September 2014 BN Inc.

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INSIDE

BNinc.

Connecting Central Illinois business

jULIE bECHTEL Publisher

bErnard bEoLETTo Advertising manager

MarK PICKErInG Pantagraph editor

KarEn HansEn Editor, BN Inc.

SEPTEMBER 2014 www.pantagraph.com/bninc

DAVID PROEBER, The Pantagraph

Tim Yuhas, a 29-year veteran painter at Bob Zook Autobody, 411 Detroit Ave., Bloomington, inspects the paint quality on some test panels for a special project.

A publication of Pantagraph Publishing Inc. 301 W. Washington St. Bloomington, IL 61701 The entire contents may not be reproduced in any manner, either in whole or part, without permission of the publisher.

Advertisements are not endorsed by the publisher. The publisher is not responsible or liable for errors or omissions in any advertisement beyond the paid price of that advertisement.

New subscriptions, renewals, inquiries or change of address, mail to: BN Inc. Advertising 301 W. Washington St., Bloomington, IL 61701 To advertise or questions regarding advertising, call 800-747-7323, 309-820-3359. © 2014

by Lee Enterprises Inc. Any editorial content or advertising published is the property of Lee Enterprises Inc.

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Cover Story

FeatureS

An easier way to hire

Social media on the farm Farmers use the latest tech to get the word out to customers.

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Area business leaders work with ACT to match workers to jobs that best fit their skills.

Page 8

Economic development

BuSineSS Bio

Banking

Keeping B-N cars look nice Bob Zook Autobody’s president talks about what has kept his company going strong after 45 years.

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Economic development means different things that it did even 20 years ago.

Page 15

Six steps to take to get on the path toward achieving your financial goals.

Page 16

Small business Some lessons learned from "Shark Tank." Page 18

Baby Bust The McLean County labor force is shrinking.

Page 19

News in Brief Find out the latest happenings in the B-N area.

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on the

cover:

September

DAVID PROEBER, The Pantagraph

Brandon Spaur, Heartland Community College business analyst, looks over laptops in the department’s IT department.

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Business bio

BoB Zook AutoBody

DAVID PROEBER, The Pantagraph

Bryan Caldwell, president of Bob Zook Autobody, 411 Detroit Ave., Bloomington, moves a replacement bumper for a Porsche 911 sports car.

The shop specializes in high-end work but offers a variety of services, everything from simple auto maintenance to full chassis rebuilds.

The fixers of Central Illinois For more than 45 years, Bloomington’s Bob Zook Auto Body has helped Central Illinoisans fix the dents and dings in their vehicles. The business, which relocated to a 12,750-square-foot building at 411 Detroit Drive in 2013, recently expanded its services to offer tire, detailing and full-line mechanical maintenance services. We asked President Bryan Caldwell, who has been there 30 years, to tell us a little more.

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Tell us about the history of the business.

BZAB has always been a family business. Started by Bob Zook in the late 1960s, the business has strived to produce the highest quality work possible as well as create a memorable experience for every client we serve. Our passion is to exceed the expectations of our customers and never take for granted that people have the right to choose their body shop. This attitude produces the best out of each employee and each repair that we do.

See Zook / PAge 4

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Business bio

BoB Zook AutoBody

Zook FROM 3

How has the auto repair industry changed in recent years? How has that affected the work that you do?

The number of auto body repairs shops nationwide has dropped significantly over the last 10 years. This is mainly due to the increase in technology used in the repair process of today’s cars. “Close enough” doesn’t cut it anymore. Only those qualified and committed to the safety and welfare of their customers are willing to make the investment required to stay cutting edge in industry.

Why did Bob Zook move to its new location last year? How has that improved your business?

The former location in south Bloomington had served its purpose but it wasn’t capable of expanding to the growth the business was experiencing. Everything there was at the end of its useful life cycle.

Not to mention the obscurity of the location. We often had customers calling us on their cell phones asking where we were located and, in fact, they were driving right past the shop! We strategically withheld any advertising on our move in our first year to definitively ascertain that our growth was based solely on our new east side location not marketing!

How have cars changed? Are they easier or more difficult to repair now?

Like any business, the strength of that business is based in integrity, quality, exceptional service and a wiliness to keep current and adapt to the changes in your field. Our industry is no different.

The short answer is, yes they are more difficult and require highly trained, experienced professionals to work on them. All of which we are blessed to have. Lighter-weight sheet metal, air bags, a multitude of electronic crash avoidance sensors, aluminum parts, waterbased paints, three-stage exterior finishes, hybrids and fully electrical cars — these are a few of the challenges we take on every day.

How long does the average repair take?

Most repair jobs are in the three- to five-day category. At BZAB we have developed a system that we determine how long a repair takes by labor hour. By using this formula each repair gets the time and attention it needs.

Do you offer services outside of vehicle repair?

In building our new shop our goal was to design a facility that has four “shops” under one roof. We have our body shop and paint shop, which is separated by a 14- by 14-foot glass door, giving us the ability to keep each environment isolated from the other. Next is our two-bay detail department, also separated by a glass door from

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DAVID PROEBER, The Pantagraph

John Forrest, shop manager for Bob Zook Autobody, 411 Detroit Ave., Bloomington, finishes the detail work on a Honda truck. the body shop. This enables us to do details while not interfering with any operation going on in the body shop. Finally, we have the mechanics shop. We now offer a full-time mechanic that can do alignments, wheels and tires, timing belts, brake and exhaust work — just about anything!

How many vehicles can you work on at once at your facility?

We can easily accommodate 15 to 20 cars in production at any given time. At the present time we have not even begun to tap the full potential of what this shop can handle. The exiting part of that is that it enables us to grow at a manageable rate. What I mean by that is we just don’t want growth, we want growth that continues to produce the high level of quality that we offer. So seeing 15-plus percent in growth from a location change alone means, at a time of our choosing, we can start ramping up some marketing to help stimulate additional growth as we feel we are ready for it.

What are some of the most complex or difficult projects that you’ve seen during your tenure?

We have repaired Bentleys and Lamborghinis; these are very complex. We also just finished a restoration on a 1968 Mustang.

It started with, “Hey Bryan, can you weld floor pans in my car” to hundreds and hundreds and hundreds of hours of body, paint, mechanical, new engine, wiring harness, etc. It ended with a happy customer and a beautiful, show-quality car.

How many employees does your business have? What are the most challenging things about the auto repair business?

I love what I do! I get to work every day with the best in the business. We have the most amazing clientele in Bloomington-Normal

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Business bio

BoB Zook AutoBody

Zook FROM 4

and the surrounding area. We are richly blessed to have a culture in our shop of cooperation, respect and genuine care for each other and our customers.

Challenges??? I would have to say it would be the “outside influences” that create challenges for our industry.

These influences primarily come from the insurance industry. In DAVID PROEBER, The Pantagraph their attempt to reduce Bob Zook Autobody, moved into its “severity” on a claim, new location at 411 Detroit Ave., their methods threaten Bloomington. the quality and safety of the repair process. They dictate questionable practices to body shops and then “step back” and absolve themselves of liability by calling the body shop the”professionals” if something goes wrong.

Used suspension parts, remanufactured parts — all parts dictated by the insurance industry. Each example is highly questionable and if you are a shop that has signed up as a “preferred or program shop” with an insurance company, which we have not, these parts are routinely used on customers cars.

There can be borderline “steering” by the insurance companies at the time of a loss. You as a car owner have the legal right to take your car to any repair shop you wish. Once you clearly state that preference to the claims department, their legal obligation is to say “Yes, ma’am” or “Yes, sir.” Unfortunately, I have heard too many stories of intimidation and pressuring tactics used instead. Information, education and a positive explanation of what a consumer may face after a loss is my approach in dealing with this unfortunate challenge in the auto repair business.

What’s one thing about Bob Zook Auto Body that most people don’t know?

130 years. That number represents the years of combined service given by the current professionals at BZAB. That number only represents the combined years of each employee at BZAB, not years of experience in the field. We are blessed!

HEARt Of AMERICA REALtORS®

Commercial Real Estate Services

retail • office • apartments • industrial land • buildings • investment • lease space • business

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YouNT & LAuRAPROPERTIES PRITTS GREGGREG YOUNT: AVAILABLE HEART OF AMERICA REALTORS

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1304 E. Empire, BL

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Coldwell Banker Commercial Heart of America Realtors 802 S. Eldorado Rd Bloomington, IL 61704

Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks licensed to Coldwell Banker Real Estate LLC. Each Office is Independently Owned and Operated.

8/29/2014 11:33:16 AM

YOuNT & LAuRAPROPERTIES PRiTTS GREGGREG YOUNT: AVAILABLE HEART OF AMERICA REALTORS

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52,272 sq. ft. ‐ Excellent corner site, close to I‐55/I‐74, Wal‐Mart 5 Acres ‐ Across from Wehrenberg Theaters, minutes from I‐55/I‐74 34,078 sq. ft. ‐ At I‐55/I‐39 Interchange, near Heartland Community College.

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gyount@cbhoa.com lpritts@cbhoa.com

Coldwell Banker Commercial Heart of America Realtors 802 S. Eldorado Rd Bloomington, IL 61704

Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks licensed to Coldwell Banker Real Estate LLC. Each Office is Independently Owned and Operated.

8/29/2014 11:33:16 AM

On the cover

employment

DAVID PROEBER, The Pantagraph

Heartland Community College research librarians utilize skills common to the ACT assessment process, like reading and problem solving.

Area businesses are looking at the test to assess prospective job hires.

Hiring made easier Pat Shaver pshaver@pantagraph.com

BLOOMINGTON — At Berner Food and Beverage in Dakota, Ill., about 30 miles northwest of Rockford, making the correct hire has led to a more efficient operation.

The company, which produces dips, cheese sauces, coffee drinks and protein shakes, had current and potential employees take an ACT assessment on math, reading and information finding. They found some employees were in the wrong job.

“We’ve had a lot of success here and we basically assess everybody that walks in the door,” said Human Resources Director Paul

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September

Calvagna. “We’ve had diamonds in the rough that we discovered can do better. We’ve put them in higher positions than they ever thought they could have.”

The company is an example of what leaders in McLean County hope to accomplish through a national effort with ACT. That venture, the Certified Work Ready Community initiative, is aimed at better matching workers to jobs that best fit their skills.

The program is aimed at helping people in the workforce, whether they are just entering or have already been employed, to have another tool when they are job searching. The certificate details the person’s “real world” skills that employers can’t determine from a See HIRIng / PAGe 9

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8/29/2014 11:33:18 AM

On the cover

employment

Hiring FROM 8

high school diploma or college degree.

ACT’s National Career Readiness Certificate outlines a person’s skills. An individual must take the ACT WorkKeys assessment to be certified.

Knowing that a potential employee is work ready and having a document that outlines their skills has benefits for both employers and job seekers.

“We wouldn’t have had the success we’ve had without having the right people in the right positions and you put them in the right position by knowing their skill levels,” Calvagna said.

McLean County is the only county in Illinois and among just 16 in the nation selected to participate in ACT’s Certified Work Ready Communities’ two-year pilot project.

The program includes representatives from

DAVID PROEBER, The Pantagraph

Kelli Gibbons, Heartland College accounting assistant, uses math skills to process checks, a typical math skill assessed by the ACT.

See HIRIng / PAge 10

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8/29/2014 11:33:19 AM

On the cover

employment

DAViD PrOEBEr, The Pantagraph

Heartland Community College admissions assistant Bryn Westerhold utilizes reading skills and critical thinking measured by the ACT assessment exam as she helps students through the admissions process.

Hiring FROM 9

McLean County Community Compact, McLean County Chamber of Commerce, Bloomington-Normal Economic Development Council, McLean County Unit 5, the Regional Office of Education and Heartland Community College.

Knowing a person’s skills and abilities can leading to decreases in turnover and savings in workers’ compensation and training, said Charlie Moore, president and CEO of the chamber.

“It can also lead to the ability to add more products,” he said.

For example, if a company has been able to cut down on training, hiring and workers’ compensation costs, they could use those dollars in other areas including new product development, Moore said.

Employees who are matched to the correct job are also more efficient in their work, benefiting the company’s bottom line.

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If 92 businesses sign on and about 1,000 people get the certificate by next year, the county would officially become a work ready community.

Businesses can participate by recognizing the ACT certificate when applicants present one, and by recommending the certificate for applicants and existing employees.

So far, the five businesses supporting the program are the five organizations that are leading the initiative.

“As an employer, it is a great tool,” said Mike O’Grady, EDC vice president for external relations. “This isn’t just about those who didn’t choose a college career. Even with college, how do you apply the skills you have?”

WorkKeys tests skills in math, reading for information and locating information. A person is then ranked in one of four different skill levels: platinum, gold, silver and bronze.

SEE Hiring / PAGE 11

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8/29/2014 11:33:20 AM

On the cover

employment

DAViD PrOEBEr, The Pantagraph

Normal Community High School junior Carter Burns, 16, fills out his ACT college choices during a special assembly at the school.

Hiring

ACT WorkKeys sample question:

FROM 10

Simply knowing a person’s skill level in the hiring process can be the difference in hundreds of thousands of dollars in expenses, Calvagna said.

In 2009, for example, Berner lost about $200,000 annually from terminations and turnover. Now, that number is down to about $35,000, Calvagna said. The company, which has about 300 employees, spends about $30 for each person to take the assessment.

The assessment includes math problems that an employee might come across on the job, and asks questions about various work-related documents.

Getting local businesses on board is a challenge because the program can be challenging to explain and understand, O’Grady said.

“This is a difficult discussion in that there is no five-minute elevator speech,” O’Grady said. “One of our concerns is how do we

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Quik Call charges 18 cents per minute for long-distance calls. Econo Phone totals your phone usage each month and rounds the number of minutes up to the nearest 15 minutes. It then charges $7.90 per hour of phone usage, dividing this charge into 15-minute segments if you used less than a full hour. If your office makes 5 hours 3 minutes worth of calls this month using the company with the lower price, how much will these calls cost?

A. $39.50 B. $41.48 C. $41.87 D. $54 E. $54.54 (Answer: B)

package this to show business owners and the community about how important it is?”

The program would also help economic developers sell the See Hiring / PaGe 12

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Connecting Central Illinois business

8/29/2014 11:33:21 AM

On the cover

employment

DAVID PROEBER, The Pantagraph

Normal Community High School junior Meghan Bennett, 16, looks at instructions for filling out her ACT test during a special assembly at the school.

Hiring FROM 11

community to potential new businesses. If McLean County is a Certified Work Ready Community, it lets businesses know that there is a skilled workforce here, O’Grady said.

The ACT assessments could lead to a variety of training opportunities for even seasoned employees, said Mark DeKeersgieter, executive director of CIRBN, the Central Illinois Regional Broadband Network. The company provides Internet service to rural communities and K-12 school districts, government agencies and businesses.

The company has five employees and a few interns. DeKeersgieter said as the business grows, it expects to hire more people and

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the ACT assessment would be a benefit. If the assessment finds an employee is lacking a skill, the company can focus on training them in that area.

“I know a lot of business owners here in town that wish they had something to help them size up candidates a little better,” he said.

At Clay Dooley Tire & Auto Service Center, with two locations in Bloomington, most open positions are easy to fill, said General Manager Brian Trower.

However, a recent opening for a high-level technician took more than a month to fill. The job requires specific technical skills, including reading electrical diagrams. An ACT certificate might not be beneficial in filling auto technician positions, but would be helpful in broader jobs, he said.

“People who deal with customers, it is very important that they are well spoken, well read and able to communicate,” he said.

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8/29/2014 11:33:22 AM

Tweeting farmers

Social media use builds relationships, markets products Pat Shaver pshaver@pantagraph.com

BLOOMINGTON —“We have a limited supply of aronia berries right now. We will probably sell out tomorrow. Let us know if you’d like to place a special order,” reads a Facebook post from Dearing Country Farms.

The update is an example of how social media outlets, including Twitter and Facebook, are replacing email, phone calls and face-to-face interaction in industries like agriculture.

“We’re so busy and there’s so much going on with livestock, the kids, gardens and coordinating different things that Facebook gets the fastest response from customers,” said owner Jackie Dearing.

Farmers have become more involved in social media and have started to notice its importance, both for social interaction and to market their operations, said John Hawkins, spokesman for the Illinois Farm Bureau.

“I think we’re right on the cusp of big changes in the way we use data on the farm,” he said.

Farmers in Illinois are beginning to interact with other farmers in other countries and across the U.S., he added.

At the Dearing farm, three miles west of Bloomington, the

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DAVID PROEBER, The Pantagraph

Jackie Dearing, left, carries a basket of freshly plucked vegetables as her husband, Brad, looks for ripe tomatoes on their organic farm near Danvers. Dearing Country Farms uses social media to spread the word about their produce and livestock. interaction is more local. The small family farm grows fruit and vegetables, and produces meat, milk and eggs.

“It’s another outlet for customers to reach us efficiently and on more short notice. We have Facebook on our phones and we have our phones even when we’re out on the field,” Dearing said. “Within seconds people can find out about you, contact you and be there.”

The social media sites help build relationships with customers and fellow farmers, she said. They often update Facebook with information on fruits and vegetables, what they will have available at farmers markets and to communicate with their Community Supported Agriculture customers.

“When people feel like they know what’s going on then they feel like they are a part of it,” she said, adding that social media which has helped increase business.

Hawkins said about 5 to 10 percent of farmers in Illinois are active on social media. That is expected to continue as younger farmers take over the family farm, he said. Many of those active on Facebook and Twitter are under 45 years old and get a majority of their industry updates and market information from See fARmERS / PAGe 14

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8/29/2014 11:33:23 AM

Jackie Dearing uses Facebook to promote organic vegetables and free-range poultry and beef grown at the farm.

farmers FROM 13

their smartphones.

An example of the next generation farmer is Brett Haas, 30, who manages a Twitter account for his corn and soybean farm.

The LeRoy farmer updates the Twitter account frequently with posts about happenings on the farm, crop conditions and weather.

“Really, I’ve been amazed with how much of the agriculture network is on Twitter and how many farmers communicate with each other from all around the world,” said Haas, who manages Haas Family Farm with his father and grandfather.

He doesn’t update daily, but logs into

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Twitter to get information and news a few times a day.

“It doesn’t matter whether it is Facebook or Twitter, if you start posting about what’s going on at your farm, you’ll notice other people will follow you. You’ll find commonalities very quickly on social media and you’ll make new friends,” Hawkins said.

Willow Gramm Broker

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As younger farmers take over farm operations from their fathers and grandfathers, Haas predicts an evolution of how they communicate and interact.

“I definitely think it will become more mainstream as we move to a more mobile society,” Haas said. “It’s an easy way to get timely information out to our customers.”

MIKE FLYNN

COLDWELL BANKER COMMERCIAL HEART OF AMERICA REALTORS EMAIL: mflynn@cbhoa.com PHONE: 309.662.2124 BROKER – LAWYER – REALTOR® 40 YEARS SERVING McLEAN COUNTY

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8/29/2014 11:33:24 AM

Economic development

john grabo

is the former CEO for the Bloomington-Normal Economic Development Council.

The new realities of economic development

E

conomic development: Those organizations that try to attract new companies to a city or town. The groups that hand out incentives as the means to convince a company to move from one place to another.

Yes, that’s the way we were seen in the past. The over-arching metrics for economic development organizations (EDOs) have traditionally been job creation and new firms attracted into the region. However, the 21st century knowledge economy has changed the landscape for EDOs as well as the communities they serve.

It is no longer satisfactory, nor consistent, to measure economic development on these metrics. Instead, EDOs of the 21st century create essential added value through the specialized role in creating competitive regions that stimulate economic investment in a sustained way and completely changed how EDOs create value for their communities — a better metric than simply counting jobs. The new realities of economic development include: • Increased global competition • Less access to capital • Reduced funding at state and local levels

• Business closures and downsizings • Changing infrastructure demands • Higher unemployment, smaller workforce pools • Access to talent, innovative capacity and speed to market as key location drivers For Bloomington-Normal and McLean County our landscape is changing. As an example, State Farm’s strategic reorganization to new “hubs” puts our region at risk of a slightly smaller employment footprint from our largest employer through relocation or release of, in many cases, “knowledge workers.”

These higher-paid knowledge workers provided economic security for our region through the recession. The potential for outmigration of this talent base impacts us economically through local consumption and spending, but additionally takes talent out of our region if they relocate.

The Bloomington Normal EDC will retool its efforts beyond the traditional scope of business attraction and expansion into areas that stimulate competitiveness. These include longterm economic strategic planning; economic growth initiatives; industry cluster development; community product

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“Gerig”teed Service That Gets Results!

Becky Gannaway Gerig

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Economic development

chris haag

CFA, is a vice president and lead portfolio manager at Commerce Bank in Bloomington

Best practices for investors

I

n investing, as in life, there are no guarantees. But there are best practices you can follow that will set you on the path toward achieving your long-term financial goals. Here are six of them:

1. Have a plan, and follow it.

4. Buy low, sell high.

When you’re first starting out, it can be difficult to imagine where you want to be 50 years down the road. You may have children’s educations to finance, job loss or illness to contend with and retirement to save toward.

These and other questions about your future must be considered if you are to accumulate the savings needed to provide for your family in the way you intend. Before investing, therefore, it’s essential to look first at your overall financial picture and develop long-term goals. That means assessing the amount of money you have to invest and the length of time you are able to invest it. Only then can you formulate an investment strategy for delivering the rate of return needed to achieve your goals.

2. Know how much risk you can take.

There are many ways to reach a financial goal. The best way is the one that can deliver the returns you seek with the least amount of risk.

Generally speaking, funds that are needed within five years are generally safer in fixed-income or money market accounts. But they will also deliver lower returns. Beyond five years, you are typically better off in stocks and other equity investments. Some investors, however, have a high risk tolerance, and may choose aggressive investment strategies in hopes of obtaining higher returns. Only you can determine the amount of risk you are comfortable taking.

3. Avoid putting all your eggs in one basket.

To safeguard against risk, many investors diversify their portfolios by mixing and matching among multiple unrelated investment options. That way, when one investment goes up or down, the others help to counterbalance it. Many investors diversify by choosing a mix

grabo FROM 15

development; robust marketing and branding of our region as a business center; unique engagements with higher education and advocacy. Combined, these platforms establish a theme of competitiveness. And as a result, our metrics must be aligned with the organization we are evolving to.

Our community undoubtedly will change in the coming years

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of fixed-income and equity investments. Others combine multiple risky, but unrelated assets, together in ways that allow them to benefit at different points in a market cycle.

September

This is one of those investing principles that is easier said than done.

In reality, many people do the opposite: they buy stocks precisely because they’ve risen and then sell them when their price drops. It’s better to take emotion out of the equation and stick to basic principles.

When a stock’s value drops, that is generally the time to buy. When the price skyrockets, sell.

5. Don’t worry about what other people are doing.

Every day the financial press comes out with new investment ideas and recommendations. Remember: that’s their job. If you follow each one, you’ll be constantly changing strategy. They’re also in the business of justifying the daily ups and downs of various markets. But much of that is guesswork and has more to do with market volatility than any real changes in a stock’s value. It’s wiser to stick to your plan and focus on a company’s fundamental performance.

6. Seek professional guidance.

Investing is rarely a do-it-yourself proposition. The road to financial freedom sometimes takes unexpected twists and turns.

Those who try to navigate it alone expose themselves to unnecessary risks and miss countless opportunities. The truth is, it takes an incredible amount of time, effort and knowledge to manage your own accounts. Even if you enjoy it, you may still be wise to partner with a professional you trust. Seek a trusted financial partner who is more interested in meeting your goals than selling a particular investment. Then review your plan quarterly to make sure your asset allocations remain on track. and we must be prepared to respond with agility if we are to reap the benefits of economic growth and prosperity. Doing what worked in years past creates the risk of being left behind, jeopardizing the opportunity to reach our full potential.

This is not to suggest anything done in the past was wrong.

Instead, this repurposing accepts that the needs and expectations of robust industry investments and subsequent economic impacts are altogether different. Bold action gives us our best chance at being a sustainable economic region for the long term.

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Small Business

elizabeth binning

is director of the Illinois Small Business Development Center at Illinois State University. She can be reached by email at sbdc@ilstu.edu

'Shark Tank' lessons for every business

'T

is the season for all of our favorite shows to come back (hooray for no more reruns!) and one of my favorites is ABC’s “Shark Tank,” premiering its sixth season at 7 p.m.

Sept. 26. In case you have never seen the show, business owners and inventors go into the “shark tank” in front of five millionaire investors (the “sharks”) who invest their own money. The entrepreneurs give their elevator pitch, demonstrate the product or service and ask for an investment in return for a certain percentage of the company or product.

Back on April 15, Illinois State University graduate and Packback Books co-founder Kasey Gandham addressed an auditorium of students on ISU’s campus about his appearance on “Shark Tank.” His experience in the tank resulted in a $250,000 investment from shark Mark Cuban in exchange for a 20 percent stake in his company.

Then on May 29, Dave Alwan, founder and owner of Echo Valley Meats, provided a keynote address at the Illinois Entrepreneurship and Small Business Growth Association’s annual conference about his experience on “Shark Tank.” Although Alwan did not get a deal from the sharks, he shared his audition experience and how his appearance on the show helped his website exceed 3 million hits since the initial April 2013 air date and increase his online sales by over 600 percent.

While the show is very entertaining, it also offers some valuable lessons before you pitch your business to a potential investor or lender. Here’s what I’ve learned from watching “Shark Tank”:

Perfect your pitch

You would think that, knowing they are going on “Shark Tank” in front of a national audience, these entrepreneurs would be fully prepared with their pitch. You would be wrong. A surprising amount of time the entrepreneurs freeze up, stumble over their answers or just look like a deer in headlights.

Even if you will never be pitching your business to five millionaires on national TV, you should still practice, practice and practice your pitch to avoid cringe-worthy moments. Every business owner needs to be able to sell their ideas to customers, potential partners and even employees.

1.

Know your numbers

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This is often where the entrepreneurs trip up. The sharks bombard the entrepreneurs with questions regarding their sales, margins, cash flow and cost per customer acquisition (which Dave Alwan said he couldn’t answer and was a factor in his lack of a deal).

In addition to these basic numbers, be prepared to defend your valuation of your company. For example, if the entrepreneur asks for $100,000 in return for 10 percent equity, they are valuing their company at $1 million. The sharks frequently object to unrealistically high valuations when the entrepreneur’s sales don’t support their numbers.

2.

Some things are more valuable than money

Often you’ll hear a shark say they are “out” because they don’t have the right connections or background in a particular industry. When a shark does have connections, the savvy entrepreneur will realize that networks and industry understanding are worth giving up more equity.

For the average small business this may involve offering a little equity to an executive with an extensive network to be on your advisory board.

3.

Scale your company for growth

The sharks typically back away from business models that can’t be scaled up to larger, and therefore cheaper, production. One of a kind, laborious production models will get the sharks to drop out faster than you can say “customized.”

You’ll notice that most entrepreneurs on the show sell products, not services delivered by a human that requires additional payroll. In addition, the sharks will shy away from small niche markets that have limited mass appeal. Look for ways to offer your product or service more efficiently and to the largest audience possible.

4.

Safeguard against competitors

5.

“Is there a patent on this?” is almost a mantra on this show. The sharks look for proprietary ownership, and want to know that the product they are investing in is protected from rivals who can come in and make it cheaper and faster than the entrepreneur. Other forms of protection can be SEE Small BuSineSS/ PAGE 22

September

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Baby bust: B-N area dealing with dwindling labor force Pat Shaver pshaver@pantagraph.com

BLOOMINGTON —The labor force in McLean County is dwindling, primarily because baby boomers are leaving the work force.

“The number one reason is a demographic shift. You have more and more baby boomers exiting the work force and retiring,” said Ken Springer, vice president of the Bloomington-Normal Economic Council.

The labor force participation rate in the county dropped from 68.1 percent in 2010, to the current participation rate of 62.4 percent, Springer said. That translates to a loss of 4,500 people.

Labor force participation is defined as the number of people 16 and older who are employed or actively looking for work.

The county labor force is currently 87,500, down from 92,000 in 2010, according to the EDC. “What’s interesting is, as a community, we continue to add to the population,” he said. Between 2012 and 2013, Bloomington-Normal grew by about 2,000 people, to about 171,000.

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September

The trend is happening nationally, as well. The labor force participation nationally is 63.4 percent, down from 64.6 percent in 2010.

In addition to baby boomers, another factor that could be influencing the drop is the jobless recovery of the 2001 recession, combined with the impact of the 2007-2009 recession.

But so far, the smaller labor force hasn’t meant many problems for local employers.

“We have a good stream of workers and we interview a good number of people each week and each month,” said Ken Poirier, CEO and owner of Abbey Placements. The Bloomington staffing firm employs about 100 workers, most of them in full time temporary positions.

Integrity Technology Solutions, an IT firm in Bloomington, has also had strong interest in job openings, said Mary Bennett Henrichs, president and CEO. “Generally, we’ve had very good luck filling positions here.

We’re also able to utilize the universities and colleges for interns and often they become full-time employees,” she said.

SEE Labor Force / PAGE 21

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News in brief Business developments

landfill status suits fuel project BLOOMINGTON — A recently released Illinois Environmental Protection Agency report shows the McLean County landfill will reach its capacity in about three years, which is good news for a business that wants to divert municipal waste to the production of synthetic jet fuel.

Paradigm BioAviation had three sites in Normal under consideration for the 250,000-square-foot facility that would sit on 40 acres. The project is expected to cost $140 million.

According to the IEPA’s Illinois Landfill Projections of Disposal Capacity Report for 2013, the McLean County landfill at 2105 W. Oakland Ave., Bloomington, received 386 tons of waste a day. The landfill, operated by American Disposal of Illinois, is expected to reach capacity and need to close by June 2017.

pot business leases normal site NORMAL — Chicago-based Green Thumb Industries has leased a 100,000-square-foot building near Mitsubishi Motors North America for a potential medical marijuana cultivation center, officials confirmed July 15.

Matt Estep, part of the GTI team, said Normal was chosen because “the city and government function at a high level” and it’s centrally located.

Ben Kovler, founder of the company, said the state requires that businesses have “real estate locked up” when applying for a license.

The licensing process was finalized by state officials on July 15.

Government/taxes

City seeks Coliseum debt savings BLOOMINGTON — The city expects to save an additional $5.8 million over the next 20 years after refinancing debt related to construction of U.S. Cellular Coliseum.

The City Council unanimously approved on July 14 the planned refinancing. Including a 2011 refinancing that resulted in savings, the overall cost of the $29.5 million borrowed in 2004 will decrease from the original $63 million, 30-year cost, including principal and interest, to an estimated $49 million.

The latest savings will come from converting some of the taxable bonds to tax-exempt bonds and lower interest rates.

Zoo to expand exhibits, services BLOOMINGTON — Bloomington is moving forward with two projects expected to reduce the tax subsidy for Miller Park Zoo, but aldermen were not unanimous in their support in a July 14 vote.

Ward 1 Alderman Kevin Lower, whose ward abuts the zoo, opposed accepting a $700,000 state grant requiring no city match that will fund a parking lot expansion, a new monkey exhibit and renovations to the zoo’s entrance building.

The project is expected to grow admissions by 3 percent. The

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September

building renovations will make concessions available to both zoo and other Miller Park visitors and is expected to grow concessions and gift shop revenues by about 55 percent.

task force eyes library growth BLOOMINGTON — The Bloomington Public Library board has approved forming a joint task force with the City Council to explore details for expanding the library downtown as part of an idea that also may include buying nearby property and relocating public works facilities.

City Manager David Hales told the library board July 15 he expects the council to vote on a proposal to purchase the Sugar Creek Packing property, 410 S. East St., which is currently surrounded by city public works facilities. The library is about a block away at 205 E. Olive St., and city facilities and parking are between them.

Hales said the city could demolish the building and, in the near term, use the site for public works employee parking. In the long term, the property could be part of a library campus.

Funding set for hazardous waste drive NORMAL — The Ecology Action Center is planning for the first of two household hazardous waste drives now that an agreement has been reached by Bloomington, Normal and McLean County to fund the majority of the cost.

Collection events are planned for fall 2015 and fall 2017. Bloomington will provide $31,500 in annual funding; Normal, $21,700; and the county, $16,800.

Raising a total of $140,000 every two years, they will pay almost the entire cost of the drives, which cost about $150,000 each.

planning, zoning chief named BLOOMINGTON — The city has hired Tom Dabareiner to lead planning and code enforcement as it rebrands the department to “community development” with a focus on improved efficiency and customer service.

Dabareiner hails from Downers Grove, where he has been director of community development since 2007. While there, he managed the development of an award-winning comprehensive plan, a historical preservation survey and the development of a more efficient plan review timeline, according to a city news release.

normal oKs pollution control process NORMAL — A company wanting to turn municipal waste into synthetic jet fuel took another step forward July 21 when the Normal City Council approved a process to determine if such a facility should be allowed to locate in Normal.

The process includes a public hearing at which testimony would be accepted, a chance for the public to make written comments and a recommendation from a hearing officer. The City Council then would make a final decision based on that record and the criteria set out in the Illinois Environmental Protection Act. SEE In BrIef/ PAGE 21

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While the ordinance was prompted by Paradigm BioAviation, City Manager Mark Peterson said it’s a generic siting process that would be available to any group wanting to open a pollution control facility in Normal. That includes waste storage sites, sanitary landfills, waste disposal sites, waste transfer stations, waste treatment facilities or a waste incinerator.

Bloomington sets recycling record BLOOMINGTON — The City of Bloomington has hit an alltime high of 76 percent for people participating in its household recycling program.

About 18,500 of 24,500 eligible households are using the automated cart curbside recycling program, said Public Works Director Jim Karch.

Just three years ago, when city residents used blue recycling crates, the recycling rate was 42 percent.

Karch attributes the jump to the city providing a recycling cart at no additional charge and moving to single stream recycling. That means residents can put all of their recyclables in the same cart.

City outside legal fees soar BLOOMINGTON — The city of Bloomington paid nearly $711,000 in fees to outside legal firms last fiscal year — the same year it pushed its longtime, in-house city attorney into

retirement amid a year packed with other unusual legal issues.

The amount for fiscal year 2014, which ended April 30, exceeds the initial $250,000 budgeted for outside legal help, and is more than three times the amount spent on outside legal firms in the previous fiscal year, according to an invoice summary and city budget documents.

“It’s kind of the perfect storm in some aspects,” said Jeff Jurgens, the city’s top lawyer since June, when the City Council approved a contract with his firm, Sorling Northrup, and naming him corporate counsel.

The contract also includes legal services by Sorling Northrup attorney Angela Fyans-Jimenez, who together with Jurgens will equate to one full-time equivalent employee for the city, which also is retaining its two in-house assistant city attorneys.

HealtH Care

B-N hospitals end underwater births BLOOMINGTON — Underwater deliveries are no longer allowed at Bloomington-Normal’s two hospitals after two nationwide physicians’ organizations said immersion in water during delivery has no benefit to the mother or newborn.

However, both Advocate BroMenn Medical Center in Normal and OSF St. Joseph Medical Center in Bloomington continue to allow women to labor in tubs for pain relief. But they ask women to move to a delivery bed for the birth.

“We are following the opinion statement (by the American College of Obstetricians and Gynecologists and the American See In BrIef/ PAGe 22

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Springer said the trend is not related to specific skills.

“A few years back, there was a big nursing shortage. The country was panicking because they couldn’t find enough nurses. That’s a skills shortage. This is different, it cuts across all skill levels,” Springer said.

Along with a retiring workforce, some people are just giving up on employment.

“What’s less savory is the issue of folks who are long-term unemployed giving up on the work force,” Springer said.

The Bureau of Labor Statistics defines long-term unemployment as people who are out of work for more than 27 weeks, or 6.2 months.

Another reason is people moving out of the area. About 11 percent of the U.S. population moves every year. In addition, people who are unemployed may be leaving the labor force by going on disability. The decline could create problems at some point.

“Your labor force is the raw material in economic

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September

DAVID PrOeBer, The Pantagraph

Marc Poirier, office manager of Abbey Placements, interviews job applicant Nevos Bryant of Bloomington, as he seeks work from a local business. Poirier said the labor pool has tightened as business improves across Central Illinois. development and communities that have larger pools or workers are more competitive than communities that have less workers to draw from,” Springer said.

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News in brief in brief Academy of Pediatrics) that, unless there is clinical trial with informed consent, we’re using the labor tub for labor only and not delivery,” said Lori Harper, BroMenn director of nursing practice and obstetrics.

residents can do to reduce energy use at home such as: setting your water heater no higher than 120 degrees; washing clothes in cold water; keeping refrigerator coils clean; and using the energy saving setting on the dishwasher.

There also are tips for businesses, including: reusing the second side of paper in printers; closing blinds in the summer to reduce afternoon heat; and putting inactive computers and monitors on low-power sleep mode.

Social ServiceS

Museum unveils visitor center logo

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United Way campaign ‘critical’ BLOOMINGTON — Just months after cutting funding because of a 2013 fundraising campaign shortfall, United Way of McLean County is working to broaden its base of support for its upcoming 2014 campaign.

“This campaign is a critical one for the community,” United Way President David Taylor said July 22. Human services agencies have experienced United Way and government funding cuts and some are having trouble raising money on their own, he said.

United Way announced July 22 that it would kick off its 2014 fundraising campaign at the Aug. 22 Normal CornBelters’ game at The Corn Crib.

BLOOMINGTON — The logo for a planned new visitor center at the McLean County Museum of History epitomizes who Twin City and county officials hope to attract to the area — those who love Abraham Lincoln and Route 66.

“Crusin with Lincoln on 66,” which depicts the 16th president in a Mustang convertible, was revealed July 30 during a presentation that included the formal announcement by the Illinois Office of Tourism that it will contribute $249,000 to the visitors center project. The museum must match that amount. edUcation

iSU adds large freshman class

NORMAL — The Ecology Action Center has designed a website with information on how residents and businesses can become more energy efficient and save money.

“It acts as a clearinghouse on energy efficiency,” said Michael Brown, EAC executive director.

The site, bnenergybright.org, includes a list of free things

NORMAL — Illinois State University said in August it was expecting its largest incoming freshman class in a couple of decades.

The school has 3,500 to 3,600 incoming freshmen, compared to last year’s freshman class of just under 3,000, according to Troy Johnson, associate vice president of enrollment management.

City Manager Mark Peterson said the enrollment figures are good news for Normal’s revenue, too.

Small buSineSS

time and money into their business. Don’t ask for an investor’s money if you haven’t invested any of yours.

exclusive channels of distribution, significant branding, or trade secrets like a secret formula or ingredient.

8.

energy tips website launched

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Make the deal work for everyone

6.

Too often the entrepreneurs are focused on getting the sharks to help them, but they are forgetting to focus on what’s in it for the shark. These are investors, not philanthropists who are just giving away money. Sharks and other investors expect a return, and a healthy one at that, on their money.

7.

Put your money where your mouth is

I remind my clients repeatedly that no bank or investor will fund 100 percent of your small business. Similarly, the sharks want to see that the entrepreneur has invested both

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September

Listen

When an investor or banker gives you feedback about your business, listen. Don’t become defensive or insist that you know what’s right. Too often entrepreneurs are shot down because they argue with the sharks or don’t listen to their advice. Open yourself up to the possibilities that someone else may have a good suggestion for you.

For example, if you are selling clothing and Daymond John (founder and CEO of the FUBU clothing line) doesn’t like it, find out why. Leverage others’ advice as you move forward. In a similar vein, be personable. No one wants to partner with a defensive, unpleasant person.

Even if you will never be on “Shark Tank,” every industry has its challenges, and these lessons can help your business avoid being shark bait.

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Let us show you how we can deliver powerful results to your bottom line.

For more information on how we can help your business grow, contact your Pantagraph Consultant today.

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Our mission begins with a simple phrase - To support our members - each of whom helps to make McLean County a great place to do business!

Any success we achieve is a direct reflection of the community that we serve. To our members, volunteers, and community partners, thank you!

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