities across the company’s service area,

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including $52,766 for the Greater Mankato Area United Way. Habitat for Humanity of South Central Minnesota’s seventh annual Home Tweet Home will be on April 21 at the Country Inn and Suites. All proceeds go towards building more Habitat homes.

Lime Valley Advertising, Inc. recently received eight Service Industry Advertising Awards for communication excellence. This is the twelfth year that Lime Valley has received awards from the SIAA, and throughout those twelve years, Lime Valley has received 57 SIAA awards, more than any other agency in Minnesota.

The Martin Luther King, Jr. Commemorative Board recently named MRCI WorkSource as the recipient of the 2016 Business Pathfinder Awards.

Region Nine Development Commission recently received three Seed Grants totaling $3,739 from the Clean Energy Resource Teams. The organization will use the grants for its Community Solar Garden Workshops.

MANKATO

Mankato Clinic Foundation The Mankato Clinic Foundation recently donated $24,265 in grants to 13 organizations within the area.

Region Nine also recently hired Sam Parker as a Community Development Planner with a transportation emphasis.

Region Nine is seeking youth commissioners to participate in local government for two-year terms. Candidates should be entering their sophomore year and live or attend school in Region Nine’s ninecounty service area. Contact Region Nine for more information.

Mitch Allore from Davis Comfort Systems recently completed his Trane retail sales solutions training at the Trane testing lab in Tyler, Texas.

Shelly Bartlett, owner and stylist at INdiGO Organic, LLC, was recently a keynote speaker at an Intelligent Nutrients international distributers conference in Minneapolis. Some of those in attendance were from Canada, London, the United Kingdom and Hong Kong.

The Mankato YWCA recently announced its 2016 Women of Distinction Honorees: Janice Hope Gorman, Carolyn Kanyusik and Mitzi Roberts. In addition, Fardousa Jama was named Young Woman of Distinction.

National Independent Billing, Inc. recently rebranded itself as Northflow Solutions.

Abdo, Eick & Meyers, LLP recently promoted Josh Sherburne and Jean McGann to partner.

Marco Inc. recently purchased Data Comm, Inc., located in Missouri, and Nexus Office Systems, Inc. in Illinois.

Bridget Norland was recently hired as Greater Mankato Growth’s (GMG) new Marketing & Communications Coordinator.

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PRESS RELEASES

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Pioneer Bank recently hired Mike Kunkel as a Vice President, Ag/Business Banker in the bank’s North Mankato location.

Capstone Company recently celebrated its 25th anniversary.

From the Chamber: Chamber members will host Spring Open House from April 28-30, with each participant giving away a free plant. The city’s Residential Garage Sale will also take place that weekend.

Mapleton

St. James

Pioneer Bank recently hired Dan Benrud as an Assistant Vice President, Ag/Business Banker in the bank’s Mapleton location.

The Encore Coffee Café was named 2015 “Business Of The Year” by the Chamber.

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MARCH/APRIL 2016

From the Chamber: New members include Mobile Medical Thermography Imaging, Siegel Repair and Zinniel Electric.

Thriveon recently named James Montz as Sales Executive.

Country 101.5 KRRW radio station has moved to a new location on First Avenue.

Watonwan County Farm Bureau received the Minnesota Farm Bureau President’s Award of Exemplary Achievement, the most prestigious of all county Minnesota Farm Bureau awards. Kathleen Svalland is the 2016 Watonwan County Board chairperson. Lynn Krachmer is the new Watonwan County Assessor. Naomi Ochsendorf is the new Watonwan County Director of Human Services.

Sarahi Showalter, owner of Lord’s & Lady’s, has moved to the former Curves building on First Avenue.

H&R Block recently opened in a new location at 518 First Avenue.

Mike Mikkelson recently became a new physician assistant at Mayo Clinic Heath System in St. James.

Sleepy Eye SouthPoint Federal Credit Union recently applied and was approved to convert from a federal to a state charter, changing its name to SouthPoint Financial Credit Union.

WASECA

Southern Minnesota Initiative Foundation The Southern Minnesota Initiative Foundation (SMIF) recently approved three grants totaling $42,625 to support early childhood and economic development projects within southern Minnesota. The Agricultural Utilization Research Institute in Waseca will receive $20,000 to implement its Innovation Networking model.

Waseca From the Chamber: New members include Principal Financial Group and Awaken Vibrance.

Adam Worke was recently recognized as 2015 Chamber Champion.

Waseca was recently ranked No. 15 as the best small town to raise a family in Minnesota and No. 7 as the safest and most peaceful place in live in Minnesota. The county was ranked as the 13th healthiest county in the state.

The Chamber recently gave First Dollar Awards to Awaken Vibrance and Tom’s Used Cars, as well as a Progress Award to H&R Block.

CONNECTING BACK

Read the entire articles at connectbiz.com

5 YEARS AGO

MARCH/APRIL 2011 Anne Makepeace, human resources director at the New Ulm Medical Center, was the main feature in this issue. Profiled companies included Sleepy Eye Stained Glass in Sleepy Eye and La Pre Chel Salon & Spa in Waseca. Great quote from Makepeace about what she looks for in employees: “The best predictor of future behavior is past behavior. I ask questions based on what people did or how they reacted in certain situations.”

Commercial Industrial

10 YEARS AGO

MARCH/APRIL 2006 Our cover story was Yvonne Cariveau, president of VoyageurWeb. Profiled companies were Larkspur Market in New Ulm and Kenway Engineering in Fairmont.

One good quote from Cariveau about her dreams for Mankato: “I’d like to see more ‘connectedness’ among generations. High school kids especially need it so badly. Many of them are so adrift in our culture, without anchors.”

15 YEARS AGO

MARCH/APRIL 2001 Our cover story featured Dennis Miller, CEO of Midwest Wireless. A secondary story featured Brent Christensen of Christensen Communications. Profiled companies included Schmidt’s Bakery in St. James and Kiesler’s Campground in Waseca.

20 YEARS AGO

MARCH/APRIL 1996 This issue didn’t feature a cover person— that didn’t begin until later—but focused on whether modern education was meeting the needs of area businesses. Profiled businesses were AMPI in New Ulm and Concept & Design in Nicollet.

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CONNECT Business Magazine

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TEAM LEADER As general manager of the first Walmart distribution center in Minnesota, Mark Carlson is working to bring the $75 million center to full capacity and better serve Walmart stores across five states.

By Grace Webb Photo by Kris Kathmann

Mark Carlson has always enjoyed playing on a team.

The Wisconsin native first discovered his love for team dynamics in high school, playing on the football team.

He pursued that passion into college, playing as the tight-end on the college football team for four years even though his school didn’t offer football scholarships. After he graduated, he looked for a job that could offer him that same team spirit, and he found it in a rather surprising place: Walmart.

Starting at the distribution center in Menomonie, Wisconsin, Carlson quickly climbed the corporate ladder, going from a supervisor to a manager to an operations manager before working his way to assistant general manager at a store in Illinois. When the opportunity came along in 2014 to apply for the general manager position at a new $75 million distribution center just opening up in Mankato, Carlson knew it was the logical next step.

The first Walmart distribution center in Minnesota, the Mankato location (DC 7079) provides perishable groceries for 40 stores and 20 Sam’s Clubs across the Midwest, including Minnesota,

Wisconsin, upper Iowa, North Dakota and South Dakota. Every day, hundreds of trucks come in and out of the 420,000-square ft. facility. The center, which is open around the clock, also employs more than 450 workers.

Like all good teams, the center has different positions for different skill sets.

There are the receivers, who manage freight deliveries. There are the running backs, who move products where they need to go. And then there’s the quarterback, Carlson himself, who communicates the play to his employees and implements what needs to be done.

Instead of touchdowns, his team strives to make and exceed quotas, hoping to soon reach full shipping capacity.

Instead of battling opposing players, they have deadlines and the challenges that spring up at any new distribution center. If they succeed, Carlson is quick to point out, it’s because of the team effort, not because of him alone.

His team might be a little bit bigger now, but he’s still committed to the same principles: excellence, hard work and—most importantly—always looking out for his teammates.

MARCH/APRIL 2016

continued > CONNECT Business Magazine

11

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Tell me about yourself.

I’m originally from Chippewa Falls, Wisconsin, where my parents and in-laws still live. I attended college at the University of Wisconsin-Eau Claire. My dad was a science and math teacher at the high school, and my mom stayed at home to watch me, my two sisters and my brother.

What were you involved with as a kid?

I really liked being active. I played football, baseball, hockey and golf as a kid, and I also spent a lot of time fishing. All through high school, I participated in football, hockey and track, and I played football in college too.

You attended the school where your father taught. Was that difficult as a kid?

Actually, I liked it. I guess some would see that as a negative, but I saw it as a positive.

It was nice having him there. I even had him as a teacher for a class. I didn’t see it as anything unusual. I still had to work hard and earn what I received, and I didn’t get any special treatment at all. It was kind of the work ethic that I grew up with.

What other lessons did you learn from your folks?

I think they showed me good family values, good ethics and strong community ties. My parents worked really hard for what they had and what they provided for us. My goal is to do the same, if not more, for my family. Twenty-three years later, with this company hopefully I’m fulfilling some of those goals and values.

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What were your plans after high school?

I wanted to play college football, so I decided to attend the University of Wisconsin-Eau Claire. I graduated with a degree in corporate exercise management.

Did you attend on a football scholarship?

UW Eau Claire is a Division III school, so they don’t offer scholarships. The team was full of kids who just wanted to play football and have fun. Nothing beats playing a football game on a Saturday afternoon.

You really need to like the sport to do it,

Mark Carlson | Walmart Distribution Center

since it’s quite a commitment. A few of my fellow teammates are some of my best friends, whom I still spend time with today.

To me, my job at Walmart reminds me a lot of the teams I’ve been involved with, in working together, achieving goals and striving for excellence. Those things are all values that I’ve lived with and probably why I’ve enjoyed working for this company for so long. It matches up with what I like to do. It really is all about people.

Did you work in college?

I worked at the university bookstore for five years in shipping and receiving, which obviously benefited me as I got hired on here, since we moved boxes of books and worked with purchase orders. We didn’t have the fun equipment that we have in this facility; we had a two-wheeled dolly and our arms.

What came next once you graduated?

For a short time, I worked at a sports performance facility that was related to my major in Eau Claire. However, then I learned that Walmart was hiring for its new distribution center in Menomonie, Wisconsin, and applied for a position with them.

While area managers are only responsible for their specific area, operations managers are responsible for several areas. Most of my time was spent in receiving, though I spent a little time with shipping and order-filling as well.

In 2005, you transferred to a distribution center in Illinois. Why the change?

I was looking for something new. In the late 1990s and early 2000s, we as a company started to really get into the food business, exploring and diving into the Supercenter store model. That’s when we started our grocery and perishable growth as a company. We built a lot of buildings to support that store growth. So I kind of got in on the back end in 2005. But personally, I thought it was time to do something different and learn a different aspect of the business. I interviewed and was accepted to go to Sterling, Illinois, where I started as the assistant general manager. That was a brand new startup DC, so I helped to open it up fully. I was there five years do-

ing the same thing we did here, everything from buying furniture to identifying good management and associate teams to setting up operations.

After that five years, I felt like it was once again time to do something different. After looking around, I saw an opportunity in Beaver Dam, Wisconsin. We have a regional building there, and I applied for the same position that I had in Illinois. When I was accepted, I moved up there with a new team and a new challenge. I was with that team in that role for four and a half years, and it was a great experience, great associate group and great leadership team. I definitely learned a lot from that time.

But eventually you wound up in Mankato.

Back in 2014, this opportunity came up, and I felt like it was time to do something different again. It’s been a really good move.

Walmart distribution centers are typically in smaller cities; Beaver Dam is about the

Most people don’t dream of creating a career at Walmart.

What attracted you there?

At first, I was just looking for a stable full-time job. I started off as an hourly associate on the receiving dock. From there, I was promoted to a supervisor position about six months later.

That seems very quick.

There’s a lot of growth opportunity with Walmart, especially in a startup building like Menomonie’s. In that situation, there tends to be a lot of need for new leadership.

It’s the same here; we promoted our first hourly associate in December. It’s something we definitely promote as a company, to recognize internal talent. About 75 percent of our store management teams start out as hourly associates. It really gives you a good base and a good knowledge of the business.

What came next?

In early 1995, I was promoted to a receiving manager. I did that for a couple years and then was promoted to operations manager.

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“I’m just happy to be here in Mankato and looking to try to do the best I can to help this team be successful. It’s all about getting this team at the level of experience necessary, and supporting the stores we service the best we can.” size of Menomonie (about 16,000 people). Here, you can live, work and be active, from recreation to shopping to eating. A lot of people who live here think this is a small town, but it’s not. It truly is almost a suburb of the Twin Cities, and there is so much to offer down here.

So it was a good transition for my family and me.

How have you gotten involved in the local community?

Personally, I joined the Mankato Area Hockey Association (MAHA), and our Walmart team has joined Greater Mankato Growth, where I’m on the executive round table. Furthermore, as a company and as a building, we’ve been extremely involved in the community when it comes to volunteer efforts. Some recent ones were our involvement with Relay for Life, the American Cancer Society, cleaning up Highway 22, giving away Meals on Wheels, serving at the Salvation Army and helping with Habitat for Humanity.

Both managers and associates volunteer, though it’s been a lot more managers up to this point since we’re a startup and people are just trying to get acclimated to their new positions. Right now, we’re bringing everything in front of our teams so that in the future they’ll be able to volunteer and be active in these different organizations we support.

You transferred several times between Walmart sites. Is that easy?

Those opportunities definitely exist. As an hourly associate, you’re able to move from distribution center to distribution center to try different things and experience different formats. Once you’re with the company for a year, you’re able to do that if there are openings. If I were an area manager here and wanted to stay here the rest of my life, that’d be fine. If I wanted to try my hand at an operations manager position, I might have to move. It’s a process though. You’ve got to apply and be interviewed. I like to say we all get interviewed every day.

Right now, we’re working with Mankato’s “sister” distribution center in Mebane, North Carolina. They’re opening later this year, so they’re starting the same process that we just went through for the last two years. They’re going through construction and getting the building ready, and they’ll start shipping this summer. So they need managers and hourly associates, which is a great opportunity if some of our employees want to try that out. Your opportunities become more available if you are willing to move.

Are you thinking of trying something new in the future?

I have no plans for that right now. We’ve all got a lot on our plate.

Mark Carlson | Walmart Distribution Center

I’m just happy to be here in Mankato and looking to try to do the best I can to help this team be successful. It’s all about getting this team at the level of experience necessary, and supporting the stores we service the best we can.

Your distribution center runs 24/7, but you can’t possibly be here all the time.

(Laughs) Oh, I’m here a lot. For a while there, I was here seven days a week, all the time, as we started up. The assistant general manager is also here all the time. We’ve tried to scale back a little bit to get a day off here or there, but I come in whenever it’s needed.

During a typical day, I’ll come in and be part of the morning meeting, where we discuss as a leadership team what’s going on and what the plan is for the day. We do some forecasting, so we kind of have an idea to see what’s going on. There are operational meetings, conference calls, things like that.

I like spending time on the floor, talking to associates, seeing what’s going on and asking them questions. You can really get some good insight about the distribution center that way. I try to spend a little time in the office, but I’d rather spend more time on the floor.

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Coming To Mankato Walmart’s road to constructing a distribution center in Mankato has been a long one.

As early as 2005, Walmart purchased 150 acres of land on the northeast edge of the city, working with the City of Mankato and other parties for several years to plan the details of the project. Ground was finally broken in June 2014, with about $5.3 million in site improvements done. The state of Minnesota provided $2 million in infrastructure grants, while the rest of the cost was assumed by Walmart and other developments building in the area. The center opened in spring 2015.

Walmart representatives have mentioned the goal of adding a 400,000-square ft. drybox building to the center, so that the center could handle all of Walmart’s groceries for the region. However, that part of the project has no set timeline as of yet.

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15

Team Leader

I enjoy being on the floor and getting to really know our teams. I have really enjoyed building these connections over the years.

Tell me about the startup process. I imagine it must be very challenging.

From the time I was chosen for this role to how we picked our management people, it’s been a team effort. No one person can do this. So that’s a pretty neat process: getting to know people, establishing associate teams, getting them on board and acclimated to the culture, sending them to other distribution centers to learn.

You’re continually gaining that experience. It’s a slow process.

Each day is a new day, and we continue to gain experience each and every day.

One challenge was the number of new managers. We had hourly promotions, hired new managers from outside the company, and worked with some associates who came in as lateral transfers. Experience varied from regional distribution centers, grocery centers, stores and pharmacies. All these leaders had to learn and train and teach, and they still are learning and experiencing even as we operate.

To see that development and that pace of excellence moving forward is exciting. A year ago, this was dirt. Now, we are operating; we’re receiving and shipping cases. We’ve got some pretty engaged and excited teams that are making that happen. Was it easy? No. Is it easy? No. But it’s rewarding. It’s fun seeing people being successful.

When you first opened in 2015, you announced you were looking for 400 new employees. Are you still hiring people?

For the most part, we have what we need, but there are a few openings—though not like what it was eight months ago, when we went from zero to 450 employees in a few months.

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I’m guessing part of that is due to the starting wage of $16.75 an hour you offer—nearly twice Minnesota’s minimum wage.

We’re excited to offer a high wage. That being said, with the type of work we do and the skill level necessary, our employees are earning it. Everything we do is hand-picked; we’re moving every box by hand.

You need a level of skill to do that, and to drive the equipment, and to do all the stuff that’s necessary to operate. That’s why we offer the wages we do. It’s based on the skill level needed and the expectations for that job. Every one of our associates here works hard each and every day. We move boxes for a living. It’s hard work.

What factors play into choosing the location for a new distribution center?

When we’re selecting a site, two of the things that are pretty important are transportation—the ease of access to the interstate and having that network—and a good employment base to draw from. This site offers both of those. Also, citywide, there has been a lot of infrastructure additions and enhancements that will continue to happen, not only as we grow but as other companies come to town and utilize that infrastructure. So we’re happy to be in Mankato.

Mankato isn’t really the first choice when you think of bustling metropolises. Why didn’t

Mark Carlson | Walmart Distribution Center

PRESENTS you build in Minneapolis or St. Paul?

DCs are usually located in smaller towns, so this is a big city for us. Those who live here see it as a small city, but we look at it as being part of a community of more than 60,000, with St. Peter, Eagle Lake and Lake Crystal right down the road.

We’re able to provide fresh produce and frozen deli goods to a large area of the United States from this facility. Prior to us coming, a lot of the perishable items were coming from Tomah, Wisconsin. That’s three hours away from here. We’re serving places like Grand Forks, North Dakota, which is a 10-hr drive for Tomah. Now we’re able to provide that service sooner, providing fresher products to the customer. So it’s strategically located here in the Midwest to help service these stores, from Minnesota, Wisconsin, upper Iowa, and North and South Dakota.

It’s a good location to help service that network and still have access to good road systems, for not only ourselves but also our vendors.

Walmart has a pretty great retention rate when it comes to employees. What’s your secret?

I don’t think there are any special formulas, but I do think a lot

10KATO RUNSTRONG Memorial Day: Monday, May 30. Races start at 8:30 a.m.

The 10kato is back! This legendary race has joined with Scheels and the LiveSTRONG program at the YMCA to form an even more exciting and memorable experience! Proceeds from the race benefit the LiveSTRONG program; a twelve-week, small group program designed for adult cancer survivors that puts the focus on the individual’s health and not just the disease.

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Team Leader

Questions?

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Getting to know you:

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Education: University of Wisconsin-Eau Claire Hobbies: hockey, golf, attending his kids’ sporting activities. (“My parents never missed a game or a practice all the way through college, and I have those same values. It’s fun to watch my kids play, but it’s more important to just be there for them.”)

Most prized intangible possession: “Nothing.

Other than family, really everything else can be replaced.”

One thing that he would do differently: “One thing that I would change if I were 18 years old again is go into the military. Our freedom is so precious, and there are so many sacrifices that are made from so many individuals so that we can do what we’re doing right here. To be part of that would have been an honor.”

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Team Leader

“We have our four basic beliefs: respect for the individual, strive for excellence, service the customer and act with integrity always. To me, those four things are the cornerstones of our culture.” has to do with the culture. We have our four basic beliefs: respect for the individual, strive for excellence, service the customer and act with integrity always. To me, those four things are the cornerstones of our culture. They provide an atmosphere and environment for our associates to be really successful, to be proud and excited about where they work. It’s not just about the pay. People don’t leave jobs because of pay. People leave jobs because of people.

Money’s a short-term motivator. So it’s really creating an environment where our teams feel comfortable and understand what our expectations and goals are, both as a unit and as a distribution center. And then we get involved in those good causes that give back to the community. We not

only talk about it, we act on it. It’s just part of our culture.

What keeps you up at night?

That we’re a new facility. Every day is a new day, and our teams are continuing to learn. From a safety, quality, customer service and efficiency standpoint, we’re improving each and every day. And as we gain experience, we’ll continue to gain more responsibilities. We’ll gain more clubs and stores that we service as time goes on.

At some point, we’ll be at full capacity.

This is a startup, so we are learning every day. We’re continuing to gain experience and knowledge, so we service our stores and club partners with the world-class service that they deserve and that we expect.

What are your goals?

My goal is to just try to make a difference each and every day. I like to teach, I like to help, I like to assist, and I like to coach. All that’s part of my day. My goal is to develop my replacement, to give that person as much experience and knowledge and feedback as possible so that they can be their best. In the same way, I’m trying to develop the staff to be the best operations staff that they can be in interacting with our associates and being part of our teams.

It’s manager development, it’s associate development, it’s trying to be a leader in the community.

How do you see the distribution center affecting Mankato and

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Commercial Single-Cup and Volume Brewers

Mark Carlson | Walmart Distribution Center

the surrounding area?

It’s a great addition to the town. It’s been a big commitment, a multi-million dollar commitment to this area. I’m guessing that attracts other potential businesses to come to this area, to be part of this growth. The reason we moved here as a company, from the infrastructure to the employee base, is the same reason others would want to move here and bring their businesses to these locations. It’s positive for the area; it’s encouraging for job creation and job growth. It’s a win-win for everybody.

Another area where we are hoping to make an impact is through our charitable giving. During our grand opening celebration, we made several donations in an effort to support local nonprofits, including the Mankato Salvation Army, ECHO Food Shelf, Project GEM and others, and we’re looking forward to partnering with more organizations. Another unique initiative I hope Mankato nonprofits take advantage of is the Walmart State Giv-

ing program, which provides grants of $25,000 to $200,000, depending on the type of program.

THE ESSENTIALS

Walmart Distribution Center 7079 Phone: (507) 344-7100

Walmart can sometimes be a polarizing figure. Some people complain it doesn’t do right by its employees. But you’ve been here 23 years.

I wouldn’t be working here if I didn’t believe in the values and the culture that we are in each and every day. We’re a humble company that doesn’t stand on a desk and talk about the things we do. But if you live it and breathe it and are involved in it, you have a different opinion about the place.

Another thing people don’t realize is that Walmart is committed to the advancement of its associates. Recently, the company announced that it is raising wages, providing additional training opportunities and increasing scheduling flexibility. It’s exciting that they are recognizing and rewarding good work and encouraging

Address: 101 Sohler Drive Mankato, Minnesota

talent at every position.

The biggest message I want to stress is that it’s really about the team. It’s not about me. It’s about the 400-plus associates and 40-plus managers that truly make a difference each and every day. They’re very engaged and very excited to do the best they can, and that’s the thing that keeps bringing me back to work each day: that interaction with those teams and those associates and managers. It’s been a great environment for me for 23 years, and that’s the reason that I’m still here.

Grace Webb writes from Mankato.

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BUSINESS TRENDS

ENVIRONMENT

Minnesota businesses such as Cargill and CHS are feeling the triple pinch of environmentally conscious consumer demands, government regulations and declining corn and soybean prices, according to Twin Cities Business Magazine.

According to the article, consumers— especially Millennials—are becoming more concerned about soil and water quality, and how it is affected by companies’ food production.

One concern is how the nitrogen in fertilizer used on farms and lawns dissolves

in water, showing up in high concentrations in rivers, lakes and private wells. The Pioneer Press ran a series in 2015 about the continuing prevalence of unsafe levels of nitrogen in Dakota County. The concern is further heightened by the fact that Minnesota is the first state on the Mississippi River, and contamination that starts here could affect several states downstream.

Gov. Mark Dayton made the news last year when he proposed a 50-foot buffer between farm lands and adjacent rivers, streams and ditches. Numerous farmers protested his idea, pointing out how they would lose arable land and be forced to pay for costly perennial vegetation. In the end, a compromise was reached that maintained the existing 16.5-foot buffer rule along ditches and created up to a 50-foot buffer along public lakes, rivers and streams.

One way farmers and agri-businesses are working towards environmental sustainability is the use of “precision agriculture,” which lessens the impact of tilling, fertilizer

Corporate H

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and pesticide use on their land. Tilling is important to prepare the soil for planting, but it can lead to soil erosion. Some companies, such as North Dakota-based R.D. Offutt Co., have started using GPS and machine-controlled precision application techniques to reduce the number of field tillage passes. Precision agriculture also allows farmers to identify nutrient needs, precisely targeting herbicides and pesticides instead of spraying them everywhere.

While farmers have used precision agriculture for the past 25 years, it became even more of a resource in 2008 when CHS began using photos from governmental satellites to determine soil quality. Farmers can buy high-tech planters that adjust fertilizer applications so that their fields aren’t overfertilized, while some combines now contain monitors that build maps to show crop yields per field.

Millennials have also moved away from processed foods and have begun calling for more organic fare, reports TCB. This

preference has already affected big names like Kraft, which promised to remove the yellow dye from its macaroni and cheese, and Chipotle, which recently pledged to remove most modified food from its menu.

General Mills has also gotten into the sustainability race, promising in August of 2015 that it would add 250 organic products in the next decade, budgeting $100 million for energy efficiency and clean energy and working to remove artificial flavors and colors from its cereals.

As the demand for sustainability and transparency in agriculture grows, soybean farmers have been particularly affected because of the traditional way their crop is produced. TCB explains that in a traditional supply chain, farmers sell their soybeans to companies that mix the beans with other farmers’ beans as well, eventually creating products such as tofu or animal feed. The problem there, according to some consumers, is that consumers can’t know how the beans were raised since so many different crops

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were mixed together. Because of this, a new practice, called the parallel supply chain, is becoming popular. In this process, farmers grow their soybeans organically and track them throughout the entire process to prevent them from becoming mixed in with traditionally grown beans. However, since these farmers grow their crop in smaller quantities, they can’t reap of benefits of large-scale productions, and they must also work harder to follow regulations and pay for organic certification.

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BUSINESS TRENDS

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Employers across Minnesota are struggling to attract workers—and part of the reason is the lack of affordable housing, according to the Fedgazette.

Fedgazette defines workforce housing as housing that suits the budgets of workers of all income levels in a community, not including special-use housing such as seasonal, student and senior units.

According to the news outlet, communities across the Ninth District (which includes Minnesota, Wisconsin, North and South Dakota, Michigan and Montana) are seeing increased hiring, but some nonmetropolitan areas aren’t building enough housing for those new workers. Many businesses have put off plans to expand or hire more employees because there isn’t housing available within a reasonable distance.

This housing crunch is affecting workers of all income levels, from food prep employees to industry professionals. While older housing is often available to purchase, the article states, not much is available to rent. Private industry employment has grown about 6 percent in Minnesota, South Dakota and Wisconsin since the end of the Great Recession, but housing has not kept up.

One reason for the sluggish response to housing needs is the persistently low rents and home values that have plagued some communities in the area for much of the past 50 years. Because of lagging economic growth, these communities faced low home appraisals, which discouraged investors from starting new projects since there wasn’t enough expected return on the investment.

Across large sections of Minnesota, low rents are prevalent, with levels far below the median for the Twin Cities according

to census five-year estimates for 20092013. According to a recent analysis by the Greater Minnesota Housing Fund, rents in some northern Minnesota cities are “artificially low.”

Fedgazette reports one reason that rent could be low is the fact that many communities across Minnesota have rental units that were built decades ago and in serious need of repair. Because of the need for extensive updates, they may not be worth more than the current rent.

In addition, housing that is subsidized through federal low-income housing tax credits, USDA Rural Development loans and other government programs also lowers overall rents.

Developers are also reluctant to begin new housing projects because of rising construction costs, new building regulations and stricter lending standards. While land is often cheap in rural areas, the prices of labor and materials are roughly equal to larger cities with higher rents and home sales prices. According to the Bureau of Labor Statistics, lumber, cement, drywall and other materials have outpaced wholesale and consumer prices. Fedgazette adds that higher labor costs have been driving up construction costs, since many construction workers left the industry during the recession and during the oil boom in North Dakota. Now there simply aren’t as many skilled laborers available, forcing construction companies to pay higher wages to attract them. Minnesota wages for residential construction workers increased 11 percent from 2011 to 2014 (adjusted for inflation), according to the Bureau of Labor Statistics.

Building and land use regulations have also factored into higher construction costs, according to Fedgazette. State building codes have been revised to raise

standards for energy efficiency and safety, requiring more effort from builders. In Minnesota for example, developers are now required to build stronger load-bearing walls and better insulated walls and windows compared to six years ago. Changes to Minnesota’s building codes tacked on an estimated $10,000 to the cost of constructing an average single-family home in 2015, according to the Builders Association of Minnesota.

One other factor is community banks’ hesitance to finance new housing projects.

After struggling through the housing crash, banks now pay closer attention to loan-to-value ratios than before. Before the crash, banks traditionally offered loans for up to 80 percent of a non-metro project’s projected value, but now they often limit the loans to 60 to 75 percent of the value instead. This requires developers to bring more equity to the project, which is difficult with high construction costs and low housing appraisals.

To help with these difficulties, the Minnesota Legislature created a $5.4 million grant program in spring 2015 to help cover the cost of workforce rental projects. There has also been new government-subsidized housing constructed across the region, but these developments are often restricted to households earning 60 percent or less of the median area income, which excludes many workers.

The Greater Minnesota Housing Fund is also working on the problem, launching a pilot program that would reduce the financial risks for developers of apartment projects in Minnesota. The organization, which receives support from both the government and private foundations, would guarantee construction loans from private banks, as well as offer additional debt financing.

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Bill and Kirsten Freitag in a model patio home they built in Mankato.

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Business Person of The Year 2016 winners selected by MSU Mankato College of Business faculty.

By Deb Schubbe Photo by Kris Kathmann

St. James-based Wilcon Construction strives to stay on the cutting edge of affordable and energy efficient housing units.

For Bill and Kirsten Freitag, construction is a core part of who they are and what they do. The owners of Wilcon Construction understand the importance of creativity, innovation and quality, building these concepts into every housing unit they construct.

Since beginning their company in 1986, Kirsten and Bill have consistently expanded and improved their inventory, cultivating a multi-million dollar construction empire that stretches across the region and has offices in St. James and Mankato.

Growing up in construction gave the couple a love for the earth and afforded them the skills to meet many residential, commercial and industrial needs in southern Minnesota and northern Iowa, keeping it green along the way. Wilcon Construction was one of the first custom home builders in Mankato and St. James to go primarily green for their home gallery. It was a natural step for the business, which strives to stay on the cutting edge of housing development, and only one of several

ways Wilcon Construction has expanded and reinvented itself over the years.

Raised in rural Mountain Lake, Minnesota, Bill and Kirsten Freitag got a taste for construction right in their backyards. They started out as kids helping their dads with farm work nearly 50 years ago, both enjoying the chores outdoors as much as the play.

Bill’s father, Mike Freitag, was a masonry contractor and part-time farmer. At fourteen years old, Bill bailed hay, scooped manure, did construction and assisted his dad as a bricklayer.

“Slave labor when you’re a teenager,” Bill said with a smile, admitting his dad did pay him a little. “There weren’t the child labor laws so much then. Working was normal, and we had so much fun working with our friends.

With laws today, kids miss out on knowing their friends better by working with them.

We worked, we played, and we’d go to the lake swimming and just goof around. Probably the better times of my life.” continued > MARCH/APRIL 2016

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Creative Construction

“With laws today, kids miss out on knowing their friends better by working with them. We worked, we played, and we’d go to the lake swimming and just goof around. Probably the better times of my life.”

During his leisure time, young Bill did a lot of hunting, fishing and playing at a ball field a half mile from home. Those teen years proved important not just for the education Bill gleaned from his father, but also because he met his life’s partner back then.

Kirsten Regier, the oldest of five siblings, hoed weeds in the bean fields, picked up rocks, plowed fields, gave shots to pigs and helped with farm bookwork.

“I helped Dad more than Mom on the farm,” she said, “and Dad paid us.”

When Kirsten wasn’t knee-deep in chores, she fed her creative side by reading the Betsy-Tacy series, Wuthering Heights and other work by the Brontë sisters.

She and Bill rode the same school bus, but they didn’t get acquainted until fate stepped in when they attended the same Bible study. In 1975, when Bill was 24 years old and Kirsten was 20, the couple married.

At the time, Bill and his brother Steve were partners with their dad. They managed their masonry and concrete business, Mike’s Construction, from a small Mountain Lake office. Kirsten helped Bill’s mom part-time with the books, switching to full-time when their daughter was five.

As the company grew, Kirsten expanded her skills. Along with Spanish, she took accounting classes, one at a time, through Minnesota State University Mankato.

“That accounting background has been invaluable,” she said.

Eventually, Mike and his sons divided the company. Steve lived in St. James, where Bill and Kirsten had a number of friends. So, while Mike continued the business in Mountain Lake, Bill and Kirsten made the move.

“We wanted to live in the ‘big’ city,” Bill said with a smile.

He and Steve became Freitag Brothers Construction, masonry and concrete contractors in St. James. Bill worked as a job superintendent before also deciding to become a commercial general contractor.

“We worked for other commercial general contractors, and I found it was something I really enjoyed,” he said. “So we transitioned to a little of it in 1986 when I was still partners with my brother. [At Freitag Brothers] I was a job superintendent, so I learned how things should be done. After a few years, my brother actually came and worked for us.”

Though Steve died in a truck accident in 1999, Bill remembers

Wilcon Construction | St. James

the fun his brother brought to the crew and maintains that same atmosphere in the business he and Kirsten established.

In 1986, Bill and Kirsten started Will-Sten Enterprises. They kept the name general, because they weren’t sure which direction they wanted to steer the business. Incorporating in 1991, CEO Bill and CFO Kirsten wanted the public to recognize they were contractors by their name, so they became Wilcon Construction, Inc. and stretched their expertise across southern Minnesota.

Wilcon was the general contractor for the energy efficient redevelopment of Cherry Ridge Apartments in Mankato in 2007, as well as Viking Terrace Apartments in Worthington in 2006, which included a geothermal heating and cooling system and other green products.

Today they serve a bigger area, working as far south as Algona, as far north as Hutchinson, west through south central Minnesota and northern Iowa, and as far east as Le Sueur.

Kirsten said that during the recession in 2008, they were still working in the Worthington area, but Twin Cities contractors took anything east of that.

“The recession changed the mix,” she said. “Commercial construction just dried up.”

“So we still did commercial work,” Bill explained; “we just changed our area and did a lot more work in northern Iowa.”

“We also started doing a bigger percentage of our own development work then,” Kirsten added.

Their first development in Mankato was traditional housing in 2002. Shortly after, they bought some land and developed a 16-lot residential development in St. James. A few years prior to the

Creative Construction

Constantly Constructing Wilcon Construction’s commercial projects have increased in Mankato. To name a few, they did a build-out (remodel) for the Mankato VA Clinic, Community Bank in Mankato and the North Mankato Pioneer Bank, as well as building the Knutson+Casey office building for the new law firm.

In St. James, they updated the Super 8 hotel’s reception area and lobby, as well as adding pool lifts and a hot tub, and they updated the offices and lobby of the Pioneer Bank.

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Rickway Carpet North Mankato 625-3089 akopesky@hickorytech.net MARCH/APRIL 2016

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Creative Construction

Kirsten added, “The thing we realized during the recession was that there weren’t enough single-level (patio) homes—safe, healthy homes for baby boomers and elderly people—and those homes kept selling. And we love it—we’re both baby boomers ourselves.” recession, they started building single-level apartments and townhomes geared toward baby boomers, and they developed some single and multilevel properties they rent out. When the market slowed, they changed seven units of one development into rental properties.

“Cash flow was tight at that time,” Bill said, “and the rentals gave us just enough to keep going.”

Kirsten added, “The thing we realized during the recession was that there weren’t enough single-level (patio homes)—safe, healthy homes for baby boomers and elderly people—and those homes kept selling. And we love it—we’re both baby boomers ourselves.”

“Now we mostly serve boomers and seniors,” Bill said. “That’s what we really enjoy doing.”

Bill and Kirsten have taken extensive training to meet the changing needs of baby boomers and aging adults. They’re trained in CAPS (Certified Aging in Place Specialists) and in CAASH (Certified Active Adult Specialists in Housing), programs offered every year through the National Association of Home Builders (NAHB).

Through CAASH, they visited communities for 55-plus adults around the nation, attending events and touring developments in Philadelphia, Denver, Florida and many other areas.

“We’d get so inspired by what we’d see,” Kirsten said.

They studied what was popular and working and what they felt they could improve. One improvement is the 36-inch door, which makes moving around in wheelchairs and with canes or crutches

Creative Construction

Keeping Busy Kirsten and Bill Freitag start their days with a devotional in their geothermal-heated home, which costs only $1.50 to $10 a month to cool during summers. They have coffee together, check emails on their tablets and review reports and pictures that the crews have emailed.

“Getting two to ten pictures of a project has helped me so much to feel like I’m in the loop,” Kirsten said, “even if I’m never actually at a specific job site. It helps to know what everybody is doing, too, so if anyone needs to supplement a thin crew, they know where to get the help.”

Now a master at building safe patio homes for boomers, Bill served as the president for the Minnesota chapter of Associated Builders and Contractors in 2001 and served a three-year term on the National Board of ABC. He is a member of 28

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NAHB, the National Association of Homebuilders, and MRBA, the Minnesota River Builders Association, which is the local chapter of NAHB. Also, he’s a member of the Mankato Rotary Club.

At work, he visits job sites regularly, but he spends most of his time meeting with future customers, sometimes even in the evening or on Saturdays. The rest of his weekends are spent with family—their parents, three sons and a daughter, and four grandchildren. When he can, he enjoys the outdoors, hunting with his sons and grandson.

Kirsten still reads a lot, but today her reading is mostly construction magazines. She picks up the mail in St. James, does the banking and tends to bookkeeping with the help of a nephew. From there, she attends meetings, visits job sites, stages homes and shops for staging.

“She does a lot of shopping,” Bill said with a chuckle.

They are both active in their church, and enjoy walking, bird watching, landscaping with native plants and attending their grandchildren’s activities.

Wilcon Construction | St. James

easier. They first used wider doors in 2006, but now these doors have become a Wilcon standard regardless of the buyer’s age, unless narrower doors are requested.

“We’re integrating what we learn into our building process,” Bill said.

They also add extra space in kitchens between islands and main countertops.

“We modify most plans we purchase, because most of them aren’t designed that way,” Kirsten said.

As the Freitags see it, each new house could be the last home a person would ever live in, and Wilcon Construction aims for owners to age comfortably in place.

“If they acquire a disability, they’d still be able to live there,” Kirsten pointed out.

In part, their parents inspired them to dig deeper into the needs of this growing population. His mother is 86, and her parents are 90.

“And it isn’t just their needs,” Kirsten said. “It’s also the needs of their visitors. Almost everybody will have a visitor with special needs.”

No step up at the entrance, heated floors, zero-entry showers and everything on one level, along with other creative touches, make patio homes popular. Most of them are in associations.

Basements aren’t necessary for storm shelters in Wilcon homes, though, because the walls to the main baths are reinforced, making the high-end bathrooms with fashionable tile floors and walk-in tiled showers a great storm shelter.

“People really enjoy the low-maintenance living associations offer, especially when homeowners are gone a lot and don’t want to worry about lawns or snow removal,” Kirsten said.

They still build custom two-story homes on request, and they add basements on request. Basements aren’t necessary for storm shelters in Wilcon homes, though, because the walls to the main baths are reinforced, making the high-end bathrooms with fashionable tile floors and walk-in tiled showers a great storm shelter.

“Not having basements loses so much maintenance,” Kirsten said.

“There are no worries about the sump pump when it rains, and extra closets make up for any lost storage.”

Another feature added by request is a bathtub, since many people over the age of 55 no longer use one, Kirsten said.

Once a part-time bookkeeper, Kirsten now reviews plans to give each project a woman’s perspective, and puts that perspective to work designing and staging homes.

“I listen to our realtor (Bonnie Kruger, from Century 21) in what she says customers want,” Kirsten explained. “I love doing open houses, because I hear what people like and don’t like, and we’ve changed our products to meet these needs. We never used to have pantries, and now I don’t think we’d build a house without one unless somebody gave us a specific plan and said, ‘Build this.’ Even if it’s just a corner pantry, you have a pantry in your kitchen.”

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Creative Construction

Wilcon Construction is a Minnesota Green Star builder and has built three bronze-level, Green-Star homes.

Although Wilcon doesn’t apply for green certification on every home, all homes are built to green standards.

Kirsten shows true artistry, designing the kitchen in the Mankato model home where their office is located. She has vision, and she puts it in every home they build. Buyers often write in the offer to include furniture or artwork she used to stage a home.

“It’s a compliment to our stager,” Bill said with a chuckle.

“Tammy at Rickway Carpets, our realtor and a designer help with many of the design and staging ideas,” Kirsten replied, smiling. “We know how to ask the experts.”

Besides education in CAPS and CAASH, Bill took some construction management courses at MSU and the technical college. Along with Bill, project manager John Hoffman and two superintendents, nephew Ryan Mattison and son Andrew Freitag, attend training on building green so that Wilcon homes are durable, sustainable, energy and water efficient, and safe.

Wilcon Construction is a Minnesota Green Star builder and has built three bronze-level,

Green-Star homes. Although Wilcon doesn’t apply for green certification on every home, all homes are built to green standards.

Building codes for energy efficiency went into effect in 2001, with upgrades every few years.

“We’re doing most of it before it becomes code,” Bill said. “We’ve used insulation with R50 for several years, and the code just recently went up to R49.”

The model home housing their office has R60 insulation in the attic, and Bill said they are starting to use more insulation of that standard, even in commercial offices.

The City of Mankato offers some continuing education, too, and workers have also grabbed classes through MRBA—the Minnesota River Builders Association, which has energy codes specific to the state of Minnesota.

Green patio communities that Wilcon has developed in Mankato include the Woodhill development by the Catholic cemetery, Fox

Run (nearly finished), Dancing Waters, Cardinal Creek and Beacon Ridge.

Kirsten and Bill share ownership of the land in Dancing Waters with a son and daughter-in-law, but they aren’t partners— the kids have their own business.

“And Beacon Ridge is four-plexes,” Kirsten added. “They’re patio townhomes, so they’re more affordable but still with very nice finishes.”

On the commercial side, they’ve done banks, schools, remodels and libraries.

“We’re doing a lot of handicap accessibility, especially in schools, and we’ve done some churches,” Bill said. “I don’t know that it’s even half our business that’s commercial anymore. We do some new construction projects and build-outs (remodels), but they tend to be bigger projects, milliondollar projects. But there we are doing what the architect tells us to do, and with patio homes we have a lot more creative leeway.”

They’ve also done well in the industrial

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Wilcon Construction | St. James

arena. Wilcon built a power plant and generator plants in Worthington and St. James, and the company did a lot of work with ConAgra in St. James and Winnebago Manufacturing in Blue Earth.

Bill and Kirsten say they couldn’t do what they do without their team, people they call coworkers rather than employees.

Among their 18 coworkers, two sons work with them: Andrew and David. Most of the team has been with the company for ten years or longer.

“Even a lot of the subcontractors we use, we’ve worked with a long time and they’re all part of the team,” Bill said.

Until the recession, they had 56 coworkers.

Kirsten explained that the industry lost a lot of workers during the recession, about 40 percent in Minnesota.

One thing that helps Wilcon grow, despite the smaller staff, is the philosophy to “work smarter, not harder,” using checklists and

reviewing things often with subcontractors.

A knowledgeable team makes the difference. Hoffman is great for his knowledge of building techniques and using paints, caulks and glues with low/no VOCs (volatile organic compounds).

“He’s really learned how important it is to build homes that are safe for all ages,” Kirsten said. “John and Project Coordinator Elijah Kannmacher have good connections with their respective generations and understand their needs and wants.”

Also knowledgeable is Todd Tetzloff, who runs the industrial and commercial side out of St. James. Hoffman, Kannmacher and Tetzloff all came to the company as interns from MSU, Hoffman in 2006, Kannmacher in 2012, and Tetzloff in 1997.

“MSU has really been good to us,” Kirsten said.

Now in their sixties, the energetic couple isn’t looking to retire anytime soon. They

THE ESSENTIALS

Wilcon Construction Phone: (507) 375-5464 Address: 1512 7th Ave S St. James, Minnesota Website: wilcon-construction.com

enjoy what they’re doing too much.

“They say baby boomers nowadays plan to work into their 70s,” Kirsten said, “and we’re baby boomers.”

They plan to continue building patio homes as well as rental properties, but they’d also like to grow their industrial/ commercial end.

“We do probably a little over $4 million a year there, and we’d like to keep that growing,” Bill said.

Deb Schubbe writes from Wells.

One thing that helps Wilcon grow, despite the smaller staff, is the philosophy to “work smarter, not harder,” using checklists and reviewing things often with subcontractors.

A knowledgeable team makes the difference.

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GRACE NOTES

It’s hard to believe that this issue marks the one-year anniversary for my time here as editor.

Technically, I started on Jan. 2, 2015, but the first issue that was “mine” was our March 2015 spread.

I remember walking into my office on Grace A. Webb Jan. 2 and thinking, Editor “ They must have made a mistake. Why on earth did they hire me?”

I was 23 years old and only a year out of college. I’d worked for all sorts of publications in college, but I only had one year of professional journalism on my resume. I’d written just two pieces for Connect Business Magazine before Dan Vance stepped down and I stepped into some very big shoes to fill. Since then, I’ve had my share of sleepless nights and embarrassing mistakes, but I like to think I’ve gotten the hang of this “editor” thing.

One of the biggest things that really helped me throughout this transition was the support and friendliness of the southern Minnesota community. I went from covering two cities at my old job to keeping track of more than three dozen at Connect. The first month was mostly trips all across the region, meeting different chamber directors and touring their communities. I’ve finally gotten to the point where I can remember everyone’s name.

I also have greatly appreciated the kindness and professionalism shown to me by all the people we’ve featured. I confess, the thought of interviewing CEOs and presidents of multi-million dollar companies was at first intimidating. However, when I actually sat down with them, they were all open, warm and friendly. I’d like to especially thank Brian Tohal, my first ever cover interview, for making me feel comfortable and taking the time to help me craft a really great feature on him. He 32

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set the tone for the rest of my interviews and helped give me the confidence that I really could pull off this job.

Since then, I’ve interviewed a cast of colorful and inspirational characters, and I’ve learned quite a bit from each one. As I look back and reminisce about my first year, I thought I’d compile some of the best nuggets of wisdom I’ve mined from my cover story features. (I’d include our other features as well, but unfortunately I don’t have the space.)

As previously mentioned, the first person I interviewed for a Connect cover was Brian Tohal, coordinator for the New Ulm Economic Development Corporation. It’s beyond impressive how Brian manages to juggle the needs and interests of so many different groups, from the city to the chamber to area businesses, and still further, New Ulm’s economic development. But his secret is simple: It’s all about the relationships.

“Economic development in New Ulm is about partnerships,” he said. “And the success of economic development activities is based on the strength of those partnerships. A trust relationship is something that’s earned and should be maintained.”

That really spoke to me. As a journalist, I’ve worked on cultivating relationships with sources for years, but I never truly appreciated just how important they are.

It isn’t just a matter of, “What can I get out of you?” but rather a question of, “How can we help each other?” Now, I see the importance of networking and putting effort into maintaining those relationships, even with something as simple as a chat over coffee once in a while.

Next came Burt Lyman, executive director of Mankato’s Verizon Wireless Center.

Even as I walked into his office, I sensed the vibrant energy that radiated off him. It’s an energy that he has funneled into every job he’s had, and it shows. He’s always looking to make things bigger and better—yet he also stresses the need to make sure you’re still delivering the same quality of service that you’ve always provided. It’s a balancing act: giving attention to something new while not neglecting what you already have.

“We try to keep the center as busy as it can be,” he said, “but at the same time, we have to make sure to produce events successfully.

We don’t want to fall down on events.”

I took that philosophy to heart at the magazine as I worked to expand what we offer every issue. We’ve added sections like our workforce series last year and this year’s new “Ask The Experts,” but we still work hard to bring the same quality to the page that we’ve always had. We can’t get so caught up in doing something new that we forget what made us so successful in the first place.

The next cover story actually featured two people, father-daughter team Tom Berg and Colleen Skillings, CEO and CFO of Minnesota Valley Testing Labs. The multi-million dollar testing company is a rarity among area testing labs, offering four areas of testing (agricultural science, food science, energy technology and environmental testing) when most labs only offer one. As Tom explained, whenever the folks at the company saw a need, they added something to fill it.

It was a lesson that tied in neatly with Burt’s: Always keep your eye out for what else you can offer, improve, expand or update.

“Hardly anybody does things like that,” Tom said. “We’re rare. It kind of goes back to the two men who started the company.

They believed very strongly in diversity, and they had a big influence on me.”

Rather than being diverse for the sake of being diverse, Tom continued, the folks at MVTL kept a keen eye out on what people actually wanted and needed. That’s a lesson we continue to follow at Connect Business Magazine. We recently sent out reader surveys to see what sections our readers like, which ones they don’t bother to read, and what they suggested for improvements. And I took those suggestions seriously. I’m a big fan of constructive criticism, and we found quite a few good ideas that we’re eager to follow up on.

After MVTL came Nicole GriensewicMickelson, executive director of the Region Nine Development Commission. I had met her months before our interview, and I knew at once that I wanted to feature her because of her impressive work and her equally impressive story. She’s the youngest executive director of an economic development commission in the country, yet she’s unflappably confident, refreshingly honest and just plain friendly. She also has the unique background of public, private and government sector work. Her secret in all

the sectors was simple: knowing how to communicate with her team.

“I think it is important to know the strengths of your team and have that trust relationship with your managers,” she said. “You need to know what type of communication works for them. I think a lot of the time, people just don’t know how to communicate and when.”

This was a good reminder for me as I work with my co-workers and freelancers.

The way I communicate may not be the way they communicate. I tend to be very hands-off and only reach out when I need something; I could go days without talking to coworkers. But sometimes other people want more interaction, like check-ups and updates. I’m working to adjust my communication style depending on the other person, so that everyone feels comfortable with where we are and what is going on.

I’ll be honest, the November issue was my favorite, since I’ve always had a soft spot and strong appreciation for veterans. Our cover story featured the three Marti brothers, who are helping their parents run Schells Brewery.

Each brother had a distinct personality (Jace is practical, Kyle is charming and Franz is reserved), but they all worked together seamlessly. And they were all in agreement about how important it is for a business to give back to its community, stressing how they don’t operate their own taproom so that they don’t compete with local businesses that serve their beer.

“The community supports us, and we try to do the same,” Jace explained. “I think that’s just good business. It’s especially important in small towns, to get people to stick around instead of heading out for the bright lights.

The more we can do to help each other out, I think, it’s better for everybody.”

It’s easy to get wrapped up in my job and focus only on churning out a magazine every two months. But there’s a lot more to being a responsible editor than printing well-written content. The stories should have meaning. They should showcase the best of southern Minnesota business and inspire those who read them. They should benefit the community. And I should work to benefit my community, even outside my job, whether it’s volunteering at the YMCA or donating to worthwhile organizations.

I can’t live just for me.

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GRACE NOTES

January’s cover was picked for us by the MSU-Mankato College of Business, as part of our annual Business Person of the Year award. Coughlan Companies CEO Tom Ahern was selected, and there was no question about how much he deserved the honor.

He has led Coughlan Companies (and, in particular, Capstone) through some big changes, ushering in a digital initiative that completely re-imagined the business. This was only accomplished thanks to Ahern’s great team and his loads of gumption—that fearless drive he has always had to push forward despite the lack of a roadmap.

“There was no blueprint about how to get it done,” he said about his various endeavors. “You just figured it out.”

While my job is not on the same scale that Tom’s is, I can commiserate a bit. My position at the magazine didn’t really come with a manual. There was a lot of learning, a lot of mistakes, a lot of tweaking and a lot of improvising. But I couldn’t let myself be scared to do something I’d never done before, or I wouldn’t have grown. Tom took that a step farther and pushed himself to do something no one had done before, and look what he accomplished. That gives me some reassurance for the next time I come across a challenge without a roadmap.

Sometimes, you just have to dive in and figure it out along the way.

The most recent cover story can be

found in the magazine you’re reading now.

Mark Carlson, general manager of the new Walmart Distribution Center in Mankato, agreed to grace the front page. Recording his story proved to be a challenge—not because he was unfriendly (he was very friendly) but because he was much more interested in talking about his team than about himself.

And that’s admirable. It was clear from our two hours together that he deeply respected and cared about the Walmart associates working at the center. The lesson I took away from our interview was simple but vitally important: Take care of your team.

“The biggest message I want to stress is that it’s really about the team,” Mark said.

“It’s not about me. It’s about the 400-plus associates and 40-plus managers that truly make a difference each and every day. That’s the thing that keeps bringing me back to work each day: that interaction with those teams and those associates and managers.”

Valuing and caring for workers is so important. It’s easy to just expect quality work and only point out problems, but that can quickly dishearten even the best workers. I try to praise my freelance writers when they write something great, or Kris when he takes brilliant photos. Everyone wants some positive recognition once in a while. There’s more to taking care of your team than just patting them on the back, of course. You should take an active interest

in them, as people, with personal lives, families and hobbies. Once in a while, the Connect group goes out to lunch just to hang out together. I think that’s a good thing—just like Christmas parties, birthday celebrations, potlucks and corporate outings are good things. We’ve got to feel comfortable with our coworkers, to trust them and truly care about them, or the team just doesn’t work as well.

So there are some of the lessons I’ve learned during the past year. There are countless others, but I’ve only got 2,000 words for my column. So we’ll cap it off there.

This job has been exciting, frustrating, challenging, rewarding, exhausting, maddening, and inspiring. Through it, I’ve grown as a journalist—and I’ve grown as a person. I’m so thankful to the people I’ve met and worked with, and I look forward to learning more and becoming a better editor as we continue to put out interesting and inspiring issues of Connect Business Magazine.

Thanks again for reading southern Minnesota’s first and only locally owned business magazine. See you next issue.

JAN ’16 ISSUE CORRECTIONS In the January issue of Connect Business Magazine, we incorrectly reported that Jordan Sands utilized sand fracking, which is not part of its operations.

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NATIONAL OPINION

The Gallup Poll has a new estimate of the number of libertarians in the American electorate.

In their 2015 Governance survey, they find that 27 percent of respondents can be characterized as libertarians, the highest number it has ever found. The latest results also make libertarians the largest group in the electorate, as compared to 26 percent conservative, 23 percent liberal, and 15 percent populist.

For more than a dozen years now, the Gallup Poll has been using two questions to categorize respondents by ideology: • Some people think the government is trying to do too many things that should be left to individuals and businesses.

Others think that government should do more to solve our country’s problems.

Which comes closer to your own view?

• Some people think the government should promote traditional values in our society. Others think the government

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should not favor any particular set of values. Which comes closer to your own view?

Combining the responses to those two questions, GalDavid Boaz lup found an interesting ideological breakdown of public opinion. With these two broad questions, Gallup consistently finds about 20 percent of respondents to be libertarian, and the number has been rising.

Two years ago David Kirby found that libertarians made up an even larger portion of the Republican party.

So why isn’t all this supposed libertarian sentiment being reflected in candidates and elections? There have been plenty of analyses about why Rand Paul didn’t attract this potentially large bloc of libertarian voters. Maybe people don’t see issues as equally salient; some libertarians may wish that Republicans weren’t so socially reactionary, but still vote Republican on the basis of economic issues. Some, as Lionel Shriver writes in the New York Times, feel “forced to vote Democratic because the Republican social agenda is retrograde, if not lunatic — at the cost of unwillingly endorsing cumbersome high-tax solutions

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to this country’s problems.”

For now I just want to note that there are indeed a lot of voters who don’t fit neatly into the red and blue boxes. The word “libertarian” isn’t well known, so pollsters don’t find many people claiming to be libertarian. And usually they don’t ask. But a large portion of Americans hold generally libertarian views – views that might be described as fiscally conservative and socially liberal.

David Brooks wrote recently that the swing voters in 2016 will be people who don’t think big government is the path to economic growth and don’t know why a presidential candidate would open his campaign at Jerry Falwell’s university.

Those are the voters who push American politics in a libertarian direction. David Bier and Daniel Bier wrote last summer about how many policy issues show a libertarian trend over the past 30 years.

Politics is often frustrating for libertarians, never more so than during this presidential election when the leading presidential candidates seem to be a protectionist nationalist with a penchant for insult, a self-proclaimed socialist, and a woman who proudly calls herself a “government junkie.” But polls show libertarian instincts in the electorate, just waiting for candidates who can speak to them.

David Boaz is the executive vice president of the Cato Institute.

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BULLETIN BOARD

Any chamber of commerce, convention and visitors bureau, or economic development organization in our reading area—large or small, from Amboy to Winnebago— can post on our free bulletin board. For details, email editor@connectbiz.com.

Gaylord Amy Newsom, Gaylord Chamber The Gaylord Area Chamber of Commerce recently elected two new officers and two new board members for 2016. New board members include Lindsey Bruns of Supreme Wireless Plus and Goretti Enrrigue of Jalisco Market. Lindsey Bruns was appointed Vice President, Kathy Jensen was appointed Treasurer, and Pauline Marlinski of KMA Design & Construction was reappointed President. The Chamber will hold its regular board meetings on the first Wednesday of the month at 11 a.m. at the Gaylord Public Library.

Gaylord Amy Newsom, Economic Development Authority The osteopathic medical school in Gaylord is moving forward.

Dr. Jay Sexter and Dr. Ken Steier were in Gaylord recently to give an update on the progress of the school. The next step will be an informal meeting with the Commission on Osteopathic College Accreditation (COCA), a feasibility study and hearing, and then the submission of a formal proposal to COCA. The medical school is planning to open in 2018.

Henderson Jeff Steinborn, City of Henderson Friends of the Rush River Dance will be at the Henderson Event Center, with music by the Dakota Ramblers, at 8:30 p.m. on March 5.

The Henderson Lions Club continues bingo at the Henderson Event

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Center every Thursday night at 6 p.m. The Henderson Classic Car Roll In is set to begin May 17. The City of Henderson has completed its comprehensive plan; for more information, contact the City of Henderson at 507-248-3234 or at www.hendersonmn.com.

Mankato Jonathan Zierdt, Greater Mankato Growth Mark your calendar and plan to attend the Greater Mankato Business Showcase, presented by KEYC News 12 and Fox 12 Mankato at the Verizon Wireless Center in Mankato from 4-7 p.m. on April 26. This popular annual event features more than 100 booths from regional businesses displaying their many products and services.

Additionally, the Business Showcase gives professionals the opportunity to network with more than 500 individuals. The event is free to attend. To learn more, visit greatermankato.com/business-showcase.

Mankato Julie Nelson, Small Business Development Center BizPitch is a free program to help you gain business insight from a panel of key industry experts. Present your ideas in a relaxed setting and get advice to help your business move forward, then compete to become a semi-finalist in this year’s Minnesota Cup. The final two events take place March 31 and April 14 in Mankato. For more information, visit rcef.net/biz-pitch or call the Regional Center for Entrepreneurial Facilitation (RCEF) at 507-344-7897.

Region Nine Nicole Griensewic Mickelson, Dev. Com. Want to learn more about current grant opportunities? Join us on March 27 for Region Nine’s spring Grant Opportunities Forum at South Central Service Cooperative, North Mankato. Registration is at 8:30 a.m. and breakfast will be provided. Presentations will

Le Sueur

Fairmont

Julie Boyland, Le Sueur Chamber

Stephanie Busiahn, Fairmont CVB

For decades, a sure sign of spring has been the unveiling of the Le Sueur area Retail and Business Expo. The Expo, held at the Valley Green Square Mall, will be from 3-8 p.m. on March 31. The Expo will offer cooking and gardening demos, plus exhibitors from construction, landscaping, new vehicles, health and wellness, education and many more.

Looking to add some culture? Fairmont’s historic landmarks will be hosting live entertainment this month! See The Hunts perform March 4, or Moon Mouse: A Space Odyssey on March 15 at the Fairmont Opera House.

Minnesota Orchestra’s String Quartet will also be in town performing at the Red Rock Center March 5. To purchase tickets, contact the Fairmont Opera House at 507-238-4900 or the Red Rock Center at 507-235-9262.

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Local Chamber & Economic Development News

run from 9 a.m.-12 p.m. and will cover both local government and nonprofit opportunities. This event is free, but registration is required. To learn more or to register, visit http://www.rndc.org/ grant-opportunity-forum.

New Ulm Sarah Warmka, New Ulm CVB The New Ulm Young Professionals are hosting the second annual “Welcome To The Party” newcomers event on March 3. The Chamber will again host Leadercast on May 6. Other upcoming events include the Farm Show, March 11-12; St. Patrick’s Day Parade, March 17; Prairie Peacemakers Quilt Show, March 18-19; Home Show, April 1-3; and Spring Boutique Week, April 13-16.

Nicollet Alesia Slater, Nicollet Chamber Nicollet Chamber of Commerce welcomes Michels Repair and its owner Kevin Michels Jr. to Nicollet. They are located on the east end of Nicollet, just off of Highway 99. Upcoming events include Nicollet City Wide Garage Sale, April 29-30 and Nicollet City Wide Clean-up Day, May 7. Follow www.nicollet.org for more information.

St. James Jamie Scheffer, St. James EDA The City of St. James EDA was awarded a $325,000 Demolition Loan from the State Department of Employment and Economic Development and is looking forward to redeveloping the old hospital site on CR 12. Other exciting news includes the opening of a new business in the city’s Industrial Park, Tri-County Seed. The business is owned and operated by a local St. James resident, Chad Urevig.

For more information on the St. James Industrial Park, visit www. ci.stjames.mn.us.

Sleepy Eye Kurk Kramer, Sleepy Eye EDA The Sleepy Eye EDA Board recently held its Annual Planning Meeting, reviewing the EDA’s goals for the past five years. The EDA accomplished 15 out of its 20 goals, with the others still in progress.

New goals for 2016 include addressing workforce and workforce housing concerns; continuing to work with Tri-Valley and the Migrant School staff to provide early childcare for the community; promoting the Downtown Rehab programs; and continuing work on the developments at the east end of town.

Waseca Gary Sandholm, Waseca EDA Waseca’s Housing Study has been released and shows good building potential in several areas. The Waseca Triathlon will be Aug. 6 with a different format this year. Roger Ashland is working with BEST of Waseca to provide free business consulting through the SBDC and SCORE. At least one new event is being added to the 2016 calendar – stay tuned. The EDA is working on recommendations to revise Tax Abatement and TIF policies.

Discover Waseca!

Waseca Kim Foels, Waseca Area Chamber The Waseca Area Chamber of Commerce, Ambassadors and AgriBusiness committee will host the annual Farm and City Luncheon at 12 p.m. on March 24 at Farmamerica. The keynote speaker is Frank Shipley, plant manager at Birds Eye/Pinnacle Foods. The 2015 Waseca County Outstanding Young Farmer award, Waseca County Farm Family of the Year and the Waseca County Distinguished Agricultural Leadership award will be presented. To RSVP, call the Chamber at 507-835-3260. For more information, visit www. wasecachamber.com.

St. Peter

Sleepy Eye

Ed Lee, St. Peter Chamber

Trista Barka, Sleepy Eye Chamber

St. Patrick’s Day is celebrated annually with a big parade on March 17 along South Third Street in St. Peter. All of the establishments get involved. Organizers of Blues Fest in June, the Old-Fashioned Fourth of July and Rock Bend Folk Festival in September are planning those events. St. Peter Chamber members can attend the free Business After Hours 5-6:30 p.m. on the third Tuesday of each month to visit and network with fellow businesspeople.

The Sleepy Eye Chamber of Commerce held its Annual Meeting on Jan. 20, with 120 attendees enjoying the Sleepy Eye “Superhero” theme. At the event, the Chamber announced three award winners: Big Chief winner Kurk Kramer, Shining Star winner Shari Hittesdorf and Friend of Sleepy Eye Award winner Judy Beech.

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Daniel Theobald in Micro-Trak’s lean manufacturing area with a product demonstration unit.

By Sara Gilbert Frederick Photo by Kris Kathmann

Eagle Lake-based Micro-Trak Systems builds electronics that are helping revolutionize the way farmers work the land.

Just weeks after Daniel Theobald graduated from Minnesota State University, Mankato in 1989, he got a call from Scott Veldman, the president of Micro-Trak Systems in Eagle Lake. The company, Veldman said, was looking to expand its sales force—would Theobald be interested in interviewing for a position?

Theobald had done an international business marketing research project for the company during his senior year. He had gained a basic understanding of the electronic rate control and monitoring devices that it produced for use in agricultural applications during that time—and Veldman had learned enough about Theobald to know he’d be a good addition to the team. By September, Theobald had been hired.

“It was my first job out of college,” Theobald said. “My first and only.”

This fall, Theobald will celebrate his 27th anniversary with Micro-Trak.

He started in sales, but his title has changed multiple times throughout the years.

He’s been the marketing manager, operations manager, general manager and, now, president—a position he officially took over in December 2011.

“Theo,” as he is known around the office, doesn’t spend much time thinking about the longevity of his tenure at Micro-Trak. To him, it’s fairly simple.

“It all boils down to something my parents told me while I was still in college,” he said. “They said, ‘You’re going to have to work your whole life, so find a job you like.’ So that’s what I did. I like this company. I like working in agriculture.

I like the family that we have here. That’s what it comes down to.” continued > MARCH/APRIL 2016

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Agricultural Revolution

Although his family didn’t farm themselves, he helped neighbors and extended family on their farms. That experience left an impact on him: He decided early on that he wanted to find a career that incorporated agriculture somehow.

Theobald grew up in the small farming community of Sherburn—population 1,001—in southern Minnesota. Although his family didn’t farm themselves, he helped neighbors and extended family on their farms. That experience left an impact on him: He decided early on that he wanted to find a career that incorporated agriculture somehow.

It took a while for him to figure out what that would be, though. He spent a year and a half studying at Southwest Minnesota

State in Marshall, but he quickly realized that that particular college didn’t fit him very well. He returned home and started working in a local retail operation selling fertilizer to area farmers. Although that experience helped confirm his commitment to agriculture, it also pushed him to go back to school and earn his bachelor’s degree.

“I knew I didn’t want to work in retail for the rest of my life,” he said.

So in 1986, he enrolled at Minnesota State Mankato, where he started in accounting

but later double majored in business administration marketing and international business.

“Accounting was boring,” he admitted, “although I use it daily now.”

Three years later, he graduated and was quickly hired by Micro-Trak. He remembers that his first day was on a Monday. That afternoon, he was sent to a trade show as the company’s representative. When he mentioned that he might not know how to answer the questions that came up, Veldman

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Micro-Trak Systems, Inc. | Eagle Lake

told him to take names and phone numbers so he could get back to people with more information. So he did.

Within four months, Theobald was confident enough to represent Micro-Trak at a trade show in Germany. He understood what the company’s monitoring and control systems did. He could articulate how those systems would save farmers money and help them optimize their yields. He knew how to answer almost all of the questions that came his way.

“If I saw an opportunity to do something, because things weren’t getting done, I would do them,” he said. “I used to do our tech writing from time to time, because it needed to be done. I just did it. I’ve always been willing to do whatever it takes to get the job done.”

His experience working in the fields with his uncles and neighbors certainly had an impact on how quickly he was able to assimilate into the company. But Theobald admits that there was a steep learning curve when it came to the technology that made Micro-Trak’s products work.

“I don’t recall a single electronic device in the tractors I drove back then,” he laughed.

“Besides a two-way radio, that is. Technology wasn’t part of my experience at all.”

It wasn’t necessarily part of his experience at the office, either. When he started in 1989, the only computers on the premises were in engineering and the main frame that ran the business software. The design team was just coming off working on drafting tables and completing their drawings by hand.

“We don’t do that anymore,” Theobald said. “But when I started, that’s how the company worked.”

The technology in the office has changed almost as much as the technology that Micro-Trak uses in its products. When Tom Hiniker founded the company in 1982, the original Calc-An-Acre® was a state-of-the-art device using the most modern electronics available at the time.

Now, it has been replaced with the CalcAn-Acre® II, which measures speed, distance and area better and faster. Dozens of other products have been introduced as well, each more technologically advanced than the other.

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Agricultural Revolution

“The products are still doing essentially the same thing,” Theobald explained, “but everything is more advanced. We can do the same things better now, and more new things, because the electronic technology and software has evolved.”

Theobald would loosely categorize all of Micro-Trak’s products as mobile electronic rate control and monitoring devices. Most of the company’s products relate directly to agriculture, but the company also serves the turf and highway maintenance industries. The primary difference between the products, he explained, is in the units being controlled and monitored. In the ag sector, for example, a device measures gallons per acre, while a turf device measures gallons per 1,000 square feet.

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It doesn’t take long to figure out which National Football League team Dan Theobald likes best. The abundance of green and gold visible the minute you step into his office at Micro-Trak is a dead giveaway.

He has a cabinet full of Green Bay Packer memorabilia. The proud Packer shareholder drinks his coffee out of a Packer mug. A painting of Green Bay quarterback Aaron Rodgers, which his niece painted for him, is waiting to be hung on the wall across from his desk.

Theobald was born and raised in southern Minnesota and has lived in Vikings territory his entire life. But he’s always preferred Green Bay’s team to the Vikings. In fact, his mother has told him that his first word was “Packers.”

“I’m one of the smart ones,” he joked.

He’s lucky, too: A friend of a friend has season tickets on the 45-yard line, behind the Green Bay bench. If the forecast looks frigid, he is more than happy to sell his tickets—and Theobald often gets the first call.

“I go to three or four games a year,” he said. “I like the cold weather!”

Eventually, Theobald would like to move across the border and make his fandom official.

“I will live in Packerland someday,” he promised.

Micro-Trak Systems, Inc. | Eagle Lake

When he was hired in 1989, the company was owned by North Mankato-based Taylor Corporation; Glen Taylor had bought the business in 1985, when inventory levels had led to cash flow issues.

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“They are really all derivatives of each other,” Theobald said.

“Basically, all of our products are adaptations of our ag products.”

That’s because Micro-Trak Systems has made a conscious decision to stay focused on its core business. Early in the company’s history, a small commercial segment tried to develop a market for furnace efficiency units, specialized security systems and other electronic devices. Those products are no longer part of the company’s business.

“We’ve chosen to do what we are best at,” Theobald said.

One of the biggest changes Theobald has witnessed at Micro-Trak was a change in ownership. When he was hired in 1989, the company was owned by North Mankato-based Taylor Corporation; Glen Taylor had bought the business in 1985, when inventory levels had led to cash flow issues. It was clear the business concept was strong and that

Agricultural Revolution

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FOR LEASE

A Brief History Micro-Trak Systems was started in Eagle Lake in 1982 by Tom Hiniker. Although it initially carried only one product, the Calc-AnAcre®, Hiniker quickly introduced several more devices designed to help farmers work more efficiently. In 1985, Taylor Corporation bought the company and brought in Scott Veldman as President and Chief Operating Officer.

Micro-Trak operated as a wholly-owned affiliate of Taylor Corp until 2011, when it was sold to Texas-based GSI, Inc. Today, Micro-Trak employs 34 people and manufactures dozens of products for the agriculture, turf and road maintenance industries.

“Our business philosophy is to sell what the customer wants, not what we make,” Theobald said. “It boils down to selling a value, not a commodity.”

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Agricultural Revolution

“Gregg [the new owner] liked the business model and wasn’t interested in wholesale changes,” he said. “We could have gone a long time and never told anyone here that the ownership had changed. No one here would have known if we hadn’t told them.”

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new management could help the company turn the corner, so Taylor saw it as a solid investment. And, Theobald said, he didn’t want to see a local business disappear.

“Taylor’s culture is one of opportunity and security for employees,” he said. “If it had gone out of business, it would have cost the jobs of local people. He didn’t want to see that happen.”

On December 24, 2011, Taylor Corporation sold Micro-Trak Systems to GSI. Based in Temple, Texas, GSI also owns an agricultural sprayer valve manufactur-

ing company called TIR. Theobald, who was named president of the company immediately following the sale, wasn’t really surprised by the news. He knew that agricultural manufacturing wasn’t part of Taylor’s core business and had expected to be sold years earlier.

“When I asked about it, they told me that they had been looking for a buyer for a long time,” he said. “But they wanted to find the right buyer, someone who would keep it here and whose core business was a good fit with us—another core principle

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Dan Theobald’s graduation day in May 1989 was a big day for his family—and not just because Dan was finally earning his bachelor’s degree. On that day, three Theobald boys received their diplomas: Chris, Dan and Joe. Chris, the oldest of the brothers, had returned to Minnesota State Mankato to pursue a second degree in physical education because he wanted to be a coach. Joe, the youngest brother, had played football on a scholarship; he and Dan were teammates after Dan walked on the team in 1986. Although they each started at the university at different times, they all graduated on the same day—a first at Minnesota State Mankato.

“We had one great big party that day,” Theobald said. “We basically took over T. J. Finnegan’s!”

Theobald’s sister Kathy, the youngest of the four siblings, eventually graduated from Minnesota State Mankato as well.

Micro-Trak Systems, Inc. | Eagle Lake

of Taylor.”

As the general manager of a Taylor Corporation affiliate, Theobald had had access to business advice, legal counsel, accounting and a human relations staff. He learned a lot about management, leadership and business operations from his mentors at Taylor, including Larry and Jean Taylor, Al Fallenstein, Larry Lorenzen, Greg Jackson and Tom Johnson (and countless others).

Under GSI, however, he has access to leaders in the agricultural industry.

“I had excellent business resources at Taylor,” he said. “But now I have resources more in tune with the ag industry, which I didn’t have at Taylor.”

Very little changed at Micro-Trak during the ownership transition—so little that Theobald wasn’t sure anyone would even notice it had happened.

“Gregg [the new owner] liked the business model and wasn’t interested in wholesale changes,” he said. “We could have gone a long time and never told anyone here that the ownership had changed. No one here would have known if we hadn’t told them.”

But Theobald has noticed, especially over the past several months. He’s been negotiating with a large ag chemical manufacturer on an exclusive deal to develop agricultural equipment specifically for them. In the past, Taylor Corporation’s legal team would have been heavily involved in the

process. Now, Theobald is taking the lead and outsourcing the legal end of things.

It’s intense work that includes responding to emails in the middle of the night, but Theobald thrives on it.

“I’m not a big blue sky kind of guy, but it is fun to run the numbers on a deal like this,” he admitted. “This is the kind of deal that could allow us to double our sales or more in the next five years.”

He would love to see that happen. The company has been preparing for growth, and Theobald is eager to see that materialize—not so much for his own sake, but for the sake of the team he’s put together around him. All 34 of the employees working at Micro-Trak rely on the company for their livelihood—and the company relies on them as well.

“One of the most important things I took away from 20-plus years of working for Glen Taylor is that he is successful because he surrounds himself with good people,” Theobald said. “You have to have a good team. You have to have people you can trust. You have to allow them to fail and mentor them to make good decisions. I’ve tried to take the same approach.”

The fact that Theobald has surrounded himself with a talented team means that he can occasionally take two weeks off to go moose hunting in Canada or snowmobiling in northern Wisconsin. Although he’s al-

Agricultural Revolution

Lost Opportunity Once upon a time, Micro-Trak systems carried a line of inventory aimed specifically at the commercial market—flood alarms, driveway sensors and efficiency units for heating systems, for example.

One of the products in the now-defunct commercial segment of Micro-Trak was what Theobald calls a pinpoint precision locator— basically, a high tech stud finder capable of working in up to four feet of concrete within an eighth of an inch.

“It should have been an infomercial,” Theobald said. “It was an incredible product and would have been very helpful for many people. But it never took off.”

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ways connected and always checking email, he appreciates the fact that things continue to run smoothly with Sales Manager Rob Hoehn and Service Manager John Vanderhoof at the helm while he’s out of the office.

That allows him to do what he loves most—be outdoors. He likes to plan biggame hunting trips in the western United States and Canada. Two years ago, he was lucky enough to catch the largest bull moose taken that year in Alberta, Canada.

“I would say that nearly 100 percent of my paid time off is hunting, plus a few snowmobile trips,” he said. “That’s why I love living in this part of the country.”

He also still volunteers to help friends and family with farm work whenever he can. He has keen insight into how much farming has changed over the years; the help he gives now can hardly be considered “hands-on” anymore, he said, and his company’s products certainly factor into that.

“Farming has changed far more in the last 10 years that it did in the previous 20,” he said. “And it will likely change even more in the next five years as well. Farming has changed more than this business has changed.”

Between Global Positioning System (GPS) technology and the ever-improving rate monitors and controls, farmers now have much greater control over their crops.

“Electronics has enabled farmers to have almost 100 percent control of everything,” Theobald said, “except Mother Nature.”

Theobald himself is happy to let her maintain control of the weather. Even as wind chills dipped to double-digits below zero in January, he casually shrugged off the weather report.

“Snowmobiles are really fast in the cold,” he said with a smile.

Sara Gilbert Frederick writes from Mankato.

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REDA: Coming to the Table The Regional Economic Development Alliance gives southern Minnesota communities a voice regarding economic development across the region.

By Grace Webb

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REDA: Coming to the Table

E

very community knows the importance of courting new businesses and helping nurture the businesses that are already there: more jobs, more property taxes, more money flowing back into the local economy. For decades, the model for economic development revolved around each city jealously guarding its economic interests, snagging interested businesses that came through the area and focusing on the area within its own borders.

But in southern Minnesota, that model is being turned on its head thanks to the Regional Economic Development Alliance (REDA).

This alliance, facilitated by Greater Mankato Growth, includes two counties, seven cities and the Region Nine Development Commission, all working together to enhance the desirability of the southern Minnesota region for businesses. Members all have access to resources through Greater Mankato Growth, as well as receiving information about businesses that are interested in expanding in the area. Each member also sends representatives to monthly meetings to discuss the economic outlook of their community and the region as a whole, as members strive to tackle issues facing all of southern Minnesota.

It’s about collaboration, not competition.

And it’s working pretty well so far.

How It Started The story of REDA is a surprisingly long and complicated one, with a history tightly wound around Greater Mankato Growth.

“In the early 1980s, there was discontent within the Mankato/North Mankato business community about business development,” explained Jonathan Zierdt, president and CEO of GMG. “There were competitive actions between the two cities, really what people would call ‘pirating’ one business to another. The business community did not see this as healthy; they saw it as detrimental.”

According to Zierdt, local business leaders banded together in 1983 to create Valley Industrial Development Corporation, a not-for-profit organization meant to provide a single point of contact for businesses interested in the Mankato-North Mankato area. The organization raised nearly $1 million to be used for investing to

provide for operating capital, often through loans to businesses that wanted to expand.

The group had about 30 primary investors, including Northern States Power (now Xcel Energy) and Hickory Tech Corporation (now Consolidated Communications), along with about 140 other investors.

By the early 1990s, the group had created such a positive reputation that the cities of Mankato and North Mankato wanted to become part of it, working through a joint services agreement. Other cities, such as St. Peter, also voiced an interest in joining, though those plans didn’t work out until later.

Valley Industrial changed its name to the Greater Mankato Economic Development Corporation in the early 2000s. Shortly after, it merged with Mankato’s Chamber of Commerce to form Greater Mankato Growth in 2007. At that point, Zierdt and other GMG staff worked on reconnecting with all the communities that had expressed an interest in becoming part of the group.

“This was never about convincing somebody, ‘You should do this,’” Zierdt said.

“This was about all these cities saying, ‘We get it. There’s value in banding together, and we want to do this.’ Our job was really about gathering everyone together and creating a process that could be effective for everybody.”

Throughout that process, several neighboring communities joined REDA, including St. Peter, Amboy, Mapleton, Le Sueur and Eagle Lake. North Mankato was interested but didn’t actually join until about a year and a half ago, and Nicollet County recently came back after a hiatus, officially rejoining in January 2016. Along the way, Amboy and Mapleton both decided to pull out and focus their limited resources exclusively on their cities, which Zierdt said is understandable.

“We didn’t do a very good job explaining about the expectations,” he said. “People think, ‘When’s the next major business going to open and hire 150 people?’ That just doesn’t happen everywhere and all the time.

The business makes the decision, not us.”

REDA now includes Greater Mankato Growth and nine other members: Mankato, North Mankato, Lake Crystal, Madison Lake, Eagle Lake, St. Peter, Le Sueur, Blue Earth County and Nicollet County.

“It’s had a couple of iterations as we went

through figuring out stuff,” Zierdt said. “But it’s six years strong now. It is the model.

Anywhere you go in the country, you’ll find regional approaches to economic development, and it’s the way we have to compete.”

The Nuts And Bolts At its most basic level, REDA is a way for members to share information and support each other’s efforts towards economic development, according to REDA Chair Jim Beal.

“REDA is a unique movement in itself,” said Beal, who was elected chair of the alliance at its inception. “Becoming part of REDA, your membership puts you at the table and gives you the tools and resources necessary to contribute to your own growth.”

Cities and counties within the MankatoNorth Mankato Metropolitan Statistical Area (MSA) and close outside can contact GMG about membership if they’re interested.

Each member pays annual dues, which are calculated on a per-capita basis: $2.19 per person within the city or county’s population. The only exception is Mankato, which pays $4.38 a person. Mankato City Manager Pat Hentges came up with the idea, Zierdt explained, saying the concept behind that pay difference was the fact that Mankato is the economic hub of the region and therefore benefits the most from being a part of REDA. “The city of Mankato is the employment center of the marketplace,” Zierdt said.

“By its very nature, it’s going to see more opportunities than everybody else. It’s our responsibility [to pay more] since we’ll see the lion’s share of the deals.”

Altogether, REDA members contributed about $290,300 in 2015, with private sector investments adding another $274,500 to the budget. (REDA members promise that private businesses within their communities will also donate funds to the alliance.)

Added together, this gave REDA a 2015 budget of about $564,900. About half of that ($328,700) went to services and programs, while another $199,500 went to marketing and communications, and only a fraction ($34,300) went to operating expenses.

Once a city or county joins REDA, they’re able to send a representative to the alliance’s monthly meetings, where members update each other on what’s going on in their communities and discuss issues that are MARCH/APRIL 2016

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facing the region. There is also an advisory committee made up of GMG staff and representatives from each member’s community, which meets a few times a year. In between meetings, GMG staff continually works on marketing, outreach, public relations and networking to help increase the visibility of the southern Minnesota region in general and its members in particular. Staff members also conduct site visits to area industries, working to learn more about issues facing local businesses.

“We have this large group of people who are always in constant dialogue,” Zierdt said. “We’re always working on a business development opportunity. There’s always a dozen in the pipeline.”

When GMG receives requests for proposals regarding businesses that want to relocate or expand, they share that information with all their members, who then have the choice of whether to make a bid for the business or to pass up the opportunity if it isn’t a good fit for their community.

Beal warns that being a REDA member doesn’t automatically put a community on top of a list of places for businesses to look—but it does give them that opportunity to participate in the process. He pointed out that his city of Eagle Lake has been a member of REDA for seven years, but no business has come to Eagle Lake in that time because of its participation with REDA. However, he said more businesses have approached the city about possible moves because of the information that GMG has shared about it.

“Cities question, ‘If we put money into REDA, what do we get back out of it?’” he said. “It’s part of being at the table. You don’t know what you may get back out of it. If you think you’ll get something out of it today, it’s probably not going to happen.

You still have to sell your city on the merits of your city.”

Russ Willie, Director of Community Development at St. Peter, agreed about the increased opportunities afforded to cities through REDA. “We used to be able to pitch one business a year, but now with REDA, and the RFPs they get, we pitch at least three a year,” he said. “It’s nice to get to bat. You’re not going to get a base hit unless you get to the plate, and for a long time, we never got out to

REDA: Coming to the Table

the plate.”

There are other benefits and resources that REDA members receive, such as a prominent place on GMG’s website and promotional materials. They’re also able to make use of GMG’s staff, which can be a huge resource for cities that don’t have large staff budgets, such as Eagle Lake.

“We have a fairly small staff, and we don’t have a lot of time, so I think it was a good use of our funding and our resources to go with REDA to help look at some of those economic development issues,” said Eagle Lake City Administrator Brad Potter.

(Both Zierdt and Beal stressed that GMG also offers resources like these to cities within the region that haven’t become members of REDA. However, non-member cities don’t attend REDA’s meetings and aren’t displayed as prominently on marketing materials or the website.

“They just don’t have as much access to as much information,” Zierdt said.)

Zierdt likens REDA’s role to a car dealership’s website, showing people what cars are available to purchase within the area.

“Our job is to represent everything that’s possible to the business community, and let people come here, figure it out and pick the one that makes the most sense,” he explained. “They might call us, and we’ll shepherd them to the right folks. It’s our job to position things. We provide a ton of critical business information. There’s nothing grand about that that makes the front page.

There’s a lot of unsung hero stuff.”

Because of this, he added, it can be difficult to point out successful projects that came to be because of REDA’s involvement—but they’re everywhere, from Lake Crystal’s pursuit of industrial land development to the new Walmart Distribution Center on Highway 14. In fact, according to GMG’s website, every dollar invested by REDA participants leveraged $438 of GMG impacted capital investment across the region in 2015, with capital investments exceeding $500,000,000 throughout the past three years.

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Cities And Counties When it comes to REDA’s members, each one joined for its own reasons and is seeing its own benefits.

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instrumental in forming REDA and continues to have a major hand in the region’s economic development. The city represents the majority of REDA’s funding, paying almost six times more (about $180,000 a year) than any other member. But Hentges says it’s worth it.

“The clearest No. 1 value that REDA gives members is how they have raised the marketability of our region,” he said. “Our economy here is all interrelated to other communities in our area. REDA [helps] reach out into the region.”

For Willie, some of the most valuable benefits of REDA have been its publicity, marketing and lead development. He explained that St. Peter had been interested in joining REDA for several years before officially becoming a member in 2008, and since then, the city has greatly utilized the resources available.

Meanwhile, the small city of Eagle Lake hoped to supplement its staff with more resources, Potter said, and they’ve used REDA to collect data and maintain relationships with current businesses.

“REDA offers to sit down with existing businesses to make sure they’re doing well,” he said. “I think that’s the most important part in your local economy. I think sometimes people get excited to attract new businesses, and at times we can assume the existing businesses are doing okay. REDA

has helped us out in that aspect.”

Counties are also able to join REDA. Blue Earth County has been a member for several years, while Nicollet County officially rejoined in 2016. When a county joins REDA (under the same fee structure as a city), the cities within its borders can also make use of REDA’s resources, which can be a huge benefit to smaller communities and rural areas. County staff can use those resources too, but counties are usually less interested in trying to attract a specific business to a specific community and more interested in issues facing the overall region.

“You always know what’s happening with the people who are at the table, if you’re sitting at the table,” Beal said. “By the counties participating, they know what’s happening within their cities. You take Blue Earth County: You’ve got Madison Lake, Eagle Lake, Lake Crystal, Mankato… It helps the county understand what’s happening with the regional growth.”

Blue Earth County Administrator Bob Meyer agreed.

“Our primary purpose is to understand some of the development that might be occurring in the general area and how the economic development is occurring not only in Blue Earth County but also the region in general,” he said. “We look at things that are happening and how we might partner in ways to continue to be

an attractive place to businesses that are looking to move to the area or expand in the area.”

Nicollet County Administrator Ryan Krosch said Nicollet County board members felt the same way, voting to join REDA so that the county could be more involved in the region’s economic development.

“We wanted Nicollet County to be a fuller player at the table with our other regional partners and help see continued prosperity in the region,” he said. “We felt like it was a good use of resources to help the regional marketing efforts of Blue Earth County and Nicollet County. Their website is full of data for us, and they’re able to provide marketing info, statistics, etc., on how to build our resources and data that we have and to be aware of what’s happening in the other communities. Any support we can provide our regional partners in promoting the area is a win for everybody.”

Collaboration Vs. Competition Impressively, while the communities within REDA still each look to attract businesses to their own area, there is not a sense of competition among members, but rather collaboration.

“We don’t look at it as a competition,” Krosch said. “We travel back and forth across government boundaries. There’s a spill-over effect over what’s going to

Strategic Partnership Series S T A R T I N G I N M AY

Starting in May, each issue of Connect Business Magazine will feature a unique story on a Minnesota State University, Mankato business partnership making a difference in the region. In addition, listen to KTOE the week prior to the magazine’s release to hear about the partnership live in the studio.

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Promoting strategic partnerships in Southern Minnesota

REDA: Coming to the Table

happen. There’s going to be a benefit to employment in the area, housing, schools, our community as a whole.”

Willie agreed, adding, “We know that there’s a natural mesh between our communities. It’s a regional economy, and we like to look regional. They’re our neighbors. We have a benefit from Mankato’s growth, and Mankato has a benefit from our growth.

Collaboration, working together, pooling resources, pooling talent—I don’t know how that can’t be a good thing.”

This emphasis on collaboration also helped address another concern that some members had when REDA was first beginning: the fear that Mankato would keep all the good business deals to itself. However, members from across the alliance now say that hasn’t happened in the slightest.

“Pat Hentges was great about making sure everyone was aware of what’s going on out there, to make sure we all had the opportunity,” Beal said. “Mankato’s always been the hub. What we hear about more than anything is Mankato, and the growth of Mankato. As small cities, [other members] wanted to be able to be part of the growth of the region. By becoming a REDA member, they became a member at the table with all the Mankato and North Mankato regional businesses.”

Other members have also voiced their satisfaction with how everyone is treated.

“When we joined, there were some in town that were concerned, ‘Well, Mankato will cherry-pick. GMG will give Mankato and North Mankato the better deals,’” Willie recalled. “But I wouldn’t have joined an organization if I thought that was the case. I have 100 percent trust in GMG and their staff.”

Looking Ahead According to Zierdt, REDA’s joint services agreement will be opened up sometime this spring for members to go through and possibly update its contents to better reflect the organization’s current priorities, such as a stronger emphasis on downtown development and talent retention.

“We want to make sure that we keep our work that we’re charged to do in counsel with our partners so that it’s relevant to what’s occurring in the world of economic development today,” Zierdt said. “It’s changing rapidly, when it comes to how we have to compete on a global scale and be a region that’s going to thrive. We want to make sure that we’re staying on the leading edge of the greatest tactics that are being tried. We want to be innovative and fail fast if it’s not going to work so that we can move on quickly to the next thing.”

Another question for the future is how far-reaching REDA could possibly become.

At the moment, its borders extend to

roughly the borders of the Mankato-North Mankato MSA, along with Le Sueur, which is right outside of that. However, there was recently some discussion about those borders when Waseca County voiced an interest in joining REDA about two years ago. While REDA members were also interested in collaborating with the county, the ultimate viewpoint was that REDA wasn’t ready or able to stretch itself so far.

“We’d love to do more things regionally, but we’re not sure that we’re ready,” Zierdt explained. “I don’t think any of us have an interest in just wanting to get bigger and expand just to get bigger and expand.

This REDA model is very particular, and we’re not sure that we’re ready yet to take on the additional workload. We didn’t want to strain the system. There’s no resistance to the idea of including Waseca County. We just don’t want to go before we’re ready.”

However, both Zierdt and Beal agreed that the hope is to expand REDA and add more members when the time is right.

“I would like to bring all the cities within the region into REDA,” Beal said. “I think it’s important for a city to belong to REDA. I think it has been a valuable part of the region. The cities that have participated feel a connection and a collaboration, which is so important to the success of what we’re doing.”

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HOT STARTZ!

Cheap Chics Designs When Amy Stearns and Kari Mulvihill began chatting over their lunch hour at Carlson Craft, they never thought it would lead to them opening their own business together.

Mulvihill grew up in Nicollet and has worked for Carlson Craft as a graphic designer for about five years. Stearns grew up in Arlington and has been a graphic designer at the same company for 15 years. As the two women bonded over lunch, they quickly discovered a shared love for handmade crafts and vintage décor.

Both women enjoyed hunting for unique pieces of furniture at garage sales, thrift stores and estate sales, then repurposing them into something new. They also enjoyed creating their own vintage décor, such as painted barn wood signs.

“When we find something that looks appealing to us, we can see a vision for that piece, whether it’s changing the color or updating the hardware,” Mulvihill said. “We turn that old piece that somebody might see as junk into a brand new piece of furniture.”

“We asked ourselves, ‘How can we put this passion we have into a business and create something unique?’” Stearns added.

They took a chance and rented a space at an antique store in Gaylord in April 2015. Next, they started selling their products at the Whiskey River Flea Market at St. Peter. There, they met the owner of a new boutique in St. Peter called The Refinery, who

invited them to start vending at her store in November.

The women say now they’re focusing on adding more products to their inventory and creating a functional website.

“To see how far the business has come since last April, and how much we’ve changed and the people we’ve met, it’s really great to see,” Mulvihill said. “We can’t wait to see what this year brings.”

CHEAP CHICS DESIGNS Website: 216 South Minnesota Street Telephone: (507) 934-5981 Facebook: Cheap Chics Designs

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Very New or Re-formed Businesses or Professionals New To Our Reading Area

HENDERSON

Henderson Cycle Works

SUBMITTED PHOTO

Jeff Eckerdt has been riding motorcycles since he was a kid, so it makes sense that he recently opened his own motorcycle parts and service business.

Eckerdt, who grew up in North Dakota, trained at the Motorcycle Mechanics Institute in Arizona, bringing his skills to Twin Cities Harley-Davison in Savage and Lakeville from 1989 to 1999. He moved down to Mankato after receiving a job offer from Mankato Harley-Davison, where he worked for the next 16 years as the lead technician.

Eventually, Eckerdt decided he wanted to start his own business, beginning in his garage in Kasota in 2015. He said it was easy, since he already had the necessary tools and lifts.

“It was just moving my tool box into my garage, and I was set up and ready to go,” he said. “I’d been working out of my garage for the last 17 years anyway.”

In January 2016, Eckerdt relocated to Henderson. He explained that it made sense since Henderson sits on a scenic byway and attracts so many bikers during the summer.

“It’s a good place to be, with their Tuesday roll-ins,” he said.

“There are always 15-20 bikes sitting on Main Street in the summer. If you can reach out to a thousand like minds every week, that’s a pretty good opportunity.”

Eckerdt sells parts for every American-made brand of motorcycle, as well as doing repair work, oil changes and other

services. He has no employees right now, though he said he’ll probably hire someone in the future if business continues to be as brisk as it is.

“My goal is just to service the motorcycle community with good parts, prices and services,” he said.

When he’s not running his business, he and his wife, Stacie, enjoy taking road trips on their own bikes.

HENDERSON CYCLE WORKS Address: 529 Main Street Telephone: (507) 327-7354 Facebook: Kasota Cycle Works

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HOT STARTZ!

Very New or Re-formed Businesses or Professionals New To Our Reading Area

WYSIWYG Juice Co. Kristi Schuck and Marie Farley Christensen became friends under rather difficult circumstances: the two women were attending a support group for people who lost their spouses to cancer.

In Farley Christensen’s case, her husband, Bob, had passed away nearly 10 years previously after a fight with colon rectal cancer. Schuck’s husband, Wes, had passed away only months previously from the same disease.

As the women bonded, they discovered many other similarities, from the number of kids they have (three each) to their shared passion for nutrition, particularly juicing, which both women had used to help their husbands achieve a great quality of life despite the cancer spreading inside them.

“Wes would say, ‘I feel like I can do anything. This disease has no grip on me at all,’” Schuck recalled. “I would stop at nothing to have everybody feel that way.”

In fact, she was so passionate about nutrition that she wanted to open her own juicing business. It didn’t take long for Farley Christensen to come onboard as her partner.

WYSIWYG (“What You See Is What You Get”) opened in January.

The store offers all organic, gluten-free foods from non-GMO sources. Perhaps the most popular items are their 100 percent raw juices, but there are also smoothies, salads, desserts, coffees and more, including vegan and vegetarian options.

The women say they hope to establish their current location as the WYSIWYG flagship store, before branching out into catering, distributing to local stores and gyms, and starting a franchise.

Wherever the business leads them, though, they say they’re committed to offering nutritious choices to their customers.

“Regardless of the number of your days, it really is about the quality of your days,” Farley Christensen said. “And we believe we offer something to really enhance that.”

WYSIWYG JUICE CO. Address: 527 South Front Street Telephone: (507) 387-5651 Website: wysiwygjuice.com Facebook: WYSIWYG Juice Co.

To be considered for one of three spots in the May Hot Startz!, email the editor at editor@connectbiz.com.

Businesses considered must have started—or changed greatly in form—within one year of our publishing date.

Professionals chosen must be new to our reading area.

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ASK A PROFESSIONAL

Have a business question you’d like to ask an industry expert, or a suggestion for an upcoming column? Email the editor at editor@connectbiz.com.

Andrew Thom CPA, Business Partner Abdo Eick & Meyers Mankato

Business expansions bring about an intangible energy that can be felt by all stakeholders. Employees see expanding career opportunities, shareholders see their investment rise in value, vendors see a larger customer and customers see a solid business they can count on for years to come.

But with expansion comes a challenge: Business owners must harness this energy so that expansion creates the value for which everyone is hoping. No business owner wants to see his or her business overextended or enlarged with less profit.

Fortunately, there are ways you can control the expansion of your business—and set your stakeholders up for success.

Start With A Plan You can’t get to where you want to be if you don’t know where you are going.

But a business plan isn’t a cut-and-dry blueprint. A blueprint gives step-by-step instructions on how to build something.

And there are no such instructions for building a successful business.

A business plan is much more like a football game plan. Coaches spend all week watching film to determine their opponent’s strengths and weaknesses and analyze their team’s strengths and weaknesses. Then, they put together a game plan that offers the best chance for a win; however, they must be ready to quickly adapt their game plan if circumstances change.

Like football coaches, business leaders must have a solid business plan that defines their objectives, vision and values. Business plans can take on many different forms, but a successful business plan will act as a living document that is reviewed and updated at defined intervals. Just as coaches use halftime to tweak their game plan for the second half, business leaders should use quarterly, bi-annual or annual review periods to update their business plan by taking changing forces and unexpected events into account.

5 Keys To A Successful Business Expansion Match Your People To Your Needs When a business is just starting out, everyone wears a lot of hats. For example, the shareholder is likely the CEO, COO, head of sales, budgeting, etc. But as the business expands, the demands of each position require more and more specific jobs. And this requires hiring. Prior to hiring for a new role, however, it’s critical to determine both the new role’s function and the type of person it demands. If your business is hiring a sales director to expand into new markets, for instance, the person hired for this role should be eager and able to tackle the job. Without first defining a role, you could easily end up hiring a sales director who doesn’t like to travel.

One of the most significant challenges growing businesses encounter is outgrowing the ability of some of their current leaders. This is especially difficult when these leaders have been critical to early success.

As hard as change can be, it is essential to review and update your leadership team.

Going through this exercise is key to ensuring your leaders have the ability to carry out your strategic plan.

Evaluate Your Service Providers As your business expands, you will likely outgrow service providers that played a role in your early success. Similar to outgrowing internal leadership, this can lead to very difficult situations. Adding to the challenge is the fact that these service providers often know the most intimate details of the business, and you, as a leader, will have to seek out a new trusted advisor. Often these situations are obvious and can take place in a domino effect. For instance, you may outgrow your current bank’s lending limit and apply for a loan at a new bank. One of the new bank’s loan conditions may be an audited financial statement. Your current accountant may not perform audits, which will likely cause you to seek out a new accounting firm.

Other times it’s not so obvious. In these

situations, use your business plan objectives as a measuring tool to determine whether or not your current service providers have the ability to support your business as it grows. This allows you to have more control and to plan in advance for changes.

Stay Up To Date On Laws And Regulations Expanding businesses face a constantly widening arena of laws and regulations.

Not being aware of laws and regulations— and how they may affect your business— can result in unnecessary fines, taxes and penalties, which can be a significant distraction to growth. Your service providers should be an integral component of helping you navigate this arena.

Know Your Cash Flow Expanding businesses are cash hungry machines. New employees need salaries, inventories have credit terms, loans require monthly debt service payments, and the sales process is not complete until you have collected from your customer.

With proper planning, it’s possible to look ahead and make predictions about when the business will need additional capital to bridge the gap from the time it must pay its employees and vendors to the time its customers pay their invoices. Advanced cash flow planning allows you to work with your bank and equity partners on the front end to keep a steady flow of cash during expansion.

Through proper planning, analyzing your people and service providers, knowing applicable laws and regulations, and understanding your cash flow, you can effectively harness the energy and excitement that comes with growing your business. Abdo, Eick & Meyers offers a wide range of strategic planning, consulting, tax and assurance services that can guide you through the process. For more information, visit us at aemcpas.com.

Andrew Thom joined Abdo, Eick & Meyers in 2002 and is the firm’s Manufacturing Industry Leader.

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